UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number  811-04760

DWS Advisor Funds

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY  10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY  10154-0004

(Name and address of agent for service)

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

Date of fiscal year end:  10/31

Date of reporting period: 07/31/08

 

ITEM 1.  SCHEDULE OF INVESTMENTS

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

 

 

**DWS Core Fixed Income Fund**

 

 

|   | **Principal****Amount ($)** |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **Value ($)** |
|--------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Corporate Bonds 17.0%**   |  
**Consumer Discretionary 1.1%**

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

 

 

843,000 

 

1,003,866 

Comcast Cable Holdings LLC, 10.125%, 4/15/2022 

 

 

1,980,000 

 

2,415,868 

Comcast Corp., 6.4%, 5/15/2038 

 

 

880,000 

 

800,365 

McDonald's Corp., Series I, 6.3%, 10/15/2037 

 

 

1,484,000 

 

1,464,324 

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

 

 

4,430,000 

 

4,857,739 

Time Warner Cable, Inc., 7.3%, 7/1/2038 

 

 

2,705,000 

 

2,704,402 

Time Warner, Inc., 6.875%, 5/1/2012 

 

 

792,000 

 

808,888 

Viacom, Inc.:

 
 

5.75%, 4/30/2011 

 

 

3,095,000 

 

3,065,984 

 

6.25%, 4/30/2016 

 

 

306,000 

 

291,884 

 

 

 

 

6.875%, 4/30/2036 

 

 

1,617,000 

 

1,455,318 

 

**18,868,638**

**Consumer Staples 1.2%**

 
CVS Caremark Corp.:

 
 

6.25%, 6/1/2027 

 

 

2,663,000 

 

2,568,623 

 

6.302%, 6/1/2037 

 

 

7,312,000 

 

6,270,040 

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

 

 

4,002,000 

 

4,597,974 

Kroger Co.:

 
 

6.4%, 8/15/2017 

 

 

10,000 

 

10,220 

 

6.8%, 4/1/2011 

 

 

260,000 

 

270,956 

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

 

 

5,930,000 

 

5,939,565 

 

**19,657,378**

**Energy 1.7%**

 
Enterprise Products Operation LP:

 
 

5.65%, 4/1/2013 

 

 

7,430,000 

 

7,414,382 

 

7.5%, 2/1/2011 

 

 

1,034,000 

 

1,083,158 

Petro-Canada, 6.8%, 5/15/2038 

 

 

4,880,000 

 

4,724,694 

Suncor Energy, Inc., 6.85%, 6/1/2039 

 

 

4,940,000 

 

5,012,114 

TEPPCO Partners LP, 5.9%, 4/15/2013 

 

 

5,060,000 

 

5,075,747 

TransCanada PipeLines Ltd., 6.35%, 5/15/2067 

 

 

4,900,000 

 

4,140,760 

Valero Energy Corp., 7.5%, 4/15/2032 

 

 

1,883,000 

 

1,800,602 

 

**29,251,457**

**Financials 5.5%**

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

 

 

3,210,000 

 

2,855,976 

American International Group, Inc., 144A, 8.175%, 5/15/2058 

 

 

3,500,000 

 

3,135,717 

Bank of America NA, 5.3%, 3/15/2017 (a) 

 

 

3,760,000 

 

3,437,392 

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

 

 

2,410,000 

 

2,390,956 

Corp. Andina de Fomento:

 
 

5.75%, 1/12/2017 

 

 

2,300,000 

 

2,191,932 

 

6.875%, 3/15/2012 

 

 

1,300,000 

 

1,363,222 

Discover Financial Services, 3.316% **, 6/11/2010 

 

 

3,845,000 

 

3,133,625 

Erac USA Finance Co.:

 
 

144A, 5.8%, 10/15/2012 

 

 

3,435,000 

 

3,206,768 

 

144A, 7.0%, 10/15/2037 

 

 

6,916,000 

 

5,262,059 

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

 

 

3,510,000 

 

3,606,588 

 

 

 

FPL Group Capital, Inc.:

 
 

6.65%, 6/15/2067 

 

 

5,955,000 

 

5,150,843 

 

Series D, 7.3%, 9/1/2067 

 

 

1,125,000 

 

1,035,314 

General Electric Capital Corp.:

 
 

4.8%, 5/1/2013 

 

 

3,270,000 

 

3,220,757 

 

5.625%, 5/1/2018 

 

 

3,150,000 

 

3,063,435 

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

 

 

