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 High Income Plus Fund**

 

|   | **Principal****Amount ($) (a)** |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **Value ($)** |
|--------|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|        |
|   | **Corporate Bonds 89.6%**       |  
**Consumer Discretionary 19.5%**

 
AAC Group Holding Corp., 14.75%, 10/1/2012 (PIK)  

 

 

606,179 

 

527,376 

Affinia Group, Inc., 9.0%, 11/30/2014  

 

 

1,184,000 

 

1,047,840 

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

 

 

1,743,000 

 

1,529,482 

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

 

 

350,000 

 

320,250 

American Media Operations, Inc.:

 
 

Series B, 10.25%, 5/1/2009  

 

 

460,000 

 

342,700 

 

Series B, 144A, 10.25%, 5/1/2009  

 

 

16,724 

 

12,459 

Asbury Automotive Group, Inc.:

 
 

7.625%, 3/15/2017  

 

 

830,000 

 

672,300 

 

8.0%, 3/15/2014  

 

 

345,000 

 

307,050 

 

 

 

 

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

 

 

790,000 

 

647,800 

Burlington Coat Factory Warehouse Corp., 11.125%, 4/15/2014  

 

 

700,000 

 

548,625 

Cablevision Systems Corp., Series B, 9.644% **, 4/1/2009  

 

 

409,000 

 

409,000 

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

 

 

575,000 

 

543,375 

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

 

 

355,000 

 

308,850 

Charter Communications Holdings LLC:

 
 

Series B, 10.25%, 9/15/2010  

 

 

1,055,000 

 

994,338 

 

10.25%, 9/15/2010  

 

 

3,541,000 

 

3,355,097 

 

11.0%, 10/1/2015  

 

 

2,163,000 

 

1,549,249 

Cirsa Capital Luxembourg, 144A, 7.875%, 7/15/2012  

EUR

 

440,000 

 

523,318 

Cooper-Standard Automotive, Inc., 8.375%, 12/15/2014  

 

 

467,000 

 

352,585 

CSC Holdings, Inc.:

 
 

7.25%, 7/15/2008  

 

 

650,000 

 

650,000 

 

Series B, 8.125%, 7/15/2009  

 

 

645,000 

 

656,288 

 

Series B, 8.125%, 8/15/2009  

 

 

1,290,000 

 

1,312,575 

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

 

 

230,000 

 

216,200 

Dollar General Corp., 144A, 10.625%, 7/15/2015  

 

 

320,000 

 

296,000 

Dollarama Group LP, 144A, 10.579%**, 8/15/2012  

 

 

532,000 

 

505,400 

EchoStar DBS Corp.:

 
 

6.625%, 10/1/2014  

 

 

973,000 

 

949,891 

 

7.125%, 2/1/2016  

 

 

785,000 

 

784,019 

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

 

 

830,000 

 

622,500 

Foot Locker, Inc., 8.5%, 1/15/2022  

 

 

220,000 

 

202,400 

French Lick Resorts & Casinos LLC, 144A, 10.75%, 4/15/2014  

 

 

2,505,000 

 

1,628,250 

General Motors Corp.:

 
 

7.2%, 1/15/2011 (b) 

 

 

2,265,000 

 

2,072,475 

 

7.4%, 9/1/2025  

 

 

385,000 

 

282,975 

 

8.375%, 7/15/2033  

 

 

375,000 

 

304,688 

Goodyear Tire & Rubber Co., 11.25%, 3/1/2011  

 

 

4,235,000 

 

4,467,925 

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

 

 

690,000 

 

660,675 

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

 

 

345,000 

 

324,300 

Hanesbrands, Inc., Series B, 8.204% **,12/15/2014  

 

 

1,045,000 

 

945,725 

Hertz Corp.:

 
 

8.875%, 1/1/2014  

 

 

1,635,000 

 

1,577,775 

 

10.5%, 1/1/2016  

 

 

360,000 

 

346,050 

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

 

 

3,435,000 

 

3,074,325 

Indianapolis Downs LLC & Capital Corp., 144A, 11.0%, 11/1/2012  

 

 

450,000

 

418,500 

ION Media Networks, Inc., 144A, 10.508% **, 1/15/2013  

 

 

660,000 

 

570,900 

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

 

 

1,045,000 

 

804,650 

Jarden Corp., 7.5%, 5/1/2017  

 

 

570,000 

 

487,350 

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

 

 

720,000 

 

729,000 

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

 

 

450,000 

 

426,375 

Liberty Media LLC:

 
 

5.7%, 5/15/2013  

 

 

150,000 

 

138,961 

 

8.25%, 2/1/2030  

 

 

850,000 

 

770,527 

 

8.5%, 7/15/2029  

 

 

1,135,000 

 

1,076,049 

Mediacom Broadband LLC, 8.5%, 10/15/2015  

 

 

50,000 

 

41,000 

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

 

 

345,000 

 

355,350 

MGM MIRAGE:

 
 

6.75%, 9/1/2012  

 

 

290,000 

 

279,125 

 

8.375%, 2/1/2011  

 

 

600,000 

 

613,500 

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

 

 

1,250,000 

 

1,200,000 

Norcraft Holdings LP, Step-up Coupon, 0% to 9/1/2008, 9.75% to 9/1/2012    

 

 

1,830,000 

 

