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: 07/31/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of July 31, 2008  (Unaudited)** |
|----------------------|--------------------------------------|

 

 

**DWS Short-Term Municipal Bond Fund**

 

 

|   | **Principal****Amount ($)**         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **Value ($)** |
|--------|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Municipal Bonds and Notes 95.8%** |  
**Alabama 4.0%**

 
Auburn, AL, General Obligation, 144A, 4.85%, 11/1/2011 

 

392,942

 

393,413

Jefferson County, AL, Sewer Revenue, Capital Improvement Warrants Prerefunded:

 
 

5.0%, 2/1/2041 (a) 

 

8,000,000 

 

8,628,640 

 

Series A, 5.75%, 2/1/2038 (a) 

 

5,000,000 

 

5,145,850 

 

**14,167,903**

**Alaska 1.4%**

 
Alaska, State Housing Finance Corp., Home Mortgage, Series A, AMT, 5.0%, 6/1/2036 (a) 

 

5,000,000

 

**4,990,700**

 

 

 

**Arizona 3.0%**

 
Arizona, Health Facilities Authority Revenue, Banner Health:

 
 

Series A, 5.0%, 1/1/2019

 

2,000,000 

 

2,069,340 

 

Series A, 5.0%, 1/1/2020

 

2,435,000 

 

2,503,959 

Arizona, Health Facilities, Authority Hospital System Revenue, ETM, 6.25%, 9/1/2011 (a) 

 

340,000

 

354,035

Maricopa County, AZ, Industrial Development Authority, Single Family Mortgage Revenue, Series 2B, AMT, 5.55%, 3/1/2028 

 

80,000

 

81,929

Pima County, AZ, Higher Education Revenue, Industrial Development Authority, Series A, 5.0%, 5/1/2013 (a) 

 

1,645,000

 

1,455,002

Scottsdale, AZ, Municipal Property Corp., Excise Tax Revenue, 5.0%, 7/1/2014 

 

3,320,000

 

3,632,213

Snowflake, AZ, Sales & Special Tax Revenue, 4.0%, 7/1/2013 

 

420,000

 

420,361

 

**10,516,839**

**Arkansas 1.2%**

 
Chicot County, AR, Sales & Special Tax Revenue, Sales & Use Tax, 4.15%, 7/1/2026 (a) 

 

285,000

 

269,453

Little Rock, AR, Residential Housing & Public Facility Board, Series B, Zero Coupon, 7/15/2011 

 

30,000

 

24,474

Rogers, AR, Sales & Special Tax Revenue, Series A, 4.125%, 9/1/2023 (a) 

 

3,900,000

 

3,908,229

Springdale, AR, Residential Housing & Healthcare Facility Board, Series A, 7.65%, 9/1/2011 

 

5,120

 

5,230

 

**4,207,386**

**California 3.2%**

 
California Statewide, Communities Development Authority, Multi-Family Housing Revenue, AMT, 4.7%, 10/15/2012 

 

755,000

 

772,320

California Statewide, Communities Development Authority, Multi-Family Housing Revenue, Citrus Gardens Apartments Project, 4.25%, 7/1/2012 

 

250,000

 

254,170

Carlsbad, CA, Multi-Family Housing Revenue, Series A, AMT, 3.7%, 2/1/2013 

 

435,000

 

436,936

Delta Counties, CA, Home Mortgage Finance Authority, Single Family Mortgage Revenue, Pacific Mortgage-Backed Securities, Series A, AMT, 6.7%, 6/1/2024 (a) 

 

10,000

 

10,148

Northern California, Gas Authority Project No. 1 Revenue, 1.758% *, 7/1/2019 

 

8,000,000

 

6,320,000

Placer County, CA, Water Agency, Middle Fork Project, 3.75%, 7/1/2012 

 

160,000

 

158,502

San Diego, CA, Housing Authority Multi-Family Housing Revenue, Hollywood Palms Apartments, Series C, AMT, 5.1%, 11/1/2013 

 

785,000

 

801,517

San Joaquin County, CA, Certificates of Participation, General Hospital Project, 5.25%, 9/1/2014 (a) 

 

2,475,000

 

2,564,075

 

**11,317,668**

**Colorado 2.1%**

 
Arvada, CO, Industrial Development Authority, Wanco, Inc. Project, AMT:

 
 

144A, 5.6%, 12/1/2012, US Bank NA (b) 

 

245,000 

 

245,399 

 

144A, 5.8%, 12/1/2017, US Bank NA (b) 

 

355,000 

 

