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)

 

One        South Street

Baltimore, MD 21202

(Address of principal executive offices)                    (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154

(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:01/31/08

 

ITEM 1.        SCHEDULE OF INVESTMENTS

 

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

         

**DWS Core        Fixed Income Fund**

 

|                                                                                   | **Principal****Amount ($)** |   | **Value                        ($)** |
|----------------------------------------------------------------------------------------|-----------------------------|--------|--------------------------------------|
|                                                                                        |
|                                                                                   | **Corporate Bonds 16.1%**   |   |
| **Consumer Discretionary 0.9%**                                                        |                        |
| Comcast Cable Communications Holdings, Inc., 9.455%,                        11/15/2022 |                        |   | 843,000                              |   | 1,064,480 |
| Comcast Cable Holdings LLC, 10.125%, 4/15/2022                                         |                        |   | 1,980,000                            |   | 2,612,016 |
| McDonald's Corp., Series I, 6.3%, 10/15/2037                                           |                        |   | 4,075,000                            |   | 4,174,410 |
| TCI Communications, Inc., 8.75%, 8/1/2015                                              |                        |   | 2,490,000                            |   | 2,924,545 |
| Viacom, Inc.:                                                                          |                        |
|                                                                                   | 5.75%, 4/30/2011            |   |                                 | 3,095,000 |   | 3,171,932 |
|                                                                                   | 6.25%, 4/30/2016            |   |                                 | 306,000 |   | 309,177 |
|                                                                                   | 6.875%, 4/30/2036           |   |                                 | 1,617,000 |   | 1,579,976 |
|                                                                                        |
|                                                                                   | **15,836,536**              |
|                                                                                        |                             |        |                                      |  |  |  |  |  |

| **Consumer Staples 0.8%**                                                              |                     |
|----------------------------------------------------------------------------------------|--------------------------|
| CVS Caremark Corp.:                                                                    |                     |
|                                                                                   | 6.25%, 6/1/2027          |   |   | 2,663,000 |   | 2,653,837 |
|                                                                                   | 6.302%, 6/1/2037         |   |   | 7,312,000 |   | 6,812,517 |
| Tesco PLC, 144A, 6.15%, 11/15/2037                                                     |                     |   | 4,100,000 |   | 3,941,793 |
|                                                                                        |
|                                                                                   | **13,408,147**           |
| **Energy 0.8%**                                                                        |                     |
| Canadian Natural Resources Ltd., 6.5%,                        2/15/2037                |                     |   | 3,340,000 |   | 3,339,042 |
| Enterprise Products Operating LP, 7.5%,                        2/1/2011                |                     |   | 1,034,000 |   | 1,117,092 |
| Pemex Project Funding Master Trust, 144A, 5.75%,                        3/1/2018       |                     |   | 1,367,000 |   | 1,389,556 |
| TransCanada PipeLines Ltd., 6.35%, 5/15/2067                                           |                     |   | 4,900,000 |   | 4,562,679 |
| XTO Energy, Inc., 6.75%, 8/1/2037                                                      |                     |   | 3,245,000 |   | 3,462,285 |
|                                                                                        |
|                                                                                   | **13,870,654**           |
| **Financials 6.4%**                                                                    |                     |
| AES El Salvador Trust, 144A, 6.75%, 2/1/2016                                           |                     |   | 3,210,000 |   | 3,195,876 |
| American Express Centurion Bank, 5.55%,                        10/17/2012              |                     |   | 6,885,000 |   | 7,141,404 |
| American General Institutional Capital, 144A, 8.125%,                        3/15/2046 |                     |   | 7,382,000 |   | 8,446,123 |
| Bank of New York Mellon Corp., Series G, 4.95%,                        11/1/2012       |                     |   | 2,410,000 |   | 2,470,884 |
| Corp. Andina de Fomento:                                                               |                     |
|                                                                                   | 5.75%, 1/12/2017         |   |   | 3,520,000 |   | 3,434,499 |
|                                                                                   | 6.875%, 3/15/2012        |   |   | 1,300,000 |   | 1,394,615 |
| Discover Financial Services, 144A, 5.663% *,                        6/11/2010          |                     |   | 3,845,000 |   | 3,545,321 |
| Dresdner Funding Trust I, 144A, 8.151%,                        6/30/2031               |                     |   | 2,455,000 |   | 2,454,433 |
| Erac USA Finance Co.:                                                                  |                     |
|                                                                                   | 144A, 5.8%, 10/15/2012   |   |   | 3,435,000 |   | 3,471,322 |
|                                                                                   | 144A, 7.0%, 10/15/2037   |   |   | 6,916,000 |   | 6,283,055 |
| Farmers Insurance Exchange, 144A, 8.625%,                        5/1/2024              |                     |   | 3,510,000 |   | 3,823,766 |
| FPL Group Capital, Inc.:                                                               |                     |
|                                                                                   | 6.65%, 6/15/2067         |   |   | 5,955,000 |   | 5,604,435 |
|                                                                                   | Series D, 7.3%, 9/1/2067 |   |   | 1,125,000 |   | 1,129,821 |
| General Electric Capital Corp., 5.875%,                        1/14/2038               |                     |   | 7,645,000 |   | 7,470,969 |
| Glen Meadow Pass-Through Trust, 144A, 6.505%,                        2/12/2067         |                     |   | 4,070,000 |   | 3,955,226 |
| HSBC Finance Corp., 5.25%, 1/15/2014                                                   |                     |   | 390,000 |   | 384,620 |
| John Deere Capital Corp., Series D, 4.95%,                        12/17/2012           |                     |   | 5,960,000 |   | 6,140,659 |
| Mangrove Bay Pass-Through Trust, 144A, 6.102%,                        7/15/2033        |                     |   | 2,980,000 |   | 2,577,462 |
| Morgan Stanley, Series F, 5.25%, 11/2/2012                                             |                     |   | 3,000,000 |   | 3,061,086 |
| NLV Financial Corp., 144A, 6.5%, 3/15/2035                                             |                     |   | 985,000 |   | 920,794 |
| PartnerRe Finance, 6.44%, 12/1/2066                                                    |                     |   | 4,649,000 |   | 4,185,774 |
| StanCorp Financial Group, Inc., 6.9%,                        5/29/2067                 |                     |   | 3,840,000 |   | 3,533,410 |
| Standard Chartered Bank, 144A, 6.4%, 9/26/2017                                         |                     |   | 2,400,000 |   | 2,507,513 |
| Symetra Financial Corp., 144A, 8.3%,                        10/15/2037                 |                     |   | 2,130,000 |   | 2,128,733 |
| The Travelers Companies, Inc., 6.25%,                        3/15/2037                 |                     |   | 1,085,000 |   | 1,031,736 |
| UDR, Inc., Series E, (REIT), 3.9%, 3/15/2010                                           |                     |   | 1,370,000 |   | 1,358,965 |
| Wachovia Capital Trust III, 5.8%, 3/15/2042                                            |                     |   | 12,520,000 |   | 9,890,800 |
| Wells Fargo & Co., 5.25%, 10/23/2012                                               |                     |   | 5,095,000 |   | 5,296,838 |
| White Mountains Re Group, 144A, 6.375%,                        3/20/2017               |                     |   | 1,110,000 |   | 1,101,507 |
| Xstrata Finance Canada Ltd., 144A, 5.8%,                        11/15/2016             |                     |   | 724,000 |   | 691,070 |
| ZFS Finance USA Trust V, 144A, 6.5%, 5/9/2037                                          |                     |   | 500,000 |   | 456,510 |
|                                                                                        |
|                                                                                   | **109,089,226**          |
| **Health Care 0.3%**                                                                   |                     |
| Quest Diagnostics, Inc., 6.95%, 7/1/2037                                               |                     |   | 1,821,000 |   | 1,876,621 |
| Schering-Plough Corp., 6.55%, 9/15/2037                                                |                     |   | 2,605,000 |   | 2,627,960 |
|                                                                                        |
|                                                                                   | **4,504,581**            |
|                                                                                        |                          |  |  |  |  |  |  |  |

