UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number 811-04760

DWS Advisor Funds

(Exact name of registrant as specified in charter)

345 Park Avenue

New York, NY 10154

(Address of principal executive offices)             (Zip code)

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

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

Date of fiscal year end: 9/30

Date of reporting period: 12/31/09

ITEM 1. SCHEDULE OF INVESTMENTS

Investment Portfolio as of December 31, 2009 (Unaudited)

DWS Short Duration Plus Fund

		Principal Amount ($)		Value ($)
	Corporate Bonds 43.1%
Consumer Discretionary 3.5%
AMC Entertainment, Inc., 8.0%, 3/1/2014			54,000	51,570
Asbury Automotive Group, Inc.:
	7.625%, 3/15/2017		35,000	32,988
	8.0%, 3/15/2014		20,000	19,650
Ashtead Holdings PLC, 144A, 8.625%, 8/1/2015			110,000	110,550
AutoZone, Inc., 5.75%, 1/15/2015			6,660,000	7,222,763
Comcast Corp., 5.5%, 3/15/2011			5,000,000	5,232,360
CSC Holdings LLC, 6.75%, 4/15/2012			6,000	6,195
DirecTV Holdings LLC:
	144A, 4.75%, 10/1/2014		3,230,000	3,292,455
	6.375%, 6/15/2015		3,750,000	3,895,312

	7.625%, 5/15/2016	140,000	152,950
DISH DBS Corp.:
	6.375%, 10/1/2011	85,000	87,762
	6.625%, 10/1/2014	59,000	59,516
	7.125%, 2/1/2016	50,000	51,063
Dollarama Group Holdings LP, 7.206% **, 8/15/2012 (a)		38,000	38,380
Fortune Brands, Inc.:
	3.0%, 6/1/2012	9,350,000	9,266,878
	6.375%, 6/15/2014	8,075,000	8,647,962
Great Canadian Gaming Corp., 144A, 7.25%, 2/15/2015		50,000	48,063
Group 1 Automotive, Inc., 8.25%, 8/15/2013		30,000	29,850
Hertz Corp., 8.875%, 1/1/2014		90,000	92,025
Isle of Capri Casinos, Inc., 7.0%, 3/1/2014		31,000	27,590
JC Penney Corp., Inc.:
	Series A, 6.875%, 10/15/2015	6,287,000	6,632,785
	9.0%, 8/1/2012	4,000,000	4,510,000
Lamar Media Corp., Series C, 6.625%, 8/15/2015		10,000	9,600
Macy's Retail Holdings, Inc., 6.625%, 4/1/2011		9,400,000	9,693,750
Norcraft Holdings LP, 9.75%, 9/1/2012		5,000	4,800
Penske Automotive Group, Inc., 7.75%, 12/15/2016		105,000	101,587
Seminole Hard Rock Entertainment, Inc., 144A, 2.754% **, 3/15/2014		55,000	45,306
Sonic Automotive, Inc., Series B, 8.625%, 8/15/2013		40,000	39,800
TCM Sub LLC, 144A, 3.55%, 1/15/2015		7,210,000	7,062,599
Time Warner Cable, Inc.:
	3.5%, 2/1/2015	2,800,000	2,766,246
	6.2%, 7/1/2013	4,445,000	4,882,637
Viacom, Inc., 4.375%, 9/15/2014		4,210,000	4,341,609
Videotron Ltd., 9.125%, 4/15/2018		15,000	16,500
Wyndham Worldwide Corp., 9.875%, 5/1/2014		5,984,000	6,652,275
Yale University, Series B, 2.9%, 10/15/2014		5,340,000	5,320,269
			90,445,645
Consumer Staples 2.7%
Altria Group, Inc., 7.125%, 6/22/2010		4,620,000	4,740,776
Anheuser-Busch InBev Worldwide, Inc.:
	144A, 3.0%, 10/15/2012 (b)	3,010,000	3,024,102
	144A, 5.375%, 11/15/2014	9,230,000	9,772,318
Campbell Soup Co., 3.375%, 8/15/2014		8,855,000	9,000,443
ConAgra Foods, Inc., 7.875%, 9/15/2010		1,056,000	1,105,456
Dr. Pepper Snapple Group, Inc.:
	1.7%, 12/21/2011	9,380,000	9,370,592
	2.35%, 12/21/2012	2,110,000	2,112,247
	6.12%, 5/1/2013	1,400,000	1,532,187
H.J. Heinz Co., 5.35%, 7/15/2013		5,840,000	6,277,918
Kraft Foods, Inc., 0.773% **, 8/11/2010		5,000,000	4,999,550
PepsiAmericas, Inc., 4.375%, 2/15/2014		1,915,000	1,992,401
Procter & Gamble Co., 4.6%, 1/15/2014		4,735,000	5,041,714
Reynolds American, Inc.:
	0.954% **, 6/15/2011	5,000,000	4,953,410
	6.5%, 7/15/2010	5,000,000	5,108,140
Viskase Companies, Inc., 11.5%, 6/15/2011		155,000	159,456
			69,190,710
Energy 2.8%
Anadarko Petroleum Corp.:
	5.75%, 6/15/2014	890,000	964,456
	7.625%, 3/15/2014	4,500,000	5,181,516

Atlas Energy Operating Co., LLC, 10.75%, 2/1/2018		100,000	110,500
Bristow Group, Inc., 7.5%, 9/15/2017		65,000	64,350
Canadian Natural Resources Ltd., 5.15%, 2/1/2013		7,435,000	7,913,063
Cenovus Energy, Inc., 144A, 4.5%, 9/15/2014		3,900,000	4,025,763
Chaparral Energy, Inc., 8.5%, 12/1/2015		10,000	8,825
Chesapeake Energy Corp.:
	6.25%, 1/15/2018	25,000	24,000
	6.875%, 1/15/2016	40,000	40,000
	7.25%, 12/15/2018	45,000	45,338
Chevron Corp., 3.45%, 3/3/2012		9,000,000	9,353,862
Devon Energy Corp., 5.625%, 1/15/2014		4,600,000	4,969,357
El Paso Corp.:
	7.25%, 6/1/2018	35,000	34,580
	9.625%, 5/15/2012	50,000	51,601
Enterprise Products Operating LLC:
	4.6%, 8/1/2012	5,770,000	6,093,593
	4.95%, 6/1/2010	1,000,000	1,013,622
	Series G, 5.6%, 10/15/2014	3,940,000	4,195,430
	Series M, 5.65%, 4/1/2013	1,175,000	1,251,962
Frontier Oil Corp., 6.625%, 10/1/2011		40,000	40,250
Hess Corp., 7.0%, 2/15/2014		2,100,000	2,362,626
Husky Energy, Inc., 5.9%, 6/15/2014		4,030,000	4,392,901
KCS Energy, Inc., 7.125%, 4/1/2012		195,000	195,488
Kinder Morgan Energy Partners LP, 5.625%, 2/15/2015		3,680,000	3,957,380
Marathon Oil Corp., 6.5%, 2/15/2014		3,080,000	3,406,985
Mariner Energy, Inc.:
	7.5%, 4/15/2013	55,000	54,725
	8.0%, 5/15/2017	75,000	72,000
Newfield Exploration Co., 7.125%, 5/15/2018		90,000	90,900
OPTI Canada, Inc.:
	7.875%, 12/15/2014	75,000	61,500
	8.25%, 12/15/2014	45,000	37,069
Petrohawk Energy Corp.:
	7.875%, 6/1/2015	35,000	35,350
	9.125%, 7/15/2013	50,000	52,250
Plains All American Pipeline LP, 4.25%, 9/1/2012		4,805,000	4,958,683
Plains Exploration & Production Co.:
	7.0%, 3/15/2017	50,000	49,125
	7.625%, 6/1/2018	95,000	97,138
Quicksilver Resources, Inc., 7.125%, 4/1/2016		135,000	125,888
Regency Energy Partners LP, 8.375%, 12/15/2013		65,000	67,275
Southwestern Energy Co., 7.5%, 2/1/2018		75,000	79,500
Statoil ASA, 2.9%, 10/15/2014		5,250,000	5,228,286
Stone Energy Corp., 6.75%, 12/15/2014		60,000	53,550
Whiting Petroleum Corp.:
	7.25%, 5/1/2012	105,000	105,525
	7.25%, 5/1/2013	30,000	30,225
Williams Companies, Inc., 8.125%, 3/15/2012		143,000	156,365
			71,052,802
Financials 22.0%
Abbey National Treasury Services PLC, 144A, 3.875%, 11/10/2014		3,705,000	3,718,186
AEGON NV, 4.625%, 12/1/2015		9,380,000	9,156,409
American Express Bank FSB, 5.55%, 10/17/2012		8,000,000	8,555,432
American Express Credit Corp., Series D, 5.125%, 8/25/2014		6,460,000	6,807,115
American General Finance Corp., Series J, 5.9%, 9/15/2012		7,000,000	5,810,056
American Honda Finance Corp., 144A, 0.323% **, 5/11/2010		11,340,000	11,315,834

