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:  09/30

Date of reporting period: 06/30/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of June 30, 2008  (Unaudited)** |
|----------------------|--------------------------------------|

 

 

**DWS Micro Cap Fund**

 

|   | **Shares**              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **Value ($)** |
|--------|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|        |
|   | **Common Stocks 95.8%** |  
**Consumer Discretionary 20.2%**

 
**Hotels Restaurants & Leisure 7.7%**

 
Benihana, Inc. "A"* (a) 

 

44,500 

 

282,130 

Buffalo Wild Wings, Inc.* (a) 

 

78,300 

 

1,944,189 

McCormick & Schmick's Seafood Restaurants, Inc.*  

 

51,700 

 

498,388 

Red Robin Gourmet Burgers, Inc.* (a) 

 

14,400 

 

399,456 

Ruth's Chris Steak House, Inc.*  

 

84,400 

 

437,192 

 

**3,561,355**

**Media 0.9%**

 
RRSat Global Communications Network Ltd.  

 

37,300 

 

**401,348**

**Specialty Retail 8.9%**

 
Children's Place Retail Stores, Inc.*  

 

25,600 

 

924,160 

 

 

 

 

Citi Trends, Inc.* (a) 

 

76,700 

 

1,738,022 

The Wet Seal, Inc. "A"*  

 

185,000 

 

882,450 

Zumiez, Inc.* (a) 

 

33,100 

 

548,798 

 

**4,093,430**

**Textiles, Apparel & Luxury Goods 2.7%**

 
Volcom, Inc.*  

 

52,600 

 

**1,258,718**

**Consumer Staples 5.7%**

 
**Food Products 2.4%**

 
Green Mountain Coffee Roasters, Inc.* (a) 

 

29,600 

 

**1,112,072**

**Personal Products 3.3%**

 
American Oriental Bioengineering, Inc.* (a) 

 

156,300 

 

**1,542,681**

**Energy 9.7%**

 
**Energy Equipment & Services 1.1%**

 
OYO Geospace Corp.*  

 

8,800 

 

**518,672**

**Oil, Gas & Consumable Fuels 8.6%**

 
Alon USA Energy, Inc. (a) 

 

35,500 

 

424,580 

Arena Resources, Inc.*  

 

17,800 

 

940,196 

Carrizo Oil & Gas, Inc.*  

 

20,100 

 

1,368,609 

Kodiak Oil & Gas Corp.*  

 

266,000 

 

1,212,960 

 

**3,946,345**

**Financials 4.1%**

 
**Diversified Financial Services 2.0%**

 
Portfolio Recovery Associates, Inc.* (a) 

 

25,000 

 

**937,500**

**Insurance 2.1%**

 
eHealth, Inc.*  

 

53,900 

 

**951,874**

**Health Care 10.2%**

 
**Health Care Providers & Services 8.4%**

 
Air Methods Corp.*  

 

34,500 

 

862,500 

Centene Corp.*  

 

26,700 

 

448,293 

Genoptix, Inc.*  

 

14,540 

 

458,737 

Gentiva Health Services, Inc.*  

 

38,600 

 

735,330 

Providence Service Corp.*  

 

65,800 

 

1,389,038 

 

**3,893,898**

**Health Care Technology 1.8%**

 
Phase Forward, Inc.*  

 

46,200 

 

**830,214**

**Industrials 21.2%**

 
**Aerospace & Defense 1.4%**

 
Stanley, Inc.*  

 

18,700 

 

**626,824**

**Commercial Services & Supplies 8.0%**

 
Heidrick & Struggles International, Inc.  

 

24,700 

 

682,708 

Hill International, Inc.*  

 

78,000 

 

1,282,320 

Korn/Ferry International*  

 

31,500 

 

495,495 

Team, Inc.*  

 

36,000 

 

1,235,520 

 

**3,696,043**

**Construction & Engineering 1.2%**

 
Orion Marine Group, Inc.*  

 

37,700 

 

**532,701**

**Electrical Equipment 3.2%**

 
A-Power Energy Generation Systems Ltd.* (a) 

 

21,000 

 

559,650 

 

 

 

 

AZZ, Inc.*  

 

23,200 

 

925,680 

 

**1,485,330**

**Machinery 7.4%**

 
Badger Meter, Inc.  

 

35,100 

 

1,773,603 

RBC Bearings, Inc.*  

 

50,000 

 

1,666,000 

 

**3,439,603**

**Information Technology 22.1%**

 
**Internet Software & Services 4.9%**

 
DealerTrack Holdings, Inc.*  

 

36,500 

 

515,015 

LoopNet, Inc.* (a) 

 

87,600 

 

989,880 

Perficient, Inc.*  

 

78,000 

 

753,480 

 

**2,258,375**

**IT Services 8.4%**

 
CyberSource Corp.*  

 

130,600 

 

2,184,938 

Forrester Research, Inc.*  

 

55,100 

 

1,701,488 

 

**3,886,426**

**Semiconductors & Semiconductor Equipment 3.6%**

 
Cavium Networks, Inc.*  

 

21,000 

 

441,000 

Netlogic Microsystems, Inc.* (a) 

 

23,000 

 

763,600 

PLX Technology, Inc.*  

 

62,900 

 

479,927 

 

**1,684,527**

**Software 5.2%**

 
FalconStor Software, Inc.* (a) 

 

99,000 

 

700,920 

Fundtech Ltd.* (a) 

 

80,500 

 

1,158,395 

Secure Computing Corp.*  

 

126,500 

 

523,710 

 

**2,383,025**

**Materials 2.6%**

 
**Chemicals**

Flotek Industries, Inc.* (a) 

 

58,400 

 

**1,204,208**

**Total Common Stocks** (Cost $40,065,234)

 

**44,245,169**

 

**Securities Lending Collateral 28.9%**

 
Daily Assets Fund Institutional, 2.74%  (b) (c)(Cost $13,352,755)

 

 

13,352,755

 

**13,352,755**

 

**Cash Equivalents 4.8%**

 
Cash Management QP Trust, 2.49%  (b)(Cost $2,180,833)

 

 

2,180,833

 

**2,180,833**

 

**% of**

**Net Assets**

 

**Value ($)**

**Total Investment Portfolio** (Cost $55,598,822) †

129.5

 

**59,778,757**

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

(29.5)

 

**(13,601,238)**

**Net Assets**

100.0

 

**46,177,519**

*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.*

*†*

*The cost for federal income tax purposes was $55,604,440.  At June 30, 2008, net unrealized appreciation for all securities based on tax cost was $4,174,317.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $9,684,321 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $5,510,004.*

*(a)*

*All or a portion of these securities were on loan amounting to $12,600,674.  In addition included in other assets and liabilities, net is a pending sale, amounting to $191,250 that is also on loan. The value of all securities loaned at June 30, 2008 amounted to $12,791,924 which is 27.7% of net assets.*

 

 

 

 

*(b)*

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

*(c)*

*Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.*

 

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

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

 

 

 

(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last 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 Micro Cap Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

August 20, 2008

 

 

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

 

Registrant: 

DWS Micro Cap Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

August 20, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        August 20, 2008

 

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