| **Industrials 0.1%**                                                                            |                         |
|-------------------------------------------------------------------------------------------------|------------------------------|
| America West Airlines, Inc., Series 99-1, 7.93%,                        1/2/2019                |                         |   | 1,664,103 |   | **1,714,026** |
| **Information Technology 0.5%**                                                                 |                         |
| Broadridge Financial Solutions, Inc., 6.125%,                        6/1/2017                   |                         |   | 3,447,000 |   | 3,320,816 |
| Tyco Electronics Group SA, 144A, 6.0%,                        10/1/2012                         |                         |   | 5,430,000 |   | 5,696,949 |
|                                                                                                 |
|                                                                                            | **9,017,765**                |
| **Materials 1.0%**                                                                              |                         |
| Celulosa Arauco y Constitucion SA, 5.625%,                        4/20/2015                     |                         |   | 4,683,000 |   | 4,633,192 |
| E.I. du Pont de Nemours & Co., 4.875%,                        4/30/2014                     |                         |   | 4,000,000 |   | 4,050,376 |
| Nucor Corp., 5.75%, 12/1/2017                                                                   |                         |   | 2,320,000 |   | 2,393,576 |
| Sappi Papier Holding AG, 144A, 6.75%,                        6/15/2012                          |                         |   | 2,438,000 |   | 2,410,034 |
| Vulcan Materials Co., 5.6%, 11/30/2012                                                          |                         |   | 4,270,000 |   | 4,395,794 |
|                                                                                                 |
|                                                                                            | **17,882,972**               |
| **Telecommunication Services 1.3%**                                                             |                         |
| Ameritech Capital Funding, 6.25%, 5/18/2009                                                     |                         |   | 10,000 |   | 10,402 |
| AT&T, Inc.:                                                                                 |                         |
|                                                                                            | 4.95%, 1/15/2013             |   |   | 3,799,000 |   | 3,889,656 |
|                                                                                            | 5.5%, 2/1/2018               |   |   | 4,140,000 |   | 4,153,852 |
| British Telecommunications PLC:                                                                 |                         |
|                                                                                            | 5.15%, 1/15/2013             |   |   | 4,300,000 |   | 4,415,459 |
|                                                                                            | 8.625%, 12/15/2010           |   |   | 1,400,000 |   | 1,560,576 |
| Nextel Communications, Inc., Series D, 7.375%,                        8/1/2015                  |                         |   | 3,516,000 |   | 3,216,388 |
| Qwest Corp.:                                                                                    |                         |
|                                                                                            | 7.5%, 10/1/2014              |   |   | 1,480,000 |   | 1,487,400 |
|                                                                                            | 7.625%, 6/15/2015            |   |   | 3,449,000 |   | 3,474,867 |
|                                                                                                 |
|                                                                                            | **22,208,600**               |
| **Utilities 4.0%**                                                                              |                         |
| Arizona Public Service Co., 6.875%, 8/1/2036                                                    |                         |   | 4,195,000 |   | 4,259,842 |
| Baltimore Gas & Electric Co., 6.35%,                        10/1/2036                       |                         |   | 2,286,000 |   | 2,255,470 |
| Commonwealth Edison Co.:                                                                        |                         |
|                                                                                            | Series 98, 6.15%, 3/15/2012  |   |   | 3,710,000 |   | 3,872,561 |
|                                                                                            | 6.95%, 7/15/2018             |   |   | 169,000 |   | 173,859 |
|                                                                                            | Series 92, 7.625%, 4/15/2013 |   |   | 905,000 |   | 996,896 |
| Consolidated Natural Gas Co., 6.0%, 10/15/2010                                                  |                         |   | 1,865,000 |   | 1,965,742 |
| Constellation Energy Group, 7.6%, 4/1/2032                                                      |                         |   | 880,000 |   | 973,804 |
| Dominion Resources, Inc.:                                                                       |                         |
|                                                                                            | Series 06-B, 6.3%, 9/30/2066 |   |   | 2,830,000 |   | 2,687,753 |
|                                                                                            | 7.5%, 6/30/2066              |   |   | 5,575,000 |   | 5,328,998 |
| ENEL Finance International, 144A, 6.8%,                        9/15/2037                        |                         |   | 3,345,000 |   | 3,399,657 |
| Energy East Corp.:                                                                              |                         |
|                                                                                            | 6.75%, 6/15/2012             |   |   | 5,070,000 |   | 5,494,476 |
|                                                                                            | 6.75%, 9/15/2033             |   |   | 970,000 |   | 981,524 |
|                                                                                            | 6.75%, 7/15/2036             |   |   | 2,615,000 |   | 2,647,395 |
| Energy Future Holdings Corp., 7.46%, 1/1/2015                                                   |                         |   | 1,482,489 |   | 1,350,622 |
| Integrys Energy Group, Inc., 6.11%, 12/1/2066                                                   |                         |   | 4,520,000 |   | 4,055,687 |
| Nevada Power Co., Series N, 6.65%, 4/1/2036                                                     |                         |   | 2,109,000 |   | 2,129,734 |
| Pedernales Electric Cooperative, Series 2002-A, 144A,                        6.202%, 11/15/2032 |                         |   | 5,694,000 |   | 5,501,372 |
| Pennsylvania Electric Co., 6.05%, 9/1/2017                                                      |                         |   | 3,947,000 |   | 3,993,646 |
| PPL Capital Funding, Inc., Series A, 6.7%,                        3/30/2067                     |                         |   | 6,825,000 |   | 6,282,474 |
| West Penn Power Co., 144A, 5.95%, 12/15/2017                                                    |                         |   | 2,535,000 |   | 2,604,033 |
| Wisconsin Energy Corp., Series A, 6.25%,                        5/15/2067                       |                         |   | 8,015,000 |   | 7,235,573 |
|                                                                                                 |
|                                                                                            | **68,191,118**               |
|                                                                                                 |
| **Total Corporate Bonds**(Cost                        $282,937,192)                             |                         | **275,723,625** |
|                                                                                                 |                              |  |  |  |  |  |  |  |  |