Anglo American Capital PLC, 144A, 9.375%, 4/8/2014		4,690,000	5,627,709
Ashton Woods USA LLC, 144A, Step-up Coupon, 0% to 6/30/2012, 11.0% to 6/30/2015		57,200	17,160
Bank of New York Mellon Corp., Series G, 4.95%, 11/1/2012		10,370,000	11,168,272
Barclays Bank PLC, 5.2%, 7/10/2014		4,555,000	4,828,336
BB&T Corp., 6.5%, 8/1/2011		8,000,000	8,496,832
Berkshire Hathaway Finance Corp., 4.0%, 4/15/2012		4,500,000	4,715,865
BlackRock, Inc.:
	2.25%, 12/10/2012	6,700,000	6,670,667
	3.5%, 12/10/2014	5,235,000	5,169,259
BNP Paribas, Series 2, 2.125%, 12/21/2012		7,100,000	7,063,350
Buffalo Thunder Development Authority, 144A, 9.375%, 12/15/2014 *		30,000	5,250
Capital One Financial Corp., 7.375%, 5/23/2014		6,460,000	7,314,219
Caterpillar Financial Services Corp.:
	1.9%, 12/17/2012	1,790,000	1,783,017
	Series F, 4.85%, 12/7/2012	4,000,000	4,301,276
Citigroup, Inc.:
	5.25%, 2/27/2012	10,000,000	10,332,150
	6.5%, 8/19/2013	15,000	15,978
CME Group, Inc., 5.75%, 2/15/2014		4,000,000	4,375,084
Commonwealth Bank of Australia:
	144A, 3.75%, 10/15/2014	7,815,000	7,834,006
	144A, 5.0%, 11/6/2012	5,000,000	5,310,065
Conproca SA de CV, REG S, 12.0%, 6/16/2010		51,870	52,907
Countrywide Financial Corp., 5.8%, 6/7/2012		7,000,000	7,430,577
Credit Suisse New York, 5.5%, 5/1/2014		9,410,000	10,211,741
Daimler Finance North America LLC, 6.5%, 11/15/2013		10,000,000	10,962,350
Depfa ACS Bank, 144A, 8.799% **, 10/6/2023		15,000,000	13,183,500
Deutsche Telekom International Finance BV, 4.875%, 7/8/2014		9,230,000	9,679,012
Diageo Capital PLC, 4.375%, 5/3/2010		5,015,000	5,082,432
Diageo Finance BV, 3.25%, 1/15/2015		4,395,000	4,365,756
Discover Financial Services, 0.784% **, 6/11/2010		11,480,000	11,380,021
Duke Realty LP, (REIT), 7.375%, 2/15/2015		1,690,000	1,782,245
EnCana Holdings Finance Corp., 5.8%, 5/1/2014		6,238,000	6,810,012
Ford Motor Credit Co., LLC:
	5.504% **, 6/15/2011	1,000,000	990,000
	7.25%, 10/25/2011	249,000	251,463
General Electric Capital Corp.:
	3.5%, 8/13/2012	5,650,000	5,766,582
	Series A, 3.75%, 11/14/2014	8,205,000	8,190,674
GMAC, Inc., 144A, 6.875%, 9/15/2011		264,000	260,040
Hartford Financial Services Group, Inc., 7.9%, 6/15/2010		3,950,000	4,048,296
Hospitality Properties Trust, (REIT), 7.875%, 8/15/2014		6,280,000	6,483,271
HSBC Finance Corp., 5.9%, 6/19/2012		12,000,000	12,823,056
Hyundai Capital Services, Inc., 144A, 6.0%, 5/5/2015		7,500,000	7,831,230
Iberdrola Finance Ireland Ltd., 144A, 3.8%, 9/11/2014		3,840,000	3,857,361
ICICI Bank Ltd., 144A, 5.5%, 3/25/2015		9,530,000	9,485,209
John Deere Capital Corp., Series D, 4.5%, 4/3/2013		7,000,000	7,349,146
JPMorgan Chase & Co., 4.65%, 6/1/2014		13,850,000	14,590,130
KeyCorp, Series H, 6.5%, 5/14/2013		5,190,000	5,356,796
Lukoil International Finance BV, 144A, 6.375%, 11/5/2014		12,300,000	12,638,250
Macquarie Group Ltd., 144A, 7.3%, 8/1/2014		8,350,000	9,021,891
Merrill Lynch & Co., Inc., 5.77%, 7/25/2011		8,640,000	9,133,672
Morgan Stanley:
	4.2%, 11/20/2014	7,400,000	7,405,165
	Series F, 5.625%, 1/9/2012	6,850,000	7,228,956

	6.0%, 5/13/2014	3,750,000	4,032,008
New York Life Global Funding, 144A, 2.25%, 12/14/2012		4,700,000	4,673,078
Northern Trust Corp., 4.625%, 5/1/2014		2,770,000	2,951,767
Novartis Capital Corp., 4.125%, 2/10/2014		4,395,000	4,619,923
Orascom Telecom Finance SCA, 144A, 7.875%, 2/8/2014		100,000	90,500
PC Financial Partnership, 5.0%, 11/15/2014		9,200,000	9,646,430
Pricoa Global Funding I, 144A, 5.45%, 6/11/2014		5,325,000	5,650,043
Principal Financial Group, Inc., 7.875%, 5/15/2014		9,230,000	10,187,096
Prudential Financial, Inc.:
	Series D, 3.625%, 9/17/2012	2,800,000	2,841,420
	6.2%, 1/15/2015	2,770,000	2,980,168
Rabobank Nederland - Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 144A, 4.2%, 5/13/2014		9,230,000	9,551,426
Rainbow National Services LLC, 144A, 10.375%, 9/1/2014		19,000	20,045
Rio Tinto Finance (USA) Ltd.:
	5.875%, 7/15/2013	3,000,000	3,237,111
	8.95%, 5/1/2014	5,680,000	6,806,350
Royal Bank of Scotland PLC, 144A, 4.875%, 8/25/2014		11,630,000	11,789,157
Simon Property Group LP (REIT):
	5.3%, 5/30/2013	4,690,000	4,839,165
	5.6%, 9/1/2011	4,500,000	4,696,456
Sovereign Bancorp., Inc., 4.8%, 9/1/2010		4,500,000	4,594,622
Sprint Capital Corp.:
	7.625%, 1/30/2011	45,000	46,069
	8.375%, 3/15/2012	20,000	20,700
Svenska Handelsbanken AB, 144A, 2.875%, 9/14/2012		13,850,000	13,935,441
Swiss Re Solutions Holding Corp., 7.5%, 6/15/2010		11,720,000	12,025,505
Telecom Italia Capital SA:
	5.25%, 11/15/2013	4,600,000	4,838,239
	6.175%, 6/18/2014	6,150,000	6,665,942
Telefonica Emisiones SAU, 5.984%, 6/20/2011		3,000,000	3,172,944
Textron Financial Corp., 5.4%, 4/28/2013		5,000,000	4,997,630
The Goldman Sachs Group, Inc.:
	3.625%, 8/1/2012	3,355,000	3,456,673
	6.0%, 5/1/2014	8,445,000	9,236,871
Toyota Motor Credit Corp., 1.9%, 12/5/2012		14,530,000	14,377,595
Tyco International Finance SA, 4.125%, 10/15/2014		2,260,000	2,310,231
Verizon Wireless Capital LLC:
	3.75%, 5/20/2011	4,620,000	4,763,987
	5.25%, 2/1/2012	6,750,000	7,159,219
Virgin Media Finance PLC, 8.75%, 4/15/2014		20,000	20,650
Wachovia Bank NA, 7.8%, 8/18/2010		7,650,000	7,982,561
Wells Fargo & Co., Series I, 3.75%, 10/1/2014		4,680,000	4,666,213
Westpac Banking Corp., 2.25%, 11/19/2012		14,000,000	13,966,988
Wind Acquisition Finance SA, 144A, 12.0%, 12/1/2015		75,000	80,250
Woori Bank, 144A, 7.0%, 2/2/2015		3,660,000	4,011,115
			564,984,856
Health Care 2.2%
CareFusion Corp., 144A, 4.125%, 8/1/2012		1,320,000	1,360,814
Community Health Systems, Inc., 8.875%, 7/15/2015		180,000	186,300
Eli Lilly & Co., 3.55%, 3/6/2012		4,750,000	4,943,258
Express Scripts, Inc.:
	5.25%, 6/15/2012	4,530,000	4,813,583
	6.25%, 6/15/2014	1,835,000	2,002,224
HCA, Inc.:
	9.125%, 11/15/2014	45,000	47,475