355,209 

Aurora, CO, Industrial Development Revenue, Series A, 5.375%, 12/1/2011 

 

365,000

 

365,241

Central Platte Valley, CO, Core City, General Obligation, Metropolitan District, Series A, 5.0%, 12/1/2031, BNP Paribas (b) 

 

1,750,000

 

1,796,760

Colorado, Health Facilities Authority Revenue, Catholic Health, Series C-6, 3.95%, 9/1/2036 

 

1,610,000

 

1,634,005

Colorado, Housing & Finance Authority, Multi-Family Housing Program, Series C, AMT, 3.95%, 10/1/2008 

 

765,000

 

766,867

Colorado, Housing Finance Authority, Single Family Program, Series B-2, AMT, 6.4%, 11/1/2024 

 

50,000

 

51,637

Colorado, Single Family Housing Revenue, Housing & Finance Authority:

 
 

AMT, 5.0%, 5/1/2032 (a) 

 

1,035,000 

 

1,054,272 

 

Series A-2, AMT, 7.25%, 5/1/2027

 

60,000 

 

60,997 

El Paso County, CO, Public Housing Revenue, Series A, AMT, 4.1%, 12/20/2012 

 

350,000

 

351,830

Pueblo County, CO, Certificates of Participation, ETM, 6.25%, 12/1/2010 

 

705,000

 

734,843

 

**7,417,060**

**Connecticut 1.4%**

 
Stamford, CT, Housing Authority, Multi-Family Revenue, Fairfield Apartments Project, AMT, 4.75%, 12/1/2028 

 

5,125,000

 

**5,129,561**

 

 

 

**District of Columbia 0.1%**

 
District of Columbia, Housing Finance Agency, Multi-Family Housing Revenue, Rockburne Estates, AMT, 5.2%, 2/20/2009 

 

30,000

 

30,185

District of Columbia, Housing Finance Agency, Multi-Family Housing Revenue, Stanton Glenn Apartments, AMT, 5.6%, 11/1/2010 

 

460,000

 

474,784

 

**504,969**

**Florida 4.7%**

 
Brevard County, FL, Housing Finance Authority, Homeowner Mortgage Revenue, Series B, 6.5%, 9/1/2022 

 

127,000

 

133,602

Broward County, FL, Airport Systems Revenue, AMT, Series E, 5.25%, 10/1/2012 (a) 

 

6,000,000

 

6,066,960

Florida, Citizens Property Insurance Corp., High Risk Account, Series A, 5.0%, 3/1/2009 (a) 

 

3,000,000

 

3,031,410

Hillsborough County, FL, Special Assessment Revenue, 5.0%, 3/1/2014 (a) 

 

2,135,000

 

2,261,627

Miami-Dade County, FL, School Board, Certificates of Participation, Series C, 4.0%,   10/1/2008 (a) 

 

2,625,000

 

2,632,665

South Miami, FL, Health Facilities Authority, Hospital Revenue, Baptist Health South Florida Group, 5.0%, 8/15/2021 

 

2,500,000

 

2,521,650

 

**16,647,914**

**Georgia 4.5%**

 
Augusta-Richmond County, GA, Coliseum Revenue Authority, ETM, 6.3%, 2/1/2010 

 

90,000

 

93,539

Carroll County, GA, School District, Sales Tax, 5.0%, 4/1/2010 

 

2,000,000

 

2,093,440

Cobb County, GA, Housing Authority, Multi-Family Housing Revenue, Oakley Run Apartments Project, 4.75%, 3/1/2032 

 

2,745,000

 

2,794,382

De Kalb County, GA, Housing Authority, Multi-Family Housing Revenue, Park Briarcliff Apartments, Series A, 4.55%, 12/1/2028 

 

250,000

 

251,675

Decatur, GA, Industrial Development Revenue, Downtown Development Authority, 5.15%, 11/1/2008 

 

765,000

 

770,929

Douglas County, GA, Housing Authority, Multi-Family Housing Revenue, Millwood Park Apartments, AMT, 5.1%, 1/1/2009 

 

35,000

 

35,253

Georgia, Main Street Natural Gas, Inc., Gas Project Revenue:

 
 

Series A, 5.0%, 3/15/2009

 

3,000,000 

 

3,032,400 

 

Series A, 5.0%, 3/15/2010

 

4,000,000 

 

4,063,560 

Monroe County, GA, Development Authority Pollution Control Revenue, Georgia Power Co. Plant Scherer, First Series, 4.5%, 7/1/2025 

 

2,640,000

 

2,639,208

 

