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        Short-Term Municipal Bond Fund**

 

|                                                                                                                                                                     | **Principal****Amount ($)**         |      | **Value                        ($)** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------|--------------------------------------|
|                                                                                                                                                                          |
|                                                                                                                                                                     | **Municipal Bonds and Notes 99.4%** |      |
| **Alabama 3.7%**                                                                                                                                                         |                                |
| Alabama, Housing Finance Authority, Multi-Family Housing                        Revenue, The Club Apartments, Series I, AMT, ETM, 5.65%,                        6/1/2008 |                                | 1,875,000 |                                 | 1,893,581 |
| Auburn, AL, General Obligation, 144A, 4.85%,                        11/1/2011                                                                                            |                                | 448,094   |                                 | 449,062 |
| Jefferson County, AL, Sewer Revenue, Capital Improvement                        Warrants:                                                                                |                                |
|                                                                                                                                                                     | 5.0%, 2/1/2041 (a)                  |      | 8,000,000                            |   | 8,797,200 |
|                                                                                                                                                                     | Series A, 5.75%, 2/1/2038 (a)       |      | 5,000,000                            |   | 5,230,800 |
|                                                                                                                                                                          |
|                                                                                                                                                                     | **16,370,643**                      |
| **Alaska 1.4%**                                                                                                                                                          |                                |
| Alaska, State Housing Finance Corp., Home Mortgage,                        Series A, AMT, 5.0%, 6/1/2036 (a)                                                             |                                | 5,395,000 |                                 | 5,661,189 |
|                                                                                                                                                                          |                                     |           |                                      |  |  |  |  |

| Palmer, AK, Hospital & Health Care Revenue, Valley                        Hospital Association, 5.0%, 12/1/2008 (a)                                                                                  |                                  | 490,000   |      | 501,687   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|-----------|-----------|-----------|
|                                                                                                                                                                                                          |
|                                                                                                                                                                                                     | **6,162,876**                         |
| **Arizona 3.7%**                                                                                                                                                                                         |                                  |
| Arizona, Health Facilities Authority Revenue, Banner                        Health:                                                                                                                      |                                  |
|                                                                                                                                                                                                     | Series A, 5.0%, 1/1/2019              |      | 2,000,000 |      | 2,114,100 |
|                                                                                                                                                                                                     | Series A, 5.0%, 1/1/2020              |      | 2,435,000 |      | 2,551,782 |
|                                                                                                                                                                                                     | Series A, 5.0%, 1/1/2022              |      | 2,000,000 |      | 2,064,540 |
| Arizona, Health Facilities, Authority Hospital System                        Revenue, ETM, 6.25%, 9/1/2011 (a)                                                                                           |                                  | 340,000   |      | 356,439   |
| Maricopa County, AZ, Industrial Development Authority,                        Single Family Mortgage Revenue, Series 2B, AMT, 5.55%, 3/1/2028                                                            |                                  | 90,000    |      | 92,118    |
| Pima County, AZ, Higher Education Revenue, Industrial                        Development Authority, Series A, 5.0%, 5/1/2013 (a)                                                                         |                                  | 1,935,000 |      | 1,755,703 |
| Scottsdale, AZ, General Obligation, Prerefunded, 5.5%,                        7/1/2022                                                                                                                   |                                  | 3,000,000 |      | 3,142,650 |
| Scottsdale, AZ, Municipal Property Corp., Excise Tax                        Revenue, 5.0%, 7/1/2014                                                                                                      |                                  | 3,320,000 |      | 3,724,442 |
| Snowflake, AZ, Sales & Special Tax Revenue, 4.0%,                        7/1/2013                                                                                                                    |                                  | 495,000   |      | 508,088   |
|                                                                                                                                                                                                          |
|                                                                                                                                                                                                     | **16,309,862**                        |
| **Arkansas 1.2%**                                                                                                                                                                                        |                                  |
| Chicot County, AR, Sales & Special Tax Revenue, Sales                        & Use Tax, 4.15%, 7/1/2026 (a)                                                                                      |                                  | 350,000   |      | 350,073   |
| Little Rock, AR, Residential Housing & Public                        Facility Board, Series B, Zero Coupon, 7/15/2011                                                                                |                                  | 35,000    |      | 27,580    |
| Rogers, AR, Sales & Special Tax Revenue, Series A,                        4.125%, 9/1/2023 (a)                                                                                                       |                                  | 4,815,000 |      | 4,834,645 |
| Springdale, AR, Residential Housing & Healthcare                        Facility Board, Series A, 7.65%, 9/1/2011                                                                                    |                                  | 7,979     |      | 8,167     |
|                                                                                                                                                                                                          |
|                                                                                                                                                                                                     | **5,220,465**                         |
| **California 3.2%**                                                                                                                                                                                      |                                  |
| California, Water Resource Development, Series Q, 5.1%,                        3/1/2008                                                                                                                  |                                  | 170,000   |      | 170,364   |
| California Statewide, Communities Development Authority,                        Multi-Family Housing Revenue, AMT, 4.7%, 10/15/2012                                                                      |                                  | 830,000   |      | 871,616   |
| California Statewide, Communities Development Authority,                        Multi-Family Housing Revenue, Citrus Gardens Apartments Project, 4.25%,                        7/1/2012                  |                                  | 250,000   |      | 256,678   |
| Carlsbad, CA, Multi-Family Housing Revenue, Series A,                        AMT, 3.7%, 2/1/2013                                                                                                         |                                  | 480,000   |      | 491,746   |
| Delta Counties, CA, Home Mortgage Finance Authority,                        Single Family Mortgage Revenue, Pacific Mortgage Backed Securities, Series                        A, AMT, 6.7%, 6/1/2024 (a) |                                  | 10,000    |      | 10,189    |
| Northern California, Gas Authority Project No. 1 Revenue,                        3.798% *, 7/1/2019                                                                                                      |                                  | 8,000,000 |      | 6,839,280 |
| Placer County, CA, Water Agency, Middle Fork Project,                        3.75%, 7/1/2012                                                                                                             |                                  | 180,000   |      | 178,585   |
| San Diego, CA, Housing Authority Multi-Family Housing                        Revenue, Hollywood Palms Apartments, Series C, AMT, 5.1%,                        11/1/2013                                  |                                  | 845,000   |      | 902,333   |
| San Diego, CA, Sales & Special Tax Revenue, Regional                        Transmission Community Sales, Series A, ETM, 6.0%, 4/1/2008                                                              |                                  | 660,000   |      | 664,323   |
| San Joaquin County, CA, Certificates of Participation,                        General Hospital Project, 5.25%, 9/1/2014 (a)                                                                              |                                  | 2,475,000 |      | 2,597,710 |
| Taft, CA, Core City General Obligation Lease, Public                        Funding Authority, Series A, 5.95%, 1/1/2011                                                                                 |                                  | 1,110,000 |      | 1,118,436 |
|                                                                                                                                                                                                          |
|                                                                                                                                                                                                     | **14,101,260**                        |
| **Colorado 2.4%**                                                                                                                                                                                        |                                  |
| Arvada, CO, Industrial Development Authority, Wanco, Inc.                        Project, AMT:                                                                                                           |                                  |
|                                                                                                                                                                                                     | 144A, 5.6%, 12/1/2012, US Bank NA (b) |      | 245,000   |      | 245,838 |
|                                                                                                                                                                                                     | 144A, 5.8%, 12/1/2017, US Bank NA (b) |      | 355,000   |      | 355,891 |
| Aurora, CO, Industrial Development Revenue, Series A,                        5.375%, 12/1/2011                                                                                                           |                                  | 365,000   |      | 365,423   |
| Aurora, CO, Single Family Mortgage Revenue, Series A,                        7.3%, 5/1/2010                                                                                                              |                                  | 5,000     |      | 5,213     |
| Central Platte Valley, CO, Core City, General Obligation,                        Metropolitan District, Series A, 5.0%, 12/1/2031, BNP Paribas                        (b)                                |                                  | 1,750,000 |      | 1,813,910 |
| Colorado, Housing & Finance Authority, Multi-Family                        Housing Program, Series C, AMT, 3.95%, 10/1/2008                                                                          |                                  | 765,000   |      | 771,227   |
| Colorado, Housing Finance Authority, Single Family                        Program, Series B-2, AMT, 6.4%, 11/1/2024                                                                                      |                                  | 60,000    |      | 61,903    |
| Colorado, Single Family Housing Revenue, Housing &                        Finance Authority:                                                                                                         |                                  |
|                                                                                                                                                                                                          |                                       |           |           |           |  |  |  |