2,425,000 

 

2,095,823 

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

 

 

1,185,000 

 

1,068,352 

HSBC Finance Corp., 5.25%, 1/15/2014 

 

 

390,000 

 

381,606 

International Lease Finance Corp.:

 
 

6.375%, 3/25/2013 

 

 

2,395,000 

 

2,070,363 

 

Series R, 6.625%, 11/15/2013 

 

 

630,000 

 

564,069 

KeyCorp., Series H, 6.5%, 5/14/2013 

 

 

1,665,000 

 

1,388,230 

Merrill Lynch & Co., Inc.:

 
 

6.875%, 4/25/2018 

 

 

1,495,000 

 

1,399,471 

 

7.75%, 5/14/2038 

 

 

2,690,000 

 

2,440,529 

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

 

 

4,670,000 

 

4,604,751 

 

 

 

Morgan Stanley:

 
 

Series F, 6.0%, 4/28/2015 

 

 

2,040,000 

 

1,915,735 

 

Series F, 6.625%, 4/1/2018 

 

 

3,470,000 

 

3,211,974 

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

 

 

3,375,000 

 

3,371,473 

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

 

 

985,000 

 

813,620 

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

 

 

4,649,000 

 

3,600,083 

Rio Tinto Finance USA Ltd.:

 
 

5.875%, 7/15/2013 

 

 

5,000,000 

 

5,057,830 

 

6.5%, 7/15/2018 

 

 

3,500,000 

 

3,509,723 

 

7.125%, 7/15/2028 

 

 

630,000 

 

639,311 

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

 

 

3,840,000 

 

3,205,252 

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

 

 

2,400,000 

 

2,245,174 

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

 

 

2,130,000 

 

1,848,220 

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

 

 

1,370,000 

 

1,321,818 

Wells Fargo & Co., 5.25%, 10/23/2012 

 

 

1,800,000 

 

1,782,000 

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

 

 

724,000 

 

682,103 

 

**92,272,094**

**Health Care 0.5%**

 
GlaxoSmithKline Capital, Inc., 6.375%, 5/15/2038 

 

 

308,000 

 

306,535 

Medco Health Solutions, Inc., 6.125%, 3/15/2013 

 

 

6,225,000 

 

6,262,935 

Schering-Plough Corp., 6.55%, 9/15/2037 

 

 

2,605,000 

 

2,473,474 

 

**9,042,944**

**Industrials 0.4%**

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

 

 

1,559,093 

 

1,418,774 

Canadian National Railway Co., 5.55%, 5/15/2018 

 

 

2,580,000 

 

2,516,922 

United Technologies Corp., 6.125%, 7/15/2038 

 

 

3,020,000 

 

2,964,378 

 

**6,900,074**

**Information Technology 0.8%**

 
Broadridge Financial Solutions, Inc., 6.125%, 6/1/2017 

 

 

3,447,000 

 

2,903,149 

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

 

 

5,430,000 

 

5,464,524 

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

 

 

4,435,000 

 

4,290,184 

 

**12,657,857**

**Materials 1.5%**

 
ArcelorMittal, 144A, 5.375%, 6/1/2013 

 

 

5,524,000 

 

5,420,756 

Celulosa Arauco y Constitucion SA, 5.625%, 4/20/2015 

 

 

4,683,000 

 

4,548,776 

 

 

Nucor Corp.:

 
 

5.75%, 12/1/2017 

 

 

1,670,000 

 

1,671,037 

 

6.4%, 12/1/2037 

 

 

2,615,000 

 

2,543,951 

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

 

 

2,438,000 

 

2,198,708 

Xstrata Canada Corp.:

 
 

6.0%, 10/15/2015 

 

 

2,075,000 

 

1,983,681 

 

7.25%, 7/15/2012 

 

 

6,450,000 

 

6,739,947 

 

**25,106,856**

**Telecommunication Services 0.8%**

 
Ameritech Capital Funding, 6.25%, 5/18/2009 

 

 

60,000 

 

60,865 

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

 

 

1,400,000 

 

1,503,818 

Qwest Corp.:

 
 

7.5%, 10/1/2014 

 

 

1,480,000 

 

1,357,900 

 

7.625%, 6/15/2015 

 

 

3,449,000 

 

3,147,213 

Telecom Italia Capital, 7.721%, 6/4/2038 

 

 

3,160,000 

 

3,110,625 

 

 

 

Verizon Communications, Inc., 6.9%, 4/15/2038 

 

 