|                                                                                                                        | **Asset Backed 2.3%**                                                                 |            |
|-----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-----------------|
| **Automobile Receivables 0.9%**                                                                                             |                                                                                  |
| AmeriCredit Prime Automobile Receivables Trust, "A3",                        Series 2007-2M, 5.22%, 6/8/2012                |                                                                                  |            | 15,650,000 |   | **15,708,476** |
| **Home Equity Loans 1.3%**                                                                                                  |                                                                                  |
| Chase Funding Mortgage Loan Asset-Backed Certificates,                        "2A2", Series 2003-4, 3.676% *, 5/25/2033     |                                                                                  |            | 4,609,404 |   | 4,475,233 |
| Countrywide Asset-Backed Certificates:                                                                                      |                                                                                  |
|                                                                                                                        | "A6", Series 2006-15, 5.826%, 10/25/2046                                              |            |   | 2,505,000 |   | 2,360,813 |
|                                                                                                                        | "1AF6", Series 2006-11, 6.15%, 9/25/2046                                              |            |   | 6,555,000 |   | 6,091,757 |
| First Franklin Mortgage Loan Asset Backed Certificates,                        "A3", Series 2006-FF15, 3.426% *, 11/25/2036 |                                                                                  |            | 4,352,102 |   | 4,173,387 |
| Renaissance Home Equity Loan Trust, "AF3", Series 2005-2,                        4.499%, 8/25/2035                          |                                                                                  |            | 5,014,857 |   | 5,002,621 |
| Securitized Asset Backed NIM Trust, "NIM", Series                        2005-FR4, 144A, 6.0%, 1/25/2036                    |                                                                                  |            | 487,805 |   | 228,202 |
|                                                                                                                             |
|                                                                                                                        | **22,332,013**                                                                        |
| **Manufactured Housing Receivables 0.1%**                                                                                   |                                                                                  |
| Green Tree Financial Corp., "A4", Series 1996-2, 7.2%,                        4/15/2027                                     |                                                                                  |            | 680,239 |   | **714,897** |
|                                                                                                                             |
| **Total Asset Backed**(Cost                        $39,831,027)                                                             |                                                                                  | **38,755,386**  |
|                                                                                                                        | **Mortgage Backed Securities Pass-Throughs                        13.0%**             |            |
| Federal Home Loan Mortgage Corp.:                                                                                           |                                                                                  |
|                                                                                                                        | 3.5%, 8/1/2035                                                                        |            |   | 6,621,992 |   | 6,108,987 |
|                                                                                                                        | 5.0%, 4/1/2035                                                                        |            |   | 4,446,970 |   | 4,431,684 |
|                                                                                                                        | 5.5%, with various maturities from 10/1/2023 until                        1/1/2034    |            |   | 6,316,392 |   | 6,422,246 |
|                                                                                                                        | 6.5%, 1/1/2035                                                                        |            |   | 3,571,224 |   | 3,738,068 |
| Federal National Mortgage Association:                                                                                      |                                                                                  |
|                                                                                                                        | 4.5%, with various maturities from 11/1/2019 until                        10/1/2033   |            |   | 49,148,954 |   | 49,067,763 |
|                                                                                                                        | 5.0%, with various maturities from 10/1/2033 until                        5/1/2034    |            |   | 18,396,469 |   | 18,343,729 |
|                                                                                                                        | 5.5%, with various maturities from 7/1/2024 until                        7/1/2037     |            |   | 80,002,053 |   | 81,182,624 |
|                                                                                                                        | 6.0%, with various maturities from 10/1/2022 until                        4/1/2024    |            |   | 10,534,684 |   | 10,943,361 |
|                                                                                                                        | 6.5%, with various maturities from 5/1/2023 until                        4/1/2037     |            |   | 40,829,673 |   | 42,465,348 |
|                                                                                                                             |
| **Total Mortgage Backed Securities                        Pass-Throughs**(Cost $215,656,068)                                |                                                                                  | **222,703,810** |
|                                                                                                                        | **Commercial and Non-Agency Mortgage-Backed Securities                        37.6%** |            |
| American Home Mortgage Investment Trust, "5A3", Series                        2005-2, 5.077%, 9/25/2035                     |                                                                                  |            | 1,410,000 |   | 1,367,138 |
| Banc of America Commercial Mortgage, Inc.:                                                                                  |                                                                                  |
|                                                                                                                        | "A4", Series 2007-1, 5.451%, 1/15/2049                                                |            |   | 8,680,000 |   | 8,549,217 |
|                                                                                                                        | "A2", Series 2007-2, 5.634%, 4/10/2049                                                |            |   | 5,970,000 |   | 5,992,626 |
|                                                                                                                        | "A2", Series 2007-3, 5.659% *, 6/10/2049                                              |            |   | 5,560,000 |   | 5,612,092 |
|                                                                                                                        | "ASB", Series 2007-4, 5.706%, 2/10/2051                                               |            |   | 5,900,000 |   | 5,882,361 |
|                                                                                                                        | "AM", Series 2007-4, 5.812% *, 2/10/2051                                              |            |   | 2,290,000 |   | 2,198,857 |
| Bear Stearns Adjustable Rate Mortgage Trust:                                                                                |                                                                                  |
|                                                                                                                        | "A1", Series 2006-1, 4.625% *, 2/25/2036                                              |            |   | 13,411,279 |   | 13,401,273 |
|                                                                                                                        | "2A1", Series 2006-4, 5.797% *, 10/25/2036                                            |            |   | 5,340,593 |   | 5,379,903 |
|                                                                                                                        | "22A1", Series 2007-4, 6.006% *, 6/25/2047                                            |            |   | 11,692,721 |   | 11,785,275 |
| Bear Stearns Commercial Mortgage Securities,                        Inc.:                                                   |                                                                                  |
|                                                                                                                        | "AAB", Series 2007-PW15, 5.315%, 2/11/2044                                            |            |   | 7,175,000 |   | 6,970,702 |
|                                                                                                                        | "A2", Series 2007-PW16, 5.661% *, 6/11/2040                                           |            |   | 11,025,000 |   | 11,126,953 |
|                                                                                                                        | "AAB", Series 2007-PW16, 5.713% *, 6/11/2040                                          |            |   | 7,775,000 |   | 7,732,914 |
| Chase Mortgage Finance Corp., "A1", Series 2003-S2, 5.0%,                        3/25/2018                                  |                                                                                  |            | 8,973 |   | 9,054 |
| Citicorp Mortgage Securities, Inc., "1A1", Series 2004-1,                        5.25%, 1/25/2034                           |                                                                                  |            | 4,744,135 |   | 4,755,691 |
| Citigroup Mortgage Loan Trust, Inc.:                                                                                        |                                                                                  |
|                                                                                                                        | "1A2", Series 2006-AR2, 5.531% *, 3/25/2036                                           |            |   | 9,912,062 |   | 10,065,402 |
|                                                                                                                        | "1A4A", Series 2006-AR7, 5.784% *, 11/25/2036                                         |            |   | 8,996,632 |   | 9,131,172 |
|                                                                                                                             |                                                                                       |                 |  |  |  |  |  |  |  |