|                                                                                                                                                                      | AMT, 5.0%, 5/1/2032 (a)          |       | 1,250,000 |          | 1,280,088 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------|-----------|---------------|-----------|
|                                                                                                                                                                      | Series A-2, AMT, 7.25%, 5/1/2027 |       | 80,000    |          | 83,003    |
| Colorado, Transportation/Tolls Revenue, Public Highway                        Authority, Series C, 4.9%, 9/1/2010 9 (a)                                                   |                             | 4,500,000  |      | 4,553,640     |
| El Paso County, CO, Public Housing Revenue, Series A,                        AMT, 4.1%, 12/20/2012                                                                        |                             | 390,000    |      | 401,723       |
| Pueblo County, CO, Certificates of Participation, 6.25%,                        12/1/2010                                                                                 |                             | 705,000    |      | 752,151       |
|                                                                                                                                                                           |
|                                                                                                                                                                      | **10,690,010**                   |
| **Connecticut 1.2%**                                                                                                                                                      |                             |
| Stamford, CT, Housing Authority, Multi-Family Revenue,                        Fairfield Apartments Project, AMT, 4.75%, 12/1/2028                                         |                             | 5,125,000  |      | **5,179,018** |
| **District of Columbia 0.2%**                                                                                                                                             |                             |
| District of Columbia, Housing Finance Agency,                        Multi-Family Housing Revenue, Rockburne Estates, AMT, 5.2%,                        2/20/2009         |                             | 90,000     |      | 90,921        |
| District of Columbia, Housing Finance Agency,                        Multi-Family Housing Revenue, Stanton Glenn Apartments, AMT, 5.6%,                        11/1/2010  |                             | 545,000    |      | 564,642       |
|                                                                                                                                                                           |
|                                                                                                                                                                      | **655,563**                      |
| **Florida 7.9%**                                                                                                                                                          |                             |
| Brevard County, FL, Housing Finance Authority, Homeowner                        Mortgage Revenue, Series B, 6.5%, 9/1/2022                                                |                             | 132,000    |      | 140,519       |
| Broward County, FL, Airport Systems Revenue, AMT, Series                        E, 5.25%, 10/1/2012 (a)                                                                   |                             | 6,000,000  |      | 6,116,340     |
| Florida, Citizens Property Insurance Corp., High Risk                        Account, Series A, 5.0%, 3/1/2009 (a)                                                        |                             | 3,000,000  |      | 3,084,330     |
| Florida, Hurricane Catastrophe Fund, Finance Corp.                        Revenue, Series A, 5.0%, 7/1/2008                                                               |                             | 10,000,000 |      | 10,108,700    |
| Hillsborough County, FL, Special Assessment Revenue,                        5.0%, 3/1/2014 (a)                                                                            |                             | 2,135,000  |      | 2,346,472     |
| Miami-Dade County, FL, School Board, Certificates of                        Participation, Series C, 4.0%,

10/1/2008 (a)                                                 |                             | 2,625,000  |      | 2,647,575     |
| Pinellas County, FL, Single Family Housing Revenue,                        Housing Authority, 4.6%, 12/1/2010 (a)                                                         |                             | 7,580,000  |      | 8,039,879     |
| South Miami, FL, Health Facilities Authority, Hospital                        Revenue, Baptist Health South Florida Group, 5.0%, 8/15/2021                                |                             | 2,500,000  |      | 2,595,050     |
|                                                                                                                                                                           |
|                                                                                                                                                                      | **35,078,865**                   |
| **Georgia 5.0%**                                                                                                                                                          |                             |
| Augusta-Richmond County, GA, Coliseum Revenue Authority,                        ETM, 6.3%, 2/1/2010                                                                       |                             | 90,000     |      | 93,064        |
| Bulloch County, GA, School District Sales Tax, 5.0%,                        5/1/2010                                                                                      |                             | 7,890,000  |      | 8,362,848     |
| Canton, GA, Multi-Family Housing Authority, Canterbury                        Ridge Apartments Project, AMT, 4.9%, 3/1/2008                                               |                             | 45,000     |      | 45,076        |
| Carroll County, GA, School District, Sales Tax, 5.0%,                        4/1/2010                                                                                     |                             | 2,000,000  |      | 2,117,580     |
| Chatham County, GA, Hospital & Healthcare Revenue,                        5.25%, 1/1/2016 (a)                                                                         |                             | 250,000    |      | 252,997       |
| Cobb County, GA, Housing Authority, Multi-Family Housing                        Revenue, Oakley Run Apartments Project, 4.75%, 3/1/2032                                   |                             | 2,765,000  |      | 2,857,268     |
| De Kalb County, GA, Housing Authority, Multi-Family                        Housing Revenue, Park Briarcliff Apartments, Series A, 4.55%,                        12/1/2028 |                             | 250,000    |      | 252,857       |
| Decatur, GA, Industrial Development Revenue, Downtown                        Development Authority, 5.15%, 11/1/2008                                                      |                             | 765,000    |      | 770,722       |
| Douglas County, GA, Housing Authority, Multi-Family                        Housing Revenue, Millwood Park Apartments, AMT, 5.1%, 1/1/2009                                 |                             | 65,000     |      | 65,717        |
| Georgia, Main Street Natural Gas, Inc., Gas Project                        Revenue:                                                                                       |                             |
|                                                                                                                                                                      | Series A, 5.0%, 3/15/2009        |       | 3,000,000 |          | 3,073,710 |
|                                                                                                                                                                      | Series A, 5.0%, 3/15/2010        |       | 4,000,000 |          | 4,160,400 |
|                                                                                                                                                                           |
|                                                                                                                                                                      | **22,052,239**                   |
| **Hawaii 0.2%**                                                                                                                                                           |                             |
| Hawaii, State Housing Finance & Development Corp.,                        Single Family Mortgage Revenue, Series A, AMT, 5.2%, 7/1/2012                               |                             | 1,075,000  |      | **1,094,941** |
| **Idaho 0.6%**                                                                                                                                                            |                             |
| Bingham County, ID, Industrial Development Revenue,                        Industrial Development Corporation Idaho Supreme Potatoes, Inc.,                        AMT:   |                             |
|                                                                                                                                                                           |                                  |            |           |               |           |  |  |

