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 High Income Plus Fund**

 

 

|   | **Principal****Amount ($) (a)** |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Value ($)** |
|--------|---------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Corporate Bonds 87.4%**       |  
**Consumer Discretionary 11.1%**

 
AMC Entertainment, Inc., 8.0%, 3/1/2014  

 

 

1,173,000 

 

879,750 

American Achievement Corp., 144A, 8.25%, 4/1/2012  

 

 

350,000 

 

280,000 

American Achievement Group Holding Corp., 16.75%, 10/1/2012 (PIK)

 

 

645,154 

 

154,837 

Asbury Automotive Group, Inc.:

 
 

7.625%, 3/15/2017  

 

 

830,000 

 

381,800 

 

8.0%, 3/15/2014  

 

 

345,000 

 

162,150 

Ashtead Holdings PLC, 144A, 8.625%, 8/1/2015  

 

 

790,000 

 

481,900 

CanWest MediaWorks LP, 144A, 9.25%, 8/1/2015  

 

 

575,000 

 

83,375 

Carrols Corp., 9.0%, 1/15/2013  

 

 

355,000 

 

259,150 

CSC Holdings, Inc.:

 
 

 

 

 

6.75%, 4/15/2012  

 

 

570,000 

 

548,625 

 

Series B, 7.625%, 4/1/2011  

 

 

1,630,000 

 

1,621,850 

 

Series B, 8.125%, 7/15/2009  

 

 

190,000 

 

190,950 

 

Series B, 8.125%, 8/15/2009  

 

 

545,000 

 

547,725 

 

144A, 8.5%, 4/15/2014  

 

 

1,330,000 

 

1,306,725 

 

144A, 8.5%, 6/15/2015  

 

 

665,000 

 

640,062 

Denny's Holdings, Inc., 10.0%, 10/1/2012  

 

 

230,000 

 

186,300 

DIRECTV Holdings LLC, 7.625%, 5/15/2016  

 

 

1,340,000 

 

1,316,550 

DISH DBS Corp.:

 
 

6.375%, 10/1/2011  

 

 

1,560,000 

 

1,497,600 

 

6.625%, 10/1/2014  

 

 

973,000 

 

885,430 

 

7.125%, 2/1/2016  

 

 

785,000 

 

722,200 

Dollarama Group Holdings LP, 8.073% ***, 8/15/2012 (b) 

 

 

532,000 

 

345,800 

Fontainebleau Las Vegas Holdings LLC, 144A, 10.25%, 6/15/2015  

 

 

735,000 

 

80,850 

Great Canadian Gaming Corp., 144A, 7.25%, 2/15/2015  

 

 

690,000 

 

476,100 

Group 1 Automotive, Inc., 8.25%, 8/15/2013  

 

 

345,000 

 

266,081 

Hertz Corp., 8.875%, 1/1/2014  

 

 

1,995,000 

 

1,301,737 

Idearc, Inc., 8.0%, 11/15/2016  

 

 

1,470,000 

 

45,938 

Indianapolis Downs LLC, 144A, 11.0%, 11/1/2012  

 

 

450,000 

 

240,750 

Inergy LP, 144A, 8.75%, 3/1/2015  

 

 

240,000 

 

226,800 

Isle of Capri Casinos, Inc., 7.0%, 3/1/2014  

 

 

670,000 

 

331,650 

Kabel Deutschland GmbH, 10.625%, 7/1/2014  

 

 

985,000 

 

950,525 

Lamar Media Corp., Series C, 6.625%, 8/15/2015  

 

 

450,000 

 

337,500 

MediMedia USA, Inc., 144A, 11.375%, 11/15/2014  

 

 

345,000 

 

224,250 

MGM MIRAGE, 6.625%, 7/15/2015  

 

 

655,000 

 

402,825 

MTR Gaming Group, Inc., Series B, 9.75%, 4/1/2010  

 

 

1,005,000 

 

763,800 

Norcraft Holdings LP, 9.75%, 9/1/2012  

 

 

1,830,000 

 

1,409,100 

Penske Automotive Group, Inc., 7.75%, 12/15/2016  

 

 

1,345,000 

 

645,600 

Pinnacle Entertainment, Inc., 8.75%, 10/1/2013  

 

 

474,000 

 

436,080 

Quebecor Media, Inc., 7.75%, 3/15/2016  

 

 

455,000 

 

357,175 

Quebecor World, Inc., 144A, 9.75%, 1/15/2015 ** 

 

 

565,000 

 

36,019 

Quiksilver, Inc., 6.875%, 4/15/2015  

 

 

700,000 

 

384,125 

Reader's Digest Association, Inc., 9.0%, 2/15/2017  

 

 

500,000 

 

45,625 

Sabre Holdings Corp., 8.35%, 3/15/2016  

 

 

625,000 

 

162,500 

Seminole Hard Rock Entertainment, Inc., 144A, 4.496% ***, 3/15/2014  

 

 

820,000 

 

389,500 

Shaw Communications, Inc., 8.25%, 4/11/2010  

 

 

715,000 

 

718,575 

Shingle Springs Tribal Gaming Authority, 144A, 9.375%, 6/15/2015  

 

 

565,000 

 

347,475 

Simmons Co., Step-up Coupon, 0% to 12/15/2009, 10.0% to 12/15/2014    

 

 

2,320,000 

 

58,000 

Sirius XM Radio, Inc., 9.625%, 8/1/2013  

 

 

1,080,000 

 

237,600 

Sonic Automotive, Inc., Series B, 8.625%, 8/15/2013  

 

 

680,000 

 

268,600 

Travelport LLC:

 
 

6.828% ***, 9/1/2014  

 

 

520,000 

 

156,000 

 

9.875%, 9/1/2014  

 

 

105,000 

 

41,475 

Trump Entertainment Resorts, Inc., 8.5%, 6/1/2015 ** 

 