3,385,000 

 

3,356,651 

 

**12,537,072**

**Utilities 3.5%**

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

 

 

4,195,000 

 

3,753,288 

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

 

 

2,286,000 

 

2,051,173 

Commonwealth Edison Co.:

 
 

5.8%, 3/15/2018 

 

 

3,165,000 

 

3,078,345 

 

Series 98, 6.15%, 3/15/2012 

 

 

3,710,000 

 

3,803,225 

 

6.95%, 7/15/2018 

 

 

169,000 

 

165,409 

 

Series 92, 7.625%, 4/15/2013 

 

 

905,000 

 

963,025 

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

 

 

1,865,000 

 

1,930,976 

Constellation Energy Group, Inc., 7.6%, 4/1/2032 

 

 

880,000 

 

884,104 

Dominion Resources, Inc.:

 
 

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

 

 

2,830,000 

 

2,556,251 

 

7.5%, 6/30/2066 

 

 

5,575,000 

 

5,012,393 

Energy East Corp.:

 
 

6.75%, 6/15/2012 

 

 

5,070,000 

 

5,283,209 

 

6.75%, 9/15/2033 

 

 

970,000 

 

913,552 

 

6.75%, 7/15/2036 

 

 

2,615,000 

 

2,472,255 

Energy Future Holdings Corp., 7.46%, 1/1/2015 

 

 

1,482,485 

 

1,344,273 

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

 

 

4,520,000 

 

3,655,595 

Pedernales Electric Cooperative, Series 2002-A, 144A, 6.202%, 11/15/2032 

 

 

5,694,000 

 

5,015,104 

Pennsylvania Electric Co., 6.05%, 9/1/2017 

 

 

3,947,000 

 

3,844,607 

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

 

 

6,825,000 

 

5,809,679 

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

 

 

8,015,000 

 

6,725,058 

 

**59,261,521**

**Total Corporate Bonds** (Cost $307,630,656)

 

**285,555,891**

 

**Asset-Backed 2.2%**

 
**Automobile Receivables 1.2%**

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

 

 

15,650,000 

 

14,911,032 

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

 

 

4,450,000 

 

4,444,012 

 

**19,355,044**

**Home Equity Loans 1.0%**

 
Chase Funding Mortgage Loan Asset-Backed Certificates, "2A2", Series 2003-4, 3.061% **, 5/25/2033 

 

 

4,033,678 

 

3,867,123 

Countrywide Asset-Backed Certificates:

 
 

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

 

 

2,505,000 

 

1,912,587 

 

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

 

 

6,555,000 

 

3,969,947 

First Franklin Mortgage Loan Asset-Backed Certificates, "A3", Series 2006-FF15, 2.511% **, 11/25/2036 

 

 

3,494,808 

 

3,295,422 

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

 

 

3,204,105 

 

3,180,409 

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

 

 

487,805 

 

49 

 

**16,225,537**

**Manufactured Housing Receivables 0.0%**

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

 

 

566,132 

 

**574,995**

**Total Asset-Backed** (Cost $40,925,454)

 

**36,155,576**

 

**Mortgage-Backed Securities Pass-Throughs 16.7%**

 
Federal Home Loan Mortgage Corp.:

 
 

3.5%, 8/1/2035 

 

 

6,455,476 

 

5,609,467 

 

5.0%, 4/1/2035 

 

 

4,147,303 

 

3,968,288 

 

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

 

 

5,935,100 

 

5,855,591 

 

 

 

 

5.518% **, 2/1/2038 

 

 

8,109,017 

 

7,999,339 

 

6.5%, with various maturities from 1/1/2035 until 2/1/2038 

 

 

13,848,611 

 

14,318,294 

Federal National Mortgage Association:

 
 

4.5%, with various maturities from 8/1/2033 until 10/1/2033 

 

 

7,826,792 

 

7,203,705 

 

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

 

 

79,333,417 

 

76,359,805 

 

5.5%, with various maturities from 2/1/2024 until 7/1/2037 

 

 

114,266,495 

 

112,191,833 

 

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

 

 

9,590,757 

 

9,744,920 

 

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

 

 

36,611,361 

 

37,748,627 

**Total Mortgage-Backed Securities Pass-Throughs** (Cost $283,081,591)

 

**280,999,869**

 

**Commercial and Non-Agency Mortgage-Backed Securities 35.7%**

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

 

 

1,410,000 

 

1,274,518 

Banc of America Commercial Mortgage, Inc.:

 
 