**15,774,386**

**Hawaii 1.5%**

 
Hawaii, State General Obligation, Series DK, 5.0%, 5/1/2012 

 

4,000,000

 

4,287,440

Hawaii, State Housing Finance & Development Corp., Single Family Mortgage Revenue, Series A, AMT, 5.2%, 7/1/2012 

 

1,075,000

 

1,095,790

 

**5,383,230**

 

 

**Idaho 0.4%**

 
Idaho, Housing Agency, Single Family Mortgage, AMT:

 
 

Series G-2, 5.75%, 1/1/2014

 

20,000 

 

20,247 

 

Series E, 5.95%, 7/1/2020

 

60,000 

 

61,631 

Idaho, Housing Agency, Single Family Mortgage, Class III, AMT:

 
 

5.1%, 7/1/2023

 

215,000 

 

205,052 

 

5.15%, 7/1/2023

 

510,000 

 

489,462 

 

5.4%, 7/1/2021

 

120,000 

 

119,552 

 

5.95%, 7/1/2019

 

460,000 

 

474,665 

Idaho, Housing Agency, Single Family Mortgage, Class III, AMT, Series H-2:

 
 

5.1%, 7/1/2020

 

105,000 

 

106,929 

 

5.85%, 1/1/2014

 

100,000 

 

102,594 

 

**1,580,132**

 

 

 

**Illinois 6.8%**

 
Chicago, IL, O'Hare International Airport Revenue, Series A, 5.0%, 1/1/2015 (a) 

 

4,500,000

 

4,788,990

Chicago, IL, Single Family Mortgage Revenue, AMT, 6.3%, 9/1/2029 

 

215,000

 

225,619

Huntley, IL, Project Revenue, Installment Contract, 5.85%, 12/1/2015 

 

1,145,000

 

1,192,323

Huntley, IL, Sales & Special Tax Revenue, Prerefunded, 7.75%, 3/1/2029 

 

4,588,000

 

4,836,165

Illinois, Health Facilities Authority Revenue, 5.25%, 11/15/2013 (a) 

 

1,000,000

 

1,017,030

Illinois, Health Facilities Authority, Midwest Group Ltd., 5.375%, 11/15/2008 (a) 

 

445,000

 

444,346

Lake County, IL, Forest Preserve District, Series A, 2.365% *, 12/15/2020 

 

5,000,000

 

4,350,000

McCook, IL, Hospital & Healthcare Revenue, British Home Project, 4.25%, 12/1/2014, LaSalle Bank NA (b) (c) 

 

755,000

 

756,163

McLean & Woodford Counties, IL, Community Unit School District No. 5, Prerefunded, 6.375%, 12/1/2016 (a) 

 

4,820,000

 

5,369,094

Normal, IL, Multi-Family Housing Revenue, AMT, 3.75%, 12/1/2013 

 

1,035,000

 

1,023,573

 

**24,003,303**

**Indiana 4.0%**

 
Indiana, Bond Bank Revenue, State Revolving Fund, Series B, Prerefunded, 5.25%, 8/1/2019 

 

4,000,000

 

4,270,200

Indiana, Health Facilities Funding Authority, Series A, ETM, 5.75%, 9/1/2015 

 

2,930,000

 

2,984,615

Indiana, Health Facility Financing Authority Revenue, Ascension Health, Series A-1, 5.0%, 11/1/2027 

 

1,000,000

 

1,040,180

Indiana, Transportation Finance Authority, Highway Revenue, Series A, Prerefunded, 5.25%, 6/1/2016 (a) 

 

5,000,000

 

5,481,700

Tipton, IN, School District General Obligation, School Building Corp., 5.55%, 7/15/2012 (a) 

 

335,000

 

355,894

Wells County, IN, Hospital Authority Revenue, ETM, 7.25%, 4/1/2009 

 

15,000

 

15,379

 

**14,147,968**

**Kansas 0.4%**

 
Sedgwick & Shawnee Counties, KS, Single Family Mortgage Revenue, Series B-4, AMT, 4.25%, 6/1/2023 

 

855,000

 

844,945

Shawnee, KS, Multi-Family Housing Revenue, Prairie Lakes Apartments, AMT, 4.35%, 2/1/2013 

 

685,000

 

683,836

 

**1,528,781**

**Kentucky 1.0%**

 
Kentucky, Economic Development Finance Authority Revenue, Catholic Health, Series 04-D, 3.5%, 5/1/2034 

 

1,000,000

 

1,005,120

Kentucky, Housing Corp. Revenue, Series G, AMT, 5.0%, 7/1/2030 

 