|                                                                                                               | "2A1A", Series 2007-AR8, 5.921% *, 7/25/2037                            |   |      | 8,420,606  |      | 8,613,090  |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|--------|-----------|------------|-----------|------------|
|                                                                                                               | "1CB2", Series 2004-NCM2, 6.75%, 8/25/2034                              |   |      | 2,799,098  |      | 2,904,940  |
| Citigroup/Deutsche Bank Commercial Mortgage Trust, "F",                        Series 2007-CD4, 5.555%, 12/11/2049 |                                                                    |   | 3,900,000 |       | 2,782,630 |
| Countrywide Alternative Loan Trust:                                                                                |                                                                    |
|                                                                                                               | "A2", Series 2003-6T2, 5.0%, 6/25/2033                                  |   |      | 4,382      |      | 4,398      |
|                                                                                                               | "A2", Series 2003-21T1, 5.25%, 12/25/2033                               |   |      | 3,365,820  |      | 3,387,461  |
|                                                                                                               | "A4", Series 2004-14T2, 5.5%, 8/25/2034                                 |   |      | 2,919,671  |      | 2,923,539  |
|                                                                                                               | "A6", Series 2004-14T2, 5.5%, 8/25/2034                                 |   |      | 3,400,372  |      | 3,401,618  |
|                                                                                                               | "7A1", Series 2004-J2, 6.0%, 12/25/2033                                 |   |      | 1,188      |      | 1,212      |
|                                                                                                               | "1A1", Series 2004-J1, 6.0%, 2/25/2034                                  |   |      | 669,192    |      | 671,493    |
| Countrywide Home Loans:                                                                                            |                                                                    |
|                                                                                                               | "A15", Series 2002-34, 4.75%, 1/25/2033                                 |   |      | 4,042,832  |      | 4,022,950  |
|                                                                                                               | "1A1", Series 2007-HY1, 5.694% *, 4/25/2037                             |   |      | 10,132,929 |      | 10,269,883 |
|                                                                                                               | "A1", Series 2005-29, 5.75%, 12/25/2035                                 |   |      | 8,033,106  |      | 8,000,476  |
| Credit Suisse Mortgage Capital Certificates:                                                                       |                                                                    |
|                                                                                                               | "AAB", Series 2006-C5, 5.308%, 12/15/2039                               |   |      | 6,490,000  |      | 6,319,887  |
|                                                                                                               | "4A15", Series 2007-3, 5.5%, 4/25/2037                                  |   |      | 6,872,325  |      | 6,779,699  |
|                                                                                                               | "5A14", Series 2007-1, 6.0%, 2/25/2037                                  |   |      | 7,242,904  |      | 7,252,280  |
| CS First Boston Mortgage Securities Corp., "1A11", Series                        2004-4, 5.5%, 8/25/2034           |                                                                    |   | 3,487,574 |       | 3,559,241 |
| First Horizon Mortgage Pass-Through Trust:                                                                         |                                                                    |
|                                                                                                               | "2A1", Series 2005-AR2, 5.119% *, 6/25/2035                             |   |      | 5,590,709  |      | 5,657,597  |
|                                                                                                               | "1A2", Series 2006-AR4, 5.5% *, 1/25/2037                               |   |      | 6,413,921  |      | 6,527,243  |
| GE Capital Commercial Mortgage Corp., "AJ", Series                        2007-C1, 5.677%, 12/10/2049              |                                                                    |   | 7,640,000 |       | 6,881,452 |
| GMAC Mortgage Corp. Loan Trust:                                                                                    |                                                                    |
|                                                                                                               | "A2", Series 2004-J1, 5.25%, 4/25/2034                                  |   |      | 3,071,429  |      | 3,095,613  |
|                                                                                                               | "4A1", Series 2005-AR6, 5.461% *, 11/19/2035                            |   |      | 5,618,672  |      | 5,628,948  |
| Greenwich Capital Commercial Funding Corp.:                                                                        |                                                                    |
|                                                                                                               | "A2", Series 2007-GG9, 5.381%, 3/10/2039                                |   |      | 11,250,000 |      | 11,237,009 |
|                                                                                                               | "AAB", Series 2006-GG7, 5.911% *, 7/10/2038                             |   |      | 7,000,000  |      | 7,089,766  |
| GS Mortgage Securities Corp. II:                                                                                   |                                                                    |
|                                                                                                               | "A2", Series 2006-GG8, 5.479%, 11/10/2039                               |   |      | 7,690,000  |      | 7,723,711  |
|                                                                                                               | "AM", Series 2007-GG10, 5.799% *, 8/10/2045                             |   |      | 8,675,000  |      | 8,340,984  |
|                                                                                                               | "A4", Series 2007-GG10, 5.799% *, 8/10/2045                             |   |      | 3,925,000  |      | 3,974,387  |
|                                                                                                               | "J", Series 2007-GG10, 144A, 5.799% *,                        8/10/2045 |   |      | 9,913,000  |      | 5,183,454  |
| GSR Mortgage Loan Trust:                                                                                           |                                                                    |
|                                                                                                               | "2A4", Series 2006-AR1, 5.179% *, 1/25/2036                             |   |      | 9,450,000  |      | 9,646,128  |
|                                                                                                               | "2A1", Series 2007-AR2, 5.514% *, 5/25/2047                             |   |      | 10,549,905 |      | 10,788,103 |
|                                                                                                               | "2A1", Series 2007-AR1, 5.999% *, 3/25/2037                             |   |      | 12,227,161 |      | 12,426,657 |
| Indymac Index Mortgage Loan Trust, "3A1", Series                        2006-AR33, 5.78% *, 1/25/2037              |                                                                    |   | 5,953,420 |       | 6,061,447 |
| JPMorgan Chase Commercial Mortgage Securities                        Corp.:                                        |                                                                    |
|                                                                                                               | "ASB", Series 2007-CB19, 5.73% *, 2/12/2049                             |   |      | 6,879,000  |      | 6,857,156  |
|                                                                                                               | "A2", Series 2007-LD11, 5.992% *, 6/15/2049                             |   |      | 11,930,000 |      | 12,103,225 |
|                                                                                                               | "ASB", Series 2007-LD11, 6.007% *, 6/15/2049                            |   |      | 13,981,000 |      | 13,989,461 |
| JPMorgan Mortgage Trust:                                                                                           |                                                                    |
|                                                                                                               | "6A1", Series 2007-A1, 4.778% *, 7/25/2035                              |   |      | 6,074,860  |      | 6,047,988  |
|                                                                                                               | "2A4L", Series 2006-A6, 5.564% *, 10/25/2036                            |   |      | 7,185,000  |      | 7,168,524  |
|                                                                                                               | "2A1" Series 2006-A5, 5.829% *, 8/25/2036                               |   |      | 6,518,825  |      | 6,710,188  |
| Lehman Mortgage Trust:                                                                                             |                                                                    |
|                                                                                                               | "3A3", Series 2006-1, 5.5%, 2/25/2036                                   |   |      | 6,179,063  |      | 6,227,981  |
|                                                                                                               | "1A10", Series 2006-3, 6.0%, 7/25/2036                                  |   |      | 5,674,388  |      | 5,650,089  |
| Master Adjustable Rate Mortgages Trust, "B1", Series                        2004-13, 3.814% *, 12/21/2034          |                                                                    |   | 6,278,219 |       | 6,169,257 |
| Master Alternative Loans Trust:                                                                                    |                                                                    |
|                                                                                                               | "5A1", Series 2005-2, 6.5%, 12/25/2034                                  |   |      | 725,915    |      | 747,466    |
|                                                                                                               | "8A1", Series 2004-3, 7.0%, 4/25/2034                                   |   |      | 157,485    |      | 160,728    |
|                                                                                                               | "6A1", Series 2004-5, 7.0%, 6/25/2034                                   |   |      | 1,049,445  |      | 1,066,841  |
| Master Asset Securitization Trust, "2A7", Series 2003-9,                        5.5%, 10/25/2033                   |                                                                    |   | 4,929,946 |       | 4,951,514 |
|                                                                                                                    |                                                                         |        |           |            |           |            |  |