|                                                                                                                                        | 144A, 5.4%, 11/1/2008, Wells Fargo Bank NA (b) |      | 325,000   |      | 325,748   |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|-----------|-----------|-----------|-----------|
|                                                                                                                                        | 144A, 5.5%, 11/1/2009, Wells Fargo Bank NA (b) |      | 355,000   |      | 355,841   |
|                                                                                                                                        | 144A, 5.6%, 11/1/2010, Wells Fargo Bank NA (b) |      | 80,000    |      | 80,196    |
|                                                                                                                                        | 144A, 5.7%, 11/1/2011, Wells Fargo Bank NA (b) |      | 85,000    |      | 85,214    |
|                                                                                                                                        | 144A, 5.8%, 11/1/2012, Wells Fargo Bank NA (b) |      | 90,000    |      | 90,234    |
| Idaho, Housing Agency, Single Family Mortgage,                        AMT:                                                                  |                                           |
|                                                                                                                                        | Series G-2, 5.75%, 1/1/2014                    |      | 25,000    |      | 25,309    |
|                                                                                                                                        | Series E, 5.95%, 7/1/2020                      |      | 70,000    |      | 71,848    |
| Idaho, Housing Agency, Single Family Mortgage, Class III,                        AMT:                                                       |                                           |
|                                                                                                                                        | 5.1%, 7/1/2023                                 |      | 230,000   |      | 232,328   |
|                                                                                                                                        | 5.15%, 7/1/2023                                |      | 570,000   |      | 576,247   |
|                                                                                                                                        | 5.4%, 7/1/2021                                 |      | 130,000   |      | 132,982   |
|                                                                                                                                        | 5.95%, 7/1/2019                                |      | 495,000   |      | 513,676   |
| Idaho, Housing Agency, Single Family Mortgage, Class III,                        AMT, Series H-2:                                           |                                           |
|                                                                                                                                        | 5.1%, 7/1/2020                                 |      | 110,000   |      | 111,971   |
|                                                                                                                                        | 5.85%, 1/1/2014                                |      | 120,000   |      | 123,023   |
|                                                                                                                                             |
|                                                                                                                                        | **2,724,617**                                  |
| **Illinois 9.1%**                                                                                                                           |                                           |
| Chicago, IL, Housing Authority Capital, Program Revenue,                        5.0%, 7/1/2008 (a)                                          |                                           | 2,000,000 |      | 2,023,500 |
| Chicago, IL, O’Hare International Airport Revenue,                        Series A, 5.0%, 1/1/2015 (a)                                |                                           | 4,500,000 |      | 4,965,120 |
| Chicago, IL, Single Family Mortgage Revenue, AMT, 6.3%,                        9/1/2029                                                     |                                           | 230,000   |      | 244,090   |
| Elgin, IL, Core City General Obligation, 6.0%,                        1/1/2013                                                              |                                           | 1,000,000 |      | 1,068,670 |
| Huntley, IL, Project Revenue, Installment Contract,                        5.85%, 12/1/2015                                                 |                                           | 1,145,000 |      | 1,216,597 |
| Huntley, IL, Sales & Special Tax Revenue:                                                                                               |                                           |
|                                                                                                                                        | Series A, 6.45%, 3/1/2028                      |      | 6,041,000 |      | 6,183,205 |
|                                                                                                                                        | 7.75%, 3/1/2028                                |      | 5,460,000 |      | 5,593,770 |
|                                                                                                                                        | 7.75%, 3/1/2029                                |      | 4,613,000 |      | 4,972,860 |
| Illinois, Development Finance Authority, Gas Supply                        Revenue, Peoples Gas Light & Coke, Series B, 3.05%, 2/1/2033 |                                           | 600,000   |      | 598,500   |
| Illinois, Health Facilities Authority Revenue, 5.25%,                        11/15/2013 (a)                                                 |                                           | 1,000,000 |      | 1,028,960 |
| Illinois, Health Facilities Authority, Midwest Group                        Ltd., 5.375%, 11/15/2008                                        |                                           | 445,000   |      | 445,156   |
| Lake County, IL, Forest Preserve District, Series A,                        3.824% *, 12/15/2020                                            |                                           | 5,000,000 |      | 4,651,350 |
| McCook, IL, Hospital & Healthcare Revenue, British                        Home Project, 4.25% *, 12/1/2014, LaSalle Bank NA (b) (c)     |                                           | 755,000   |      | 755,906   |
| McLean & Woodford Counties, IL, Community Unit School                        District No. 5, Prerefunded, 6.375%, 12/1/2016 (a)         |                                           | 4,820,000 |      | 5,497,547 |
| Normal, IL, Multi-Family Housing Revenue, AMT, 3.75%,                        12/1/2013                                                      |                                           | 1,135,000 |      | 1,147,905 |
|                                                                                                                                             |
|                                                                                                                                        | **40,393,136**                                 |
| **Indiana 3.3%**                                                                                                                            |                                           |
| Indiana, Bond Bank Revenue, State Revolving Fund, Series                        B, 5.25%, 8/1/2019                                          |                                           | 4,000,000 |      | 4,320,640 |
| Indiana, Health Facilities Funding Authority, Series A,                        ETM, 5.75%, 9/1/2015                                         |                                           | 2,930,000 |      | 2,976,646 |
| Indiana, Health Facility Financing Authority Revenue,                        Ascension Health, Series A-1, 5.0%, 11/1/2027                  |                                           | 1,000,000 |      | 1,073,550 |
| Indiana, Transportation Finance Authority, Highway                        Revenue, Series A, 5.25%, 6/1/2016 (a)                            |                                           | 5,000,000 |      | 5,623,900 |
| Tipton, IN, School District General Obligation, School                        Building Corp., 5.55%, 7/15/2012 (a)                          |                                           | 335,000   |      | 357,669   |
| Wells County, IN, Hospital Authority Revenue, ETM, 7.25%,                        4/1/2009                                                   |                                           | 25,000    |      | 25,523    |
|                                                                                                                                             |
|                                                                                                                                        | **14,377,928**                                 |
| **Kansas 1.3%**                                                                                                                             |                                           |
| Junction City, KS, General Obligation, Series A, 5.0%,                        6/1/2008                                                      |                                           | 3,925,000 |      | 3,957,931 |
| Sedgwick & Shawnee Counties, KS, Single Family                        Mortgage Revenue, Series B-4, AMT, 4.25%, 6/1/2023                |                                           | 950,000   |      | 990,479   |
| Shawnee, KS, Multi-Family Housing Revenue, Prairie Lakes                        Apartments, AMT, 4.35%, 2/1/2013                            |                                           | 685,000   |      | 705,502   |
|                                                                                                                                             |
|                                                                                                                                        | **5,653,912**                                  |
|                                                                                                                                             |                                                |           |           |           |           |  |  |