 

170,000 

 

25,075 

United Components, Inc., 9.375%, 6/15/2013  

 

 

110,000 

 

34,100 

Unity Media GmbH:

 
 

144A, 8.75%, 2/15/2015  

EUR

 

1,920,000 

 

2,089,613 

 

144A, 10.375%, 2/15/2015  

 

 

430,000 

 

334,325 

UPC Holding BV:

 
 

144A, 7.75%, 1/15/2014  

EUR

 

670,000 

 

720,609 

 

144A, 8.0%, 11/1/2016  

EUR

 

335,000 

 

330,279 

Vertis, Inc., 13.5%, 4/1/2014 (PIK) 

 

 

248,678 

 

1,243 

Young Broadcasting, Inc., 8.75%, 1/15/2014 ** 

 

 

3,217,000 

 

8,043 

 

**27,378,321**

 

 

 

**Consumer Staples 2.8%**

 
Alliance One International, Inc., 8.5%, 5/15/2012  

 

 

355,000 

 

280,450 

Altria Group, Inc.:

 
 

8.5%, 11/10/2013  

 

 

520,000 

 

571,772 

 

9.7%, 11/10/2018  

 

 

260,000 

 

284,520 

Delhaize America, Inc.:

 
 

8.05%, 4/15/2027  

 

 

185,000 

 

177,651 

 

9.0%, 4/15/2031  

 

 

1,542,000 

 

1,766,031 

General Nutrition Centers, Inc., 7.584% ***, 3/15/2014 (PIK)

 

 

390,000 

 

234,000 

North Atlantic Trading Co., 144A, 10.0%, 3/1/2012  

 

 

2,684,000 

 

1,342,000 

Viskase Companies, Inc., 11.5%, 6/15/2011  

 

 

3,620,000 

 

2,353,000 

 

**7,009,424**

**Energy 13.4%**

 
Atlas Energy Resources LLC, 144A, 10.75%, 2/1/2018  

 

 

1,395,000 

 

1,116,000 

Belden & Blake Corp., 8.75%, 7/15/2012  

 

 

3,114,000 

 

2,257,650 

Bristow Group, Inc., 7.5%, 9/15/2017  

 

 

685,000 

 

500,050 

Chaparral Energy, Inc.:

 
 

8.5%, 12/1/2015  

 

 

1,020,000 

 

224,400 

 

8.875%, 2/1/2017  

 

 

385,000 

 

84,700 

Chesapeake Energy Corp.:

 
 

6.25%, 1/15/2018  

 

 

830,000 

 

668,150 

 

6.875%, 1/15/2016  

 

 

2,159,000 

 

1,851,342 

 

7.25%, 12/15/2018  

 

 

1,180,000 

 

988,250 

 

7.5%, 6/15/2014  

 

 

295,000 

 

266,975 

 

9.5%, 2/15/2015  

 

 

70,000 

 

68,600 

Cimarex Energy Co., 7.125%, 5/1/2017  

 

 

565,000 

 

488,725 

Colorado Interstate Gas Co., 6.8%, 11/15/2015  

 

 

350,000 

 

326,375 

ConocoPhillips, 4.75%, 2/1/2014  

 

 

245,000 

 

245,371 

Delta Petroleum Corp., 7.0%, 4/1/2015  

 

 

1,145,000 

 

412,200 

Devon Energy Corp., 6.3%, 1/15/2019  

 

 

255,000 

 

255,168 

Dynegy Holdings, Inc., 6.875%, 4/1/2011  

 

 

230,000 

 

211,600 

El Paso Corp.:

 
 

7.25%, 6/1/2018  

 

 

1,570,000 

 

1,436,550 

 

7.75%, 6/15/2010  

 

 

262,000 

 

259,380 

 

9.625%, 5/15/2012  

 

 

460,000 

 

433,124 

EXCO Resources, Inc., 7.25%, 1/15/2011  

 

 

915,000 

 

768,600 

Forest Oil Corp., 144A, 7.25%, 6/15/2019  

 

 

345,000 

 

287,213 

Frontier Oil Corp.:

 
 

6.625%, 10/1/2011  

 

 

490,000 

 

467,950 

 

8.5%, 9/15/2016  

 

 

925,000 

 

878,750 

GulfSouth Pipeline Co., LP, 144A, 5.75%, 8/15/2012  

 

 

160,000 

 

142,400 

KCS Energy, Inc., 7.125%, 4/1/2012  

 

 

2,580,000 

 

2,244,600 

 

 
Mariner Energy, Inc.:

 
 

7.5%, 4/15/2013  

 

 

560,000 

 

420,000 

 

8.0%, 5/15/2017  

 

 

715,000 

 

457,600 

Newfield Exploration Co., 7.125%, 5/15/2018  

 

 

1,050,000 

 

926,625 

OPTI Canada, Inc.:

 
 

7.875%, 12/15/2014  

 

 

875,000 

 

389,375 

 

8.25%, 12/15/2014  

 

 

1,725,000 

 

793,500 

Petrohawk Energy Corp.:

 
 

144A, 7.875%, 6/1/2015  

 

 

350,000 

 

293,125 

 

9.125%, 7/15/2013  

 

 

640,000 

 

588,800 

 

144A, 10.5%, 8/1/2014  

 

 

395,000 

 

376,237 

Plains Exploration & Production Co.:

 
 

7.0%, 3/15/2017  

 

 

590,000 

 

493,387 

 

7.625%, 6/1/2018  

 

 

1,180,000 

 

1,008,900 

 

 

 

Quicksilver Resources, Inc., 7.125%, 4/1/2016  

 

 

1,345,000 

 

928,050 

SandRidge Energy, Inc., 144A, 8.0%, 6/1/2018  

 

 

460,000 

 

363,400 

Stallion Oilfield Services, 144A, 9.75%, 2/1/2015  

 

 

