nq073110af_cfi.htm

% of

Net Assets

Total Investment Portfolio (Cost $658,887,476) †

Other Assets and Liabilities, Net

(177,697,098)

Net Assets

0000088053-10-001423.txt : 20100928 0000088053-10-001423.hdr.sgml : 20100928 20100928161622 ACCESSION NUMBER: 0000088053-10-001423 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100731 FILED AS OF DATE: 20100928 DATE AS OF CHANGE: 20100928 EFFECTIVENESS DATE: 20100928 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DWS ADVISOR FUNDS CENTRAL INDEX KEY: 0000797657 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04760 FILM NUMBER: 101093967 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 BUSINESS PHONE: 212-454-6778 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER ADVISOR FUNDS DATE OF NAME CHANGE: 20030519 FORMER COMPANY: FORMER CONFORMED NAME: BT INVESTMENT FUNDS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: BT TAX FREE INVESTMENT TRUST DATE OF NAME CHANGE: 19880530

0000797657 S000012426 DWS Core Fixed Income Fund

C000033707 Class A

C000033708 Class B

C000033709 Class C

C000033710 Class R

C000033711 Class S

C000033712 Institutional Class

N-Q 1 nq073110af_cfi.htm DWS CORE FIXED INCOME FUND nq073110af_cfi.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number 811-04760

DWS Advisor Funds

(Exact name of registrant as specified in charter)

345 Park Avenue

New York, NY 10154

(Address of principal executive offices) (Zip code)

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

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

Date of fiscal year end: 10/31

Date of reporting period: 7/31/10

ITEM 1.

SCHEDULE OF INVESTMENTS

Investment Portfolio

as of July 31, 2010 (Unaudited)

DWS Core Fixed Income Fund

		Principal Amount ($)			Value ($)
	Corporate Bonds 23.4%
Consumer Discretionary 1.9%
Comcast Corp., 5.15%, 3/1/2020			1,300,000		1,392,581
DIRECTV Holdings LLC, 6.35%, 3/15/2040			1,892,000		2,047,600
Discovery Communications LLC, 5.05%, 6/1/2020			3,100,000		3,299,891
Time Warner Cable, Inc., 8.75%, 2/14/2019			250,000		321,744
Time Warner, Inc.:
	6.2%, 3/15/2040		1,200,000		1,278,434
	7.625%, 4/15/2031		1,200,000		1,449,133

					9,789,383
Consumer Staples 3.0%
Anheuser-Busch InBev Worldwide, Inc., 144A, 7.75%, 1/15/2019			3,100,000		3,860,712
CVS Caremark Corp.:
	6.125%, 9/15/2039		1,750,000		1,867,938
	6.25%, 6/1/2027		2,663,000		2,923,335
Kraft Foods, Inc., 5.375%, 2/10/2020 (a)			5,400,000		5,906,795
Kroger Co., 5.4%, 7/15/2040			790,000		794,654

					15,353,434
Energy 2.9%
DCP Midstream LLC, 144A, 9.75%, 3/15/2019			2,330,000		3,019,275
Enterprise Products Operating LLC:
	4.6%, 8/1/2012		700,000		734,230
	Series M, 5.65%, 4/1/2013		830,000		905,576
	Series B, 7.5%, 2/1/2011		1,525,000		1,567,075
Kinder Morgan Energy Partners LP, 6.5%, 9/1/2039			2,050,000		2,235,053
ONEOK Partners LP, 6.15%, 10/1/2016			1,527,000		1,754,178
Plains All American Pipeline LP, 8.75%, 5/1/2019			3,750,000		4,672,159