| Merrill Lynch Mortgage Investors Trust, "A2", Series                        2005-A5, 4.566%, 6/25/2035              |                                                                 |            | 3,578,000 |       | 3,607,735 |
|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|-----------------|-----------|------------|-----------|
| Merrill Lynch/Countrywide Commercial Mortgage Trust,                        "ASB", Series 2007-7, 5.745%, 6/12/2050 |                                                                 |            | 3,900,000 |       | 3,864,886 |
| Morgan Stanley Capital I:                                                                                           |                                                                 |
|                                                                                                                | "A2", Series 2007-HQ11, 5.359%, 2/12/2044                            |            |      | 7,325,000  |      | 7,301,653 |
|                                                                                                                | "AAB", Series 2007-IQ14, 5.654%, 4/15/2049                           |            |      | 7,655,000  |      | 7,549,467 |
| NYC Mortgage Loan Trust, "A3", Series 1996, 144A, 6.75%,                        9/25/2019                           |                                                                 |            | 1,779,505 |       | 1,779,505 |
| Residential Accredit Loans, Inc., "CB", Series 2004-QS2,                        5.75%, 2/25/2034                    |                                                                 |            | 1,514,183 |       | 1,517,496 |
| Residential Asset Securitization Trust, "A1", Series                        2004-A1, 5.25%, 4/25/2034               |                                                                 |            | 3,937,849 |       | 3,829,998 |
| Residential Funding Mortgage Securities I:                                                                          |                                                                 |            |      |       |      |
| "2A1", Series 2004-S9,                        4.75%, 12/25/2019                                                     |                                                                 |            | 5,349,912 |       | 5,374,992 |
| "2A2", Series 2007-SA1,                        5.621% *, 2/25/2037                                                  |                                                                 |            | 9,533,730 |       | 9,747,617 |
| Sequoia Mortgage Trust, "2A1", Series 2007-1, 5.8% *,                        2/20/2047                              |                                                                 |            | 6,787,075 |       | 6,969,456 |
| Structured Adjustable Rate Mortgage Loan                        Trust:                                              |                                                                 |
|                                                                                                                | "1A4", Series 2005-22, 5.25% *, 12/25/2035                           |            |      | 8,055,000  |      | 7,640,064 |
|                                                                                                                | "6A3", Series 2005-21, 5.4% *, 11/25/2035                            |            |      | 5,644,000  |      | 5,405,020 |
|                                                                                                                | "5A1", Series 2005-18, 5.533% *, 9/25/2035                           |            |      | 2,613,774  |      | 2,639,858 |
|                                                                                                                | "2A1", Series 2006-1, 5.62% *, 2/25/2036                             |            |      | 6,969,331  |      | 7,050,047 |
|                                                                                                                | "7A4", Series 2006-1, 5.62% *, 2/25/2036                             |            |      | 6,132,000  |      | 5,972,483 |
| Structured Asset Securities Corp., "4A1", Series 2005-6,                        5.0%, 5/25/2035                     |                                                                 |            | 41,258    |       | 40,420    |
| Wachovia Bank Commercial Mortgage Trust:                                                                            |                                                                 |
|                                                                                                                | "A3", Series 2007-C30, 5.246%, 12/15/2043                            |            |      | 5,390,000  |      | 5,341,922 |
|                                                                                                                | "AJ", Series 2007- C30, 5.413%, 12/15/2043                           |            |      | 5,610,000  |      | 4,962,786 |
|                                                                                                                | "A2", Series 2007-C31, 5.421%, 4/15/2047                             |            |      | 19,950,000 |      | 19,868,782 |
|                                                                                                                | "A2", Series 2007-C32, 5.924% *, 6/15/2049                           |            |      | 7,790,000  |      | 7,861,869 |
| Washington Mutual Mortgage Pass-Through Certificates                        Trust:                                  |                                                                 |
|                                                                                                                | "1A3", Series 2005-AR14, 5.055% *, 12/25/2035                        |            |      | 6,100,000  |      | 6,207,051 |
|                                                                                                                | "1A3", Series 2005-AR16, 5.102% *, 12/25/2035                        |            |      | 6,220,000  |      | 6,337,179 |
|                                                                                                                | "4A1", Series 2007-HY3, 5.349% *, 3/25/2037                          |            |      | 11,339,959 |      | 11,514,604 |
|                                                                                                                | "2CB4", Series 2005-7, 5.5%, 8/25/2035                               |            |      | 6,244,066  |      | 6,104,931 |
|                                                                                                                | "1A1", Series 2007-HY5, 5.538% *, 5/25/2037                          |            |      | 6,786,654  |      | 6,855,879 |
|                                                                                                                | "1A1", Series 2007-HY4, 5.55% *, 4/25/2037                           |            |      | 13,115,807 |      | 13,310,628 |
|                                                                                                                | "1A1", Series 2006-AR16, 5.608% *, 12/25/2036                        |            |      | 8,219,747  |      | 8,289,456 |
|                                                                                                                | "1A1", Series 2007-HY2, 5.627% *, 12/25/2036                         |            |      | 6,415,652  |      | 6,460,288 |
|                                                                                                                | "2A2", Series 2006-AR16, 5.646% *, 12/25/2036                        |            |      | 17,100,000 |      | 17,178,457 |
|                                                                                                                | "1A3", Series 2006-AR8, 5.886% *, 8/25/2046                          |            |      | 7,705,000  |      | 7,989,415 |
| Washington Mutual Mortgage Securities Corp., "1A7",                        Series 2003-MS8, 5.5%, 5/25/2033         |                                                                 |            | 195,509   |       | 195,571   |
| Wells Fargo Mortgage Backed Securities Trust:                                                                       |                                                                 |
|                                                                                                                | "4A2", Series                        2005-AR16, 4.994% *, 10/25/2035 |            |      | 8,150,000  |      | 8,186,451 |
|                                                                                                                | "2A5", Series                        2006-AR2, 5.107% *, 3/25/2036   |            |      | 17,990,222 |      | 18,161,949 |
|                                                                                                                | "3A2", Series                        2006-AR8, 5.238% *, 4/25/2036   |            |      | 10,170,000 |      | 10,355,254 |
|                                                                                                                | "A1", Series                        2006-3, 5.5%, 3/25/2036          |            |      | 7,374,134  |      | 7,391,979 |
|                                                                                                                | "A6", Series                        2006-AR11, 5.518% *, 8/25/2036   |            |      | 10,255,000 |      | 10,173,919 |
|                                                                                                                | "2A5", Series                        2006-AR1, 5.554% *, 3/25/2036   |            |      | 8,400,000  |      | 8,129,645 |
|                                                                                                                | "1A3", Series                        2006-6, 5.75%, 5/25/2036        |            |      | 6,246,206  |      | 6,312,547 |
|                                                                                                                     |
| **Total Commercial and Non-Agency Mortgage-Backed                        Securities**(Cost $646,297,104)            |                                                                 | **646,449,603** |
|                                                                                                                | **Collateralized Mortgage Obligations                        6.7%**  |            |
| Fannie Mae Whole Loan, "1A1", Series 2004-W15, 6.0%,                        8/25/2044                               |                                                                 |            | 2,249,592 |       | 2,393,532 |
| Federal Home Loan Mortgage Corp.:                                                                                   |                                                                 |
|                                                                                                                | "BJ", Series 2553, 4.5%, 3/15/2029                                   |            |      | 8,265,251  |      | 8,328,792 |
|                                                                                                                | "LN", Series 3145, 4.5%, 10/15/2034                                  |            |      | 6,772,236  |      | 6,754,517 |
|                                                                                                                | "UE", Series 2764, 5.0%, 10/15/2032                                  |            |      | 10,000     |      | 9,954 |
|                                                                                                                | "EG", Series 2836, 5.0%, 12/15/2032                                  |            |      | 4,295,000  |      | 4,253,251 |
|                                                                                                                | "NE", Series 2802, 5.0%, 2/15/2033                                   |            |      | 90,000     |      | 89,431 |
|                                                                                                                     |                                                                      |                 |           |            |           |  |  |  |  |