385,000 

 

80,850 

Stone Energy Corp.:

 
 

6.75%, 12/15/2014  

 

 

1,190,000 

 

642,600 

 

8.25%, 12/15/2011  

 

 

1,870,000 

 

1,439,900 

Tennessee Gas Pipeline Co.:

 
 

7.625%, 4/1/2037  

 

 

265,000 

 

234,485 

 

144A, 8.0%, 2/1/2016  

 

 

115,000 

 

114,138 

TEPPCO Partners LP, 7.625%, 2/15/2012  

 

 

645,000 

 

614,994 

Tesoro Corp., 6.5%, 6/1/2017  

 

 

675,000 

 

502,875 

TransCanada PipeLines Ltd.:

 
 

7.125%, 1/15/2019  

 

 

385,000 

 

408,077 

 

7.625%, 1/15/2039  

 

 

260,000 

 

270,597 

Whiting Petroleum Corp.:

 
 

7.25%, 5/1/2012  

 

 

1,200,000 

 

1,020,000 

 

7.25%, 5/1/2013  

 

 

160,000 

 

132,000 

Williams Companies, Inc.:

 
 

8.125%, 3/15/2012  

 

 

2,110,000 

 

2,088,900 

 

8.75%, 3/15/2032  

 

 

1,277,000 

 

1,168,455 

Williams Partners LP, 7.25%, 2/1/2017  

 

 

580,000 

 

516,200 

 

**33,157,193**

**Financials 9.6%**

 
Algoma Acquisition Corp., 144A, 9.875%, 6/15/2015  

 

 

1,475,000 

 

567,875 

Ashton Woods USA LLC, 9.5%, 10/1/2015 ** 

 

 

1,765,000 

 

264,750 

Buffalo Thunder Development Authority, 144A, 9.375%, 12/15/2014  

 

 

345,000 

 

31,050 

Conproca SA de CV, REG S, 12.0%, 6/16/2010  

 

 

2,052,270 

 

2,088,185 

Eaton Vance Corp., CDO II, Series C-X, 13.68%, 7/15/2012 ** 

 

 

3,237,348 

 

0 

Ford Motor Credit Co., LLC:

 
 

7.25%, 10/25/2011  

 

 

4,400,000 

 

3,132,778 

 

7.875%, 6/15/2010  

 

 

920,000 

 

759,926 

Fresenius US Finance II, Inc., 144A, 9.0%, 7/15/2015  

 

 

645,000 

 

648,225 

GMAC LLC:

 
 

3.399% ***, 5/15/2009  

 

 

825,000 

 

771,375 

 

4.241% ***, 6/30/2009  

EUR

 

195,000 

 

224,710 

 

144A, 6.875%, 9/15/2011  

 

 

3,674,000 

 

2,892,511 

 

7.75%, 1/19/2010  

 

 

385,000 

 

333,130 

 

144A, 7.75%, 1/19/2010 (c)

 

 

1,815,000 

 

1,642,393 

Hawker Beechcraft Acquisition Co., LLC:

 
 

8.5%, 4/1/2015  

 

 

1,640,000 

 

524,800 

 

8.875%, 4/1/2015 (PIK) 

 

 

1,065,000 

 

266,250 

Hexion US Finance Corp., 9.75%, 11/15/2014  

 

 

325,000 

 

39,000 

Inmarsat Finance PLC, 10.375%, 11/15/2012  

 

 

1,940,000 

 

1,920,600 

iPayment, Inc., 9.75%, 5/15/2014  

 

 

645,000 

 

387,000 

Local TV Finance LLC, 144A, 9.25%, 6/15/2015 (PIK)

 

 

570,000 

 

69,113 

New ASAT (Finance) Ltd., 9.25%, 2/1/2011 

 

 

920,000 

 

27,600 

NiSource Finance Corp.:

 
 

6.15%, 3/1/2013  

 

 

80,000 

 

65,673 

 

7.875%, 11/15/2010  

 

 

1,130,000 

 

1,073,964 

Orascom Telecom Finance SCA, 144A, 7.875%, 2/8/2014  

 

 

585,000 

 

345,150 

Qwest Capital Funding, Inc., 7.0%, 8/3/2009  

 

 

570,000 

 

567,863 

Rainbow National Services LLC, 144A, 10.375%, 9/1/2014  

 

 

143,000 

 

144,788 

Sprint Capital Corp.:

 
 

7.625%, 1/30/2011  

 

 

575,000 

 

478,688 

 

8.375%, 3/15/2012  

 

 

230,000 

 

184,000 

Tropicana Entertainment LLC, 9.625%, 12/15/2014 ** 

 

 

1,790,000 

 

22,375 

 

 

 

UCI Holdco, Inc., 9.996% ***, 12/15/2013 (PIK)

 

 

872,158 

 

95,937 

Universal City Development Partners Ltd., 11.75%, 4/1/2010  

 

 

2,930,000 

 

2,256,100 

Verizon Wireless Capital LLC, 144A, 5.55%, 2/1/2014  

 

 

50,000 

 

49,688 

Williams Companies, Inc., Credit Linked Certificate Trust, 144A, 6.75%, 4/15/2009  

 

 

10,000 

 

9,950 

Wind Acquisition Finance SA:

 
 

144A, 9.75%, 12/1/2015  

EUR

 

1,490,000 

 

1,678,860 

 

144A, 10.75%, 12/1/2015  

 

 

130,000 

 

115,700 

 

**23,680,007**

**Health Care 6.9%**

 
Advanced Medical Optics, Inc., 7.5%, 5/1/2017  

 

 

1,320,000 

 

1,465,200 

Boston Scientific Corp., 6.0%, 6/15/2011  

 

 

815,000 

 

786,475 

Community Health Systems, Inc., 8.875%, 7/15/2015  

 

 

4,570,000 

 

4,398,625 

HCA, Inc.:

 
 

9.125%, 11/15/2014  

 

 

895,000 

 

859,200 

 

9.25%, 11/15/2016  

 

 

3,225,000 

 

3,079,875 

 

9.625%, 11/15/2016 (PIK) 

 

 

1,220,000 

 

1,024,800 

HEALTHSOUTH Corp., 10.75%, 6/15/2016  

 

 

455,000 

 

449,312 

IASIS Healthcare LLC, 8.75%, 6/15/2014  

 

 

810,000 

 

712,800 

Psychiatric Solutions, Inc., 7.75%, 7/15/2015  

 

 

595,000 

 

487,900 

Surgical Care Affiliates, Inc., 144A, 8.875%, 7/15/2015 (PIK)

 

 

685,000 

 

445,250 

The Cooper Companies, Inc., 7.125%, 2/15/2015  

 

 

1,145,000 

 

973,250 

Vanguard Health Holding Co. I, LLC, Step-up Coupon, 0% to 10/1/2009, 11.25% to 10/1/2015    

 

 

770,000 

 

650,650 

Vanguard Health Holding Co. II, LLC, 9.0%, 10/1/2014  

 

 

1,845,000 

 

1,642,050 

 

**16,975,387**

**Industrials 8.5%**

 
Actuant Corp., 6.875%, 6/15/2017  

 

 

450,000 

 

369,000 

Allied Waste North America, Inc., 6.5%, 11/15/2010  

 

 

390,000 

 

390,000 

ARAMARK Corp., 8.5%, 2/1/2015  

 

 

225,000 

 

218,812 

Baldor Electric Co., 8.625%, 2/15/2017  

 

 

570,000 

 

478,800 

BE Aerospace, Inc., 8.5%, 7/1/2018  

 

 

1,195,000 

 

1,123,300 

Belden, Inc., 7.0%, 3/15/2017  

 

 

585,000 

 

444,600 

Bombardier, Inc., 144A, 6.75%, 5/1/2012  

 

 

100,000 

 

89,750 

Browning-Ferris Industries, Inc., 7.4%, 9/15/2035  

 

 

1,862,000 

 

1,694,420 

Cenveo Corp., 144A, 10.5%, 8/15/2016  

 

 

580,000 

 

361,775 

Congoleum Corp., 8.625%, 8/1/2008 ** 

 

 

1,188,000 

 

891,000 

Esco Corp.:

 
 

144A, 5.871% ***, 12/15/2013  

 

 

560,000 

 

364,000 

 

144A, 8.625%, 12/15/2013  

 

 

1,130,000 

 

881,400 

General Cable Corp.:

 
 

3.81% ***, 4/1/2015  

 

 

875,000 

 

586,250 

 

7.125%, 4/1/2017  

 

 

590,000 

 

472,000 

Great Lakes Dredge & Dock Co., 7.75%, 12/15/2013  

 

 

460,000 

 

386,975 

K. Hovnanian Enterprises, Inc., 8.875%, 4/1/2012  

 

 

695,000 

 

257,150 

Kansas City Southern de Mexico SA de CV:

 
 

7.375%, 6/1/2014  

 

 

965,000 

 

829,900 

 

7.625%, 12/1/2013  

 

 

1,520,000 

 

1,276,800 

 

9.375%, 5/1/2012  

 

 

2,350,000 

 

2,238,375 

Kansas City Southern Railway Co., 8.0%, 6/1/2015  

 

 

1,080,000 

 

972,000 

Mobile Mini, Inc., 9.75%, 8/1/2014  

 

 

685,000 

 

506,900 

Moog, Inc., 144A, 7.25%, 6/15/2018  

 

 

230,000 

 

205,850 

Navios Maritime Holdings, Inc., 9.5%, 12/15/2014  

 

 

920,000 

 

538,200 

Ply Gem Industries, Inc., 11.75%, 6/15/2013  

 

 

415,000 

 

230,325 

R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017  

 

 

1,900,000 

 

190,000 

RBS Global & Rexnord Corp., 9.5%, 8/1/2014  

 

 

515,000 

 

442,900 

 

 

 

Seitel, Inc., 9.75%, 2/15/2014  

 

 

350,000 

 

122,063 

Titan International, Inc., 8.0%, 1/15/2012  

 

 

1,975,000 

 

1,659,000 

TransDigm, Inc., 7.75%, 7/15/2014  

 

 

345,000 

 

310,500 

United Rentals North America, Inc.:

 
 

6.5%, 2/15/2012  

 

 

1,140,000 

 

934,800 

 

7.0%, 2/15/2014 (c)

 

 

1,540,000 

 

970,200 

US Concrete, Inc., 8.375%, 4/1/2014  

 

 

630,000 

 

346,500 

Vought Aircraft Industries, Inc., 8.0%, 7/15/2011  

 

 

350,000 

 

213,500 

 

**20,997,045**

**Information Technology 3.1%**

 
Alion Science & Technology Corp., 10.25%, 2/1/2015  

 

 

555,000 

 

166,500 

L-3 Communications Corp.:

 
 

5.875%, 1/15/2015  

 

 

1,905,000 

 

1,743,075 

 

Series B, 6.375%, 10/15/2015  

 

 

885,000 

 

829,688 

 

7.625%, 6/15/2012  

 

 

2,060,000 

 

2,047,125 

Lucent Technologies, Inc., 6.45%, 3/15/2029  

 

 

1,894,000 

 

634,490 

MasTec, Inc., 7.625%, 2/1/2017  

 

 

805,000 

 

644,000 

Seagate Technology HDD Holdings, 6.8%, 10/1/2016  

 

 

545,000 

 

288,850 

SunGard Data Systems, Inc., 10.25%, 8/15/2015  

 

 

1,480,000 

 

1,006,400 

Vangent, Inc., 9.625%, 2/15/2015  

 

 

455,000 

 