					14,887,546
Financials 10.0%
American Express Co., 7.0%, 3/19/2018			3,400,000		4,014,173
Bank of America Corp.:
	5.75%, 12/1/2017 (a)		4,310,000		4,554,618
	6.5%, 8/1/2016		525,000		584,498
	Series L, 7.625%, 6/1/2019		150,000		175,308
Citigroup, Inc., 8.5%, 5/22/2019			3,000,000		3,645,651
Covidien International Finance SA, 4.2%, 6/15/2020			2,720,000		2,825,278
Fifth Third Bancorp., 5.45%, 1/15/2017			2,082,000		2,147,962
General Electric Capital Corp., 5.625%, 5/1/2018			4,000,000		4,362,244
Hartford Financial Services Group, Inc., 5.95%, 10/15/2036			2,400,000		2,073,468
Jefferies Group, Inc., 6.875%, 4/15/2021			1,600,000		1,617,211
JPMorgan Chase & Co., 5.125%, 9/15/2014			5,000,000		5,430,105
KeyBank NA, 5.7%, 11/1/2017			1,075,000		1,136,613
Lincoln National Corp., 8.75%, 7/1/2019			1,475,000		1,855,571
Merrill Lynch & Co., Inc., Series C, 5.45%, 7/15/2014			445,000		477,560
Metropolitan Life Global Funding I, 144A, 5.125%, 4/10/2013			1,670,000		1,819,189
Morgan Stanley, Series F, 6.0%, 4/28/2015			2,110,000		2,273,054
PNC Funding Corp., 5.25%, 11/15/2015			2,750,000		2,973,924
Prudential Financial, Inc.:
	Series B, 5.1%, 9/20/2014		1,120,000		1,200,353
	6.2%, 1/15/2015		820,000		909,442
	7.375%, 6/15/2019		460,000		543,794
Telecom Italia Capital SA, 5.25%, 11/15/2013			2,871,000		3,027,558
The Goldman Sachs Group, Inc., 6.0%, 6/15/2020			2,700,000		2,903,791

					50,551,365
Health Care 2.1%
Express Scripts, Inc.:
	6.25%, 6/15/2014		1,480,000		1,691,829
	7.25%, 6/15/2019		2,155,000		2,635,332
Medco Health Solutions, Inc., 7.125%, 3/15/2018			3,400,000		4,066,635
Quest Diagnostics, Inc., 6.95%, 7/1/2037			2,130,000		2,361,659

					10,755,455
Industrials 0.9%
CSX Corp.:
	6.15%, 5/1/2037		1,750,000		1,926,484
	6.25%, 3/15/2018		2,200,000		2,536,081

					4,462,565
Information Technology 0.2%
Oracle Corp., 144A, 5.375%, 7/15/2040			1,200,000		1,220,671
Materials 1.1%
ArcelorMittal, 6.125%, 6/1/2018			1,500,000		1,627,551
Dow Chemical Co., 8.55%, 5/15/2019			3,000,000		3,746,619

					5,374,170
Telecommunication Services 0.2%
Crown Castle Towers LLC, 144A, 4.883%, 8/15/2020 (b)			800,000		805,416
Utilities 1.1%
FirstEnergy Solutions Corp., 6.8%, 8/15/2039			2,316,000		2,358,244
Sempra Energy, 6.5%, 6/1/2016			2,600,000		3,045,447

					5,403,691

Total Corporate Bonds (Cost $106,868,688)				118,603,696
	Mortgage-Backed Securities Pass-Throughs 25.1%
Federal Home Loan Mortgage Corp.:
	4.5%, 9/1/2020		10,579,779		11,287,963
	5.0%, with various maturities from 2/1/2021 until 4/1/2035		7,293,923		7,817,649
	5.5%, with various maturities from 10/1/2023 until 1/1/2034		3,865,794		4,175,976
	6.0%, 3/1/2038		2,127,832		2,310,028
	6.5%, 2/1/2038		772,541		848,920
Federal National Mortgage Association:
	4.018% *, 8/1/2037		2,616,777		2,745,740
	4.5%, with various maturities from 8/1/2033 until 9/1/2038 (b)		16,165,783		16,962,413
	5.0%, with various maturities from 8/1/2033 until 9/1/2035 (a)		24,558,514		26,274,590
	5.5%, with various maturities from 2/1/2025 until 3/1/2035 (b)		16,371,708		17,711,546
	6.0%, with various maturities from 10/1/2022 until 9/1/2035 (b)		10,323,780		11,294,186
	6.5%, with various maturities from 5/1/2023 until 4/1/2037		8,309,598		9,178,265
Government National Mortgage Association:
	4.5%, 5/1/2039 (b)		5,250,000		5,535,879
	5.0%, 5/1/2038 (b)		5,250,000		5,648,262
	5.5%, 5/1/2036 (b)		5,250,000		5,706,094

Total Mortgage-Backed Securities Pass-Throughs (Cost $120,275,436)				127,497,511
	Asset-Backed 1.3%
Automobile Receivables 0.7%
Household Automotive Trust, "A4", Series 2006-1, 5.52%, 3/18/2013			3,519,536		3,540,993
Credit Card Receivables 0.6%
Citibank Omni Master Trust, "A8", Series 2009-A8, 144A, 2.441% *, 5/16/2016			3,000,000		3,029,897
Manufactured Housing Receivables 0.0%
Green Tree Financial Corp., "A4", Series 1996-2, 7.2%, 4/15/2026			203,375		204,932