1,592,100 

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

 

 

1,730,000 

 

1,548,350 

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

 

 

729,000 

 

710,775 

Quebecor Media, Inc., 144A, 7.75%, 3/15/2016  

 

 

455,000 

 

422,013 

 

 

 

 

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

 

 

565,000 

 

268,375 

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

 

 

915,000 

 

709,125 

Reader's Digest Association, Inc., 144A, 9.0%, 2/15/2017  

 

 

500,000 

 

386,250 

Sabre HoldingsCorp., 8.35%, 3/15/2016  

 

 

625,000 

 

506,250 

Seminole Hard Rock Entertainment, Inc., 144A, 7.491% **, 3/15/2014  

 

 

820,000 

 

738,000 

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

 

 

565,000 

 

508,500 

Simmons Co.:

 
 

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

 

 

2,320,000 

 

1,531,200 

 

7.875%, 1/15/2014  

 

 

460,000 

 

384,100 

Sinclair Television Group, Inc., 8.0%, 3/15/2012  

 

 

351,000 

 

354,510 

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

 

 

1,030,000 

 

880,650 

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

 

 

680,000 

 

639,200 

Station Casinos, Inc., 6.5%, 2/1/2014  

 

 

1,375,000 

 

948,750 

Toys "R" Us, Inc., 7.375%, 10/15/2018  

 

 

570,000 

 

393,300 

Travelport LLC:

 
 

9.749% **, 9/1/2014  

 

 

520,000

 

468,000 

 

9.875%, 9/1/2014  

 

 

580,000 

 

556,800 

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

 

 

1,185,000 

 

853,200 

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

 

 

110,000 

 

102,300 

Unity Media GmbH, 144A, 10.375%, 2/15/2015  

 

 

430,000 

 

412,800 

Univision Communications, Inc., 144A, 9.75%, 3/15/2015 (PIK)  

 

 

1,465,000 

 

1,095,087 

UPC Holding BV:

 
 

144A, 7.75%, 1/15/2014  

EUR

 

670,000 

 

916,401 

 

144A, 8.0%, 11/1/2016  

EUR

 

335,000 

 

438,279 

Vitro SAB de CV:

 
 

8.625%, 2/1/2012  

 

 

470,000 

 

446,500 

 

9.125%, 2/1/2017  

 

 

1,570,000 

 

1,369,825 

 

Series A, 11.75%, 11/1/2013  

 

 

260,000 

 

270,920 

XM Satellite Radio, Inc., 9.75%, 5/1/2014  

 

 

1,350,000 

 

1,225,125 

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

 

 

3,302,000 

 

2,245,360 

 

**66,705,462**

**Consumer Staples3.4%**

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

 

 

355,000 

 

330,150 

Del Laboratories, Inc., 8.0%, 2/1/2012  

 

 

550,000 

 

572,000 

Delhaize America, Inc.:

 
 

8.05%, 4/15/2027  

 

 

185,000 

 

193,266 

 

9.0%, 4/15/2031  

 

 

1,542,000 

 

1,822,587 

General Nutrition Centers, Inc., 10.009%**, 3/15/2014 (PIK)  

 

 

825,000 

 

676,500 

Harry & David Holdings, Inc., 10.124% **, 3/1/2012  

 

 

510,000 

 

464,100 

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

 

 

2,684,000 

 

2,388,760 

Pierre Foods, Inc., 9.875%, 7/15/2012  

 

 

395,000 

 

258,725 

Pilgrim's Pride Corp., 7.625%, 5/1/2015  

 

 

285,000 

 

270,037 

Rite Aid Corp., 7.5%, 3/1/2017  

 

 

1,000,000 

 

857,500 

Smithfield Foods, Inc., 7.75%, 7/1/2017  

 

 

545,000 

 

515,025 

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

 

 

3,445,000 

 

3,445,000 

 

**11,793,650**

**Energy 8.9%**

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

 

 

3,114,000 

 

3,098,430 

Chaparral Energy, Inc., 8.5%, 12/1/2015  

 

 

1,020,000 

 

851,700 

Chesapeake Energy Corp.:

 
 

6.25%, 1/15/2018  

 

 

435,000 

 

417,600 

 

6.875%, 1/15/2016  

 

 

2,159,000 

 

2,137,410 

 

7.75%, 1/15/2015  

 

 

325,000 

 

333,125 

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

 

 

565,000 

 

552,288 

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

 

 

1,515,000 

 

1,295,325 

 

 

 

 

Dynegy Holdings, Inc.:

 
 

6.875%, 4/1/2011  

 

 

230,000 

 

223,100

 

8.375%, 5/1/2016  

 

 

1,265,000 

 

1,230,213 

Energy Partners Ltd., 9.75%, 4/15/2014  

 

 

590,000 

 

507,400 

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

 

 

915,000 

 

873,825 

Frontier Oil Corp., 6.625%, 10/1/2011  

 

 

490,000 

 

482,650 

Mariner Energy, Inc.:

 
 

7.5%, 4/15/2013  

 

 

550,000 

 

526,625 

 

8.0%, 5/15/2017  

 

 

715,000 

 

682,825 

OPTI Canada, Inc.:

 
 

144A, 7.875%, 12/15/2014  

 

 

875,000 

 

848,750 

 

144A, 8.25%, 12/15/2014  

 