286,650 

 

**7,646,778**

**Materials 10.2%**

 
Appleton Papers, Inc., Series B, 8.125%, 6/15/2011  

 

 

325,000 

 

218,562 

ARCO Chemical Co., 9.8%, 2/1/2020 ** 

 

 

4,802,000 

 

1,200,500 

Cascades, Inc., 7.25%, 2/15/2013  

 

 

1,281,000 

 

723,765 

Chemtura Corp., 6.875%, 6/1/2016  

 

 

1,215,000 

 

394,875 

Clondalkin Acquisition BV, 144A, 3.996% ***, 12/15/2013  

 

 

750,000 

 

435,000 

CPG International I, Inc., 10.5%, 7/1/2013  

 

 

1,265,000 

 

708,400 

Exopack Holding Corp., 11.25%, 2/1/2014  

 

 

1,875,000 

 

1,087,500 

Freeport-McMoRan Copper & Gold, Inc.:

 
 

6.875%, 2/1/2014  

 

 

130,000 

 

120,250 

 

8.25%, 4/1/2015  

 

 

1,590,000 

 

1,353,487 

 

8.375%, 4/1/2017  

 

 

3,120,000 

 

2,589,600 

GEO Specialty Chemicals, Inc.:

 
 

144A, 7.5% ***, 3/31/2015 (PIK) 

 

 

1,226,804 

 

883,299 

 

144A, 9.968% ***, 12/31/2009  

 

 

1,970,000 

 

1,418,400 

Georgia-Pacific LLC:

 
 

144A, 7.125%, 1/15/2017  

 

 

665,000 

 

606,812 

 

9.5%, 12/1/2011  

 

 

470,000 

 

458,250 

Hexcel Corp., 6.75%, 2/1/2015  

 

 

2,370,000 

 

2,038,200 

Huntsman LLC, 11.625%, 10/15/2010  

 

 

2,810,000 

 

2,697,600 

Innophos, Inc., 8.875%, 8/15/2014  

 

 

265,000 

 

206,700 

Koppers Holdings, Inc., Step-up Coupon, 0% to 11/15/2009, 9.875% to 11/15/2014    

 

 

1,615,000 

 

1,334,394 

Metals USA Holdings Corp., 7.435% ***, 7/1/2012 (PIK)

 

 

395,474 

 

104,801 

Millar Western Forest Products Ltd., 7.75%, 11/15/2013  

 

 

290,000 

 

151,525 

NewMarket Corp., 7.125%, 12/15/2016  

 

 

1,390,000 

 

1,077,250 

NewPage Corp., 10.0%, 5/1/2012  

 

 

1,095,000 

 

421,575 

OI European Group BV, 144A, 6.875%, 3/31/2017  

EUR

 

680,000 

 

713,951 

Pliant Corp., 11.85%, 6/15/2009 (PIK)

 

 

5 

 

3 

Radnor Holdings Corp., 11.0%, 3/15/2010 ** 

 

 

290,000 

 

363 

Rhodia SA, 144A, 5.362% ***, 10/15/2013  

EUR

 

705,000 

 

428,774 

Steel Dynamics, Inc., 7.375%, 11/1/2012  

 

 

110,000 

 

99,000 

Terra Capital, Inc., Series B, 7.0%, 2/1/2017  

 

 

1,230,000 

 

1,119,300 

The Mosaic Co., 144A, 7.375%, 12/1/2014  

 

 

1,780,000 

 

1,708,800 

Witco Corp., 6.875%, 2/1/2026  

 

 

490,000 

 

112,700 

 

 

 

Wolverine Tube, Inc., 10.5%, 4/1/2009  

 

 

980,000 

 

825,650 

 

**25,239,286**

**Telecommunication Services 9.8%**

 
AT&T, Inc., 4.85%, 2/15/2014  

 

 

245,000 

 

246,115 

BCM Ireland Preferred Equity Ltd., 144A, 11.245% ***, 2/15/2017 (PIK)

EUR

 

710,272 

 

68,786

Centennial Communications Corp.:

 
 

10.0%, 1/1/2013  

 

 

430,000 

 

453,650 

 

10.125%, 6/15/2013  

 

 

995,000 

 

1,027,337 

Cincinnati Bell, Inc.:

 
 

7.25%, 7/15/2013  

 

 

1,619,000 

 

1,546,145 

 

8.375%, 1/15/2014  

 

 

658,000 

 

588,910 

Cricket Communications, Inc.:

 
 

9.375%, 11/1/2014  

 

 

1,265,000 

 

1,151,150 

 

144A, 10.0%, 7/15/2015  

 

 

465,000 

 

430,125 

Crown Castle International Corp., 9.0%, 1/15/2015  

 

 

1,200,000 

 

1,161,000 

Frontier Communications Corp.:

 
 

6.25%, 1/15/2013  

 

 

640,000 

 

601,600 

 

9.25%, 5/15/2011  

 

 

405,000 

 

408,037 

Grupo Iusacell Celular SA de CV, 10.0%, 3/31/2012  

 

 

272,326 

 

177,012 

Hellas Telecommunications Luxembourg V, 144A, 6.112% ***, 10/15/2012  

EUR

 

325,000 

 

243,436 

Intelsat Corp.:

 
 

144A, 9.25%, 8/15/2014  

 

 

235,000 

 

219,725 

 

144A, 9.25%, 6/15/2016  

 

 

2,760,000 

 

2,525,400 

Intelsat Subsidiary Holding Co., Ltd.:

 
 

144A, 8.875%, 1/15/2015  

 

 

1,410,000 

 

1,297,200 

 

Series B, 144A, 8.875%, 1/15/2015  

 

 

235,000 

 

215,025 

iPCS, Inc., 5.318% ***, 5/1/2013  

 

 

290,000 

 

205,900 

MetroPCS Wireless, Inc.:

 
 