	9.25%, 11/15/2016	270,000	289,912
	9.625%, 11/15/2016 (PIK)	105,000	113,662
McKesson Corp., 6.5%, 2/15/2014		1,680,000	1,858,355
Medtronic, Inc., 4.5%, 3/15/2014		4,020,000	4,257,321
Merck & Co., Inc., 1.875%, 6/30/2011		7,075,000	7,141,661
Pfizer, Inc., 4.45%, 3/15/2012		8,000,000	8,461,192
Roche Holdings, Inc., 144A, 4.5%, 3/1/2012		8,675,000	9,111,500
The Cooper Companies, Inc., 7.125%, 2/15/2015		70,000	68,075
Watson Pharmaceuticals, Inc., 5.0%, 8/15/2014		4,610,000	4,706,709
Wyeth, 5.5%, 2/1/2014		7,380,000	8,040,318
			57,402,359
Industrials 1.5%
3M Co., 4.65%, 12/15/2012		6,460,000	6,987,104
Actuant Corp., 6.875%, 6/15/2017		30,000	28,538
ARAMARK Corp., 8.5%, 2/1/2015		20,000	20,600
BAE Systems Holdings, Inc., 144A, 4.95%, 6/1/2014		4,615,000	4,805,341
BE Aerospace, Inc., 8.5%, 7/1/2018		95,000	100,700
Belden, Inc., 7.0%, 3/15/2017		35,000	34,081
Bombardier, Inc., 144A, 6.75%, 5/1/2012		100,000	103,250
Burlington Northern Santa Fe Corp., 7.0%, 2/1/2014		10,600,000	12,029,887
Cenveo Corp., 144A, 10.5%, 8/15/2016		50,000	51,250
Esco Corp., 144A, 4.129% **, 12/15/2013		260,000	236,925
FedEx Corp., 7.375%, 1/15/2014		2,000,000	2,269,298
Ingersoll-Rand Global Holding Co., Ltd., 9.5%, 4/15/2014		1,930,000	2,306,228
K. Hovnanian Enterprises, Inc., 8.875%, 4/1/2012		44,000	36,960
Kansas City Southern de Mexico SA de CV:
	7.375%, 6/1/2014	55,000	53,625
	9.375%, 5/1/2012	145,000	150,437
Mobile Mini, Inc., 9.75%, 8/1/2014		55,000	57,200
Navios Maritime Holdings, Inc., 9.5%, 12/15/2014		50,000	49,750
Textron, Inc., 6.2%, 3/15/2015		4,620,000	4,808,621
Titan International, Inc., 8.0%, 1/15/2012		140,000	137,200
TransDigm, Inc., 7.75%, 7/15/2014		30,000	30,375
United Parcel Service, Inc., 4.5%, 1/15/2013		4,710,000	5,007,663
United Rentals North America, Inc., 7.0%, 2/15/2014		60,000	54,300
			39,359,333
Information Technology 2.0%
Alcatel-Lucent USA, Inc., 6.45%, 3/15/2029		48,000	34,380
Cisco Systems, Inc., 5.25%, 2/22/2011		7,000,000	7,345,289
Hewlett-Packard Co., 4.25%, 2/24/2012		9,000,000	9,440,424
International Business Machines Corp., 0.318% **, 11/4/2011		18,750,000	18,712,725
L-3 Communications Corp., Series B, 6.375%, 10/15/2015		60,000	60,225
MasTec, Inc., 7.625%, 2/1/2017		55,000	52,869
Oracle Corp., 3.75%, 7/8/2014		6,120,000	6,314,695
Vangent, Inc., 9.625%, 2/15/2015		35,000	32,944
Xerox Corp.:
	5.65%, 5/15/2013	2,830,000	2,948,750
	7.125%, 6/15/2010	5,000,000	5,114,320
			50,056,621
Materials 1.9%
Appleton Papers, Inc., 144A, 11.25%, 12/15/2015		25,000	21,156
Bemis Co., Inc., 5.65%, 8/1/2014		1,900,000	2,022,332
Clondalkin Acquisition BV, 144A, 2.254% **, 12/15/2013		75,000	66,281

CPG International I, Inc., 10.5%, 7/1/2013		90,000	85,050
Dow Chemical Co.:
	4.85%, 8/15/2012	3,000,000	3,152,883
	5.9%, 2/15/2015	9,370,000	10,068,777
E.I. du Pont de Nemours & Co., 3.25%, 1/15/2015		7,480,000	7,409,920
Exopack Holding Corp., 11.25%, 2/1/2014		115,000	116,869
Freeport-McMoRan Copper & Gold, Inc.:
	3.881% **, 4/1/2015	9,330,000	9,277,565
	8.25%, 4/1/2015	130,000	141,700
	8.375%, 4/1/2017	245,000	268,275
GEO Specialty Chemicals, Inc.:
	144A, 7.5% **, 3/31/2015 (PIK)	63,145	50,516
	10.0%, 3/31/2015	62,080	49,664
Georgia-Pacific LLC:
	144A, 7.125%, 1/15/2017	35,000	35,438
	9.5%, 12/1/2011	50,000	54,000
Hexcel Corp., 6.75%, 2/1/2015		280,000	268,800
Millar Western Forest Products Ltd., 7.75%, 11/15/2013		25,000	18,250
NewMarket Corp., 7.125%, 12/15/2016		80,000	78,000
Pliant Corp., 11.85%, 6/15/2009 *		5	5
Potash Corp. of Saskatchewan, Inc., 5.25%, 5/15/2014		5,770,000	6,200,465
Praxair, Inc., 1.75%, 11/15/2012		10,420,000	10,319,280
The Mosaic Co., 144A, 7.375%, 12/1/2014		205,000	219,464
			49,924,690
Telecommunication Services 1.2%
American Tower Corp., 144A, 4.625%, 4/1/2015		5,530,000	5,593,346
CC Holdings GS V, LLC, 144A, 7.75%, 5/1/2017		2,810,000	2,992,650
Cincinnati Bell, Inc., 8.375%, 1/15/2014		60,000	61,050
France Telecom SA, 4.375%, 7/8/2014		11,090,000	11,588,629
Intelsat Corp., 9.25%, 6/15/2016		245,000	252,962
iPCS, Inc., 2.406% **, 5/1/2013		30,000	28,050
Millicom International Cellular SA, 10.0%, 12/1/2013		190,000	196,650
Qwest Corp.:
	7.5%, 10/1/2014	4,256,000	4,420,920
	7.875%, 9/1/2011	4,880,000	5,111,800
	8.875%, 3/15/2012	35,000	37,625
Windstream Corp.:
	7.0%, 3/15/2019	60,000	56,100
	8.625%, 8/1/2016	20,000	20,350
			30,360,132
Utilities 3.3%
AES Corp.:
	8.0%, 6/1/2020	40,000	40,700
	144A, 8.75%, 5/15/2013	340,000	348,500
Ameren Corp., 8.875%, 5/15/2014		2,468,000	2,772,114
Baltimore Gas & Electric Co., 6.125%, 7/1/2013		6,335,000	6,845,367
CMS Energy Corp., 8.5%, 4/15/2011		241,000	252,522
Consolidated Edison Co. of New York, 5.55%, 4/1/2014		7,020,000	7,641,312
Consumers Energy Co.:
	Series F, 4.0%, 5/15/2010	5,500,000	5,559,559
	Series J, 6.0%, 2/15/2014	3,270,000	3,594,220
DTE Energy Co., 7.625%, 5/15/2014		3,460,000	3,862,592
Duke Energy Corp., 6.3%, 2/1/2014		4,890,000	5,377,137
FirstEnergy Solutions Corp., 4.8%, 2/15/2015		4,720,000	4,817,671
Florida Power Corp., 4.8%, 3/1/2013		8,900,000	9,366,378

Kinder Morgan, Inc., 6.5%, 9/1/2012		105,000		109,200
MidAmerican Energy Holdings Co., 3.15%, 7/15/2012		11,100,000		11,306,837
Mirant Americas Generation LLC, 8.3%, 5/1/2011		30,000		30,750
Mirant North America LLC, 7.375%, 12/31/2013		50,000		49,438
Niagara Mohawk Power Corp., 144A, 3.553%, 10/1/2014		2,880,000		2,871,184
NRG Energy, Inc.:
	7.25%, 2/1/2014	115,000		116,438
	7.375%, 2/1/2016	110,000		110,138
	7.375%, 1/15/2017	100,000		100,250
NV Energy, Inc.:
	6.75%, 8/15/2017	15,000		14,614
	8.625%, 3/15/2014	33,000		34,196
Oncor Electric Delivery Co., 6.375%, 5/1/2012		4,620,000		4,989,813
Orion Power Holdings, Inc., 12.0%, 5/1/2010		180,000		184,500
Sempra Energy, 8.9%, 11/15/2013		5,000,000		5,810,605
Virginia Electric & Power Co., Series B, 4.5%, 12/15/2010		8,000,000		8,227,552
				84,433,587
Total Corporate Bonds (Cost $1,065,508,990)			1,107,210,735
	Mortgage-Backed Securities Pass-Throughs 3.1%
Federal Home Loan Mortgage Corp.:
	4.5%, 4/1/2023	7,488,823		7,716,412
	5.354% **, 6/1/2031	7,374,802		7,681,365
Federal National Mortgage Association:
	4.5%, 4/1/2023	10,847,370		11,181,267
	5.0%, 9/1/2023	7,983,189		8,378,918
	6.0%, with various maturities from 11/1/2017 until 8/1/2021	9,097,047		9,746,804
Government National Mortgage Association:
	2.438% **, 9/20/2059	9,924,403		10,420,623
	6.5%, with various maturities from 8/20/2038 until 2/20/2039	17,043,639		17,960,509
	7.0%, with various maturities from 7/20/2037 until 9/20/2038	5,439,151		5,884,057
	9.5%, with various maturities from 12/15/2016 until 7/15/2020	1,780		2,003
Total Mortgage-Backed Securities Pass-Throughs (Cost $78,065,665)			78,971,958
	Asset-Backed 6.0%
Automobile Receivables 1.8%
AmeriCredit Prime Automobile Receivables, "C", Series 2007-1, 5.43%, 2/10/2014		2,680,000		2,716,746
Capital Auto Receivables Asset Trust:
	"A3A", Series 2006-2, 4.98%, 5/15/2011	1,416,147		1,431,501
	"A3A", Series 2007-3, 5.02%, 9/15/2011	1,943,829		1,971,532
Chrysler Financial Auto Securitization Trust, "B", Series 2009-B, 2.94%, 6/8/2013		2,340,000		2,332,015
CPS Auto Trust, "A4", Series 2007-B, 144A, 5.6%, 1/15/2014		9,999,998		9,908,004
Ford Credit Auto Owner Trust:
	"A2", Series 2009-B, 2.1%, 11/15/2011	2,308,000		2,322,465
	"A4", Series 2006-A, 5.07%, 12/15/2010	495,417		497,184
	"A3A", Series 2007-B, 5.15%, 11/15/2011	1,622,893		1,654,225
	"B", Series 2007-A, 5.6%, 10/15/2012	5,000,000		5,291,289
	"B", Series 2007-B, 5.69%, 11/15/2012	1,264,000		1,340,992
GS Auto Loan Trust, "C", Series 2006-1, 5.85%, 1/15/2014		917,747		921,233
Nissan Auto Receivables Owner Trust, "A3", Series 2008-B, 4.46%, 4/16/2012		2,791,000		2,861,042
USAA Auto Owner Trust:
	"A2", Series 2009-2, 0.74%, 3/15/2012	6,533,000		6,524,482
	"A3", Series 2007-2, 4.9%, 2/15/2012	1,762,712		1,785,318
Volkswagen Auto Loan Enhanced Trust, "A2", Series 2008-1, 3.71%, 4/20/2011		519,451		520,347
Wachovia Auto Loan Owner Trust, "D", Series 2006-2A, 144A, 5.54%, 12/20/2012		1,500,000		1,512,895