 

695,000 

 

681,100 

PetroHawk Energy Corp., 9.125%, 7/15/2013  

 

 

640,000 

 

660,800 

Plains Exploration & Production Co., 7.0%, 3/15/2017  

 

 

590,000 

 

560,500 

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

 

 

445,000 

 

431,650 

Sabine Pass LNG LP:

 
 

7.25%, 11/30/2013  

 

 

170,000 

 

160,650 

 

7.5%, 11/30/2016  

 

 

1,895,000 

 

1,776,562 

Stone Energy Corp., 6.75%, 12/15/2014  

 

 

2,005,000 

 

1,854,625 

Tennessee Gas Pipeline Co., 7.625%, 4/1/2037  

 

 

570,000 

 

621,372 

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

 

 

900,000 

 

877,500 

VeraSun Energy Corp., 144A, 9.375%, 6/1/2017  

 

 

445,000 

 

353,775 

Whiting Petroleum Corp.:

 
 

7.0%, 2/1/2014  

 

 

685,000 

 

671,300 

 

7.25%, 5/1/2012  

 

 

1,200,000 

 

1,188,000 

 

7.25%,5/1/2013  

 

 

285,000 

 

280,725 

Williams Companies, Inc.:

 
 

8.125%, 3/15/2012  

 

 

2,110,000 

 

2,305,175 

 

8.75%, 3/15/2032  

 

 

2,742,000 

 

3,276,690 

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

 

 

580,000 

 

600,300 

 

**30,361,990**

**Financials 13.7%**

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

 

 

1,780,000 

 

1,424,000 

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

 

 

1,765,000 

 

856,025 

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

 

 

345,000 

 

288,075 

CEVA Group PLC, 144A, 8.5%, 12/1/2014  

EUR

 

565,000 

 

533,391 

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

 

 

2,970,000 

 

3,267,000 

E*TRADE Financial Corp.:

 
 

7.375%, 9/15/2013  

 

 

1,065,000 

 

812,063 

 

7.875%, 12/1/2015  

 

 

1,665,000 

 

1,261,237 

 

8.0%, 6/15/2011  

 

 

277,000 

 

238,220 

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

 

 

2,836,101 

 

0

Ford Motor Credit Co., LLC:

 
 

7.25%, 10/25/2011  

 

 

4,400,000 

 

3,906,540 

 

7.375%, 10/28/2009  

 

 

8,215,000 

 

7,911,160 

 

7.875%, 6/15/2010  

 

 

2,170,000 

 

2,042,790 

GMAC LLC, 6.875%, 9/15/2011  

 

 

8,555,000 

 

7,479,431 

Hawker Beechcraft Acquisition Co., LLC:

 
 

144A, 8.5%, 4/1/2015  

 

 

1,165,000 

 

1,156,262 

 

144A, 8.875%, 4/1/2015 (PIK)  

 

 

1,065,000 

 

1,043,700 

 

144A, 9.75%, 4/1/2017  

 

 

1,135,000 

 

1,081,087 

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

 

 

325,000 

 

350,188 

Inmarsat Finance PLC, Step-up Coupon, 0% to 11/15/2008, 10.375% to 11/15/2012    

 

 

715,000 

 

697,125 

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

 

 

645,000 

 

596,625 

KAR Holdings, Inc.:

 
 

144A, 8.75%, 5/1/2014  

 

 

630,000 

 

560,700 

 

 

 

 

 

144A, 10.0%, 5/1/2015  

 

 

465,000 

 

388,275 

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

 

 

570,000 

 

498,750 

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

 

 

920,000 

 

731,400 

Nuveen Investments, Inc., 144A, 10.5%, 11/15/2015 

 

 

530,000 

 

514,100 

Petroplus Finance Ltd.:

 
 

144A, 6.75%,5/1/2014  

 

 

585,000 

 

535,275 

 

144A, 7.0%, 5/1/2017  

 

 

550,000 

 

499,125 

Pinnacle Foods Finance LLC, 144A, 9.25%, 4/1/2015  

 

 

455,000 

 

389,025 

Residential Capital LLC:

 
 

5.646% **, 6/9/2008  

 

 

225,000 

 

192,375 

 

7.625%, 11/21/2008  

 

 

570,000 

 

438,900 

 

7.782% **, 11/21/2008  

 

 

1,755,000 

 

1,351,350 

Triad Acquisition Corp., Series B, 11.125%, 5/1/2013  

 

 

390,000 

 

269,100 

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

 

 

1,390,000 

 

840,950 

U.S.I. Holdings Corp.:

 
 

144A, 8.744% **, 11/15/2014  

 

 

345,000 

 

288,075 

 

144A, 9.75%, 5/15/2015  

 

 

215,000 

 

167,700 

UCI Holdco, Inc., 12.491% **, 12/15/2013 (PIK)  

 

 

783,651 

 

717,041 

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

 

 

2,930,000 

 

3,017,900 

Yankee Acquisition Corp., Series B, 8.5%, 2/15/2015 (b) 

 

 

830,000 

 

709,650 

 

**47,054,610**

**Health Care 5.1%**

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

 

 

930,000 

 

785,850 

Bausch & Lomb, Inc., 144A, 9.875%, 11/1/2015  

 

 

945,000 

 

959,175 

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

 

 

560,000 

 