2,465,000

 

2,465,641

Louisville, KY, Multi-Family Housing Revenue, 5.15%, 7/1/2009 

 

10,000

 

10,132

 

**3,480,893**

**Louisiana 0.2%**

 
Louisiana, State Health Education Authority, Lease Rent Revenue, Tulane University Medical Center, ETM, 7.875%, 7/1/2009 

 

45,000

 

47,251

Orleans, LA, Water & Sewer Revenue, Levee District, 5.95%, 11/1/2015 (a) 

 

530,000

 

533,726

 

**580,977**

**Maine 0.3%**

 
Maine, Finance Revenue Authority, Electronic Rate Stabilization, AMT, 5.2%, 7/1/2018 (a) 

 

1,005,000

 

**986,950**

**Maryland 3.7%**

 
Maryland, State Community Development Administration, Department of Housing & Community Development, Series E, AMT, 5.5%, 3/1/2032 

 

1,970,000

 

1,982,628

Maryland, State Department of Transportation & Conservation, 5.0%, 2/15/2018 

 

5,000,000

 

5,453,700

Maryland, University of Maryland, Systems Auxiliary Facility & Tuition Revenue, Series A, 5.0%, 4/1/2012 

 

5,000,000

 

5,366,150

Prince Georges County, MD, Housing Authority, Single Family Mortgage Revenue:

 
 

Series A, AMT, 3.9%, 8/20/2012

 

265,000 

 

267,411 

 

Series A, AMT, 5.6%, 12/1/2034

 

70,000 

 

71,286 

 

Series A, AMT, 7.0%, 8/1/2033

 

70,000 

 

71,987 

 

 

 

 

Series A, AMT, 7.4%, 8/1/2032

 

35,000 

 

35,667 

 

**13,248,829**

**Massachusetts 0.7%**

 
Massachusetts, Bay Transportation Authority Revenue, Series A, Prerefunded, 5.25%, 7/1/2030 

 

2,170,000

 

2,292,453

Massachusetts, Development Finance Agency, Curry College, Series A, 4.6%, 3/1/2009 (a) 

 

25,000

 

25,163

 

**2,317,616**

**Michigan 1.2%**

 
Detroit, MI, Sewer Disposal Revenue, Series D, 2.47% *, 7/1/2032 (a) 

 

4,105,000

 

3,284,000

Detroit, MI, Water Supply System, ETM, 6.25%, 7/1/2012 (a) 

 

150,000

 

161,520

Michigan, Strategic Fund, Limited Obligation Revenue, United Jewish Project, 5.75%, 1/1/2012, Bank One NA (b) 

 

800,000

 

792,640

 

**4,238,160**

**Minnesota 0.5%**

 
Coon Rapids, MN, Multi-Family Housing Revenue, Brown Meadow Manor, Series A, AMT, 3.875%, 7/1/2014 

 

650,000

 

627,120

Minnesota, Single Family Housing Revenue, Housing Finance Agency, 5.2%, 1/1/2017 

 

1,160,000

 

1,195,890

 

**1,823,010**

**Mississippi 0.3%**

 
Corinth & Alcorn County, MS, Hospital Revenue, Magnolia Regional Health Center, Series A, 5.0%, 10/1/2008 

 

420,000

 

420,975

Mississippi, Single Family Housing Revenue, AMT, 6.3%, 6/1/2031 

 

630,000

 

654,072

 

**1,075,047**

**Missouri 3.6%**

 
Brentwood, MO, Tax Increment Revenue, 4.7%, 4/1/2019 (a) 

 

135,000

 

138,129

Jackson County, MO, Hospital & Healthcare Revenue, St. Joseph Hospital, ETM, 7.5%, 6/1/2010 

 

430,000

 

457,047

Kansas City, MO, Core City General Obligation, Streetlight Project, Series A, Prerefunded, 5.75%, 2/1/2012 

 

100,000

 

106,296

Missouri, Bi-State Development Agency, Illinois Metropolitan District Revenue, Metrolink, Series A, 3.95% , 10/1/2035, JPMorgan Chase Bank (b) 

 

2,000,000

 

2,022,360

Missouri, Development Finance Board, Greater St. Louis Project, 4.9%, 9/1/2010, Bank of America NA (b) 

 

685,000

 

686,240

Missouri, Housing Development Community, Single Family Mortgage, Series C, 6.55%, 9/1/2028 

 

105,000

 

109,698

Missouri, Housing Development Community, Single Family Mortgage, AMT, 7.45%, 9/1/2031 

 