|                                                                                                                                                                                       | "OE", Series 2840, 5.0%, 2/15/2033                                   |            |      | 5,050,000  |      | 4,994,862  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|-----------------|-----------|------------|-----------|------------|
|                                                                                                                                                                                       | "PD", Series 2893, 5.0%, 2/15/2033                                   |            |      | 9,696,000  |      | 9,575,073  |
|                                                                                                                                                                                       | "TE", Series 2827, 5.0%, 4/15/2033                                   |            |      | 65,000     |      | 64,468     |
|                                                                                                                                                                                       | "XD", Series 2941, 5.0%, 5/15/2033                                   |            |      | 10,975,000 |      | 10,834,945 |
|                                                                                                                                                                                       | "UE", Series 2911, 5.0%, 6/15/2033                                   |            |      | 10,815,000 |      | 10,651,529 |
|                                                                                                                                                                                       | "ND", Series 2950, 5.0%, 6/15/2033                                   |            |      | 11,250,000 |      | 11,106,605 |
|                                                                                                                                                                                       | "PE", Series 2864, 5.0%, 6/15/2033                                   |            |      | 40,000     |      | 39,575     |
|                                                                                                                                                                                       | "BG", Series 2869, 5.0%, 7/15/2033                                   |            |      | 1,230,000  |      | 1,215,811  |
|                                                                                                                                                                                       | "PD", Series 2939, 5.0%, 7/15/2033                                   |            |      | 3,414,000  |      | 3,373,888  |
|                                                                                                                                                                                       | "JG", Series 2937, 5.0%, 8/15/2033                                   |            |      | 55,000     |      | 54,355     |
|                                                                                                                                                                                       | "KD", Series 2915, 5.0%, 9/15/2033                                   |            |      | 5,936,000  |      | 5,846,470  |
|                                                                                                                                                                                       | "NE", Series 2921, 5.0%, 9/15/2033                                   |            |      | 12,670,000 |      | 12,486,673 |
|                                                                                                                                                                                       | "ND", Series 2938, 5.0%, 10/15/2033                                  |            |      | 3,865,000  |      | 3,819,719  |
|                                                                                                                                                                                       | "KE", Series 2934, 5.0%, 11/15/2033                                  |            |      | 53,000     |      | 52,383     |
|                                                                                                                                                                                       | "YB", Series 2205, 6.0%, 5/15/2029                                   |            |      | 578,026    |      | 594,792    |
|                                                                                                                                                                                       | "PE", Series 2165, 6.0%, 6/15/2029                                   |            |      | 5,349,353  |      | 5,532,404  |
| Federal National Mortgage Association:                                                                                                                                                     |                                                                 |
|                                                                                                                                                                                       | "BG", Series 2005-12, 5.0%, 10/25/2033                               |            |      | 2,457,000  |      | 2,426,308  |
|                                                                                                                                                                                       | "EC", Series 2005-15, 5.0%, 10/25/2033                               |            |      | 80,000     |      | 79,000     |
|                                                                                                                                                                                       | "HE", Series 2005-22, 5.0%, 10/25/2033                               |            |      | 25,000     |      | 24,663     |
|                                                                                                                                                                                       | "PE", Series 2005-14, 5.0%, 12/25/2033                               |            |      | 90,000     |      | 88,877     |
|                                                                                                                                                                                       | "J", Series 1998-36, 6.0%, 7/18/2028                                 |            |      | 4,317,936  |      | 4,442,748  |
|                                                                                                                                                                                       | "PH", Series 1999-19, 6.0%, 5/25/2029                                |            |      | 5,322,551  |      | 5,506,099  |
|                                                                                                                                                                                       | "Z", Series 2001-14, 6.0%, 5/25/2031                                 |            |      | 16,372     |      | 16,960     |
|                                                                                                                                                                                            |
| **Total Collateralized Mortgage Obligations**(Cost $112,273,642)                                                                                                                           |                                                                 | **114,657,684** |
|                                                                                                                                                                                       | **Municipal Bonds and Notes 2.0%**                                   |            |
| Arkansas, Development Finance Authority, Collateralized                        Mortgage Obligation, "A4", Series 1988-A, Principal Only, Zero Coupon,                        7/10/2014 (a) |                                                                 | 382,000         |      | 283,490    |
| Arkansas, State Development Finance Authority, Economic                        Development Revenue, Series B, 4.85%, 10/1/2012 (a)                                                         |                                                                 | 120,000         |      | 122,366    |
| Belmont, CA, Multi-Family Housing Revenue, Redevelopment                        Agency Tax Allocation, 7.55%, 8/1/2011 (a)                                                                 |                                                                 | 570,000         |      | 577,444    |
| Contra Costa County, CA, Multi-Family Housing Revenue,                        Willow Pass Apartments, Series D, 6.8%, 12/1/2015                                                            |                                                                 | 1,185,000       |      | 1,253,031  |
| Los Angeles, CA, Community Redevelopment Agency,                        Community Redevelopment Financing Authority Revenue, Series L, 6.02%,                        9/1/2021 (a)          |                                                                 | 6,480,000       |      | 6,846,120  |
| Pleasantville, NJ, School District, 5.25%, 2/15/2020                        (a)                                                                                                            |                                                                 | 45,000          |      | 46,398     |
| Pomona, CA, Pension Obligation, Series AR, 5.732%,                        7/1/2025 (a)                                                                                                     |                                                                 | 3,745,000       |      | 3,727,249  |
| Pueblo of Santa Ana, NM, Certificates of Participation,                        "A", 5.875%, 4/1/2024                                                                                       |                                                                 | 4,823,500       |      | 4,958,462  |
| Rancho Cordova, CA, Certificates of Partnership, City                        Hall Acquisition, Series B, 5.65%, 2/1/2024 (a)                                                               |                                                                 | 4,340,000       |      | 4,390,344  |
| Riverside, CA, Public Financing Authority, Tax Allocation                        Revenue, University Corridor, Series D, 5.89%, 8/1/2032 (a)                                               |                                                                 | 1,125,000       |      | 1,125,405  |
| West Virginia, State General Obligation, Jobs Inventory                        Trust Board:                                                                                                |                                                                 |
|                                                                                                                                                                                       | Series A, Zero Coupon, 1/22/2012                                     |            | 1,300,000 |       | 1,072,396 |
|                                                                                                                                                                                       | Series A, 144A, Zero Coupon, 6/12/2013                               |            | 1,500,000 |       | 1,158,060 |
|                                                                                                                                                                                       | Series C, 144A, Zero Coupon, 7/31/2013                               |            | 3,500,000 |       | 2,681,560 |
| Wilkes Barre, PA, General Obligation, Series C, 5.48%,                        11/15/2024 (a)                                                                                               |                                                                 | 6,315,000       |      | 6,242,756  |
|                                                                                                                                                                                            |
| **Total Municipal Bonds and Notes**(Cost $33,016,369)                                                                                                                                      |                                                                 | **34,485,081**  |
|                                                                                                                                                                                       | **Government & Agency Obligations                        17.9%** |            |
| **US Treasury Obligations**                                                                                                                                                                |                                                                 |
| US Treasury Bonds:                                                                                                                                                                         |                                                                 |
|                                                                                                                                                                                       | 4.75%, 2/15/2037                                                     |            |      | 26,745,000 |      | 28,491,769 |
|                                                                                                                                                                                       | 6.0%, 2/15/2026                                                      |            |      | 34,775,000 |      | 42,042,419 |
|                                                                                                                                                                                            |                                                                      |                 |           |            |           |            |  |  |  |