546,000 

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

 

 

4,365,000 

 

4,392,281 

HCA, Inc.:

 
 

9.125%, 11/15/2014

 

 

895,000 

 

929,681 

 

9.25%, 11/15/2016  

 

 

2,075,000 

 

2,176,156 

 

9.625%, 11/15/2016 (PIK)  

 

 

925,000 

 

973,563 

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

 

 

770,000 

 

802,725 

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

 

 

465,000 

 

465,000 

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

 

 

565,000 

 

556,525 

Sun Healthcare Group, Inc., 9.125%, 4/15/2015  

 

 

570,000 

 

572,850 

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

 

 

685,000 

 

582,250 

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

 

 

1,145,000 

 

1,087,750 

Universal Hospital Services, Inc., 8.5%, 6/1/2015 (PIK)  

 

 

395,000 

 

398,950 

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

 

 

770,000 

 

546,700 

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

 

 

1,845,000 

 

1,748,138 

 

**17,523,594**

**Industrials 11.1%**

 
Actuant Corp., 144A, 6.875%, 6/15/2017  

 

 

450,000 

 

436,500 

Aleris International, Inc., 9.0%, 12/15/2014 (PIK)  

 

 

800,000 

 

624,000 

Allied Security Escrow Corp., 11.375%, 7/15/2011  

 

 

950,000 

 

857,375 

American Color Graphics, Inc., 10.0%, 6/15/2010  

 

 

1,055,000 

 

528,819 

American Color Graphics, Inc., Promissory Note due 3/15/2008 (f)  

 

 

63,300 

 

31,729 

American Railcar Industries, Inc., 7.5%, 3/1/2014  

 

 

640,000 

 

576,000 

ARAMARK Corp., 8.411% **, 2/1/2015  

 

 

785,000 

 

702,575 

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

 

 

570,000 

 

552,900 

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

 

 

585,000 

 

560,137 

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

 

 

100,000 

 

101,500 

Bristow Group, Inc., 144A, 7.5%, 9/15/2017  

 

 

685,000 

 

691,850 

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

 

 

1,862,000 

 

1,713,040 

Building Materials Corp. of America, 7.75%, 8/1/2014  

 

 

785,000 

 

580,900 

 

 

 

 

Cenveo Corp., 7.875%, 12/1/2013  

 

 

1,267,000 

 

1,114,960 

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

 

 

1,188,000 

 

891,000 

DRS Technologies, Inc.:

 
 

6.625%, 2/1/2016  

 

 

295,000 

 

288,363 

 

6.875%, 11/1/2013  

 

 

1,625,000 

 

1,592,500 

 

7.625%, 2/1/2018  

 

 

1,940,000 

 

1,915,750 

Education Management LLC, 8.75%, 6/1/2014  

 

 

550,000 

 

529,375 

Esco Corp.:

 
 

144A, 8.625%, 12/15/2013  

 

 

1,130,000 

 

1,079,150 

 

144A, 8.866% **, 12/15/2013  

 

 

560,000 

 

504,000 

General Cable Corp.:

 
 

7.104% **, 4/1/2015  

 

 

875,000 

 

778,750 

 

7.125%, 4/1/2017  

 

 

590,000 

 

561,975 

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

 

 

460,000 

 

423,200 

Harland Clarke Holdings Corp., 9.5%, 5/15/2015  

 

 

565,000 

 

435,050 

K. Hovnanian Enterprises, Inc.:

 
 

6.25%, 1/15/2016  

 

 

1,380,000 

 

948,750 

 

8.875%, 4/1/2012  

 

 

2,135,000 

 

1,088,850 

Kansas City Southern de Mexico SA de CV:

 
 

144A, 7.375%, 6/1/2014  

 

 

450,000 

 

427,500 

 

7.625%, 12/1/2013  

 

 

1,520,000 

 

1,466,800 

 

9.375%, 5/1/2012  

 

 

1,420,000

 

1,462,600 

Kansas City Southern Railway Co.:

 
 

7.5%, 6/15/2009  

 

 

420,000 

 

422,625 

 

9.5%, 10/1/2008  

 

 

3,889,000 

 

3,961,919 

Mobile Services Storage Group, Inc., 9.75%, 8/1/2014  

 

 

1,050,000 

 

892,500 

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

 

 

920,000 

 

883,200 

Panolam Industries International, Inc., 10.75%, 10/1/2013  

 

 

345,000 

 

272,550 

R.H. Donnelley Corp., 144A, 8.875%, 10/15/2017  

 

 

3,125,000 

 

2,648,437 

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

 

 

143,000 

 

151,938 

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

 

 

515,000 

 

464,788 

Swift Transportation Co., Inc., 144A, 12.5%, 5/15/2017  

 

 

455,000 

 

179,725 

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

 

 

1,975,000 

 

1,851,562 

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

 

 

345,000 

 

346,725 

U.S. Concrete, Inc., 8.375%, 4/1/2014  

 

 

630,000 

 

522,900 

United Rentals North America, Inc.:

 
 

6.5%, 2/15/2012  

 

 

580,000 

 

533,600 

 

7.0%, 2/15/2014  

 

 

1,540,000 

 

1,235,850 

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

 

 

430,000 

 

430,743 

 

**38,264,960**

**Information Technology 2.7%**

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

 

 