130,000

 

133,840

Missouri, Single Family Housing Revenue, Housing Development, Series B-2, AMT, 5.75%, 3/1/2019 

 

15,000

 

15,163

Missouri, Single Family Housing Revenue, Housing Development Community Mortgage, Series C, AMT, 7.25%, 9/1/2026 

 

35,000

 

35,635

Missouri, State Highways & Transit Commission, State Road Revenue, Series A, Prerefunded, 5.0%, 2/1/2014 

 

5,000,000

 

5,353,600

Missouri, State Housing Development, Commission Single Family Mortgage Revenue, Homeownership Loan Program, Series C, AMT, 5.6%, 9/1/2035 

 

2,285,000

 

2,304,514

St. Charles County, MO, Industrial Development Authority, Health Care Facilities Revenue, Garden View Care Center Project, AMT, 5.4%, 11/15/2016, US Bank NA (b) 

 

1,480,000

 

1,486,497

 

**12,849,019**

**Nebraska 1.0%**

 
Clay County, NE, Industrial Development Revenue, Hybrids Cooperative Project, AMT:

 
 

4.75%, 3/15/2009, US Bank NA (b) 

 

215,000 

 

216,071 

 

5.25%, 3/15/2014, US Bank NA (b) 

 

1,610,000 

 

1,611,014 

Fillmore County, NE, Industrial Development Revenue, Omalley Grain, Inc. Project, AMT:

 
 

4.7%, 12/1/2008, US Bank NA (b) 

 

190,000 

 

190,653 

 

5.0%, 12/1/2010, US Bank NA (b) 

 

45,000 

 

45,098 

 

5.0%, 12/1/2011, US Bank NA (b) 

 

180,000 

 

179,361 

 

 

 

 

5.1%, 12/1/2012, US Bank NA (b) 

 

135,000 

 

135,070 

 

5.2%, 12/1/2013, US Bank NA (b) 

 

195,000 

 

195,090 

Nebhelp, Inc., NE, Student Loan Program, AMT, 5.875%, 6/1/2014 (a) 

 

955,000

 

965,629

 

**3,537,986**

**Nevada 0.5%**

 
Nevada, Housing Division, Multi Unit Housing Revenue:

 
 

Series C-2, AMT, 5.2%, 4/1/2030

 

80,000 

 

80,407 

 

Series B-1, 5.25%, 10/1/2017

 

365,000 

 

368,548 

Nevada, Housing Division, Single Family Mortgage, Series A, AMT, 5.15%, 10/1/2014 

 

30,000

 

30,347

Nevada, Single Family Housing Revenue, Housing Division, Series A-2, AMT, 5.2%, 10/1/2018 

 

200,000

 

201,846

Washoe, NV, Public Safety Training, 4.875%, 9/1/2010 (a) 

 

1,055,000

 

1,056,910

 

**1,738,058**

**New Hampshire 0.0%**

 
New Hampshire, Housing Finance Authority, AMT, 6.125%, 1/1/2018, Landesbank Hessen-Thuringen (b) 

 

15,000

 

**15,442**

**New Jersey 6.1%**

 
Gloucester County, NJ, Public Improvement Authority, Electric Mobility Project, AMT, 5.0%, 11/1/2010 

 

215,000

 

215,873

Keansburg, NJ, Elderly Housing Mortgage Revenue, HUD Section 8, 5.625%, 3/1/2011 

 

130,000

 

130,077

Livingston, NJ, School District Revenue, Board of Education, 144A, 3.8%, 8/1/2014 

 

914,441

 

914,560

New Jersey, Economic Development Authority Revenue, School Facilities Construction:

 
 

Series W, 5.0%, 3/1/2012

 

2,375,000 

 

2,514,460 

 

Series J-4, 5.0%, 9/1/2029 (a) 

 

5,000,000 

 

5,311,300 

New Jersey, State Transportation Trust Fund Authority:

 
 

Series C, ETM, 5.0%, 6/15/2011

 

5,000,000 

 

5,324,200 

 

Series A, Prerefunded, 6.125%, 6/15/2015

 

6,650,000 

 

7,122,948 

 

**21,533,418**

**New Mexico 0.1%**

 
New Mexico, Mortgage Finance Authority, Second Mortgage Program, AMT, 144A, 6.5%, 1/1/2018 

 

140,100

 

142,232

New Mexico, Student Loans Revenue, Series IV-B, AMT, 7.45%, 3/1/2010 

 

210,000

 

210,000

 

**352,232**

**New York 5.6%**

 
New York, Tobacco Settlement Financing Corp.:

 
 

Series B, 5.0%, 6/1/2011

 

4,500,000 

 

4,730,535 

 

Series C-1, 5.25%, 6/1/2013

 

14,595,000 

 

14,617,914 

New York, NY, Higher Education Revenue, Dormitory Authority, Series A, 5.25%, 5/15/2013 

 

585,000

 

635,012

 

**19,983,461**

**North Carolina 1.6%**

 
North Carolina, Housing Finance Agency, Home Ownership, Series 22-A, AMT, 5.5%, 7/1/2036 

 

3,100,000

 

3,120,522

North Carolina, Municipal Power Agency, Number 1 Catawba Electric Revenue, Series A, 5.25%, 1/1/2013 

 

2,500,000

 

2,646,025

 

**5,766,547**

**Ohio 3.3%**

 
Bowling Green, OH, Multi-Family Revenue, Village Apartments, 4.75%, 9/20/2011 

 

140,000

 

145,229

Buckeye, OH, Tobacco Settlement Financing Authority, Series A-1, 5.0%, 6/1/2015 

 

4,500,000

 

4,370,445

Franklin County, OH, Multi-Family Revenue, Lincoln Park Project, AMT, 5.65%, 4/20/2013 

 

210,000

 

217,904

Hancock County, OH, Multi-Family Revenue, Crystal Glen Apartments, Series C, AMT, 5.05%, 1/1/2010, Federal Home Loan Bank (b) 

 

465,000

 

465,288

Mason, OH, Health Care Facilities, MCV Health Care Facilities Project, 5.25%, 2/20/2020 

 

45,000

 

45,707

 

 

 

Montgomery County, OH, Catholic Health Revenue, Series C-2, 4.1%, 10/1/2041 

 

1,135,000

 

1,162,285

Ohio, American Municipal Power, Inc., Electricity Purchase Revenue, Series A, 5.0%, 2/1/2011 

 

5,000,000

 

5,056,850

Ohio, Housing Finance Agency, Single Family Mortgage Revenue, Series A, 5.75%,     4/1/2016 (a) 

 

35,000

 

35,048

Ohio, Water & Sewer Revenue, ETM, 7.25%, 12/1/2008 (a) 

 

65,000

 

66,041

 

**11,564,797**

**Oklahoma 0.1%**

 
Bryan County, OK, Economic Development Revenue Authority, Single Family Mortgage, Series A, 8.6%, 7/1/2010 

 

35,000

 

28,112

Comanche County, OK, Home Finance Authority Mortgage Revenue, Multi-Family FHA Diplomat, 5.2%, 12/1/2013 

 

410,000

 

420,225

 

**448,337**

**Pennsylvania 5.7%**

 
Allentown, PA, Hospital Authority, ETM, 8.0%, 3/1/2009 

 

30,000

 

30,984

Chester, PA, Core City General Obligation, Series B, 5.8%, 12/1/2013 (a) 

 

1,055,000

 

1,050,368

Delaware County, PA, College Revenue Authority, Eastern College, Series B, 4.95%, 10/1/2008 

 

345,000

 

345,669

Langhorne, PA, Hospital Revenue, Franciscan Health, St. Mary's Hospital Authority, Series A, 7.0%, 6/15/2015 (a) 

 

1,770,000

 

1,788,567

Pennsylvania, Financing Authority Revenue, AMT, 5.0%, 6/1/2010 (a) 

 

1,090,000

 

1,102,143

Pennsylvania, Higher Educational Facility, Gwynedd Mercy College, ETM, 5.0%, 11/1/2008 

 

30,000

 

30,238

Pennsylvania, Housing Finance Agency, Single Family Mortgage, Series 90A, AMT, 5.0%, 10/1/2035 

 

2,125,000

 

2,119,517

Pennsylvania, State General Obligation:

 
 

Third Series, 5.0%, 9/1/2013 (a) 

 

5,000,000 

 

5,433,700 

 

First Series, 5.0%, 1/1/2014 (a) 

 

5,000,000 

 

5,346,550 

Pennsylvania, TJHU System Project, 6.0%, 1/11/2011 (c) 

 

600,535

 

610,378

Philadelphia, PA, Industrial Development Revenue, Authority for Individual Development Senior Living Revenue:

 
 

Series A, 4.7%, 7/1/2013

 

220,000 

 

215,785 

 

Series C, 4.7%, 7/1/2013

 

210,000 

 

205,976 

 

Series E, 4.7%, 7/1/2013

 

245,000 

 