9.25%, 11/1/2014  

 

 

1,615,000 

 

1,495,894 

 

144A, 9.25%, 11/1/2014  

 

 

340,000 

 

311,950 

Millicom International Cellular SA, 10.0%, 12/1/2013  

 

 

2,420,000 

 

2,311,100 

Qwest Corp.:

 
 

7.25%, 9/15/2025  

 

 

200,000 

 

147,000 

 

7.875%, 9/1/2011  

 

 

1,600,000 

 

1,584,000 

 

8.875%, 3/15/2012  

 

 

345,000 

 

343,275 

Sprint Nextel Corp., 6.0%, 12/1/2016  

 

 

840,000 

 

562,800 

Stratos Global Corp., 9.875%, 2/15/2013  

 

 

450,000 

 

414,000 

Telesat Canada, 144A, 11.0%, 11/1/2015  

 

 

1,915,000 

 

1,464,975 

Virgin Media Finance PLC:

 
 

8.75%, 4/15/2014  

 

 

1,370,000 

 

1,164,500 

 

8.75%, 4/15/2014  

EUR

 

965,000 

 

994,647 

Windstream Corp.:

 
 

7.0%, 3/15/2019  

 

 

690,000 

 

610,650 

 

8.625%, 8/1/2016  

 

 

115,000 

 

113,275 

 

**24,084,619**

**Utilities 12.0%**

 
AES Corp.:

 
 

8.0%, 10/15/2017  

 

 

1,130,000 

 

1,062,200 

 

144A, 8.0%, 6/1/2020  

 

 

1,160,000 

 

1,055,600 

 

144A, 8.75%, 5/15/2013  

 

 

3,715,000 

 

3,724,287 

 

9.5%, 6/1/2009  

 

 

855,000 

 

859,275 

Allegheny Energy Supply Co., LLC, 144A, 8.25%, 4/15/2012  

 

 

5,034,000 

 

5,046,585 

CenterPoint Energy Houston Electric LLC, Series U, 7.0%, 3/1/2014  

 

 

255,000 

 

262,501 

CMS Energy Corp., 8.5%, 4/15/2011  

 

 

2,680,000 

 

2,698,835 

Edison Mission Energy, 7.0%, 5/15/2017  

 

 

1,230,000 

 

1,143,900 

Energy Future Holdings Corp., 10.875%, 11/1/2017  

 

 

865,000 

 

683,350 

 

 

 

 
IPALCO Enterprises, Inc., 144A, 7.25%, 4/1/2016  

 

 

535,000 

 

494,875 

 
Knight, Inc., 6.5%, 9/1/2012  

 

 

1,040,000 

 

972,400 

 
Mirant Americas Generation LLC, 8.3%, 5/1/2011  

 

 

1,305,000 

 

1,282,162 

 
Mirant North America LLC, 7.375%, 12/31/2013  

 

 

420,000 

 

405,300 

 
NRG Energy, Inc.:

 
 
 

7.25%, 2/1/2014  

 

 

1,345,000 

 

1,284,475 

 
 

7.375%, 2/1/2016  

 

 

1,195,000 

 

1,138,238 

 
 

7.375%, 1/15/2017  

 

 

1,045,000 

 

979,688 

 
NV Energy, Inc.:

 
 
 

6.75%, 8/15/2017  

 

 

1,345,000 

 

989,617 

 
 

8.625%, 3/15/2014  

 

 

249,000 

 

230,539 

 
Oncor Electric Delivery Co., 7.0%, 9/1/2022  

 

 

485,000 

 

465,401 

 
Orion Power Holdings, Inc., 12.0%, 5/1/2010  

 

 

660,000 

 

673,200 

 
PacifiCorp:

 
 
 

5.5%, 1/15/2019  

 

 

130,000 

 

133,564 

 
 

6.0%, 1/15/2039  

 

 

60,000 

 

60,600 

 
Regency Energy Partners LP, 8.375%, 12/15/2013  

 

 

800,000 

 

620,000 

 
Reliant Energy, Inc., 7.875%, 6/15/2017  

 

 

1,350,000 

 

1,093,500 

 
Texas Competitive Electric Holdings Co., LLC, Series A, 10.25%, 11/1/2015  

 

 

3,115,000 

 

2,305,100 

 
 
 

**29,665,192**

 
 
**Total Corporate Bonds** (Cost $287,258,824)

 

**215,833,252**

 
 

**Loan Participations and Assignments 6.5%**

 
 
**Senior Loans *****

 
Advanced Medical Optics, Inc., Term Loan B, LIBOR plus 1.75%, 3.725%, 4/2/2014

 

 

331,613

 

318,350

 
Alliance Mortgage Cycle Loan, Term Loan A, LIBOR plus 7.25%, 9.225%, 6/1/2010 ** 

 

 

700,000 

 

0 

 
Buffets, Inc.:

 
 
 

Debtor in Possession Term Loan, LIBOR plus 7.25%, 9.225%, 11/1/2013  

 

 

489,391 

 

92,984 

 
 

Letter of Credit, LIBOR plus 7.25%, 9.225%, 5/1/2013  

 

 

196,668

 

37,367

 
 

Term Loan B, LIBOR plus 7.25%, 9.225%, 11/1/2013  

 

 

1,011,476 

 

192,180 

 
Charter Communications Operating LLC:

 
 
 

Term Loan, LIBOR plus 2.0%, 3.975%, 3/6/2014  

 

 

1,920,351 

 

1,482,732 

 
 

Incremental Term Loan, LIBOR plus 5.0%, 6.975%, 3/6/2014  

 

 

1,632,050 

 

1,428,044 

 
Energy Future Holdings Corp.:

 
 
 

Term Loan B2, LIBOR plus 3.5%, 5.475%, 10/14/2014  

 

 

5,144,875 

 

3,589,348 

 
 