World Omni Auto Receivables Trust, "A3A", Series 2007-B, 5.28%, 1/17/2012		1,436,774		1,460,711
				45,051,981
Credit Card Receivables 2.1%
American Express Credit Account Master Trust:
	"C", Series 2007-4, 144A, 0.493% **, 12/17/2012	6,000,000		5,970,671
	"C", Series 2007-6, 144A, 0.513% **, 1/15/2013	6,000,000		5,965,038
Bank of America Credit Card Trust, "C2", Series 2007-C2, 0.503% **, 9/17/2012		10,000,000		9,941,079
Capital One Multi-Asset Execution Trust:
	"A2", Series 2009-A2, 3.2%, 4/15/2014	9,230,000		9,474,601
	"A5", Series 2008-A5, 4.85%, 2/18/2014	5,000,000		5,218,508
Chase Issuance Trust, "C4", Series 2006-C4, 0.523% **, 1/15/2014		10,000,000		9,616,180
Washington Mutual Master Note Trust, "C1", Series 2007-C1, 144A, 0.633% **, 5/15/2014		7,550,000		7,511,053
				53,697,130
Home Equity Loans 0.5%
Ameriquest Mortgage Securities, Inc., "A6", Series 2003-5, 4.541%, 4/25/2033		1,372,712		1,035,976
C-Bass CBO Resecuritization, "D2", 7.25%, 6/1/2032		1,506,782		150,678
Countrywide Asset-Backed Certificates, "1AF2", Series 2005-17, 5.363%, 5/25/2036		4,154,310		3,416,507
Credit-Based Asset Servicing and Securitization LLC, "AF2", Series 2006-CB2, 5.501%, 12/25/2036		4,926,485		3,499,061
First Alliance Mortgage Loan Trust, "A1", Series 1999-4, 8.02%, 3/20/2031		110,421		88,297
GMAC Mortgage Corp. Loan Trust:
	"A5", Series 2003-HE2, 4.59%, 4/25/2033	2,517,346		1,840,453
	"A2", Series 2006-HE3, 5.75%, 10/25/2036	2,225,932		1,661,408
IMC Home Equity Loan Trust, "A8", Series 1998-3, 6.34%, 8/20/2029		122,576		101,213
Residential Asset Mortgage Products, Inc., "A5", Series 2003-RZ4, 4.66%, 2/25/2032		581,521		567,667
Specialty Underwriting & Residential Finance, "A2B", Series 2006-BC2, 5.573%, 2/25/2037		2,832,242		1,417,248
				13,778,508
Manufactured Housing Receivables 0.1%
Green Tree Financial Corp.:
	"A4", Series 1996-1, 6.5%, 3/15/2027	7,531		7,527
	"B2", Series 1996-5, 8.45%, 7/15/2027 *	5,181,612		0
Lehman ABS Manufactured Housing Contracts, "A6", Series 2001-B, 6.467%, 8/15/2028		1,710,339		1,539,572
Vanderbilt Mortgage Finance, "A4", Series 2000-D, 7.715%, 7/7/2027		625,715		639,779
				2,186,878
Miscellaneous 1.5%
Babson CLO Ltd., "A", Series 2005-3A, 144A, 0.524% **, 11/10/2019		9,090,970		8,045,508
Caterpillar Financial Asset Trust, "A2A", Series 2008-A, 4.09%, 12/27/2010		378,463		379,325
CenterPoint Energy Transition Bond Co., LLC, “A1”, Series 2009-1, 1.833%, 2/15/2016		5,334,000		5,254,897
CIT RV Trust, "A5", Series 1999-A, 6.24%, 8/15/2015		86,406		86,475
Detroit Edison Securitization Funding LLC, "A4", Series 2001-1, 6.19%, 3/1/2013		5,303,111		5,500,692
Duane Street CLO, "A", Series 2005-1A, 144A, 0.525% **, 11/8/2017		7,617,448		6,741,441
E-Trade RV and Marine Trust, "A3", Series 2004-1, 3.62%, 10/8/2018		3,883,874		3,910,344
National Collegiate Student Loan Trust:
	"AIO", Series 2006-2, Interest Only, 6.0%, 8/25/2011	17,100,000		1,325,250
	"AIO", Series 2006-3, Interest Only, 7.1%, 1/25/2012	24,886,000		2,988,321
SLM Student Loan Trust, "A6", Series 2004-1, 144A, 1.032% **, 7/25/2039		5,500,000		4,976,641
				39,208,894
Total Asset-Backed (Cost $167,330,590)			153,923,391

	Commercial Mortgage-Backed Securities 8.5%
Banc of America Commercial Mortgage, Inc.:
	"A2", Series 2005-3, 4.501%, 7/10/2043	8,990,999		9,000,683
	"A1", Series 2008-1, 5.268%, 2/10/2051	7,030,461		7,169,171
Bear Stearns Commercial Mortgage Securities, Inc.:
	"A1", Series 2007-PW17, 5.282%, 6/11/2050	3,166,417		3,219,228
	"A2", Series 2001-TOP2, 6.48%, 2/15/2035	9,049,395		9,366,510
Citigroup Commercial Mortgage Trust, "A1", Series 2007-C6, 5.622%, 12/10/2049		8,749,025		8,976,152
Citigroup/Deutsche Bank Commercial Mortgage Trust, "A2B", Series 2007-CD4, 5.205%, 12/11/2049		12,000,000		12,260,243
Credit Suisse Mortgage Capital Certificates, "A1", Series 2007-C4, 5.54%, 9/15/2039		4,858,056		4,971,601
CS First Boston Mortgage Securities Corp.:
	"A3", Series 2002-CKN2, 6.133%, 4/15/2037	11,150,000		11,733,428
	"A4", Series 2001-CP4, 6.18%, 12/15/2035	8,020,500		8,334,431
	"A4", Series 2001-CF2, 6.505%, 2/15/2034	6,459,580		6,659,602
GMAC Commercial Mortgage Securities, Inc., "A2", Series 2001-C1, 6.465%, 4/15/2034		5,240,864		5,429,472
Greenwich Capital Commercial Funding Corp.:
	"A3", Series 2004-GG1, 4.344%, 6/10/2036	696,566		696,047
	"A3", Series 2005-GG3, 4.569%, 8/10/2042	8,989,000		8,803,081
	"A2", Series 2005-GG5, 5.117%, 4/10/2037	11,400,000		11,444,447
	"A2", Series 2007-GG9, 5.381%, 3/10/2039	7,867,000		7,969,651
JPMorgan Chase Commercial Mortgage Securities Corp.:
	"A2", Series 2004-CB8, 3.837%, 1/12/2039	5,153,455		5,170,585
	"A2", Series 2005-LDP2, 4.575%, 7/15/2042	9,680,312		9,691,887
	"A2", Series 2005-LDP3, 4.851%, 8/15/2042	11,338,806		11,352,528
	"A1", Series 2007-C1, 4.98%, 2/15/2051	7,488,545		7,661,810
	"A2", Series 2004-CB9, 5.108%, 6/12/2041	7,671,631		7,774,121
LB-UBS Commercial Mortgage Trust:
	"A3", Series 2004-C2, 3.973%, 3/15/2029	1,500,000		1,465,506
	"A2", Series 2005-C1, 4.31%, 2/15/2030	5,497,765		5,503,946
	"A2", Series 2005-C3, 4.553%, 7/15/2030	9,816,847		9,875,894
	"A3", Series 2004-C4, 5.073% **, 6/15/2029	10,000,000		10,117,309
Morgan Stanley Capital I, "A1", Series 2007-IQ16, 5.32%, 12/12/2049		8,875,146		9,139,518
Morgan Stanley Dean Witter Capital I, "A4", Series 2001-TOP1, 6.66%, 2/15/2033		4,077,788		4,198,080
TIAA Seasoned Commercial Mortgage Trust, "A1", Series 2007-C4, 5.669% **, 8/15/2039		4,084,798		4,226,278
Wachovia Bank Commercial Mortgage Trust:
	"A2", Series 2005-C17, 4.782%, 3/15/2042	4,917,550		4,912,436
	"A2", Series 2007-C32, 5.735% **, 6/15/2049	10,000,000		10,186,646
Total Commercial Mortgage-Backed Securities (Cost $212,142,503)			217,310,291
	Collateralized Mortgage Obligations 7.8%
Banc of America Funding Corp., "1A7", Series 2005-1, 5.5%, 2/25/2035		11,167,865		11,099,155
Banc of America Mortgage Securities, Inc.:
	"1A3", Series 2002-K, 3.356% **, 10/20/2032	172,925		161,258
	"2A8", Series 2003-J, 3.619% **, 11/25/2033	2,556,333		2,188,080
	"1A1O", Series 2005-4, 5.25%, 5/25/2035	1,832,704		1,821,598
	"A15", Series 2006-2, 6.0%, 7/25/2046	4,277,944		3,870,794
Citicorp Mortgage Securities, Inc.:
	"A1", Series 2003-8, 5.5%, 8/25/2033	5,080,883		5,109,463
	"1A1", Series 2005-7, 5.5%, 10/25/2035	4,141,080		3,825,474
	"1A2", Series 2006-5, 6.0%, 10/25/2036	4,951,081		4,758,694
Countrywide Alternative Loan Trust:
	"3A3", Series 2005-20CB, 5.5%, 7/25/2035	2,890,475		2,636,057
	"1A4", Series 2006-43CB, 6.0%, 2/25/2037	5,255,932		4,309,123
Countrywide Home Loans:
	"A3", Series 2003-18, 5.25%, 7/25/2033	7,505,839		7,442,223
	"A35", Series 2005-24, 5.5%, 11/25/2035	7,080,441		6,697,799