465,000 

 

362,700

Freescale Semiconductor, Inc., 8.875%, 12/15/2014  

 

 

565,000 

 

459,063 

L-3 Communications Corp.:

 
 

5.875%, 1/15/2015  

 

 

1,905,000 

 

1,852,612 

 

Series B, 6.375%, 10/15/2015  

 

 

885,000

 

878,362 

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

 

 

2,104,000 

 

1,693,720 

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

 

 

805,000 

 

744,625 

Sanmina-SCI Corp., 144A, 7.741% **, 6/15/2010  

 

 

281,000 

 

279,595 

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

 

 

1,080,000 

 

1,053,000 

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

 

 

1,480,000 

 

1,480,000 

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

 

 

455,000 

 

345,800 

 

**9,149,477**

**Materials 10.6%**

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

 

 

325,000 

 

316,875 

 

 

 

 

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

 

 

4,987,000 

 

4,538,170 

Associated Materials, Inc., Step-up Coupon, 0% to 3/1/2009, 11.25% to 3/1/2014    

 

 

1,135,000 

 

737,750 

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

 

 

1,716,000 

 

1,574,430 

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

 

 

985,000 

 

896,350 

Clondalkin Acquisition BV, 144A, 6.991% **, 12/15/2013  

 

 

750,000 

 

652,500 

CPG International I, Inc.:

 
 

10.5%, 7/1/2013  

 

 

1,625,000 

 

1,446,250

 

11.468% **, 7/1/2012  

 

 

365,000 

 

324,850 

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

 

 

1,875,000 

 

1,757,812 

Freeport-McMoRan Copper & Gold, Inc., 8.375%, 4/1/2017  

 

 

905,000 

 

961,562 

GEO Specialty Chemicals, Inc., 144A,12.729% **, 12/31/2009 (c)

 

 

3,005,000 

 

2,249,994 

Georgia-Pacific Corp., 144A, 7.125%, 1/15/2017  

 

 

405,000 

 

385,763 

Gibraltar Industries, Inc., Series B, 8.0%, 12/1/2015  

 

 

570,000 

 

478,800 

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

 

 

2,370,000 

 

2,287,050 

Huntsman LLC, 11.625%, 10/15/2010  

 

 

2,810,000 

 

2,950,500 

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

 

 

265,000 

 

260,363 

Jefferson Smurfit Corp., 8.25%, 10/1/2012  

 

 

850,000 

 

816,000 

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

 

 

1,615,000 

 

1,364,675 

Metals USA Holdings Corp., 144A, 10.729%**, 7/1/2012 (PIK)  

 

 

805,000 

 

591,675 

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

 

 

290,000 

 

213,150 

Momentive PerformanceMaterials, Inc., 9.75%, 12/1/2014  

 

 

680,000 

 

615,400 

Mueller Water Products, Inc., 7.375%, 6/1/2017  

 

 

330,000 

 

280,500 

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

 

 

1,390,000 

 

1,369,150 

NewPage Corp., 144A, 10.0%, 5/1/2012  

 

 

1,095,000 

 

1,089,525 

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

EUR

 

680,000 

 

869,422 

Pliant Corp., 11.625%, 6/15/2009 (PIK)  

 

 

5 

 

5 

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

 

 

290,000 

 

2,175

Rhodia SA, 144A, 7.326% **, 10/15/2013  

EUR

 

705,000 

 

953,792 

Smurfit-Stone Container Enterprises, Inc.:

 
 

8.0%, 3/15/2017  

 

 

1,120,000 

 

1,038,800 

 

8.375%, 7/1/2012  

 

 

555,000 

 

536,962 

Steel Dynamics, Inc.:

 
 

6.75%, 4/1/2015  

 

 

900,000 

 

870,750 

 

144A, 7.375%, 11/1/2012  

 

 

210,000 

 

209,475 

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

 

 

1,230,000 

 

1,208,475 

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

 

 

1,030,000 

 

1,112,400 

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

 

 

490,000 

 

363,825 

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

 

 

980,000 

 

901,600 

 

**36,226,775**

**Telecommunication Services6.4%**

 
BCM Ireland Preferred Equity Ltd, 144A, 11.58% **, 2/15/2017 (PIK)  

EUR

 

614,145 

 

717,106 

Cell C Property Ltd.:

 
 

144A, 8.625%, 7/1/2012  

EUR

 

160,000 

 

225,978 

 

144A, 11.0%, 7/1/2015  

 

 

380,000 

 

363,850 

Centennial Communications Corp.:

 
 

10.0%, 1/1/2013  

 

 

1,360,000 

 

1,363,400 

 

10.125%, 6/15/2013  

 

 

450,000 

 

460,125 

Cincinnati Bell, Inc.:

 
 

7.25%, 7/15/2013  

 

 

1,144,000 

 

1,144,000 

 

8.375%, 1/15/2014  

 

 

658,000 

 

628,390 

Cricket Communications, Inc., 144A, 9.375%, 11/1/2014  

 

 

1,265,000 

 

1,151,150 

Embratel, Series B, 11.0%, 12/15/2008  

 

 

244,000 

 

256,200 

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

 

 

264,337 

 

252,442 

Intelsat Bermuda Ltd.:

 
 

7.581% **, 1/15/2015  

 

 

110,000 

 

110,000 

 