Term Loan B3, LIBOR plus 3.5%, 5.475%, 10/14/2014  

 

 

2,160,480 

 

1,511,256 

 
Essar Steel Algoma, Inc., Term Loan B, LIBOR plus 2.5%, 4.475%, 6/20/2013  

 

 

457,379 

 

301,870 

 
Ford Motor Co., Term Loan B, LIBOR plus 3.0%, 4.975%, 12/16/2013  

 

 

591,980 

 

217,801 

 
General Nutrition Centers, Inc., Term Loan B, LIBOR plus 2.25%, 4.225%, 9/16/2013  

 

 

335,729 

 

224,938 

 
Golden Nugget, Second Lien Term Loan, LIBOR plus 3.25%, 5.225%, 12/31/2014  

 

 

665,000 

 

89,775 

 
Hawker Beechcraft, Inc.:

 
 
 

Term Loan B, LIBOR plus 2.0%, 3.975%, 3/26/2014  

 

 

318,516 

 

174,956 

 
 

Letter of Credit, LIBOR plus 2.1%, 4.075%, 3/26/2014  

 

 

18,703 

 

10,273 

 
HCA, Inc., Term Loan A, LIBOR plus 1.5%, 3.475%, 11/17/2012  

 

 

1,785,661 

 

1,542,677 

 
Hexion Specialty Chemicals:

 
 
 

Term Loan C1, LIBOR plus 2.25%, 4.225%, 5/6/2013  

 

 

1,572,570 

 

685,381 

 
 

Term Loan C2, LIBOR plus 2.25%, 4.225%, 5/6/2013  

 

 

395,132 

 

172,212 

 
IASIS Healthcare LLC, Term Loan, LIBOR plus 5.25%, 7.225%, 6/15/2014 (PIK)

 

 

785,858 

 

347,742 

 
Longview Power LLC:

 
 
 

Delayed Draw, LIBOR plus 2.25%, 4.225%, 2/28/2014  

 

 

225,667 

 

160,223 

 
 

Letter of Credit, LIBOR plus 2.25%, 4.225%, 2/28/2014  

 

 

62,333 

 

44,257 

 
 

Term Loan B, LIBOR plus 2.25%, 4.225%, 2/28/2014  

 

 

192,000 

 

136,320 

 
NewPage Corp., Term Loan, LIBOR plus 3.75%, 5.725%, 12/19/2014  

 

 

128,700 

 

74,260 

 
Sabre, Inc., Term Loan B, LIBOR plus 2.0%, 3.975%, 9/30/2014  

 

 

549,071 

 

252,847 

 
Symbion, Inc.:

 
 

 

 

 
 

Term Loan A, LIBOR plus 3.25%, 5.225%, 8/23/2013  

 

 

259,463 

 

155,678 

 
 

Term Loan B, LIBOR plus 3.25%, 5.225%, 8/23/2014  

 

 

259,463 

 

155,678 

 
Telesat Canada:

 
 
 

Delayed Draw Term Loan, LIBOR plus 3.0%, 4.975%, 10/31/2014  

 

 

132,383 

 

107,301 

 
 

Term Loan B, LIBOR plus 3.0%, 4.975%, 10/31/2014  

 

 

1,541,360 

 

1,249,326 

 
Toys "R" Us, Term Loan B, LIBOR plus 4.25%, 6.225%, 7/19/2012  

 

 

995,025 

 

512,851 

 
Tribune Co., Tranche B, LIBOR plus 3.0%, 4.975%, 5/19/2014 ** 

 

 

1,115,875 

 

309,309 

 
Univision Communications, Inc., Delayed Draw Term Loan, LIBOR plus 2.25%, 4.225%, 9/29/2014  

 

 

1,000,000 

 

533,335 

 
 
**Total Loan Participations and Assignments** (Cost $25,645,240)

 

**16,111,271**

 
 

**Preferred Securities 0.3%**

 
 
**Financials**

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

 

 

920,000 

 

336,012 

 
Xerox Capital Trust I, 8.0%, 2/1/2027  

 

 

430,000 

 

315,153 

 
 
**Total Preferred Securities** (Cost $1,325,837)

 

**651,165**

 
 

 

 

 

 
 

**Shares**

 

**Value ($)**

 
 
 

**Warrants 0.0%**

 
 
**Financials 0.0%**

 
 
New ASAT (Finance) Ltd., Expiration Date 2/1/2011*  

 

182,000 

 

**13,150**

 
**Industrials 0.0%**

 
 
Dayton Superior Corp., 144A, Expiration Date 6/15/2009*  

 

648 

 

**0**

 
 
**Total Warrants** (Cost $11,461)

 

**13,150**

 
 

 

 

 

 
 

**Units**

 

**Value ($)**

 
 
 

**Other Investments 0.2%**

 
 
**Materials**

 
 
Hercules, Inc., (Bond Unit), 6.5%, 6/30/2029  (Cost $925,531)

 

1,219,000 

 

**536,360**

 
 

 

 

 

 
 

**Shares**

 

**Value ($)**

 
 
 

**Common Stocks 0.0%**

 
 
**Consumer Discretionary 0.0%**

 
 
Vertis Holdings, Inc.*  

 

12,403 

 

**0**

 
**Materials 0.0%**

 
 
GEO Specialty Chemicals, Inc.*  

 

18,710 

 

15,903 

 
GEO Specialty Chemicals, Inc. 144A*  

 

1,703 

 

1,448 

 
 
**Total Common Stocks** (Cost $215,108)

 

**17,351**

 
 

**Convertible Preferred Stocks 0.0%**

 
 
**Consumer Discretionary**

 
ION Media Networks, Inc.:

 
 

144A, 12.0%*

 

 

40,003

 

0

 

Series AI, 144A, 12.0%*

 

 

40,000

 

0

 
 
**Convertible Preferred Stocks** (Cost $52,522)

 

**0**

 

 

 

 

**Securities Lending Collateral 0.5%**

 
Daily Assets Fund Institutional, 1.25% (e) (f)(Cost $1,351,360)

 

 

1,351,360

 

**1,351,360**

 

**Cash Equivalents 4.3%**

 
Cash Management QP Trust, 1.12% (e)(Cost $10,521,091)

 

 

10,521,091

 

**10,521,091**

 

 

 

 

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $327,306,974) †

99.2

 

**245,035,000**

**Other Assets and Liabilities, Net**

0.8

 

**1,851,928**

**Net Assets**

100.0

 

**246,886,928**

*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.*

****

*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 ($)**

 
ARCO Chemical Co.