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

 

 

8,680,000 

 

7,900,842 

 

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

 

 

5,900,000 

 

5,610,866 

 

"A2", Series 2007-3, 5.838% **, 6/10/2049 

 

 

5,560,000 

 

5,455,884 

 

"A4", Series 2007-3, 5.838% **, 6/10/2049 

 

 

4,525,000 

 

4,180,253 

 

"A4", Series 2007-2, 5.867% **, 4/10/2049 

 

 

5,225,000 

 

4,858,939 

 

"AM", Series 2007-4, 6.003% **, 2/10/2051 

 

 

2,290,000 

 

2,032,207 

Bear Stearns Adjustable Rate Mortgage Trust:

 
 

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

 

 

9,260,831 

 

8,384,216 

 

"2A1", Series 2006-4, 5.791% **, 10/25/2036 

 

 

4,974,461 

 

4,131,845 

 

"22A1", Series 2007-4, 6.001% **, 6/25/2047 

 

 

11,208,580 

 

9,477,689 

Bear Stearns Commercial Mortgage Securities, Inc.:

 
 

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

 

 

7,175,000 

 

6,707,235 

 

"A2", Series 2007-PW16, 5.85% **, 6/11/2040 

 

 

11,025,000 

 

10,808,914 

 

"AAB", Series 2007-PW16, 5.902% **, 6/11/2040 

 

 

7,775,000 

 

7,425,293 

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

 

 

8,286 

 

8,101 

Citicorp Mortgage Securities, Inc., "1A1", Series 2004-1, 5.25%, 1/25/2034 

 

 

4,350,801 

 

4,285,033 

Citigroup Mortgage Loan Trust, Inc.:

 
 

"1A2", Series 2006-AR2, 5.523% **, 3/25/2036 

 

 

7,916,144 

 

7,054,798 

 

"1A4A", Series 2006-AR7, 5.765% **, 11/25/2036 

 

 

8,124,162 

 

6,899,132 

 

"2A1A", Series 2007-AR8, 5.913% **, 7/25/2037 

 

 

7,587,666 

 

6,735,332 

 

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

 

 

2,659,522 

 

2,570,596 

Citigroup/Deutsche Bank Commercial Mortgage Trust, "F", Series 2007-CD4, 5.555%, 12/11/2049 

 

 

3,900,000 

 

2,335,492 

Countrywide Alternative Loan Trust:

 
 

"A2", Series 2003-6T2, 5.0%, 6/25/2033 

 

 

1,190 

 

1,187 

 

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

 

 

3,006,364 

 

2,763,694 

 

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

 

 

2,581,612 

 

2,484,914 

 

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

 

 

3,028,648 

 

2,902,136 

 

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

 

 

1,125 

 

961 

 

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

 

 

566,667 

 

484,146 

 

Countrywide Home Loans:

 
 

"A15", Series 2002-34, 4.75%, 1/25/2033 

 

 

3,509,860 

 

3,445,386 

 

"1A1", Series 2007-HY1, 5.696% **, 4/25/2037 

 

 

9,250,500 

 

8,002,066 

 

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

 

 

7,797,312 

 

6,701,633 

Credit Suisse Mortgage Capital Certificates:

 
 

"AAB", Series 2006-C5, 5.308%, 12/15/2039 

 

 

6,490,000 

 

6,166,070 

 

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

 

 

6,352,458 

 

5,855,051 

 

"5A14", Series 2007-1, 6.0%, 2/25/2037 

 

 

6,718,168 

 

6,528,085 

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

 

 

3,055,447 

 

2,834,448 

First Horizon Mortgage Pass-Through Trust:

 
 

"2A1", Series 2005-AR2, 5.119% **, 6/25/2035 

 

 

5,116,033 

 

4,782,460 

 

"1A2", Series 2006-AR4, 5.484% **, 1/25/2037 

 

 

5,848,562 

 

5,197,116 

GE Capital Commercial Mortgage Corp., "AJ", Series 2007-C1, 5.677%, 12/10/2049 

 

 

7,640,000 

 

5,920,386 

 

 

 

GMAC Mortgage Corp. Loan Trust:

 
 

"A2", Series 2004-J1, 5.25%, 4/25/2034 

 

 

2,870,767 

 

2,854,038 

 

"4A1", Series 2005-AR6, 5.462% **, 11/19/2035 

 

 

5,451,199 

 

4,785,950 

Greenwich Capital Commercial Funding Corp.:

 
 

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

 

 