| **Kentucky 0.7%**                                                                                                                                                                    |                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
| Kentucky, Housing Corp. Revenue, Series G, AMT, 5.0%,                        7/1/2030                                                                                                |                           | 2,725,000 |   | 2,852,339 |
| Louisville, KY, Multi-Family Housing Revenue, 5.15%,                        7/1/2009                                                                                                 |                           | 15,000 |   | 15,248 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **2,867,587**                  |
| **Louisiana 0.1%**                                                                                                                                                                   |                           |
| Louisiana, State Health Education Authority, Lease Rent                        Revenue, Tulane University Medical Center, ETM, 7.875%, 7/1/2009                                      |                           | 90,000 |   | 93,982 |
| Orleans, LA, Water & Sewer Revenue, Levee District,                        5.95%, 11/1/2015 (a)                                                                                  |                           | 530,000 |   | 540,828 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **634,810**                    |
| **Maine 0.2%**                                                                                                                                                                       |                           |
| Maine, Finance Revenue Authority, Electronic Rate                        Stabilization, AMT, 5.2%, 7/1/2018 (a)                                                                      |                           | 1,005,000 |   | **1,018,256** |
| **Maryland 3.1%**                                                                                                                                                                    |                           |
| Maryland, State Community Development Administration,                        Department of Housing & Community Development, Series E, AMT, 5.5%,                        3/1/2032 |                           | 2,095,000 |   | 2,233,521 |
| Maryland, State Department of Transportation &                        Conservation, 5.0%, 2/15/2018                                                                              |                           | 5,000,000 |   | 5,657,350 |
| Maryland, University of Maryland, Systems Auxiliary                        Facility & Tuition Revenue, Series A, 5.0%, 4/1/2012                                                  |                           | 5,000,000 |   | 5,480,100 |
| Prince Georges County, MD, Housing Authority, Single                        Family Mortgage Revenue:                                                                                 |                           |
|                                                                                                                                                                                 | Series A, AMT, 3.9%, 8/20/2012 |   | 295,000 |   | 299,921 |
|                                                                                                                                                                                 | Series A, AMT, 5.6%, 12/1/2034 |   | 70,000 |   | 70,800 |
|                                                                                                                                                                                 | Series A, AMT, 7.0%, 8/1/2033  |   | 95,000 |   | 96,764 |
|                                                                                                                                                                                 | Series A, AMT, 7.4%, 8/1/2032  |   | 80,000 |   | 81,524 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **13,919,980**                 |
| **Massachusetts 0.5%**                                                                                                                                                               |                           |
| Massachusetts, Bay Transportation Authority Revenue,                        Prerefunded, Series A, 5.25%, 7/1/2030                                                                   |                           | 2,170,000 |   | 2,318,818 |
| Massachusetts, Development Finance Agency, Curry College,                        Series A, 4.6%, 3/1/2009 (a)                                                                        |                           | 25,000 |   | 25,251 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **2,344,069**                  |
| **Michigan 1.3%**                                                                                                                                                                    |                           |
| Detroit, MI, Sewer Disposal Revenue, Series D, 3.768% *,                        7/1/2032 (a)                                                                                         |                           | 4,110,000 |   | 3,622,307 |
| Detroit, MI, Water Supply System, ETM, 6.25%, 7/1/2012                        (a)                                                                                                    |                           | 185,000 |   | 198,825 |
| Michigan, Higher Education Revenue, Higher Education                        Student Loan Authority, Series XVII-I, AMT, 2.95%, 3/1/2008 (a)                                          |                           | 1,000,000 |   | 999,720 |
| Michigan, Strategic Fund, Limited Obligation Revenue,                        United Jewish Project, 5.75%, 1/1/2012, Bank One NA (b)                                                 |                           | 800,000 |   | 800,432 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **5,621,284**                  |
| **Minnesota 0.4%**                                                                                                                                                                   |                           |
| Coon Rapids, MN, Multi-Family Housing Revenue, Brown                        Meadow Manor, Series A, AMT, 3.875%, 7/1/2014                                                            |                           | 695,000 |   | 695,153 |
| Minnesota, Single Family Housing Revenue, Housing Finance                        Agency, 5.2%, 1/1/2017                                                                              |                           | 1,185,000 |   | 1,245,293 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **1,940,446**                  |
| **Mississippi 0.3%**                                                                                                                                                                 |                           |
| Corinth & Alcorn County, MS, Hospital Revenue,                        Magnolia Regional Health Center, Series A, 5.0%, 10/1/2008                                                 |                           | 420,000 |   | 423,721 |
| Mississippi, Single Family Housing Revenue, AMT, 6.3%,                        6/1/2031                                                                                               |                           | 695,000 |   | 731,495 |
|                                                                                                                                                                                      |
|                                                                                                                                                                                 | **1,155,216**                  |
| **Missouri 3.6%**                                                                                                                                                                    |                           |
| Brentwood, MO, Tax Increment Revenue, 4.7%, 4/1/2019                        (a)                                                                                                      |                           | 190,000 |   | 195,326 |
| Des Peres, MO, Sales & Special Tax Revenue, Tax                        Increment, Series B, 4.4%, 4/15/2014                                                                      |                           | 250,000 |   | 241,482 |
| Jackson County, MO, Hospital & Healthcare Revenue,                        St. Joseph Hospital, ETM, 7.5%, 6/1/2010                                                               |                           | 635,000 |   | 671,195 |
| Kansas City, MO, Core City General Obligation,                        Streetlight Project, Series A, 5.75%, 2/1/2012                                                                 |                           | 100,000 |   | 107,631 |
|                                                                                                                                                                                      |                                |  |  |  |  |  |  |