Total Asset-Backed (Cost $6,764,984)				6,775,822
	Commercial Mortgage-Backed Securities 5.3%
Banc of America Commercial Mortgage, Inc., "A4", Series 2007-4, 5.843% *, 2/10/2051			6,989,022		7,288,215
Bear Stearns Commercial Mortgage Securities, Inc., "A4", Series 2007-PW18, 5.7%, 6/11/2050			6,923,000		7,112,703
Citigroup/Deutsche Bank Commercial Mortgage Trust, "A4", Series 2006-CD2, 5.363% *, 1/15/2046			4,700,000		4,928,079
LB-UBS Commercial Mortgage Trust:
	"A3", Series 2006-C7, 5.347%, 11/15/2038		2,500,000		2,615,113
	"A4", Series 2007-C6, 5.858% *, 7/15/2040		5,200,000		5,198,729

Total Commercial Mortgage-Backed Securities (Cost $24,062,315)				27,142,839
	Collateralized Mortgage Obligations 1.7%
Chase Mortgage Finance Corp., "A1", Series 2003-S2, 5.0%, 3/25/2018			4,186		4,286
FDIC Structured Sale Guaranteed Notes, "1A", Series 2010-S1, 144A, 0.866% *, 2/25/2048			5,635,787		5,653,331
Federal Home Loan Mortgage Corp.:
	"NE", Series 2802, 5.0%, 2/15/2033		90,000		98,752
	"TE", Series 2827, 5.0%, 4/15/2033		65,000		71,381
	"PE", Series 2864, 5.0%, 6/15/2033		40,000		43,960
	"KE", Series 2934, 5.0%, 11/15/2033		53,000		58,091
Federal National Mortgage Association:
	"EC", Series 2005-15, 5.0%, 10/25/2033		80,000		87,917
	"PE", Series 2005-14, 5.0%, 12/25/2033		90,000		98,898
	"J", Series 1998-36, 6.0%, 7/18/2028		2,199,668		2,311,431

Total Collateralized Mortgage Obligations (Cost $8,075,887)				8,428,047
	Government & Agency Obligations 26.7%
US Treasury Obligations
US Treasury Bill, 0.11% **, 9/16/2010 (c)			442,000		441,917
US Treasury Bonds:
	4.75%, 2/15/2037 (a)		17,000,000		19,356,098
	5.375%, 2/15/2031 (a)		15,000,000		18,431,250
US Treasury Notes:
	1.75%, 1/31/2014 (a)		90,000,000		92,327,310
	3.125%, 5/15/2019 (a)		5,000,000		5,151,560

Total Government & Agency Obligations (Cost $130,549,439)				135,708,135
	Municipal Bonds and Notes 6.3%
Los Angeles, CA, Community Redevelopment Agency, Community Redevelopment Financing Authority Revenue, Series L, 6.02%, 9/1/2021 (d)			6,480,000		6,371,784
Nashville & Davidson County, TN, Metropolitan Government, Convention Center Authority Revenue, Build America Bonds, Series A2, 7.431%, 7/1/2043			750,000		797,992
Pomona, CA, Pension Obligation, Series AR, 5.732%, 7/1/2025 (d)			2,245,000		2,097,997
Pueblo of Santa Ana, NM, Certificates of Participation, "A", 5.875%, 4/1/2024			7,020,000		6,218,527
Rancho Cordova, CA, Certificates of Partnership, City Hall Acquisition, Series B, 5.65%, 2/1/2024 (d)			4,340,000		4,150,516
Riverside, CA, Public Financing Authority, Tax Allocation Revenue, University Corridor, Series D, 5.89%, 8/1/2032 (d)			925,000		742,359
West Virginia, State General Obligation, Jobs Inventory Trust Board:
	Series A, Zero Coupon, 1/22/2012		1,300,000		1,214,577
	Series A, 144A, Zero Coupon, 6/12/2013		1,500,000		1,306,800
	Series C, 144A, Zero Coupon, 7/31/2013		3,500,000		3,025,995
Wilkes Barre, PA, General Obligation, Series C, 5.48%, 11/15/2024 (d)			6,315,000		6,054,822