11,250,000 

 

10,945,240 

 

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

 

 

3,275,000 

 

2,841,850 

 

"AAB", Series 2006-GG7, 6.112% **, 7/10/2038 

 

 

7,000,000 

 

6,905,678 

GS Mortgage Securities Corp.:

 
 

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

 

 

9,266,000 

 

8,767,489 

 

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

 

 

2,400,000 

 

2,270,880 

GS Mortgage Securities Corp. II:

 
 

"A2", Series 2006-GG8, 5.479%, 11/10/2039 

 

 

7,690,000 

 

7,599,658 

 

"J", Series 2007-GG10, 144A, 5.993% **, 8/10/2045 

 

 

9,913,000 

 

3,875,327 

 

"A4", Series 2007-GG10, 5.993% **, 8/10/2045 

 

 

8,200,000 

 

7,662,198 

 

"AM", Series 2007-GG10, 5.993% **, 8/10/2045 

 

 

12,750,000 

 

11,339,789 

 

"AJ", Series 2007-GG10, 5.993% **, 8/10/2045 

 

 

7,590,000 

 

5,950,001 

GSR Mortgage Loan Trust:

 
 

"2A4", Series 2006-AR1, 5.179% **, 1/25/2036 

 

 

9,450,000 

 

8,121,756 

 

"2A1", Series 2007-AR2, 5.511% **, 5/25/2047

 

 

10,016,819 

 

9,136,708 

 

"2A1", Series 2007-AR1, 6.0% **, 3/25/2047 

 

 

17,567,549 

 

14,425,721 

Indymac Index Mortgage Loan Trust, "3A1", Series 2006-AR33, 5.768% **, 1/25/2037 

 

 

5,096,325 

 

4,440,864 

JPMorgan Chase Commercial Mortgage Securities Corp.:

 
 

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

 

 

2,910,000 

 

2,713,712 

 

"ASB", Series 2007-CB19, 5.92% **, 2/12/2049 

 

 

6,879,000 

 

6,587,586 

 

"A2", Series 2007-LD11, 5.992% **, 6/15/2049 

 

 

11,930,000 

 

11,749,395 

 

"ASB", Series 2007-LD11, 6.007% **, 6/15/2049 

 

 

13,981,000 

 

13,435,345 

 

"A4", Series 2007-LD11, 6.007% **, 6/15/2049 

 

 

5,030,000 

 

4,701,726 

 

"AM", Series 2007-LD12, 6.261% **, 2/15/2051 

 

 

6,021,000 

 

5,428,676 

JPMorgan Mortgage Trust:

 
 

"6A1", Series 2007-A1, 4.776% **, 7/25/2035 

 

 

5,736,564 

 

5,129,854 

 

"2A4L", Series 2006-A6, 5.562% **, 10/25/2036 

 

 

7,185,000 

 

5,451,293 

 

"2A1" Series 2006-A5, 5.821% **, 8/25/2036 

 

 

5,712,655 

 

5,176,644 

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

 

 

5,962,678 

 

5,684,259 

Master Adjustable Rate Mortgages Trust, "B1", Series 2004-13, 3.813% **, 12/21/2034 

 

 

6,247,480 

 

4,014,935 

Master Alternative Loans Trust:

 
 

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

 

 

673,123 

 

556,379 

 

"8A1", Series 2004-3, 7.0%, 4/25/2034 

 

 

132,427 

 

121,212 

 

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

 

 

884,318 

 

765,212 

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

 

 

4,709,341 

 

4,136,864 

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

 

 

3,578,000 

 

3,255,362 

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

 

 

3,900,000 

 

3,711,490 

 

 

 

Morgan Stanley Capital I:

 
 

"A2", Series 2007-HQ11, 5.359%, 2/12/2044 

 

 

7,325,000 

 

7,118,187 

 

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

 

 

7,655,000 

 

7,252,379 

 

"AM", Series 2007-HQ12, 5.811% **, 4/12/2049 

 

 

4,250,000 

 

3,725,794 

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

 

 

1,715,918 

 

1,690,179 

Residential Accredit Loans, Inc., "CB", Series 2004-QS2, 5.75%, 2/25/2034 

 

 

1,413,172 

 

1,320,432 

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

 

 

2,910,313 

 

2,709,263 

Residential Funding Mortgage Securities I:

 
 

"2A1", Series 2004-S9, 4.75%, 12/25/2019 

 

 

5,038,896 

 

4,695,621 

 