| Missouri, Bi-State Development Agency, Illinois                        Metropolitan District Revenue, Metrolink, Series A, 3.95% *, 10/1/2035,                        JPMorgan Chase Bank (b)                  |                             | 2,000,000 |      | 2,048,320  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------|-----------|------------|
| Missouri, Development Finance Board, Greater St. Louis                        Project, 4.9%, 9/1/2010, Bank of America NA (b)                                                                                  |                             | 685,000   |      | 694,268    |
| Missouri, Housing Development Community, Single Family                        Mortgage, Series C, 6.55%, 9/1/2028                                                                                              |                             | 120,000   |      | 126,572    |
| Missouri, Housing Development Community, Single Family                        Mortgage, AMT, 7.45%, 9/1/2031                                                                                                   |                             | 150,000   |      | 155,969    |
| Missouri, Single Family Housing Revenue, Housing                        Development, Series B-2, AMT, 5.75%, 3/1/2019                                                                                          |                             | 15,000    |      | 15,162     |
| Missouri, Single Family Housing Revenue, Housing                        Development Community Mortgage, Series C, AMT, 7.25%, 9/1/2026                                                                         |                             | 55,000    |      | 56,008     |
| Missouri, State Highways & Transit Commission, State                        Road Revenue, Series A, 5.0%, 2/1/2014                                                                                         |                             | 5,000,000 |      | 5,449,500  |
| Missouri, State Housing Development, Commission Single                        Family Mortgage Revenue, Homeownership Loan Program, Series C, AMT, 5.6%,                        9/1/2035                        |                             | 2,455,000 |      | 2,602,693  |
| Missouri, State Public Utilities Commission Revenue,                        Interim Construction Notes, 4.75%, 9/1/2008                                                                                        |                             | 2,000,000 |      | 2,030,080  |
| St. Charles County, MO, Industrial Development Authority,                        Health Care Facilities Revenue, Garden View Care Center Project, AMT, 5.4%,                        11/15/2016, US Bank NA (b) |                             | 1,480,000 |      | 1,489,146  |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **15,883,352**                   |
| **Nebraska 0.9%**                                                                                                                                                                                              |                             |
| Clay County, NE, Industrial Development Revenue, Hybrids                        Cooperative Project, AMT:                                                                                                      |                             |
|                                                                                                                                                                                                           | 4.75%, 3/15/2009, US Bank NA (b) |      | 425,000   |       | 428,375 |
|                                                                                                                                                                                                           | 5.25%, 3/15/2014, US Bank NA (b) |      | 1,610,000 |       | 1,621,141 |
| Fillmore County, NE, Industrial Development Revenue,                        Omalley Grain, Inc. Project, AMT:                                                                                                  |                             |
|                                                                                                                                                                                                           | 4.7%, 12/1/2008, US Bank NA (b)  |      | 190,000   |       | 190,464 |
|                                                                                                                                                                                                           | 5.0%, 12/1/2010, US Bank NA (b)  |      | 45,000    |       | 45,135 |
|                                                                                                                                                                                                           | 5.0%, 12/1/2011, US Bank NA (b)  |      | 180,000   |       | 180,473 |
|                                                                                                                                                                                                           | 5.1%, 12/1/2012, US Bank NA (b)  |      | 135,000   |       | 135,312 |
|                                                                                                                                                                                                           | 5.2%, 12/1/2013, US Bank NA (b)  |      | 195,000   |       | 195,439 |
| Nebhelp, Inc., NE, Student Loan Program, AMT, 5.875%,                        6/1/2014 (a)                                                                                                                      |                             | 1,025,000 |      | 1,036,531  |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **3,832,870**                    |
| **Nevada 0.4%**                                                                                                                                                                                                |                             |
| Nevada, Housing Division, Multi Unit Housing                        Revenue:                                                                                                                                   |                             |
|                                                                                                                                                                                                           | Series C-2, AMT, 5.2%, 4/1/2030  |      | 125,000   |       | 126,189 |
|                                                                                                                                                                                                           | Series B-1, 5.25%, 10/1/2017     |      | 370,000   |       | 374,229 |
| Nevada, Housing Division, Single Family Mortgage, Series                        A, AMT, 5.15%, 10/1/2014                                                                                                       |                             | 35,000    |      | 36,210     |
| Nevada, Single Family Housing Revenue, Housing Division,                        Series A-2, AMT, 5.2%, 10/1/2018                                                                                               |                             | 230,000   |      | 232,051    |
| Washoe, NV, Public Safety Training, 4.875%, 9/1/2010                        (a)                                                                                                                                |                             | 1,055,000 |      | 1,056,941  |
|                                                                                                                                                                                                                |
|                                                                                                                                                                                                           | **1,825,620**                    |
| **New Hampshire 0.0%**                                                                                                                                                                                         |                             |
| New Hampshire, Housing Finance Authority, AMT, 6.125%,                        1/1/2018, Landesbank Hessen-Thuringen (b)                                                                                        |                             | 20,000    |      | **20,551** |
|                                                                                                                                                                                                           |                             |
| **New Jersey 3.2%**                                                                                                                                                                                            |                             |
| Gloucester County, NJ, Public Improvement Authority,                        Electric Mobility Project, AMT:                                                                                                    |                             |
|                                                                                                                                                                                                           | 5.0%, 11/1/2008                  |      | 125,000   |       | 126,524 |
|                                                                                                                                                                                                           | 5.0%, 11/1/2010                  |      | 215,000   |       | 217,535 |
| Keansburg, NJ, Elderly Housing Mortgage Revenue, HUD                        Section 8, 5.625%, 3/1/2011                                                                                                        |                             | 185,000   |      | 185,205    |
| Livingston, NJ, School District Revenue, Board of                        Education, 144A, 3.8%, 8/1/2014                                                                                                       |                             | 914,441   |      | 916,956    |
| New Jersey, State General Obligation, Educational                        Facilities Authority Revenue, Series B, 5.0%, 7/1/2008 (a)                                                                            |                             | 235,000   |      | 237,851    |
| New Jersey, State Transportation Trust Fund                        Authority:                                                                                                                                  |                             |
|                                                                                                                                                                                                           | Series C, 5.0%, 6/15/2011        |      | 5,000,000 |       | 5,411,650 |
|                                                                                                                                                                                                                |                                  |           |           |            |  |  |  |

|                                                                                                                                                                        | Series A, 6.125%, 6/15/2015                                             |       | 6,650,000 |          | 7,237,793 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|------------|-----------|---------------|-----------|
|                                                                                                                                                                             |
|                                                                                                                                                                        | **14,333,514**                                                          |
| **New Mexico 0.1%**                                                                                                                                                         |                                                                    |
| New Mexico, Mortgage Finance Authority, Second Mortgage                        Program, AMT, 144A, 6.5%, 1/1/2018                                                           |                                                                    | 164,200    |      | 166,627       |
| New Mexico, Student Loans Revenue, Series IV-B, AMT,                        7.45%, 3/1/2010                                                                                 |                                                                    | 375,000    |      | 376,421       |
|                                                                                                                                                                             |
|                                                                                                                                                                        | **543,048**                                                             |
| **New York 4.5%**                                                                                                                                                           |                                                                    |
| Hempstead, NY, Higher Education Revenue, 4.2%,                        2/1/2008                                                                                              |                                                                    | 240,000    |      | 240,000       |
| New York, State General Obligation, Series C, 5.375%,                        10/1/2011 (a)                                                                                  |                                                                    | 1,000,000  |      | 1,002,400     |
| New York, Tobacco Settlement Financing Corp., Series C-1,                        5.25%, 6/1/2013                                                                            |                                                                    | 14,595,000 |      | 14,694,538    |
| New York, NY, General Obligation, Series G, 5.0%,                        12/1/2015                                                                                          |                                                                    | 3,060,000  |      | 3,350,700     |
| New York, NY, Higher Education Revenue, Dormitory                        Authority, Series A, 5.25%, 5/15/2013                                                              |                                                                    | 585,000    |      | 648,391       |
|                                                                                                                                                                             |
|                                                                                                                                                                        | **19,936,029**                                                          |
| **North Carolina 0.8%**                                                                                                                                                     |                                                                    |
| North Carolina, Housing Finance Agency, Home Ownership,                        Series 22-A, AMT, 5.5%, 7/1/2036                                                             |                                                                    | 3,345,000  |      | **3,562,091** |
| **Ohio 3.1%**                                                                                                                                                               |                                                                    |
| Bowling Green, OH, Multi-Family Revenue, Village                        Apartments, 4.75%, 9/20/2011                                                                        |                                                                    | 160,000    |      | 167,151       |
| Buckeye, OH, Tobacco Settlement Financing Authority,                        Series A-1, 5.0%, 6/1/2015                                                                      |                                                                    | 4,500,000  |      | 4,609,260     |
| Franklin County, OH, Multi-Family Revenue, Lincoln Park                        Project, AMT, 5.65%, 4/20/2013                                                               |                                                                    | 225,000    |      | 237,902       |
| Hancock County, OH, Multi-Family Revenue, Crystal Glen                        Apartments, Series C, AMT, 5.05%, 1/1/2010, Federal Home Loan Bank                        (b) |                                                                    | 465,000    |      | 465,451       |
| Mason, OH, Health Care Facilities, MCV Health Care                        Facilities Project, 5.25%, 2/20/2020                                                              |                                                                    | 45,000     |      | 46,474        |
| Ohio, American Municipal Power, Inc., Electricity                        Purchase Revenue, Series A, 5.0%, 2/1/2011                                                         |                                                                    | 5,000,000  |      | 5,217,650     |
| Ohio, Housing Finance Agency, Single Family Mortgage                        Revenue, Series A, 5.75%,