CS First Boston Mortgage Securities Corp.:
	"2A1", Series 2004-AR8, 3.649% **, 9/25/2034	5,102,954		4,461,853
	"2A11", Series 2005-5, 5.0%, 7/25/2035	9,685,198		9,275,479
Deutsche Mortgage Securities, Inc., "1A1", Series 2005-WF1, 144A, 5.158% **, 6/26/2035		126,805		126,101
Fannie Mae Grantor Trust:
	"1A1", Series 2004-T1, 6.0%, 1/25/2044	5,161,528		5,435,936
	"A1", Series 2002-T4, 6.5%, 12/25/2041	2,676,625		2,897,547
Federal Home Loan Mortgage Corp.:
	"MA", Series 2664, 5.0%, 4/15/2030	9,792,819		10,115,170
	"QP", Series 3149, 5.0%, 10/15/2031	7,500,000		7,749,998
	"DC", Series 2541, 5.05%, 3/15/2031	3,532,648		3,595,798
	"EB", Series 3062, 5.5%, 9/15/2021	3,744,923		3,871,654
	"PA", Series 3283, 5.5%, 7/15/2036	10,286,014		10,785,143
	"PT", Series 3586, IOette, 5.884% ***, 2/15/2038	4,863,459		5,129,306
	"PA", Series 2301, 6.0%, 10/15/2013	8,740,994		9,200,787
	"BT", Series 2448, 6.0%, 5/15/2017	4,363		4,702
Federal National Mortgage Association:
	"TA", Series 2007-77, 5.5%, 12/25/2029	5,136,485		5,323,451
	"AB", Series 2006-3, 5.5%, 10/25/2032	11,950,798		12,348,085
	"A1", Series 2003-7, 6.5%, 12/25/2042	3,062,743		3,253,925
First Horizon Alternative Mortgage Securities, "1A1", Series 2007-FA2, 5.5%, 4/25/2037		6,349,584		4,505,702
Government National Mortgage Association, "AB", Series 2008-30, 4.2%, 2/20/2037		11,532,724		11,819,957
IndyMac INDX Mortgage Loan Trust, "4A1", Series 2005-AR9, 5.05% **, 7/25/2035		1,624,028		1,098,403
Paine Webber Mortgage Acceptance Corp., "1B2", Series 1999-4, 144A, 6.46% **, 7/28/2024		79,400		51,563
PHHMC Mortgage Pass-Through Certificates, "A2", Series 2006-2, 6.152% **, 7/18/2036		10,436,203		10,163,086
Provident Funding Mortgage Loan Trust, "2A1", Series 2005-1, 4.163% **, 5/25/2035		5,632,862		5,365,321
Prudential Home Mortgage Securities Co., Inc., "4B", Series 1994-A, 144A, 6.73% **, 4/28/2024		15,442		14,643
Residential Asset Mortgage Products, Inc.:
	"A5", Series 2005-SL1, 6.5%, 5/25/2032	2,339,216		2,154,272
	"A3", Series 2004-SL3, 7.5%, 12/25/2031	1,928,196		1,805,752
Residential Funding Mortgage Securities I:
	"A16", Series 2003-S7, 0.681% **, 5/25/2033	6,022,081		5,886,365
	"A5", Series 2005-S9, 5.75%, 12/25/2035	5,331,398		4,622,006
	"A11", Series 2006-S5, 6.0%, 6/25/2036	776,794		766,561
Structured Adjustable Rate Mortgage Loan Trust, "5A4", Series 2004-8, 4.656% **, 7/25/2034		2,635,000		2,423,112
Structured Asset Securities Corp., "2A16", Series 2005-6, 5.5%, 5/25/2035		2,980,308		2,663,972
Total Collateralized Mortgage Obligations (Cost $204,708,835)			200,835,368
	Government & Agency Obligations 22.5%
Other Government Related(d) 10.5%
Achmea Hypotheekbank NV:
	144A, 0.631% **, 11/3/2014	4,690,000		4,683,425
	144A, 3.2%, 11/3/2014	4,685,000		4,675,930
African Development Bank, 1.75%, 10/1/2012		7,505,000		7,456,195
Asian Development Bank, 2.75%, 5/21/2014		4,382,000		4,374,213
Australia & New Zealand Banking Group Ltd., 144A, 0.534% **, 6/18/2012		3,000,000		2,976,969
Barclays Bank PLC:
	1.054% **, 3/16/2012	4,600,000		4,667,068
	144A, 2.7%, 3/5/2012	8,010,000		8,184,209
Citigroup Funding, Inc., FDIC Guaranteed, 1.875%, 10/22/2012		5,000,000		4,981,110

Commonwealth Bank of Australia, 1.071% **, 7/27/2012		4,600,000	4,679,028
Dexia Credit Local, 144A, 0.899% **, 9/23/2011		7,130,000	7,190,270
Eksportfinans ASA, 3.0%, 11/17/2014		7,500,000	7,385,212
European Investment Bank, 1.75%, 9/14/2012 (b)		13,000,000	12,957,464
European Bank for Reconstruction & Development, 3.625%, 6/17/2013		9,380,000	9,796,566
FIH Erhvervsbank AS:
144A, 1.75%, 12/6/2012		13,200,000	12,950,467
144A, 2.45%, 8/17/2012		6,000,000	6,037,068
GMAC, Inc., FDIC Guaranteed, 2.2%, 12/19/2012		7,535,000	7,581,205
HSBC USA, Inc., FDIC Guaranteed, 3.125%, 12/16/2011		4,500,000	4,656,834
Inter-American Development Bank, 1.75%, 10/22/2012		7,000,000	6,970,229
International Bank for Reconstruction & Development, 5.05% **, 1/14/2025 (c)		12,500,000	12,421,875
International Finance Facility for Immunisation, Series 1, REG S, 5.0%, 11/14/2011		11,900,000	12,621,485
KeyBank NA, FDIC Guaranteed, 3.2%, 6/15/2012		5,000,000	5,189,925
Korea Electric Power Corp., 144A, 5.5%, 7/21/2014		4,440,000	4,724,813
Korea Gas Corp., 144A, 6.0%, 7/15/2014		1,467,000	1,587,768
Korea National Oil Corp., 144A, 5.375%, 7/30/2014		3,393,000	3,586,883
Lloyds TSB Bank PLC, 144A, 1.11% **, 4/1/2011		9,000,000	9,063,315
Macquarie Bank Ltd., Series B, 144A, 2.6%, 1/20/2012		3,970,000	4,053,572
Morgan Stanley, FDIC Guaranteed, 3.25%, 12/1/2011		5,000,000	5,186,625
National Agricultural Cooperative Federation, 144A, 5.0%, 9/30/2014		3,032,000	3,142,456
Nationwide Building Society:
	144A, 0.453% **, 5/17/2012	2,000,000	1,994,778
	144A, 2.5%, 8/17/2012	7,530,000	7,586,031
NIBC Bank NV, 144A, 2.8%, 12/2/2014		7,575,000	7,371,096
Nordic Investment Bank, 2.625%, 10/6/2014		9,380,000	9,244,346
Pemex Project Funding Master Trust, Series 2, 9.125%, 10/13/2010		838,000	884,090
Petroleos Mexicanos, 144A, 4.875%, 3/15/2015		6,420,000	6,396,246
Ras Laffan Liquefied Natural Gas Co., Ltd. III, 144A, 4.5%, 9/30/2012 (b)		2,910,000	3,008,515
Royal Bank of Scotland Group PLC, 144A, 1.5%, 3/30/2012		11,720,000	11,606,445
Sovereign Bank, FDIC Guaranteed, 2.75%, 1/17/2012		6,125,000	6,287,031
Suncorp-Metway Ltd., 144A, 0.628% **, 12/17/2010		5,000,000	5,011,070
Svensk Exportkredit AB, 3.25%, 9/16/2014		6,500,000	6,498,954
US Bancorp., FDIC Guaranteed, 2.25%, 3/13/2012		7,545,000	7,670,556
US Central Credit Union, 1.9%, 10/19/2012		4,655,000	4,651,360
Western Corporate Federal Credit Union, 1.75%, 11/2/2012		7,600,000	7,565,876
			269,558,573
Sovereign Bonds 3.0%
Export Development Canada, 2.375%, 3/19/2012		4,200,000	4,273,151
Instituto de Credito Oficial, Series 192, 4.625%, 10/26/2010		4,620,000	4,755,948
Kingdom of Belgium, 144A, 2.875%, 9/15/2014		6,150,000	6,106,544
Kingdom of Spain, 144A, 2.0%, 9/17/2012		13,000,000	12,953,889
Korea Expressway Corp., 144A, 4.5%, 3/23/2015		4,765,000	4,854,963
Province of Ontario, Canada:
	0.42% **, 11/19/2012	9,380,000	9,390,946
	4.1%, 6/16/2014	4,710,000	4,915,427
Republic of Italy, 2.125%, 10/5/2012		7,500,000	7,478,025
Republic of Lithuania, 144A, 6.75%, 1/15/2015		4,075,000	4,148,819
Societe Financement de l'Economie Francaise, 144A, 2.875%, 9/22/2014		9,375,000	9,302,044
State of Qatar, 144A, 4.0%, 1/20/2015		9,250,000	9,273,125
			77,452,881
US Government Sponsored Agencies 8.4%
Federal Farm Credit Bank, 1.875%, 12/7/2012 (b)		13,100,000	13,097,223
Federal Home Loan Bank:

	1.0%, 12/28/2011	15,000,000		14,937,030
	1.625%, 11/21/2012 (b) (e)	12,000,000		11,913,228
	1.75%, 8/22/2012	8,000,000		8,008,240
	2.302% **, 9/10/2019	9,200,000		9,015,080
	4.25% **, 1/21/2020 (c)	1,500,000		1,492,500
	7.5% **, 11/12/2024	6,500,000		6,207,500
	7.8% **, 1/13/2025 (c)	6,400,000		6,382,400
	7.8% **, 1/14/2025 (c)	3,300,000		3,159,750
Federal Home Loan Mortgage Corp.:
	1.125%, 12/15/2011	14,300,000		14,255,570
	1.375%, 1/9/2013	9,380,000		9,217,576
	1.625%, 4/26/2011	7,275,000		7,353,272
	2.125%, 3/23/2012 (e)	9,455,000		9,599,898
	2.125%, 9/21/2012 (b)	10,000,000		10,106,360
	3.0%, 1/21/2014 (c)	14,500,000		14,497,390
	8.125% **, 8/20/2024	5,500,000		5,366,900
Federal National Mortgage Association:
	CPI plus 0.25%, 0.00% **, 8/8/2011	18,000,000		17,683,200
	0.875%, 1/12/2012	16,430,000		16,303,439
	1.75%, 3/23/2011 (e)	9,400,000		9,514,868
	1.875%, 4/20/2012	5,200,000		5,254,153
	2.625%, 11/20/2014 (b)	9,380,000		9,307,267
	8.45% **, 2/27/2023 (e)	14,000,000		14,007,000
				216,679,844
US Treasury Obligations 0.6%
US Treasury Bills , 0.19% ****, 3/18/2010 (f)		13,900,000		13,898,596
Total Government & Agency Obligations (Cost $577,114,269)			577,589,894
	Loan Participations and Assignments 5.0%
Senior Loans 4.8%
AEI Finance Holding LLC:
	Term Loan, 3.231% **, 3/30/2012	101,932		93,650
	Term Loan, 3.251% **, 3/30/2014	2,254,161		2,071,010
American Seafoods Group LLC:
	Term Loan B-1, 3.981% **, 9/28/2012	1,802,141		1,748,077
	Term Loan B-2, 3.981% **, 9/28/2012	197,859		191,181
AMN Healthcare, Inc., Term Loan B, 6.25% **, 12/18/2013		500,000		490,000
Ashland Chemicals, Term Loan B, 7.65% **, 5/13/2014		485,628		493,318
Aspect Software, Inc., Term Loan, 3.25% **, 7/11/2011		1,249,624		1,187,143
Asurion Corp., First Lien Term Loan, 3.235% **, 7/3/2014		2,750,000		2,635,806
Atlas Pipeline Partners LP, Term Loan, 6.75% **, 7/27/2014		2,938,776		2,902,042
Avaya, Inc., Term Loan, 3.011% **, 10/24/2014		3,992,316		3,465,011
Bausch & Lomb, Inc.:
	Term Delay Draw, 3.501% **, 4/24/2015	379,593		361,680
	Term Loan, 3.501% **, 4/24/2015	1,563,126		1,489,362
Bresnan Communications LLC, Second Lien Term Loan, 4.74% **, 3/29/2014		4,000,000		3,813,320
Calpine Corp., Term Loan, 3.135% **, 3/29/2014		1,994,924		1,895,387
Caritor, Inc.:
	Letter of Credit, 2.51% **, 6/4/2013	142,180		130,687
	Term Loan B, 2.51% **, 6/4/2013	1,853,081		1,703,287
Cequel Communications LLC, Term Loan, 2.255% **, 11/5/2013		861,036		819,159
Charter Communications Operating LLC, Term Loan, 2.26% **, 3/6/2014		1,000,000		939,305
Collective Brands Finance, Inc., Term Loan A, 2.983% **, 8/17/2014		2,428,877		2,323,379
Community Health Systems, Inc.:
	Term Delay Draw, 2.506% **, 7/25/2014	190,651		179,421

	Term Loan, 2.506% **, 7/25/2014	3,737,128	3,548,515
CSC Holdings, Inc., Term Loan B-2, 2.004% **, 3/29/2016		1,994,832	1,956,182
Delta Air Lines, Inc., Term Loan, 8.75% **, 9/27/2013		1,000,000	1,000,625
Discovery Communications Holdings LLC:
	Term Loan B, 2.251% **, 5/14/2014	248,728	243,805
	Term Loan C, 5.25% **, 5/14/2014	298,500	301,709
Dresser, Inc., Second Lien Term Loan, 5.991% **, 5/4/2015		500,000	465,315
First Data Corp., Term Loan B2, 2.999% **, 9/24/2014		1,994,911	1,777,685
Flextronics International Ltd.:
	Term Delay Draw A-1-B, 2.481% **, 10/1/2014	997,462	945,514
	Term Delay Draw A-2, 2.481% **, 10/1/2014	229,601	217,643
	Term Delay Draw A-3, 2.481% **, 10/1/2014	267,868	253,917
	Term Loan B, 2.54% **, 10/1/2012	498,728	460,700
Freescale Semiconductor, Inc.:
	Term Loan B, 1.985% **, 11/29/2013	997,411	1,028,581
	Term Loan, 12.5%, 12/15/2014	997,487	875,390
Georgia-Pacific Corp., Term Loan C, 3.506% **, 12/20/2014		496,171	494,933
Getty Images, Inc., Term Loan, 6.25% **, 7/2/2015		2,751,002	2,765,734
Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.34% **, 4/30/2014		1,000,000	933,545
Hanesbrands, Inc., Term Loan, 5.25% **, 12/10/2015		3,000,000	3,030,210
HCA, Inc., Term Loan B, 2.501% **, 11/18/2013		2,998,895	2,875,955
Hercules Offshore LLC, Term Loan B, 6.0% **, 7/11/2013		2,009,983	1,930,588
Hughes Network Systems LLC, Term Loan, 2.813% **, 4/15/2014		1,000,000	927,500
Huntsman International LLC:
	Term Loan, 1.981% **, 4/21/2014	479,798	453,891
	Term Loan C, 2.481% **, 6/30/2016	500,000	478,332
IASIS Healthcare LLC:
	Term Delay Draw, 2.231% **, 3/14/2014	1,177,464	1,105,345
	Term Loan B, 2.231% **, 3/14/2014	1,443,038	1,354,652
	Letter of Credit, 2.231% **, 3/14/2014	127,186	119,396
Ineos US Finance LLC:
	Term Loan B-2, 7.501% **, 12/16/2013	494,898	449,739
	Term Loan C-2, 10.001% **, 12/16/2014	494,898	452,213
Intelsat Jackson Holdings Ltd., Term Loan, 3.235% **, 2/2/2014		1,000,000	907,500
Kraton Polymers LLC, Term Loan, 2.313% **, 5/13/2013		689,984	664,976
Language Line LLC, Term Loan B, 5.5% **, 11/4/2015		2,000,000	1,998,330
Life Technologies Corp., Term Loan B, 5.25% **, 11/20/2015		69,250	69,827
Lyondell Basell Industries AF SCA:
	Dutch Term Loan A, 3.731% **, 12/20/2013	55,457	41,295
	Dutch Term Loan, 3.731% **, 12/22/2014	24,183	18,007
	Term Loan, 3.731% **, 12/22/2014	90,685	67,528
	Term Loan A, 3.731% **, 12/22/2014	172,781	128,660
	German Term Loan B-1, 3.981% **, 12/22/2014	69,426	51,698
	German Term Loan B-2, 3.981% **, 12/22/2014	69,426	51,698
	German Term Loan B-3, 3.981% **, 12/22/2014	69,426	51,698
	Debtor in Possession Term Loan, 5.793% **, 4/6/2010	536,848	558,848
	Term Loan B-1, 7.0% **, 12/22/2014	301,260	224,331
	Term Loan B-2, 7.0% **, 12/22/2014	301,260	224,331
	Term Loan B-3, 7.0% **, 12/22/2014	301,260	224,331
	Debtor in Possession Term Loan, 13.0% **, 4/6/2010	358,483	374,990
Manitowoc Co., Inc., Term Loan B, 7.5% **, 11/6/2014		2,841,709	2,776,349
Mediacom Illinois LLC, Term Loan C, 1.72% **, 1/31/2015		496,173	460,945
MetroPCS Wireless, Inc., Term Loan B, 2.563% **, 11/4/2013		3,979,513	3,816,353
Mylan Laboratories, Inc., Term Loan B, 3.563% **, 10/2/2014		2,949,749	2,894,751
Neiman Marcus Group, Inc., Term Loan B, 2.255% **, 4/6/2013		1,967,241	1,782,074
NEP II, Inc., Term Loan B, 2.481% **, 2/16/2014		1,994,882	1,845,266