| US Treasury Notes:                                                                      |                                                                                                                                                                                                                                                                                                            |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                    | 2.625%, 3/15/2009                                                                                                                                                                                                                                                                                               |   |   | 8,000,000 |   | 8,041,872 |
|                                                                                    | 3.625%, 12/31/2012                                                                                                                                                                                                                                                                                              |   |   | 39,995,000 |   | 41,485,454 |
|                                                                                    | 4.25%, 11/15/2017                                                                                                                                                                                                                                                                                               |   |   | 36,656,000 |   | 38,494,518 |
|                                                                                    | 4.875%, 8/31/2008                                                                                                                                                                                                                                                                                               |   |   | 135,911,000 |   | 137,960,266 |
|                                                                                    | 4.875%, 4/30/2011                                                                                                                                                                                                                                                                                               |   |   | 31,000 |   | 33,400 |
|                                                                                    | 4.875%, 6/30/2012                                                                                                                                                                                                                                                                                               |   |   | 9,534,000 |   | 10,374,927 |
|                                                                                         |
| **Total Government & Agency Obligations**(Cost $303,311,592)                        |                                                                                                                                                                                                                                                                                                            | **306,924,625** |
|                                                                                    | **Preferred Securities 2.9%**                                                                                                                                                                                                                                                                                   |   |
| Axa, 144A, 6.379%, 12/14/2036 **                                                        |                                                                                                                                                                                                                                                                                                            | 3,060,000 |   | 2,578,111 |
| Banco Mercantil del Norte SA, Series A, 144A, 6.135%,                        10/13/2016 |                                                                                                                                                                                                                                                                                                            | 1,700,000 |   | 1,658,350 |
| Goldman Sachs Capital II, 5.793%, 6/1/2012 **                                           |                                                                                                                                                                                                                                                                                                            | 11,910,000 |   | 9,215,589 |
| MUFG Capital Finance 1 Ltd., 6.346%, 7/25/2016                        **                |                                                                                                                                                                                                                                                                                                            | 6,260,000 |   | 5,968,347 |
| Oil Insurance Ltd., 144A, 7.558%, 6/30/2011 **                                          |                                                                                                                                                                                                                                                                                                            | 12,040,000 |   | 12,159,557 |
| Royal Bank of Scotland Group PLC                                                        |                                                                                                                                                                                                                                                                                                            |
|                                                                                    | 144A, 6.99%, 10/5/2017 **                                                                                                                                                                                                                                                                                       |   |   | 2,990,000 |   | 2,990,774 |
|                                                                                    | Series U, 7.64%, 9/29/2017 **                                                                                                                                                                                                                                                                                   |   |   | 2,500,000 |   | 2,560,520 |
| Santander Perpetual SA, 144A, 6.671%, 10/24/2017                        **              |                                                                                                                                                                                                                                                                                                            | 3,500,000 |   | 3,546,081 |
| Sumitomo Mitsui Banking Corp., 144A, 5.625%, 10/15/2015                        **       |                                                                                                                                                                                                                                                                                                            | 5,380,000 |   | 5,087,258 |
| USB Capital IX, 6.189%, 4/15/2011 **                                                    |                                                                                                                                                                                                                                                                                                            | 905,000 |   | 719,475 |
| XL Capital Ltd., Series E, 6.5%, 4/15/2017 **                                           |                                                                                                                                                                                                                                                                                                            | 4,470,000 |   | 3,530,410 |
|                                                                                         |
| **Total Preferred Securities**(Cost $53,864,276)                                        |                                                                                                                                                                                                                                                                                                            | **50,014,472** |
|                                                                                    | **Shares**                                                                                                                                                                                                                                                                                                      |   | **Value                        ($)** |
|                                                                                         |
|                                                                                    | **Preferred Stocks 0.2%**                                                                                                                                                                                                                                                                                       |   |
| Arch Capital Group Ltd., 8.0%                                                           |                                                                                                                                                                                                                                                                                                            | 26,915 |   | 688,857 |
| Delphi Financial Group, Inc., 7.376%                                                    |                                                                                                                                                                                                                                                                                                            | 93,400 |   | 2,079,318 |
|                                                                                         |
| **Total Preferred Stocks**(Cost                        $3,013,982)                      |                                                                                                                                                                                                                                                                                                            | **2,768,175** |
|                                                                                    | **Cash Equivalents 0.6%**                                                                                                                                                                                                                                                                                       |   |
| Cash Management QP Trust, 4.52% (b)(Cost $10,076,179)                                   |                                                                                                                                                                                                                                                                                                            |   | 10,076,179 |   | **10,076,179** |
|                                                                                    | **%                        of****Net Assets**                                                                                                                                                                                                                                                                   |   | **Value                        ($)** |
|                                                                                         |
| **Total Investment Portfolio**(Cost $1,700,277,431)                                     | 99.3                                                                                                                                                                                                                                                                                                            |   | **1,702,558,640** |
| **Other Assets and Liabilities, Net**                                                   | 0.7                                                                                                                                                                                                                                                                                                             |   | **12,274,733** |
|                                                                                         |
| **Net Assets**                                                                          | 100.0                                                                                                                                                                                                                                                                                                           |   | **1,714,833,373** |
|                                                                                    | *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.*                              |
| ***                                                                                     | *Floating rate notes are securities whose yields vary                        with a designated market index or market rate, such as the                        coupon-equivalent of the US Treasury bill rate. These securities are shown                        at their current rate as of January 31, 2008.* |
| ****                                                                                    | *Date shown is call date; not a maturity date for the                        perpetual preferred securities.*                                                                                                                                                                                                   |
| *(a)*                                                                                   | *Bond is insured by one of these                        companies:*