9.25%, 6/15/2016  

 

 

335,000 

 

334,163 

 

 

 

 

 

11.25%, 6/15/2016  

 

 

1,060,000 

 

1,060,000 

Intelsat Corp., 9.0%, 6/15/2016  

 

 

390,000 

 

387,075 

Intelsat Ltd., 5.25%, 11/1/2008  

 

 

445,000 

 

441,662 

Intelsat Subsidiary Holding Co., Ltd., 8.25%, 1/15/2013  

 

 

1,195,000 

 

1,183,050 

iPCS, Inc., 7.036% **, 5/1/2013  

 

 

290,000 

 

258,100 

MetroPCS Wireless, Inc., 9.25%, 11/1/2014  

 

 

1,615,000 

 

1,485,800 

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

 

 

1,025,000 

 

1,078,812 

Nortel Networks Ltd., 8.508% **, 7/15/2011  

 

 

1,055,000 

 

981,150 

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

 

 

420,000 

 

390,852 

Qwest Corp., 7.25%, 9/15/2025  

 

 

200,000 

 

188,000 

Rural Cellular Corp., 9.875%, 2/1/2010  

 

 

1,000,000 

 

1,035,000 

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

 

 

450,000 

 

459,000 

SunCom Wireless Holdings, Inc., 8.5%, 6/1/2013  

 

 

1,242,000 

 

1,279,260 

US Unwired, Inc.,Series B, 10.0%, 6/15/2012  

 

 

1,374,000 

 

1,443,954 

Virgin Media Finance PLC:

 

 

 

 

 

8.75%,  4/15/2014    

 

 

1,370,000

 

1,253,550

8.75%,  4/15/2014    

EUR

 

965,000

 

1,266,092

West Corp., 9.5%, 10/15/2014  

 

 

675,000 

 

627,750 

 

**21,825,911**

**Utilities 8.2%**

 
AES Corp.:

 
 

8.0%, 10/15/2017  

 

 

1,130,000 

 

1,152,600 

 

144A, 8.75%, 5/15/2013  

 

 

3,480,000 

 

3,636,600 

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

 

 

4,374,000 

 

4,680,180 

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

 

 

2,680,000 

 

2,883,273 

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

 

 

1,015,000 

 

987,088 

Energy Future Holdings Corp., 144A, 10.875%, 11/1/2017  

 

 

1,700,000

 

1,683,000 

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

 

 

1,305,000 

 

1,318,050 

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

 

 

420,000 

 

420,000 

NRG Energy, Inc.:

 
 

7.25%, 2/1/2014  

 

 

1,815,000 

 

1,767,356 

 

7.375%, 2/1/2016  

 

 

3,780,000 

 

3,652,425 

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

 

 

800,000 

 

812,000 

Reliant Energy, Inc., 7.875%, 6/15/2017 (b) 

 

 

1,125,000 

 

1,096,875 

Sierra Pacific Resources:

 
 

6.75%, 8/15/2017  

 

 

1,345,000 

 

1,360,389 

 

8.625%, 3/15/2014  

 

 

249,000 

 

266,936 

Texas Competitive Electric Holdings Co., LLC, 144A, 10.25%, 11/1/2015  

 

 

2,495,000 

 

2,451,338 

 

**28,168,110**

**Total Corporate Bonds** (Cost $331,644,105)

 

**307,074,539**

 

**Senior Loans** 7.1%**

 
Advanced Medical Optics, Inc., Term Loan B, LIBOR plus 1.75%, 4.599%, 4/2/2014  

 

 

337,450 

 

312,986

Aleris International, Inc., Term Loan B, LIBOR plus 2.375%, 5.224%, 12/14/2013  

 

 

453,844 

 

377,635 

Algoma Steel, Inc., Term Loan, LIBOR plus 2.5%, 5.349%, 6/30/2013  

 

 

184,701 

 

165,307 

Alliance Mortgage Cycle Loan, LIBOR plus 7.25%, 10.099%, 6/4/2010*  

 

 

700,000 

 

70,000 

Bausch & Lomb, Inc.:

 
 

Term Delay Draw, LIBOR plus 3.25%, 6.099%, 4/11/2015  

 

 

112,500 

 

108,562 

 

Term Loan B, LIBOR plus 3.25%, 6.099%, 4/11/2015  

 

 

905,000 

 

884,742 

Buffets, Inc.:

 
 

Letter of Credit, 4.73%,5/1/2013  

 

 

170,999 

 

107,195 

 

Term Loan B, 7.906%, 1/13/2011  

 

 

1,800,908 

 

1,128,944 

Dollar General Corp., Term Loan B1, LIBOR plus 2.75%, 5.599%, 7/6/2014  

 

 

565,000 

 

498,966 

Energy Future Holdings Corp.:

 
 

Term Loan B1, LIBOR plus 3.5%, 6.349%, 10/10/2014  

 

 

5,196,975 

 

4,757,415 

 

 

 

 

 

Term Loan B3, LIBOR plus 3.5%, 6.349%, 10/10/2014  

 

 

3,396,488 

 

3,107,786 

General Nutrition Centers, Inc., Term Loan B, LIBOR plus 2.25%, 5.099%, 9/16/2013  

 

 

339,146 

 

297,317 

Golden Nugget, 7.21%, 6/16/2014  

 

 