Oshkosh Truck Corp., Term Loan B, 6.26% **, 12/6/2013		3,558,474		3,564,541
OSI Restaurant Partners LLC:
	Term Loan, 2.504% **, 6/14/2013	156,439		128,134
	Term Loan B, 2.563% **, 6/14/2014	1,838,437		1,505,800
Pilot Travel Centers LLC, Term Loan B, LIBOR plus 3.25%, 11/24/2015		250,000		252,265
Pinnacle Foods Holdings Corp., Term Loan B, 2.985% **, 4/2/2014		2,887,526		2,699,837
Psychiatric Solutions, Inc., Term Loan B, 2.034% **, 7/1/2012		2,181,924		2,076,471
QVC, Inc.:
	Term Loan 6-J, 5.749% **, 3/30/2014	1,006,661		1,010,124
	Term Loan 6-W, 5.749% **, 3/30/2014	1,007,047		1,010,511
Regal Cinemas, Inc., Term Loan, 4.001% **, 10/28/2013		1,515,272		1,513,188
Reynolds Group Holdings, Inc., Term Loan, 6.25% **, 11/5/2015		2,000,000		2,015,420
Rockwood Specialties Group, Inc., Term Loan H, 6.0% **, 5/15/2014		1,938,711		1,962,945
Sorenson Communications, Inc.:
	Term Loan C, 2.74% **, 8/16/2013	1,459,456		1,401,990
	Second Lien ABL Term Loan, 7.231% **, 2/16/2014	4,500,000		4,440,015
Sun Healthcare Group, Inc.:
	Letter of Credit, 0.151% **, 4/21/2014	242,439		227,741
	Term Loan B, 2.282% **, 4/21/2014	1,148,574		1,078,941
SunGard Data Systems, Inc.:
	Term Loan A, 1.985% **, 2/28/2014	111,059		105,645
	Term Loan B, 3.9% **, 2/26/2016	2,845,871		2,773,543
Telesat Canada:
	Term Loan I, 3.24% **, 10/31/2014	1,810,282		1,741,636
	Term Loan II, 3.24% **, 10/31/2014	155,359		149,468
Toys 'R' Us, Inc., Term Loan B, 4.486% **, 7/19/2012		4,000,000		3,919,380
Travelport LLC:
	Term Delay Draw, 2.781% **, 8/23/2013	997,449		957,551
	Term Loan, 2.781% **, 8/23/2013	1,000,000		960,000
Universal City Development Partners Ltd., Term Loan B, 6.5% **, 11/6/2014		1,000,000		1,005,250
VML US Finance LLC:
	Term Delay Draw Loan B, 4.76% **, 5/25/2012	614,313		584,193
	Term Loan B, 4.76% **, 5/27/2013	1,063,536		1,011,391
Warner Chilcott PLC:
	Term Loan A, 5.5% **, 10/30/2014	338,983		339,881
	Term Loan B-1, 5.75% **, 4/30/2015	419,492		420,603
	Term Loan B-2, 5.75% **, 4/30/2015	372,881		373,869
West Corp.:
	Term Loan B-2, 2.609% **, 10/24/2013	2,043,793		1,939,559
	Term Loan B-4, 4.109% **, 7/15/2016	1,157,676		1,110,130
World Color Press (USA) Corp., Term Loan, 9.0% **, 7/23/2012		2,994,583		3,015,171
				123,908,818
Sovereign Loan 0.2%
Gazprom, 144A, 8.125%, 7/31/2014		5,330,000		5,649,800
Total Loan Participations and Assignments (Cost $126,404,622)			129,558,618
	Municipal Bonds and Notes 0.9%
California, State General Obligation:
	4.85%, 10/1/2014	14,000,000		13,911,100
	Series 3, 5.65%, 4/1/2039	2,865,000		2,965,304
Louisiana, Public Facilities Authority Systems Revenue, Restoration Bonds, Series A-1, 4.5%, 2/1/2014		5,584,806		5,761,342
Total Municipal Bonds and Notes (Cost $22,591,495)			22,637,746

Preferred Security 0.0%

Financials

Xerox Capital Trust I, 8.0%, 2/1/2027 (Cost $32,932)

32,000

31,680

Shares

Value ($)

Securities Lending Collateral 2.3%

Daily Assets Fund Institutional, 0.17% (g) (h) (Cost $59,724,058)

59,724,058

59,724,058

Cash Equivalents 3.4%

Central Cash Management Fund, 0.14% (g) (Cost $87,277,942)

87,277,942

87,277,942

% of Net Assets

Value ($)

Total Investment Portfolio (Cost $2,600,901,901) †

102.6

2,635,071,681

Other Assets and Liabilities, Net

(2.6)

(66,785,217)

Net Assets

100.0

2,568,286,464

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

*

Non-income producing security. Issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. The following table represents bonds that are in default:

Security

Coupon

Maturity Date

Principal Amount ($)

Acquisition Cost ($)

Value ($)

Buffalo Thunder Development Authority

9.375%

12/15/2014

30,000

USD

30,000

5,250

Green Tree Financial Corp., "B2", Series 1996-5

8.45%

7/15/2027

5,181,612

USD

5,685,046

0

Pliant Corp.

11.85%

6/15/2009

5

USD

5

5

5,715,051

5,255

**

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 December 31, 2009.

***

These securities are shown at their current rate as of December 31, 2009.

****

Annualized yield at time of purchase; not a coupon rate.

†

The cost for federal income tax purposes was $2,602,490,921. At December 31, 2009, net unrealized appreciation for all securities based on tax cost was $32,580,760. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $61,468,899 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $28,888,139.

(a)

Security has deferred its 6/15/2008, 12/15/2008 and 6/15/2009 interest payments until 8/15/2012.

(b)

All or a portion of these securities were on loan. The value of all securities loaned at December 31, 2009 amounted to $58,173,116 which is 2.3% of net assets.

(c)

When-issued security.

(d)

Government-backed debt issued by financial companies or government sponsored enterprises.

(e)

At December 31, 2009 this security has been pledged, in whole or in part, as collateral for open swaps contracts.

(f)

At December 31, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.

(g)

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

(h)

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

144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
CLO: Collateralized Loan Obligation
CPI: Consumer Price Index
FDIC: Federal Deposit Insurance Corp.
FSB: Federal Savings Bank
Interest Only: Interest Only (IO) bonds represent the "interest only" portion of payments on a pool of underlying mortgages or mortgage-backed securities. IO securities are subject to prepayment risk of the pool of underlying mortgages.
IOettes: These securities represent the right to receive interest payments on an underlying pool of mortgages with similar features as those associated with IO securities. Unlike IO’s, a nominal amount of principal is assigned to an IOette which is small in relation to the interest flowthat constitutes almost all of the IOette cash flow. The effective yield of this security is lower than the stated interest rate.
PIK: Denotes that all or a portion of the income is paid in kind.
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, US persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
REIT: Real Estate Investment Trust
Included in the portfolio are investments in mortgage or asset-backed securities which are interests in separate pools of mortgages or assets. Effective maturities of these investments may be shorter than stated maturities due to prepayments. Some separate investments in the Federal National Mortgage Association and Government National Mortgage Association issues which have similar coupon rates have been aggregated for presentation purposes in this investment portfolio.
At December 31, 2009, the Fund had unfunded loan commitments of $178,114, which could be extended at the option of the borrower, pursuant to the following loan agreement:
Borrower			Unfunded Loan Commitment ($)		Value ($)	Unrealized Appreciation ($)
Lyondell Basell Industries AF SCA, Debtor in Possession Term Loan, 4/6/2010			178,114		187,408	9,294
At December 31, 2009, open futures contracts purchased were as follows:
Futures	Currency	Expiration Date		Contracts	Notional Value ($)	Unrealized Depreciation ($)
10 Year Canadian Government Bond	CAD	3/22/2010		62	6,985,782	(124,033)
10 Year US Treasury Note	USD	3/22/2010		89	10,275,328	(96,321)
2 Year US Treasury Note	USD	3/31/2010		293	63,365,828	(348,177)
Federal Republic of Germany Euro-Bund	EUR	3/8/2010		281	48,818,669	(633,643)
Federal Republic of Germany Euro-Schatz	EUR	3/8/2010		1,306	202,124,464	(1,591)
United Kingdom Long Gilt Bond	GBP	3/29/2010		295	54,533,627	(529,237)
Total unrealized depreciation						(1,733,002)
At December 31, 2009, open futures contracts sold were as follows:

Futures	Currency	Expiration Date	Contracts	Notional Value ($)	Unrealized Appreciation/ (Depreciation) ($)
10 Year Australian Treasury Bond	AUD	3/15/2010	408	37,310,200	525,178
10 Year Japanese Government Bond	JPY	3/11/2010	85	127,497,718	(98,674)
3 Year Australian Treasury Bond	AUD	3/15/2010	511	47,087,657	18,004
5 Year US Treasury Note	USD	3/31/2010	1,333	152,472,290	2,071,321
90 Day Eurodollar	USD	3/15/2010	250	62,278,125	(174,325)
90 Day Eurodollar	USD	6/14/2010	250	62,075,000	(192,012)
90 Day Eurodollar	USD	9/13/2010	250	61,812,500	(170,137)
90 Day Eurodollar	USD	12/13/2010	250	61,543,750	(157,637)
90 Day Eurodollar	USD	3/14/2011	250	61,293,750	(145,138)
90 Day Eurodollar	USD	6/13/2011	250	61,053,125	(132,637)
90 Day Eurodollar	USD	9/19/2011	250	60,837,500	(115,950)
Total net unrealized appreciation					1,427,993

At December 31, 2009, open credit default swap contracts purchased were as follows:
Effective/ Expiration Dates		Notional Amount ($)	Fixed Cash Flows Paid	Underlying Debt Obligation/ Quality Rating (j)	Value ($)	Upfront Premiums Paid/ (Received) ($)		Unrealized Appreciation/ (Depreciation) ($)
9/21/2009 3/20/2015		6,900,0001	1.0%	Eli Lilly & Co., 6.57%, 1/1/2016, AA	(218,660)	(181,987)		(36,673)
9/21/2009 12/20/2014		6,900,0002	1.0%	Hewlett-Packard Co., 5.4%, 3/1/2017, A	(229,498)	(230,357)		859
9/21/2009 12/20/2014		6,900,0001	1.0%	Home Depot, Inc., 5.875%, 12/16/2036, BBB+	(138,352)	(112,125)		(26,227)
9/21/2009 3/20/2015		6,900,0001	1.0%	McKesson Corp., 7.65%, 3/1/2027, BBB+	(211,854)	(192,538)		(19,316)
Total net unrealized depreciation							(81,357)
At December 31, 2009, open credit default swap contracts sold were as follows:
Effective/ Expiration Dates		Notional Amount ($) (i)	Fixed Cash Flows Received	Underlying Debt Obligation/ Quality Rating (j)	Value ($)	Upfront Premiums Paid/ (Received) ($)		Unrealized Appreciation ($)
6/22/2009 9/20/2014		12,000,0003	5.0%	MetLife, Inc., 5.0%, 6/15/2015, A-	1,790,104	(191,373)		1,981,477
(i)	The maximum potential amount of future undiscounted payments that the Fund could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement of buy protection credit default swap contracts entered into by the Fund for the same referenced debt obligation.
(j)	The quality ratings represent the lower of Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's Corporation ("S&P") credit ratings.