Total Municipal Bonds and Notes (Cost $32,768,258)				31,981,369

			Shares	Value ($)
	Securities Lending Collateral 28.6%
Daily Assets Fund Institutional, 0.33% (e) (f) (Cost $145,027,151)		145,027,151		145,027,151
	Cash Equivalents 16.6%
Central Cash Management Fund, 0.25% (e) (Cost $84,495,318)		84,495,318		84,495,318

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.
*	These securities are shown at their current rate as of July 31, 2010. Floating rate securities' yields vary with a designated market index or market rate, such as the coupon-equivalent of the US Treasury bill rate.
**	Annualized yield at time of purchase; not a coupon rate.
†	The cost for federal income tax purposes was $659,778,099. At July 31, 2010, net unrealized appreciation for all securities based on tax cost was $25,881,789. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $27,912,374 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $2,030,585.
(a)	All or a portion of these securities were on loan. The value of all securities loaned at July 31, 2010 amounted to $141,532,335 which is 27.9% of net assets.
(b)	When-issued or delayed delivery security included.
(c)	At July 31, 2010, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
(d)	Bond is insured by one of these companies:

Insurance Coverage	As a % of Total Investment Portfolio
Ambac Financial Group, Inc.		1.5
National Public Finance Guarantee Corp.		1.3

Many insurers who have traditionally guaranteed payment of municipal issues have been downgraded by the major rating agencies.
(e)	Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
(f)	Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates.
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
FDIC: Federal Deposit Insurance Corp.
Included in the portfolio are investments in mortgage or asset-backed securities which are interests in separate pools of mortgages or assets. Effective maturities of these investments may be shorter than stated maturities due to prepayments. Some separate investments in the Federal Home Loan Mortgage Corp and, Federal National Mortgage Association issues which have similar coupon rates have been aggregated for presentation purposes in this investment portfolio.

At July 31, 2010, open futures contracts sold were as follows:

Futures

Currency

Expiration

Date

Contracts

Notional

Value ($)

Unrealized

Depreciation ($)

2 Year US Treasury Note

USD

9/30/2010

180

39,442,500

(48,172)

Currency Abbreviation

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 July 31, 2010 in valuing the Fund's investments.

	Level 1			Level 2		Level 3		Total
Assets
Fixed Income Investments(g)
Corporate Bonds	$	—		$	118,603,696	$	—	$	118,603,696
Mortgage-Backed Securities Pass-Throughs		—			127,497,511		—		127,497,511
Asset-Backed		—			6,775,822		—		6,775,822
Commercial Mortgage-Backed Securities		—			27,142,839		—		27,142,839
Collateralized Mortgage Obligations		—			8,428,047		—		8,428,047
Government & Agency Obligations		—			135,266,218		—		135,266,218
Municipal Bonds and Notes		—			31,981,369		—		31,981,369
Short-Term Investments(g)		229,522,469			441,917		—		229,964,386
Total	$	229,522,469		$	456,137,419	$	—	$	685,659,888

Liabilities
Derivatives(h)	$	(48,172	)	$	—	$	—	$	(48,172	)
Total	$	(48,172	)	$	—	$	—	$	(48,172	)

There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the period ended July 31, 2010.
(g)	See Investment Portfolio for additional detailed categorizations.
(h)	Derivatives include unrealized appreciation (depreciation) on open futures contracts.

Derivatives

The following table presents, by major type of derivative contract, the unrealized appreciation (depreciation) of the Fund's derivative instruments as of July 31, 2010 categorized by the primary underlying risk exposure.

Primary Underlying Risk Disclosure		Futures
Interest Rate Contracts		$	(48,172	)

ITEM 2.	CONTROLS AND PROCEDURES

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

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

ITEM 3.	EXHIBITS

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

SIGNATURES

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

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

By:	/s/Michael G. Clark Michael G. Clark President

Date:	September 24, 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.

By:	/s/Michael G. Clark Michael G. Clark President

Date:	September 24, 2010



By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer

Date:	September 24, 2010

EX-99.CERT 2 ex-99cert.htm CERTIFICATION ex-99cert.htm

CERTIFICATIONS

I, Michael G. Clark, certify that:

I have reviewed this report on Form N-Q of DWS Core Fixed Income Fund, a series of DWS Advisor Funds;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


By:	/s/Michael G. Clark Michael G. Clark President

Date:	September 24, 2010

CERTIFICATIONS

I, Paul Schubert, certify that:

I have reviewed this report on Form N-Q of DWS Core Fixed Income Fund, a series of DWS Advisor Funds;

(a)

(b)

(c)

(d)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


By:	/s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer

Date:	September 24, 2010