                                                                                                                                                                                                                                      |
| ***Insurance Coverage***                                                                | ***As a % of Total***

***Investment Portfolio***                                                                                                                                                                                                                                                               |   |
| *Ambac Assurance Corp.*                                                                 | *0.7*                                                                                                                                                                                                                                                                                                           |   |
| *MBIA Corporation*                                                                      | *0.7*                                                                                                                                                                                                                                                                                                           |   |
| *(b)*                                                                                   | *Affiliated fund managed by Deutsche Investment                        Management Americas Inc. The rate shown is the annualized seven-day yield                        at period end.*                                                                                                                         |
|                                                                                         |                                                                                                                                                                                                                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |

| *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.*                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *Principal Only: Principal Only (PO) bonds represent                        the “principal only” portion of payments on a pool of                        underlying mortgages or mortgage-backed securities.*                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *REIT: Real Estate Investment Trust*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| *Included in the portfolio are investments in mortgage                        or asset-backed securities which are interests in separate pools of                        mortgages or assets. Effective maturities of these investments may be                        shorter than stated maturities due to prepayments. Some separate                        investments in the Federal Home Loan Mortgage Corp. and Federal National                        Mortgage Association issues 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 half-year (the                        registrant’s second fiscal half-year in the case of the annual                        report) that has materially affected, or is reasonably likely to materially                        affect, the registrant’s internal controls over financial                        reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|        | Certification pursuant to Rule 30a-2(a) under the Investment                        Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as                        Exhibit 99.CERT.                                                                                                                                                                                                                                                                                                                                                                                                                 |

 

**SIGNATURES**

 

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

 

| Registrant: | DWS Core Fixed Income Fund, a series of DWS Advisor                        Funds |
|-------------|----------------------------------------------------------------------------------|

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | March 17, 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: | March 17, 2008 |
|-------|----------------|

 

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

| Date: | March 17, 2008 |
|-------|----------------|