4/1/2016 (a)                                                         |                                                                    | 55,000     |      | 55,089        |
| Ohio, State Higher Education Capital Facilities, Series                        II-A, 5.5%, 12/1/2009                                                                        |                                                                    | 2,490,000  |      | 2,642,562     |
| Ohio, Water & Sewer Revenue, ETM, 7.25%, 12/1/2008                        (a)                                                                                           |                                                                    | 125,000    |      | 128,106       |
|                                                                                                                                                                             |
|                                                                                                                                                                        | **13,569,645**                                                          |
| **Oklahoma 0.1%**                                                                                                                                                           |                                                                    |
| Bryan County, OK, Economic Development Revenue Authority,                        Single Family Mortgage, Series A, 8.6%, 7/1/2010                                           |                                                                    | 35,000     |      | 26,951        |
| Comanche County, OK, Home Finance Authority Mortgage                        Revenue, Multi-Family FHA Diplomat, 5.2%, 12/1/2013                                             |                                                                    | 440,000    |      | 455,299       |
|                                                                                                                                                                             |
|                                                                                                                                                                        | **482,250**                                                             |
| **Oregon 0.6%**                                                                                                                                                             |                                                                    |
| Portland, OR, Multi-Family Housing Authority Revenue,                        AMT:                                                                                           |                                                                    |
|                                                                                                                                                                        | 6.125%, 5/1/2017, US National Bank of Oregon                        (b) |       | 1,545,000 |          | 1,558,318 |
|                                                                                                                                                                        | 6.3%, 5/1/2029, US National Bank of Oregon (b)                          |       | 1,000,000 |          | 1,009,050 |
|                                                                                                                                                                             |
|                                                                                                                                                                        | **2,567,368**                                                           |
| **Pennsylvania 5.3%**                                                                                                                                                       |                                                                    |
| Allentown, PA, Hospital Authority, ETM, 8.0%,                        3/1/2009                                                                                               |                                                                    | 55,000     |      | 56,653        |
| Chester County, PA, Hospital Authority, ETM, 7.5%,                        7/1/2009                                                                                          |                                                                    | 5,000      |      | 5,193         |
| Chester, PA, Core City General Obligation, Series B,                        5.8%, 12/1/2013 (a)                                                                             |                                                                    | 1,055,000  |      | 1,057,258     |
| Delaware County, PA, College Revenue Authority, Series A,                        5.15%, 10/1/2013 (a)                                                                       |                                                                    | 300,000    |      | 302,448       |
| Delaware County, PA, College Revenue Authority, Eastern                        College, Series B, 4.95%, 10/1/2008                                                          |                                                                    | 345,000    |      | 347,077       |
| Delaware County, PA, Hospital & Healthcare Revenue,                        Dunwoody Village, Series B, 4.0%, 4/1/2034                                                   |                                                                    | 250,000    |      | 250,190       |
| Delaware County, PA, Water & Sewer Revenue,                        Industrial Development Authority, Series B, AMT, 3.75%, 6/1/2010                        (a)          |                                                                    | 565,000    |      | 567,475       |
| Langhorne, PA, Hospital Revenue, Franciscan Health, St.                        Mary's Hospital Authority, Series A, 7.0%, 6/15/2015 (a)                                     |                                                                    | 1,770,000  |      | 1,788,727     |
|                                                                                                                                                                             |                                                                         |            |           |               |           |  |  |