240,306 

Philadelphia, PA, Multi-Family Housing Revenue, Series B, AMT, 4.5%, 10/1/2013 

 

920,000

 

912,217

Pittsburgh, PA, Industrial Development Revenue, Urban Redevelopment Authority, Series A, 144A, 6.0%, 12/1/2011, PNC Bank NA (b) 

 

285,000

 

287,779

York County, PA, Housing Redevelopment Mortgage Corp., Series A, 6.875%, 11/1/2009 

 

305,000

 

305,644

 

**20,025,821**

**Puerto Rico 4.1%**

 
Commonwealth of Puerto Rico, Government Development Bank, Series B, 5.0%, 12/1/2008 

 

10,000,000

 

10,073,200

Commonwealth of Puerto Rico, Public Improvement, Series A, 5.0%, 7/1/2011 

 

930,000

 

957,137

Puerto Rico, Municipal Finance Agency, Series A, 5.0%, 8/1/2009 

 

3,500,000

 

3,568,110

 

**14,598,447**

**South Carolina 1.1%**

 
South Carolina, State Public Service Authority Revenue, Series D, 5.25%, 1/1/2014 (a) 

 

3,500,000

 

**3,763,375**

**South Dakota 0.2%**

 
South Dakota, Hospital & Healthcare Revenue, 5.4%, 8/1/2013 (a) 

 

810,000

 

**820,911**

**Tennessee 2.3%**

 
Sullivan County, TN, Health Educational & Housing Facilities Board, Multi-Family Housing Authority, Maple Oaks Apartment Project, AMT, 3.0%, 12/1/2009 

 

75,000

 

75,026

Tennessee, Energy Acquisition Corp., Gas Revenue, Series A, 5.0%, 9/1/2009 

 

5,000,000

 

5,062,050

Tennessee, Housing Development Agency, Homeownership Program, AMT, Series 2006-3, 5.75%, 7/1/2037 

 

2,805,000

 

2,846,682

 

**7,983,758**

 

 

 

**Texas 7.2%**

 
Bexar County, TX, Single Family Housing Revenue, Single Family Mortgage, Series C, 5.5%, 3/1/2019 (c) 

 

512,187

 

519,890

Harris County, TX, Hospital & Healthcare Revenue, Health Facilities Development Corp., Series A, 6.0%, 6/1/2009 (a) 

 

210,000

 

214,859

Harris County, TX, Hospital District Mortgage Revenue, 7.4%, 2/15/2010 (a) 

 

1,100,000

 

1,148,356

Houston, TX, Utility System Revenue, Series C-2B, 5.0%, 5/15/2034 

 

1,630,000

 

1,699,422

North Texas, Tollway Authority Revenue:

 
 

4.125%, 11/19/2008

 

2,100,000 

 

2,101,827 

 

Series G, 5.0%, 1/1/2038

 

2,860,000

 

2,895,950

 

Series E-2, 5.25%, 1/1/2038

 

5,000,000 

 

5,110,200 

Tarrant County, TX, Multi-Family Housing Revenue, Housing Financial Corp., Series A, AMT, 3.7%, 12/20/2013 

 

680,000

 

658,764

Tarrant County, TX, Public Housing Revenue, Housing Financial Corp., Series A, AMT, 3.85%, 1/20/2013 

 

645,000

 

646,361

Texas, Multi-Family Housing Revenue, Wintergreen Project, AMT, 4.85%, 9/20/2012 

 

105,000

 

108,161

Texas, Municipal Gas Acquisition & Supply Corp. II, Gas Supply Revenue, 2.56% *, 9/15/2017 

 

7,000,000

 

6,641,250

Texas, Sabine River Authority, Series A, 6.875%, 9/1/2008 

 

500,000

 

501,890

Wichita Falls, TX, Water & Sewer Revenue, Prerefunded, 5.375%, 8/1/2024 (a) 

 

3,000,000

 

3,227,250

 

**25,474,180**

**Utah 1.2%**

 
Intermountain Power Agency, UT, Power Supply Revenue, Series A, ETM, 6.15%,       7/1/2014 (a) 

 

245,000

 

257,348

Utah, Housing Finance Agency, Single Family Mortgage:

 
 

Series A-2, Class III, AMT, 5.05%, 7/1/2012

 

5,000 

 

5,094 

 

Series A-2, Class III, AMT, 5.2%, 7/1/2011

 

20,000 

 

20,387 

 

Series B-2, Class III, AMT, 5.25%, 7/1/2011

 

20,000 

 

20,397 

 

Series A-2, Class II, AMT, 5.4%, 7/1/2016

 