665,000 

 

581,875 

Hawker Beechcraft, Inc., Term Loan B, LIBOR plus 2.0%, 4.849%, 3/26/2014  

 

 

321,758 

 

293,001 

HCA, Inc., Term Loan A1, 6.83%, 11/18/2012  

 

 

1,865,220 

 

1,714,296 

Hexion Specialty Chemicals:

 
 

Term Loan C1, LIBOR plus 2.25%, 5.099%, 5/5/2013  

 

 

1,188,148 

 

1,120,424 

 

Term Loan C2, LIBOR plus 2.25%, 5.099%, 5/5/2013  

 

 

468,981 

 

439,377 

IASISHealthcare LLC, 8.494%, 6/15/2014  

 

 

541,373 

 

492,650 

Local TV On Satellite LLC, Term Loan B, LIBOR plus 2.25%, 5.099%, 5/7/2013  

 

 

338,300 

 

289,246 

Longview Power LLC:

 
 

Demand Draw, 7.125%, 4/1/2014  

 

 

172,152 

 

160,961 

 

Letter of Credit, 7.125%, 4/1/2014  

 

 

62,333 

 

58,555 

 

Term Loan B, 7.25%, 4/1/2014  

 

 

192,000 

 

181,200 

NewPage Corp., Term Loan B, LIBOR plus 3.0%, 5.849%, 11/5/2014  

 

 

130,000 

 

126,202

Rail America, Inc., 7.12%, 10/2/2008  

 

 

860,000 

 

842,800 

Sabre, Inc., Term Loan B, LIBOR plus 2.25%, 5.099%, 9/30/2014  

 

 

549,071 

 

448,473 

Symbion, Inc.:

 
 

Term Loan A, 6.494%, 8/23/2013  

 

 

274,313 

 

266,769 

 

Term Loan B, 6.494%, 8/23/2014  

 

 

274,313 

 

258,882 

Telesat Canada, Inc.:

 
 

Term Loan B, LIBOR plus 3.0%, 5.849%, 10/31/2014  

 

 

1,200,299 

 

1,134,859 

 

8.09%, 9/1/2014  

 

 

399,253 

 

378,292 

 

9.0%, 10/31/2008 

 

 

1,685,000 

 

1,575,475 

Toys “R” Us, Term Loan, LIBOR plus 4.25%, 7.099%, 7/19/2012  

 

 

995,025 

 

944,861 

Tribune Co., Term Loan B, 7.91%, 5/24/2014  

 

 

1,124,350 

 

850,166 

Wesco Aircraft Hardware Corp., Term Loan B, LIBOR plus 2.25%, 5.099%, 9/29/2013  

 

 

243,125 

 

235,629 

**Total Senior Loans** (Cost $27,121,674)

 

**24,210,848**

 

**Shares**

 

**Value ($)**

 

**Warrants 0.0%**

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

 

648 

 

0****

DeCrane Aircraft Holdings, Inc., 144A, Expiration Date 9/30/2008*  

 

1,230 

 

0****

New ASAT Finance LLC, Expiration Date 2/1/2011*  

 

182,000 

 

80,174****

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

 

**80,174**

 

**Units**

 

**Value ($)**

 

**Other Investments 0.6%**

 
Hercules, Inc., (Bond Unit), 6.5%, 6/30/2029  

 

1,219,000 

 

1,030,055 

IdleAire Technologies Corp. (Bond Unit), 144A, Step-up Coupon, 0% to 6/15/2008, 13.0% to 12/15/2012  

 

1,935,000 

 

1,006,200 

**Total Other Investments** (Cost $2,824,084)

 

**2,036,255**

 

**Shares**

 

**Value ($)**

 

**Convertible Preferred Stock 0.0%**

 
ION Media Networks, Inc.:

 
 

144A, 12.0% *

 

 

3

 

13,650

 

144A, 12.0% *

 

 

40,000

 

1,820

 

Series AI, 144A, 12.0% *

 

 

40,000

 

1,820

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

 

**17,290**

 

**Common Stocks 0.0%**

 
GEO Specialty Chemicals, Inc.*  

 

18,710 

 

15,903 

 

 

 

 

GEO Specialty Chemicals, Inc. 144A*  

 

1,703 

 

1,448 

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

 

**17,351**

 

**Securities Lending Collateral 0.7%**

 
Daily Assets Fund Institutional, 4.22%  (d) (e)(Cost $2,457,500)

 

 

2,457,500

 

**2,457,500**

 

**Cash Equivalents 1.1%**

 
Cash Management QP Trust, 4.52%  (d)(Cost $3,819,931)

 

 

3,819,931

 

**3,819,931**

 

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

 

**Value ($)**

**Total Investment Portfolio** (Cost $368,146,385) 

99.1

 

**339,713,888**

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

0.9

 

**2,992,182**

**Net Assets**

100.0

 

**342,706,070**

 

*For information on the Fund’s policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual financial statements.*

***

*Non-income producing security.  In the case of a bond, generally denotes that the issuer has defaulted on the payment of principal or the interest or has filed for bankruptcy.  The following table represents bonds that are in default:*

 