At December 31, 2009, open interest rate swaps were as follows:

Effective/ Expiration Dates

Notional Amount ($)

Cash Flows Paid by the Fund

Cash Flows Received by the Fund

Unrealized Appreciation ($)

6/26/2009 6/27/2011

60,000,0004

Floating — LIBOR

Fixed — 1.598%

501,102

6/26/2009 6/26/2012

20,000,0004

Floating — LIBOR

Fixed — 2.26%

253,693

6/29/2009 7/1/2013

20,000,0005

Floating — LIBOR

Fixed — 2.71%

261,066

9/15/2010 9/15/2014

59,400,0001

Fixed — 3.15%

Floating — LIBOR

364,256

9/15/2010 9/15/2014

59,400,0001

Fixed — 3.15%

Floating — LIBOR

364,256

12/24/2009 12/24/2019

600,0001

Floating — LIBOR

Fixed —5.2%

0

12/24/2009 12/24/2019

900,0001

Floating — LIBOR

Fixed — 5.27%

0

12/25/2009 12/25/2019

500,0004

Floating — LIBOR

Fixed — 5.3%

0

9/8/2009 9/8/2024

9,300,0001

Fixed — 0.0%

Floating — LIBOR-SIFMA

199,348

11/15/2009 11/15/2024

15,700,0006

Floating — LIBOR

Fixed — 8.7%

182,120

Total unrealized appreciation

2,125,841

At December 31, 2009, total return swap contracts were as follows:

Effective/ Expiration Dates

Notional Amount ($)

Fixed Cash Flows Paid

Reference Entity

Value ($)

Upfront Premiums Paid/ (Received) ($)

Unrealized Depreciation ($)

12/14/2009 6/1/2012

76,400,0005

0.425%

Global Interest Rate Strategy Index

(687,677)

0

(687,677)

Counterparties:

1

Morgan Stanley

2

The Goldman Sachs & Co.

3

JPMorgan Chase Securities, Inc.

4

Bank of America

5

Citigroup, Inc.

6

Barclays Bank PLC

LIBOR: London InterBank Offered Rate

SIFMA: Securities Industry and Financial Markets Association

At December 31, 2009, the Fund had the following open forward foreign currency exchange contracts:

Contracts to Deliver

In Exchange For

Settlement Date

Unrealized Appreciation ($)

Counterparty

USD

7,225,671

AUD

8,245,000

1/20/2010

164,993

HSBC Bank USA

USD

3,528,598

CAD

3,730,000

1/20/2010

37,947

Citigroup, Inc.

USD

7,007,710

NOK

40,630,000

1/20/2010

3,547

Credit Suisse

	USD	823,005		NOK	4,829,000		1/20/2010		10,304	Citigroup, Inc.
	USD	6,511,420		NZD	9,003,000		1/20/2010		15,356	Morgan Stanley
	USD	1,245,976		NZD	1,773,000		1/20/2010		39,370	HSBC Bank USA
	EUR	16,361,000		USD	23,966,656		1/20/2010		512,782	The Goldman Sachs & Co.
	GBP	1,889,000		USD	3,069,285		1/20/2010		18,523	Credit Suisse
	JPY	1,520,069,000		USD	17,170,391		1/20/2010		847,503	HSBC Bank USA
	JPY	1,011,956,000		USD	11,049,666		1/20/2010		183,024	HSBC Bank USA
	Total unrealized appreciation								1,833,349
	Contracts to Deliver			In Exchange For			Settlement Date		Unrealized Depreciation ($)	Counterparty
	USD	35,261,565		AUD	38,820,000		1/20/2010		(464,045)	Morgan Stanley
	USD	6,046,313		CHF	6,243,000		1/20/2010		(10,444)	UBS AG
	USD	1,641,415		SEK	11,668,000		1/20/2010		(10,408)	Credit Suisse
	CAD	7,166,000		USD	6,734,836		1/20/2010		(117,138)	Bank of New York Mellon Corp.
	EUR	16,045,000		USD	22,903,114		1/20/2010		(97,767)	Morgan Stanley
	GBP	3,524,000		USD	5,637,079		1/20/2010		(54,232)	Bank of New York Mellon Corp.
	SEK	3,838,000		USD	525,485		1/20/2010		(11,008)	Citigroup, Inc.
	Total unrealized depreciation								(765,042)
Currency Abbreviations
AUD			Australian Dollar			JPY		Japanese Yen
CAD			Canadian Dollar			NOK		Norwegian Krone
CHF			Swiss Franc			NZD		New Zealand Dollar
EUR			Euro			SEK		Swedish Krona
GBP			British Pound			USD		United States Dollar

Fair Value Measurements

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Fund's investments:

		Level 1	Level 2	Level 3	Total
Assets
Fixed Income(k)
	Corporate Bonds	$—	$1,093,909,895	$13,300,840	$1,107,210,735
	Mortgage-Backed Securities Pass-Throughs	—	68,551,335	10,420,623	78,971,958
	Asset-Backed	—	137,660,514	16,262,877	153,923,391
	Commercial Mortgage-Backed Securities	—	217,310,291	—	217,310,291
	Collateralized Mortgage Obligations	—	200,835,368	—	200,835,368
	Government & Agency Obligations	—	516,344,073	47,347,225	563,691,298
	Loan Participations and Assignments	—	127,713,352	1,845,266	129,558,618
	Municipal Bonds and Notes	—	22,637,746	—	22,637,746
	Preferred Security	—	31,680	—	31,680
Short-Term Investments(k)		147,002,000	13,898,596	—	160,900,596
Unfunded Loan Commitments		—	9,294	—	9,294
Derivatives(l)		—	5,941,526	—	5,941,526
Total		$147,002,000	$2,404,843,670	$ 89,176,831	$2,641,022,501

Liabilities
Derivatives(l)			$(305,009)	$(1,534,935)	$—	$(1,839,944)
Total			$(305,009)	$(1,534,935)	$—	$(1,839,944)
	(k)	See Investment Portfolio for additional detailed categorizations.
	(l)	Derivatives include unrealized appreciation (depreciation) on open futures, credit default swap, interest rate swap, total return swap and forward foreign currency exchange contracts.

The following is a reconciliation of the Fund’s Level 3 investments for which significant unobservable inputs were used in determining value:

	Corporate Bonds	Mortgage-Backed Securities Pass-Throughs	Asset-Backed	Collateralized Mortgage Obligations	Government & Agency Obligations	Loan Participations and Assignments	Total
Balance as of September 30, 2009	$12,564,486	$—	$8,061,252	$5,050,000	$33,038,250	$4,264,374	$62,978,362
Realized gains (loss)	—	(2,967)	2,917	—	—	31,057	31,007
Change in unrealized appreciation (depreciation)	733,952	177,312	618,706	—	(382,456)	(21,709)	1,125,805
Amortization premium/ discount	2,002	—	(234,680)	—	11,556	11,826	(209,296)
Net purchases (sales)	400	10,246,278	7,814,682	(5,050,000)	20,046,775	(1,015,803)	32,042,332
Net transfers in (out) of Level 3	—	—	—	—	(5,366,900)	(1,424,479)	(6,791,379)
Balance as of December 31, 2009	$13,300,840	$10,420,623	$16,262,877	$—	$47,347,225	$1,845,266	$89,176,831
Net change in unrealized appreciation (depreciation) from investments still held at December 31, 2009	$733,952	$177,312	$(975,965)	—	$(351,106)	$(8,255)	$(424,062)

The following table presents, by major type of derivative contract, the unrealized appreciation (depreciation) of the Fund's derivativeinstruments as of December 31, 2009 categorized by the primary underlying risk exposure.

Primary Underlying Risk Disclosure	Futures	Swaps	Forward Currency Contracts
Credit Contracts	$—	$1,900,120	$—
Foreign Exchange Contracts	$—	$—	$1,068,307
Interest Rate Contracts	$ (305,009)	$1,438,164	$—

ITEM 2.	CONTROLS AND PROCEDURES
	(a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
	(b)         There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
ITEM 3.	EXHIBITS
	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

SIGNATURES

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

Registrant:	DWS Short Duration Plus Fund, a series of DWS Advisor Funds
By:	/s/Michael G. Clark Michael G. Clark President
Date:	February 25, 2010

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 Duration Plus Fund, a series of DWS Advisor Funds
By:	/s/Michael G. Clark Michael G. Clark President
Date:	February 25, 2010
By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer
Date:	February 25, 2010