"2A2", Series 2007-SA1, 5.616% **, 2/25/2037 

 

 

8,762,762 

 

7,705,899 

Sequoia Mortgage Trust, "2A1", Series 2007-1, 5.834% **, 2/20/2047 

 

 

6,071,002 

 

5,387,823 

 

 

 

Structured Adjustable Rate Mortgage Loan Trust:

 
 

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

 

 

8,055,000 

 

5,477,614 

 

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

 

 

5,644,000 

 

4,124,661 

 

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

 

 

6,132,000 

 

3,601,049 

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

 

 

39,346 

 

33,419 

SunTrust Adjustable Rate Mortgage Loan Trust, "3A1", Series 2007-3, 6.045% **, 6/25/2037 

 

 

11,191,907 

 

9,975,711 

Wachovia Bank Commercial Mortgage Trust:

 
 

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

 

 

5,390,000 

 

5,208,057 

 

"AJ", Series 2007-C30, 5.413%, 12/15/2043 

 

 

5,610,000 

 

4,274,425 

 

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

 

 

19,950,000 

 

19,329,347 

 

"A2", Series 2007-C32, 5.924% **, 6/15/2049 

 

 

7,790,000 

 

7,635,034 

 

"B", Series 2007-C32, 5.929% **, 6/15/2049 

 

 

4,650,000 

 

3,297,595 

Washington Mutual Mortgage Pass-Through Certificates Trust:

 
 

"1A3", Series 2005-AR14, 5.05% **, 12/25/2035 

 

 

6,100,000 

 

5,469,192 

 

"1A3", Series 2005-AR16, 5.1% **, 12/25/2035 

 

 

6,220,000 

 

5,251,774 

 

"4A1", Series 2007-HY3, 5.349% **, 3/25/2037 

 

 

10,602,195 

 

9,264,019 

 

"1A1", Series 2007-HY5, 5.527% **, 5/25/2037 

 

 

6,347,502 

 

5,104,057 

 

"1A1", Series 2007-HY4, 5.55% **, 4/25/2037 

 

 

11,916,174 

 

10,450,906 

 

"1A1", Series 2006-AR16, 5.607% **, 12/25/2036 

 

 

7,547,641 

 

6,273,559 

 

"1A1", Series 2007-HY2, 5.62% **, 12/25/2036 

 

 

6,141,067 

 

5,477,129 

 

"2A2", Series 2006-AR16, 5.636% **, 12/25/2036 

 

 

17,100,000 

 

12,387,616 

 

"1A3", Series 2006-AR8, 5.879% **, 8/25/2046 

 

 

7,705,000 

 

6,223,271 

 

"3A1", Series 2007-HY7, 5.909% **, 7/25/2037 

 

 

4,397,977 

 

3,646,754 

Wells Fargo Mortgage-Backed Securities Trust:

 
 

"4A2", Series 2005-AR16, 4.992% **, 10/25/2035 

 

 

8,150,000 

 

7,506,843 

 

"2A5", Series 2006-AR2, 5.106% **, 3/25/2036 

 

 

16,852,139 

 

15,523,222 

 

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

 

 

10,170,000 

 

8,958,887 

 

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

 

 

6,674,600 

 

6,502,723 

 

"A6", Series 2006-AR11, 5.514% **, 8/25/2036 

 

 

10,255,000 

 

7,801,363 

 

"2A5", Series 2006-AR1, 5.551% **, 3/25/2036 

 

 

8,400,000 

 

5,867,302 

 

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

 

 

5,548,319 

 

5,429,280 

**Total Commercial and Non-Agency Mortgage-Backed Securities** (Cost $667,597,761)

 

**598,450,401**

 

**Collateralized Mortgage Obligations 5.9%**

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

 

 

2,069,041 

 

2,087,578 

Federal Home Loan Mortgage Corp.:

 
 

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

 

 

6,428,391 

 

6,265,009 

 

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

 

 

7,525,000 

 

7,331,935 

 

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

 

 

4,295,000 

 

4,164,367 

 

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

 

 

90,000 

 

87,434 

 

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

 

 

5,050,000 

 

4,849,838 

 

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

 

 

9,696,000 

 

9,373,038 

 

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

 

 

65,000 

 

63,018 

 

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

 

 

10,975,000 

 

10,549,860 

 

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

 

 

40,000 

 

38,862 

 

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

 

 

10,815,000 

 

10,433,090 

 

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

 

 

1,230,000 

 

1,190,420 

 

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

 

 