***Securities*****

***Coupon*****

***Maturity***

***Date*****

***Principal Amount*****

***Acquisition***

***Cost ($)*****

***Value ($)*****

 
*Alliance Mortgage*

*Cycle Loan***

*10.099%***

*6/4/2010***

*700,000***

*USD***

*708,969***

*70,000***

 
*Congoleum Corp.***

*8.625%***

*8/1/2008***

*1,188,000***

*USD***

*1,048,695***

*891,000***

 
*Eaton Vance Corp. CDO II***

*13.68%***

*7/15/2012***

*2,836,101***

*USD***

*2,037,287***

*0***

 
*Quebecor World, Inc.***

*9.75%***

*1/15/2015***

*565,000***

*USD***

*565,000***

*268,375***

 
*RadnorHoldings Corp.***

*11.0%***

*3/15/2010***

*290,000***

*USD***

*186,538***

*2,175***

 
 **

 **

 **

 **

 **

***4,546,489*****

***1,231,550*****

 
****

*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.*

*(a)*

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

*(b)*

*All or a portion of these securities were on loan amounting to $2,031,000.  In addition, included in other assets and liabilities, net is a pending sale, amounting to $308,250 that is also on loan.  The value of all securities loaned at January 31, 2008 amounted to$2,339,250 which is 0.7% of net assets.*

*(c)*

*Security has a deferred interest payment of $93,490 from April 1, 2006.*

*(d)*

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

*(e)*

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

*(f)*

*Security issued in lieu of interest payment due 12/15/2007, which has been deferred until 3/15/2008.  This security is deemed to be non-income producing.*

*144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.*

*CDO: Collateralized Debt Obligation*

*LIBOR: Represents the London InterBank Offered Rate.*

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

*At January 31, 2008 the Fund had unfunded loan commitments of $252,192 which could be extended at the option of the borrower, pursuant to the following loan agreement:*

 

 

 

 

 

* *

***Unfunded Loan*****

* *

***Unrealized*****

 
***Borrower*****

***Commitment ($)*****

***Value ($)*****

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

 
*Bausch & Lomb, Inc., Term Delay Draw, 4/11/2015***

*112,219***

*108,563***

*(3,656)***

 
*Longview Power LLC, Demand Draw, 4/1/2014***

*50,705***

*50,037***

*(668)***

 
*Telesat Canada, Inc., Term Loan B,  10/31/2014***

*89,268***

*86,699***

*(2,569)***

 
***Total*****

***252,192*****

***245,299*****

***(6,893)*****

 
 
* *

 
*At January 31, 2008, open credit default swaps were as follows:*

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

 

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

 

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

 

**Underlying Debt Obligation**

 

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

 
 

 
10/4/200712/20/2008

 

 

565,0001

 

Fixed — 3.1%

 

Ford Motor Co. 6.5%, 8/1/2018

 

 

(10,532)

 
 
10/5/200712/20/2008

 

 

340,0001

 

Fixed — 3.15%

 

Ford Motor Co. 6.5%, 8/1/2018

 

 

(6,191)

 
 
10/23/200712/20/2008

 

 

1,300,0002

 

Fixed — 3.4%

 

Ford Motor Co. 6.5%, 8/1/2018

 

 

(20,861)

 
 
10/23/200712/20/2009

 

 

640,0002

 

 Fixed — 4.65%

 

Ford Motor Co. 6.5%, 8/1/2018

 

 

(29,737)

 
 
10/4/200712/20/2008

 

 

595,0001

 

  Fixed — 2.6%

 

General Motors Corp., 7.125%, 7/15/2013

 

 

(11,237)

 
 
10/23/200712/20/2008

 

 

1,120,0002

 

Fixed — 3.0%

 

General Motors Corp., 7.125%, 7/15/2013

 

 

(17,297)

 
 
10/3/200712/20/2008

 

 

565,0001

 

Fixed — 3.2%

 

General Motors Corp., 7.125%, 7/15/2013

 

 

(7,754)

 
 
11/21/200712/20/2008

 

 

590,0003

 

 Fixed — 4.02%

 

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

 

 

2,258

 
 
**Total net unrealized depreciation**

**(101,351)**

 
 
 

*Counterparties:*

*1*

*Chase Securities, Inc.*

*2*

*Morgan Stanley Co., Inc.*

*3*

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

 

*As of January 31, 2008, the Fund had the following open forward foreign currency exchange contracts:*

 

* *

* *

* *

***Settlement*****

***Unrealized*****

 
***Contracts to Deliver*****

***In Exchange For*****

***Date*****

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

 
*EUR***

*4,398,980***

*USD***

*6,419,915***

*2/4/2008***

*(119,388)***

 
*EUR***

*347,100***

*USD***

*515,096***

*2/4/2008***

*(885)***

 
*EUR***

*4,067,100***

*USD***

*6,038,627***

*3/4/2008***

*(2,542)***

 
***Total unrealized depreciation*****

 **

 **

***(112,815)*****

 
 

***Currency Abbreviations*****

 

 

*EUR***

*Euro***

*USD***

*United States Dollar***

 
 

 

 

 

 

**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 overfinancial reporting.

 

 

**ITEM 3.**

**EXHIBITS**

 

 

 

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

 

**SIGNATURES**

 

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

 

Registrant: 

DWS High Income Plus Fund, a series of DWS Advisor Funds

 

By:

/s/Michael G. Clark

 

Michael G. Clark

President

 

Date:

March 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 High Income Plus 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

 

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