 

9.8%

 

2/1/2020

 

4,802,000

 

USD

 

5,219,109

 

1,200,500

 
Alliance Mortgage Cycle Loan

 

9.225%

 

6/1/2010

 

700,000

 

USD

 

708,969

 

0

 
Ashton Woods USA LLC

 

9.5%

 

10/1/2015

 

1,765,000

 

USD

 

1,635,492

 

264,750

 
Congoleum Corp.

 

8.625%

 

8/1/2008

 

1,188,000

 

USD

 

1,048,695

 

891,000

 
Eaton Vance Corp., CDO II

 

13.68%

 

7/15/2012

 

3,237,348

 

USD

 

2,037,287

 

0

 
Quebecor World, Inc.

 

9.75%

 

1/15/2015

 

565,000

 

USD

 

565,000

 

36,019

 
Radnor Holdings Corp.

 

11.0%

 

3/15/2010

 

290,000

 

USD

 

186,538

 

363

 
Tribune Co.

 

4.975%

 

5/19/2014

 

1,115,875

 

USD

 

1,115,178

 

309,309

 
Tropicana Entertainment LLC

 

9.625%

 

12/15/2014

 

1,790,000

 

USD

 

1,346,099

 

22,375

 
Trump Entertainment Resorts, Inc.

 

8.5%

 

6/1/2015

 

170,000

 

USD

 

165,325

 

25,075

 
Young Broadcasting, Inc.

 

8.75%

 

1/15/2014

 

3,217,000

 

USD

 

2,798,393

 

8,043

 
 

 

 

 

 

 

 

 

**16,826,085**

 

**2,757,434**

 
*****

*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 $327,635,992.  At January 31, 2009, net unrealized depreciation for all securities based on tax cost was $82,600,992.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $1,494,403 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $84,095,395.*

*(a)*

*Principal amount stated in US dollars unless otherwise noted.*

*(b)*

*Security has deferred its 6/15/2008 interest payment until 6/30/2009.*

*(c)*

*All or a portion of these securities were on loan. The value of all securities loaned at January 31, 2009 amounted to $1,278,689 which is 0.5% of net assets.*

*(d)*

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

*(e)*

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

*(f)*

*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.*

*CDO: Collateralized Debt Obligation*

*LIBOR: Represents the London InterBank Offered Rate.*

 

 

 

 
*PIK: Denotes that all or a portion of the income is paid in kind.*

 
*REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, US persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.*

 
 

 
 

 
*At January 31, 2009, open credit default swap contracts sold were as follows:*

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

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

**Fixed****Cash****Flows****Received**

**Underlying Debt****Obligation/****Quality Rating (h)**

**Value ($)**

**Upfront Premiums****Paid/****(Received) ($)**

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

 
 
 

 
2/14/2008

3/20/2009

1,785,0001

3.8%

HCA, Inc.,6.375%, 1/15/2015, B-

2,116

—

2,116

 
 
2/26/2008

3/20/2009

1,370,0001

5.0%

Tenet Healthcare Corp.,7.375%, 2/1/2013, B

3,129

—

3,129

 
 
**Total unrealized appreciation**

**5,245**

 
 
 
*(g)*

*The maximum potential amount of future undiscounted payments that the Fund could be required to make under a credit default swap contract would be the notional amount of the contract.  These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of buy protection credit default swap contracts entered into by the Fund for the same referenced debt obligation.*

 
*(h)*

*The quality ratings represent the lower of Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's Corporation ("S&P") credit ratings.*

 
*Counterparty:*

 
*1*

*Merrill Lynch, Pierce, Fenner & Smith, Inc.*

 
*As of January 31, 2009, the Fund had the following open forward foreign currency exchange contracts:*

 
**Contracts to Deliver**

 

**In Exchange For**

 

**Settlement****Date**

 

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

 
 
 
 
EUR

5,438,300

 

USD

7,143,452

 

2/20/2009

 

182,247

 
 
EUR

276,200

 

USD

355,621

 

2/20/2009

 

2,076

 
 
EUR

94,600

 

USD

122,741

 

2/20/2009

 

1,650

 
 
**Total unrealized appreciation**

 

 

 

 

 

**185,973**

 
 
 
 

***Currency Abbreviations*****

 **

 **

 
*EUR***

*Euro***

*USD***

*United States Dollar***

 
 

 

***Fair Value Measurements***

 

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

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

 

*The following is a summary of the inputs used as of 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 

$                  1,351,360   

$                              -   

Level 2 

241,983,734   

191,218   

Level 3 

1,699,906   

-   

**Total**

**$              245,035,000**

**$                  191,218**

 

*†† Other financial instruments are derivative instruments not reflected in the Investment Portfolio, such as forward foreign currency exchange contracts and swap contracts, which are valued at the unrealized appreciation  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**

$                   1,289,886

Total realized gain (loss)

(63,135)   

Change in unrealized appreciation (depreciation)

(613,136)   

Amortization Premium/Discount

5,892

Net purchases (sales)

48,174   

Net transfers in (out) of Level 3 

1,032,225   

**Balance as of January 31, 2009**

**$                   1,699,906**

 

 

**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 High Income Plus 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 High Income Plus 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

  |