| Pennsylvania, Financing Authority Revenue, AMT, 5.0%,                        6/1/2010 (a)                                                                                                                    |                             | 1,470,000  |      | 1,485,273   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------|-----------|-------------|
| Pennsylvania, Higher Educational Facility, Gwynedd Mercy                        College, 5.0%, 11/1/2008                                                                                                     |                             | 30,000     |      | 30,644      |
| Pennsylvania, Housing Finance Agency, Single Family                        Mortgage, Series 90A, AMT, 5.0%, 10/1/2035                                                                                        |                             | 2,250,000  |      | 2,358,000   |
| Pennsylvania, State General Obligation:                                                                                                                                                                      |                             |
|                                                                                                                                                                                                         | Third Series, 5.0%, 9/1/2013 (a) |       | 5,000,000 |        | 5,569,700 |
|                                                                                                                                                                                                         | First Series, 5.0%, 1/1/2014 (a) |       | 5,000,000 |        | 5,469,400 |
| Pennsylvania, State Higher Education Facilities Authority                        Revenue, Independent Colleges & University, Series H8, 5.0%, 5/1/2011,                        Allied Irish Bank PLC (b) |                             | 1,155,000  |      | 1,157,102   |
| Pennsylvania, TJHU System Project, 6.0%, 1/11/2011                        (c)                                                                                                                                |                             | 709,432    |      | 724,898     |
| Philadelphia, PA, Industrial Development Revenue,                        Authority for Individual Development Senior Living Revenue:                                                                         |                             |
|                                                                                                                                                                                                         | Series A, 4.7%, 7/1/2013         |       | 240,000   |        | 239,935 |
|                                                                                                                                                                                                         | Series C, 4.7%, 7/1/2013         |       | 225,000   |        | 224,939 |
|                                                                                                                                                                                                         | Series E, 4.7%, 7/1/2013         |       | 265,000   |        | 264,929 |
| Philadelphia, PA, Multi-Family Housing Revenue, Series B,                        AMT, 4.5%, 10/1/2013                                                                                                        |                             | 995,000    |      | 1,007,607   |
| Pittsburgh, PA, Industrial Development Revenue, Urban                        Redevelopment Authority, Series A, 144A, 6.0%, 12/1/2011, PNC Bank NA                        (b)                                |                             | 380,000    |      | 383,625     |
| York County, PA, Housing Redevelopment Mortgage Corp.,                        Series A, 6.875%, 11/1/2009                                                                                                    |                             | 305,000    |      | 305,631     |
|                                                                                                                                                                                                              |
|                                                                                                                                                                                                         | **23,596,704**                   |
| **Puerto Rico 3.3%**                                                                                                                                                                                         |                             |
| Commonwealth of Puerto Rico, Government Development Bank,                        Series B, 5.0%, 12/1/2008                                                                                                   |                             | 10,000,000 |      | 10,191,600  |
| Commonwealth of Puerto Rico, Public Improvement, Series                        A, 5.0%, 7/1/2011                                                                                                             |                             | 930,000    |      | 977,281     |
| Puerto Rico, Municipal Finance Agency, Series A, 5.0%,                        8/1/2009                                                                                                                       |                             | 3,500,000  |      | 3,608,010   |
|                                                                                                                                                                                                              |
|                                                                                                                                                                                                         | **14,776,891**                   |
| **South Carolina 1.0%**                                                                                                                                                                                      |                             |
| South Carolina, Economic Development Authority Revenue,                        Caterpillar, Inc. Project, AMT, 5.05%, 6/1/2008                                                                               |                             | 500,000    |      | 501,415     |
| South Carolina, State Public Service Authority Revenue,                        Series D, 5.25%, 1/1/2014 (a)                                                                                                 |                             | 3,500,000  |      | 3,864,980   |
|                                                                                                                                                                                                              |
|                                                                                                                                                                                                         | **4,366,395**                    |
| **South Dakota 0.2%**                                                                                                                                                                                        |                             |
| South Dakota, Hospital & Healthcare Revenue, 5.4%,                        8/1/2013 (a)                                                                                                                   |                             | 970,000    |      | **983,318** |
| **Tennessee 3.2%**                                                                                                                                                                                           |                             |
| Sullivan County, TN, Health Educational & Housing                        Facilities Board, Multi-Family Housing Authority, Maple Oaks Apartment                        Project, AMT, 3.0%, 12/1/2009     |                             | 100,000    |      | 100,168     |
| Sumner County, TN, School Capital Outlay Notes, 4.0%,                        6/1/2009                                                                                                                        |                             | 5,600,000  |      | 5,732,104   |
| Tennessee, Energy Acquisition Corp., Gas Revenue, Series                        A, 5.0%, 9/1/2009                                                                                                            |                             | 5,000,000  |      | 5,158,500   |
| Tennessee, Housing Development Agency, Homeownership                        Program, AMT, Series 2006-3, 5.75%, 7/1/2037                                                                                     |                             | 2,915,000  |      | 3,131,701   |
|                                                                                                                                                                                                              |
|                                                                                                                                                                                                         | **14,122,473**                   |
| **Texas 11.2%**                                                                                                                                                                                              |                             |
| Austin, TX, General Obligation, 5.0%, 9/1/2010                                                                                                                                                               |                             | 6,000,000  |      | 6,012,660   |
| Bexar County, TX, Single Family Housing Revenue, Single                        Family Mortgage, Series C, 5.5%, 3/1/2019 (c)                                                                                 |                             | 551,045    |      | 559,173     |
| Harris County, TX, Hospital & Healthcare Revenue,                        Health Facilities Development Corp., Series A, 6.0%, 6/1/2009                        (a)                                        |                             | 210,000    |      | 219,857     |
| Harris County, TX, Hospital District Mortgage Revenue,                        7.4%, 2/15/2010 (a)                                                                                                            |                             | 1,100,000  |      | 1,151,997   |
| Lewisville, TX, Independent School District, Prerefunded,                        5.25%, 8/15/2027                                                                                                            |                             | 1,315,000  |      | 1,409,286   |
| North Texas, Bond Anticipation Notes, Tollway Authority                        Revenue, 4.125%, 11/19/2008                                                                                                   |                             | 5,000,000  |      | 5,008,350   |
| San Antonio, TX, Electric & Gas Revenue, 5.25%,                        2/1/2009                                                                                                                          |                             | 8,320,000  |      | 8,586,573   |
| Tarrant County, TX, Multi-Family Housing Revenue, Housing                        Financial Corp., Series A, AMT, 3.7%, 12/20/2013                                                                            |                             | 735,000    |      | 734,015     |
| Tarrant County, TX, Public Housing Revenue, Housing                        Financial Corp., Series A, AMT, 3.85%, 1/20/2013                                                                                  |                             | 710,000    |      | 726,216     |
|                                                                                                                                                                                                              |                                  |            |           |             |  |  |  |

| Texas, Multi-Family Housing Revenue, Wintergreen Project,                        AMT, 4.85%, 9/20/2012                                  |                                        | 115,000         |      | 121,349       |
|-----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|-----------------|-----------|---------------|
| Texas, Municipal Gas Acquisition & Supply Corp I, Gas                        Supply Revenue, Series B, 4.044% *, 12/15/2026         |                                        | 17,350,000      |      | 14,528,890    |
| Texas, Municipal Gas Acquisition & Supply Corp. II,                        Gas Supply Revenue, 4.044% *, 9/15/2017                  |                                        | 7,000,000       |      | 6,550,320     |
| Texas, Sabine River Authority, Series A, 6.875%,                        9/1/2008                                                        |                                        | 500,000         |      | 501,740       |
| Wichita Falls, TX, Water & Sewer Revenue,                        Prerefunded, 5.375%, 8/1/2024 (a)                                  |                                        | 3,000,000       |      | 3,290,280     |
|                                                                                                                                         |
|                                                                                                                                    | **49,400,706**                              |
| **Utah 1.1%**                                                                                                                           |                                        |
| Intermountain Power Agency, UT, Power Supply Revenue,                        Series A, ETM, 6.15%, 7/1/2014 (a)                         |                                        | 245,000         |      | 260,709       |
| Utah, Housing Finance Agency, Single Family                        Mortgage:                                                            |                                        |
|                                                                                                                                    | Series A-2, Class III, AMT, 5.05%, 7/1/2012 |            | 15,000    |          | 15,268 |
|                                                                                                                                    | Series A-2, Class III, AMT, 5.2%, 7/1/2011  |            | 30,000    |          | 30,554 |
|                                                                                                                                    | Series B-2, Class III, AMT, 5.25%, 7/1/2011 |            | 30,000    |          | 30,569 |
|                                                                                                                                    | Series A-2, Class II, AMT, 5.4%, 7/1/2016   |            | 60,000    |          | 61,226 |
|                                                                                                                                    | Series C, Class III, AMT, 6.25%, 7/1/2014   |            | 150,000   |          | 154,404 |
| Utah, Single Family Housing Revenue, Series D-2, AMT,                        5.0%, 7/1/2018                                             |                                        | 905,000         |      | 923,815       |
| Utah, Single Family Housing Revenue, Mortgage Revenue,                        Series G, AMT, 4.875%, 1/1/2019                           |                                        | 1,785,000       |      | 1,831,321     |
| Utah, Single Family Housing Revenue, Single Family                        Mortgage, AMT, 3.875%, 7/1/2014                               |                                        | 1,350,000       |      | 1,363,325     |
|                                                                                                                                         |
|                                                                                                                                    | **4,671,191**                               |
| **Vermont 0.4%**                                                                                                                        |                                        |
| Vermont, Housing Finance Agency, Single Family, Series                        23, AMT, 5.0%, 5/1/2034 (a)                               |                                        | 1,585,000       |      | **1,660,462** |
| **Virginia 2.2%**                                                                                                                       |                                        |
| Newport News, VA, School District Revenue Lease, School                        Board:                                                   |                                        |
|                                                                                                                                    | 3.2%, 11/1/2008                             |            | 885,000   |          | 895,832 |
|                                                                                                                                    | 3.2%, 11/1/2009                             |            | 940,000   |          | 951,506 |
|                                                                                                                                    | 3.3%, 11/1/2010                             |            | 995,000   |          | 1,007,527 |
|                                                                                                                                    | 3.5%, 11/1/2011                             |            | 1,055,000 |          | 1,068,894 |
|                                                                                                                                    | 3.65%, 11/1/2012                            |            | 1,125,000 |          | 1,140,311 |
|                                                                                                                                    | 3.75%, 11/1/2013                            |            | 1,195,000 |          | 1,211,623 |
|                                                                                                                                    | 4.0%, 11/1/2014                             |            | 1,270,000 |          | 1,288,618 |
|                                                                                                                                    | 4.1%, 11/1/2015                             |            | 1,930,000 |          | 1,958,776 |
| Virginia, Water & Sewer Systems Revenue, Series B,                        8.7%, 11/1/2011                                           |                                        | 275,000         |      | 276,444       |
|                                                                                                                                         |
|                                                                                                                                    | **9,799,531**                               |
| **Washington 0.0%**                                                                                                                     |                                        |
| Washington, Housing Finance Authority, Nonprofit Housing                        Revenue, Series B, 5.1%, 7/1/2010, US Bank NA (b)       |                                        | 60,000          |      | **60,470**    |
| **Wisconsin 3.2%**                                                                                                                      |                                        |
| Wisconsin, Housing & Economic Development Authority,                        Home Ownership Revenue, Series D, AMT, 4.875%, 3/1/2036 |                                        | 3,415,000       |      | 3,555,698     |
| Wisconsin, State General Obligation, Series A, 5.75%,                        5/1/2020 (d)                                               |                                        | 10,000,000      |      | 10,748,500    |
|                                                                                                                                         |
|                                                                                                                                    | **14,304,198**                              |
|                                                                                                                                         |
| **Total Municipal Bonds and Notes**(Cost $437,990,268)                                                                                  |                                        | **439,865,660** |
|                                                                                                                                    | **Open End Investment Company 0.3%**        |            |
| BlackRock Liquidity Funds MuniCash Portfolio, 2.843% **                        (Cost $1,557,259)                                        |                                        | 1,557,259       |      | **1,557,259** |
|                                                                                                                                         |                                             |                 |           |               |  |  |  |  |