3,414,000 

 

3,287,565 

 

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

 

 

5,936,000 

 

5,726,937 

 

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

 

 

53,000 

 

50,926 

 

"AC", Series R007, 5.875%, 5/15/2016 

 

 

4,722,254 

 

4,804,924 

 

"YB", Series 2205, 6.0%, 5/15/2029 

 

 

502,227 

 

508,242 

 

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

 

 

4,874,308 

 

4,924,767 

Federal National Mortgage Association:

 
 

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

 

 

2,457,000 

 

2,364,103 

 

 

 

 

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

 

 

80,000 

 

76,975 

 

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

 

 

25,000 

 

24,029 

 

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

 

 

90,000 

 

86,604 

 

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

 

 

12,660,000 

 

12,164,467 

 

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

 

 

3,681,872 

 

3,740,061 

 

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

 

 

4,824,121 

 

4,858,820 

 

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

 

 

14,686 

 

14,898 

**Total Collateralized Mortgage Obligations** (Cost $99,366,029)

 

**99,067,767**

 

**Municipal Bonds and Notes 3.0%**

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

 

4,675,000

 

4,564,156

Chicago, IL, Transit Authority, Transfer Tax Receipts Revenue, Series A, 6.899%, 12/1/2040 

 

5,575,000

 

5,615,419

Contra Costa County, CA, Multi-Family Housing Revenue, Willow Pass Apartments, Series D, 6.8%, 12/1/2015 

 

1,130,000

 

1,172,940

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

 

6,480,000

 

6,522,833

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

 

2,245,000

 

2,152,730

Port Authority New York & New Jersey, One Hundred Fiftieth Series, 4.75%, 9/15/2016 

 

3,640,000

 

3,435,760

Port Authority New York & New Jersey, General Obligation, 6.4%, 3/15/2027 (b) 

 

5,945,000

 

6,184,702

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

 

4,690,000

 

4,754,863

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

 

4,340,000

 

4,131,376

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

 

925,000

 

885,539

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

 
 

Series A, Zero Coupon, 1/22/2012

 

1,300,000 

 

1,065,857 

 

Series A, Zero Coupon, 6/12/2013

 

1,500,000 

 

1,122,870 

 

Series C, Zero Coupon, 7/31/2013

 

3,500,000 

 

2,596,755 

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

 

6,315,000

 

5,728,905

**Total Municipal Bonds and Notes** (Cost $49,922,193)

 

**49,934,705**

 

**Government & Agency Obligations 13.9%**

 
**US Government Sponsored Agencies 0.9%**

 
Federal Home Loan Mortgage Corp., 6.75%, 3/15/2031 

 

 

4,445,000 

 

5,356,403 

Federal National Mortgage Association, 6.625%, 11/15/2030 (a) 

 

 

8,085,000 

 

9,606,128 

 

**14,962,531**

**US Treasury Obligations 13.0%**

 
US Treasury Bonds:

 
 

5.0%, 5/15/2037 (a) 

 

 

27,283,000 

 

28,986,059 

 

6.0%, 2/15/2026 (a) (d) 

 

 

5,901,000 

 

6,875,125 

US Treasury Notes:

 
 

3.875%, 5/15/2018 (a)

 

 

36,075,000 

 

35,764,972 

 

4.0%, 2/15/2015 (a)

 

 

142,033,000

 

146,615,837

 

**218,241,993**

**Total Government & Agency Obligations** (Cost $231,515,141)

 

**233,204,524**

 

**Preferred Securities 3.9%**

 
**Financials**

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

 

 

7,382,000 

 

6,543,368 

Banco Mercantil del Norte SA, Series A, 144A, 6.135%, 10/13/2016 

 

 

1,700,000 

 

1,662,041 

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

 

 

5,690,000 

 

5,292,895 

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

 

 

1,580,000 

 

1,352,859 

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

 

 

2,455,000 

 

2,001,723 

Goldman Sachs Capital II, 5.793%, 6/1/2012 (c) 

 

 

7,915,000 

 

5,238,503 

 

 

 

 
JPMorgan Chase & Co., Series 1, 7.9%, 4/30/2018 (c)

 

 

7,785,000 

 

7,201,281 

 
Mangrove Bay Pass-Through Trust, 144A, 6.102%, 7/15/2033 

 

 

2,980,000 

 

1,652,470 

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

 

 

12,040,000 

 

10,222,803 

 
PNC Financial Services Group, Inc., Series K, 8.25%, 5/21/2013 (c) 