50,000 

 

51,064 

 

Series C, Class III, AMT, 6.25%, 7/1/2014

 

115,000 

 

118,464 

Utah, Single Family Housing Revenue, Series D-2, AMT, 5.0%, 7/1/2018 

 

815,000

 

810,248

Utah, Single Family Housing Revenue, Mortgage Revenue, Series G, AMT, 4.875%, 1/1/2019 

 

1,680,000

 

1,712,290

Utah, Single Family Housing Revenue, Single Family Mortgage, AMT, 3.875%, 7/1/2014 

 

1,140,000

 

1,144,127

 

**4,139,419**

**Vermont 0.4%**

 
Vermont, Housing Finance Agency, Single Family, Series 23, AMT, 5.0%, 5/1/2034 (a) 

 

1,415,000

 

**1,400,935**

**Virginia 0.1%**

 
Virginia, Water & Sewer Systems Revenue, Series B, 8.7%, 11/1/2011 

 

275,000

 

**276,496**

**Washington 1.1%**

 
Washington, Energy Northwest Electric Revenue, Project No. 3, Series A, 5.5%, 7/1/2013 

 

3,500,000

 

3,845,065

Washington, Housing Finance Authority, Nonprofit Housing Revenue, Series B, 5.1%, 7/1/2010, US Bank NA (b) 

 

60,000

 

60,429

 

**3,905,494**

**Wisconsin 3.9%**

 
Wisconsin, Housing & Economic Development Authority, Home Ownership Revenue, Series D, AMT, 4.875%, 3/1/2036 

 

3,150,000

 

3,137,085

Wisconsin, State General Obligation, Series A, Prerefunded, 5.75%, 5/1/2020 (d)

 

10,000,000

 

10,603,100

 

**13,740,185**

**Total Municipal Bonds and Notes** (Cost $341,073,931)

 

**338,987,600**

 

**Open End Investment Company 2.2%**

 
BlackRock Liquidity Funds MuniCash Portfolio, 2.2% ** (Cost $7,687,714)

 

7,687,714

 

**7,687,714**

 

 

 

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $348,761,645) †

98.0

 

**346,675,314**

**Other Assets and Liabilities, Net**

2.0

 

**7,151,017**

**Net Assets**

100.0

 

**353,826,331**

***

*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 July 31, 2008.*

****

*Current yield; not a coupon rate.*

*†*

*The cost for federal income tax purposes was $348,767,128.  At July 31, 2008, net unrealized depreciation for all securities based on tax cost was $2,091,814.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $3,692,952 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $5,784,766.*

*(a)*

*Bond is insured by one of these companies:*

***Insurance Companies*****

***As a % of Total***

***Investment Portfolio*****

 
*American Capital Access***

*1.2***

 
*AMBAC Financial Group, Inc.***

*3.2***

 
*Financial Guaranty Insurance Company***

*5.8***

 
*Financial Security Assurance, Inc.***

*10.6***

 
*MBIA Corp.***

*7.4***

 
*Radian Asset Assurance, Inc.***

*0.1***

 
* *

* *

 
*(b)*

*Security incorporates a letter of credit from a major bank.*

*(c)*

*Taxable issue*

*(d)*

*At July 31, 2008, this security has been pledged, in whole or in part, as collateral for open interest rate swaps*

*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.*

*AMT: Subject to alternative minimum tax.*

*ETM: Bonds bearing the description ETM (escrow to maturity) are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on bonds so designated.*

*Prerefunded: Bonds which are prerefunded are collateralized usually by US Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.*

*At July 31, 2008, open interest rate swaps contracts were as follows:*

**Effective/****Expiration****Dates**

 

**Notional****Amount ($)**

 

**Cash Flows Paid****by the Fund**

 

**Cash Flows****Received by****the Fund**

 

**Unrealized****Appreciation/****(Depreciation) ($)**

 

11/7/2008

11/7/2015

 

14,375,0001

 

Fixed — 3.219%

 

Floating — BMA

 

48,452

 
2/19/2009

2/19/2020

 

16,200,0001

 

Fixed — 3.721%

 

Floating — BMA

 

(174,800)

 
**Total net unrealized depreciation**

**(126,348)**

 
 

*Counterparty:*
 
*1*

*Citigroup Global Markets, Inc.*

 

*BMA: Represents the Bond Market Association*

 

**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 Short-Term Municipal Bond Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

September 16, 2008

 

 

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

 

Registrant: 

DWS Short-Term Municipal Bond Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

September 16, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        September 16, 2008

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