|                                                                                                                                                                                                                                                                                                                      | **%                        of****Net Assets**                                                                                                                                                                                                                                                                   |                       | **Value                        ($)** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|--------------------------------------|
|                                                                                                                                                                                                                                                                                                                           |
| **Total Investment Portfolio**(Cost $439,547,527)                                                                                                                                                                                                                                                                         | 99.7                                                                                                                                                                                                                                                                                                            |                       | **441,422,919**                      |
| **Other Assets and Liabilities, Net**                                                                                                                                                                                                                                                                                     | 0.3                                                                                                                                                                                                                                                                                                             |                       | **1,307,034**                        |
|                                                                                                                                                                                                                                                                                                                           |
| **Net Assets**                                                                                                                                                                                                                                                                                                            | 100.0                                                                                                                                                                                                                                                                                                           |                       | **442,729,953**                      |
|                                                                                                                                                                                                                                                                                                                      | *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.* |
| ****                                                                                                                                                                                                                                                                                                                      | *Current yield; not a coupon rate*                                                                                                                                                                                                                                                                              |
| *(a)*                                                                                                                                                                                                                                                                                                                     | *Bond is insured by one of these                        companies:*                                                                                                                                                                                                                                             |
| ***Insurance Companies***                                                                                                                                                                                                                                                                                                 | ***As a % of Total***

***Investment Portfolio***                                                                                                                                                                                                                                                               |                       |
| *American Capital Access*                                                                                                                                                                                                                                                                                                 | *1.0*                                                                                                                                                                                                                                                                                                           |                       |
| *Ambac Financial Group, Inc.*                                                                                                                                                                                                                                                                                             | *4.4*                                                                                                                                                                                                                                                                                                           |                       |
| *Financial Guaranty Insurance Company*                                                                                                                                                                                                                                                                                    | *4.8*                                                                                                                                                                                                                                                                                                           |                       |
| *Financial Security Assurance, Inc.*                                                                                                                                                                                                                                                                                      | *8.5*                                                                                                                                                                                                                                                                                                           |                       |
| *MBIA Corp.*                                                                                                                                                                                                                                                                                                              | *7.2*                                                                                                                                                                                                                                                                                                           |                       |
| *Radian Asset Assurance, Inc.*                                                                                                                                                                                                                                                                                            | *0.2*                                                                                                                                                                                                                                                                                                           |                       |
| *XL Capital*                                                                                                                                                                                                                                                                                                              | *0.1*                                                                                                                                                                                                                                                                                                           |                       |
|                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                            |
| *(b)*                                                                                                                                                                                                                                                                                                                     | *Security incorporates a letter of credit from a major                        bank.*                                                                                                                                                                                                                            |
| *(c)*                                                                                                                                                                                                                                                                                                                     | *Taxable issue*                                                                                                                                                                                                                                                                                                 |
| *(d)*                                                                                                                                                                                                                                                                                                                     | *At January 31, 2008, this security has been pledged,                        in whole or in part, as collateral for open interest rate                        swaps.*                                                                                                                                           |
| *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.*                                        |
| *AMT: Subject to alternative minimum                        tax.*                                                                                                                                                                                                                                                         |
| *ETM: Bonds bearing the description ETM (escrow to                        maturity) are collateralized usually by US Treasury securities which are                        held in escrow and used to pay principal and interest on bonds so                        designated.*                                           |
| *Prerefunded: Bonds which are prerefunded are                        collateralized usually by US Treasury securities which are held in escrow                        and used to pay principal and interest on tax-exempt issues and to retire                        the bonds in full at the earliest refunding date.* |
| *At January 31, 2008, open interest rate swaps                        contracts were as follows:*                                                                                                                                                                                                                         |
| **Effective/****Expiration****Dates**                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                            | **Notional****Amount ($)** |                                 | **Cash Flows                        Paid****by the Fund** |   | **Underlying                        Debt Obligation** |   | **Unrealized****Depreciation ($)** |
|                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                      |
| 2/21/20082/21/2018                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                            |  

16,500,0001        |                                 | Fixed — 3.977% |   | Floating —BMA |   |  

(974,859) |   |
| 5/6/20085/6/2023                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                            |  

7,600,0002         |                                 | Fixed —                        3.26% |   | Floating —BMA |   |  

(267,646) |   |
|                                                                                                                                                                                                                                                                                                                           |
| **Total unrealized depreciation**                                                                                                                                                                                                                                                                                         | **(1,242,505)**                                                                                                                                                                                                                                                                                                 |                       |
|                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                 |                            |                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

*Counterparties:*

| *1* | *Citigroup Global Markets, Inc.* |
|-----|----------------------------------|

| *2* | *Citibank NA* |
|-----|---------------|

 

*BMA:        Represents the Bond Market Association*

 

| **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 Short-Term Municipal Bond 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 Short-Term Municipal Bond 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 |
|-------|----------------|