 

 

7,015,000 

 

6,723,702 

 
Royal Bank of Scotland Group PLC:

 
 
 

144A, 6.99%, 10/5/2017 (c)

 

 

2,990,000 

 

2,492,204 

 
 

Series U, 7.64%, 9/29/2017 (c)

 

 

2,500,000 

 

2,088,300 

 
Wachovia Capital Trust III, 5.8%, 3/15/2042  

 

 

10,945,000 

 

6,183,925 

 
Wells Fargo Capital XIII, Series G, 7.7%, 3/26/2013 (c) 

 

 

3,900,000 

 

3,695,168 

 
XL Capital Ltd., Series E, 6.5%, 4/15/2017 (c) 

 

 

4,470,000 

 

2,905,500 

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

 

 

500,000 

 

428,471

 
 
**Total Preferred Securities** (Cost $81,437,084)

 

**65,685,213**

 
 

**Shares**

 

**Value ($)**

 
 
 

**Preferred Stocks 0.1%**

 
 
Arch Capital Group Ltd., 8.0% 

 

26,915 

 

620,727 

 
Delphi Financial Group, Inc., 7.376%  

 

93,400 

 

1,684,124 

 
 
**Total Preferred Stocks** (Cost $3,013,982)

 

**2,304,851**

 
 

**Securities Lending Collateral 11.5%**

 
 
Daily Assets Fund Institutional, 2.69% (e) (f)(Cost $193,673,148)

 

 

193,673,148

 

**193,673,148**

 
 

**Cash Equivalents 3.2%**

 
 
Cash Management QP Trust, 2.42% (e)(Cost $53,282,774)

 

 

53,282,774

 

**53,282,774**

 
 

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

 

**Value ($)**

 
 
**Total Investment Portfolio** (Cost $2,011,445,813) †

113.1

 

**1,898,314,719**

 
**Other Assets and Liabilities, Net**

(13.1)

 

**(220,021,310)**

 
 
**Net Assets**

100.0

 

**1,678,293,409**

 
*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*

 
****

*Floating rate notes are securities whose yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate.  These securities are shown at their current rate as of July 31, 2008.*

 
*†*

*The cost for federal income tax purposes was $2,012,065,831.  At July 31, 2008, net unrealized depreciation for all securities based on tax cost was $113,751,112.  This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $5,657,111 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $119,408,223.*

 
*(a)*

*All or a portion of these securities were on loan.  The value of all securities loaned at July 31, 2008 amounted to $188,777,212 which is 11.2% of net assets.*

 
 

 

 
 

 

 
 

 

 
*(b)*

*Bond is insured by one of these companies:*

***Insurance Coverage*****

***As a % of Total***

***Investment Portfolio*****

 
*Ambac Financial Group***

*0.5***

 
*Assured Guaranty Corporation***

*0.3***

 
*MBIA Corporation***

*0.8***

 
* *

* *

 
 

 

 

*(c)*

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

 
*(d)*

*At July 31, 2008, this security has been pledged, in whole or in part, to cover margin requirements for open futures contracts.*

 
*(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.*

 
*REIT: Real Estate Investment Trust*

 

*At July  31, 2008, open futures contracts purchased were as follows:*

 

**Futures**

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

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

 

5-Year US Treasury Note

 

9/30/2008 

 

808 

 

89,029,558

 

89,959,438

 

**929,880**

 

*At July 31,2008, open futures contracts sold were as follows:*

 

**Futures**

 

 

**Expiration****Date**

 

**Contracts**

 

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

 

**Value ($)**

 

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

 

10-Year US Treasury Note

 

9/19/2008 

 

577 

 

64,550,288

 

66,255,828

 

**(1,705,540)**

 

*Included in the portfolio are investments in mortgage or asset-backed securities which are interests in separate pools of mortgage or assets.  Effective maturities of these investments may be shorter than stated maturities due to prepayments.  Some separate investments in the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association issues which have similar coupon rates and have been aggregated for presentation purposes in the investment portfolio.*

 

 

 

**ITEM 2.**

**CONTROLS AND PROCEDURES**

 

 

 

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

 

 

 

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

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

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

 

 

**SIGNATURES**

 

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

 

Registrant: 

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

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

September 16, 2008

 

 

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

 

Registrant: 

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

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

September 16, 2008

 

 

By:

/s/Paul Schubert

 

Paul Schubert

Chief Financial Officer and Treasurer

 

Date:                                        September 16, 2008

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