UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-05002
Deutsche DWS Variable Series II
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 6/30/2021 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | |
3 | Performance Summary |
5 | Portfolio Summary |
5 | Portfolio Management Team |
6 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
16 | Information About Your Fund's Expenses |
17 | Liquidity Risk Management |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 3 |
Comparative Results | |||||||
DWS Alternative Asset Allocation VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,917 | $12,442 | $12,511 | $12,788 | $13,845 | |
Average annual total return | 9.17% | 24.42% | 7.75% | 5.04% | 3.31% | ||
MSCI World Index | Growth of $10,000 | $11,305 | $13,904 | $15,205 | $19,964 | $27,516 | |
Average annual total return | 13.05% | 39.04% | 14.99% | 14.83% | 10.65% | ||
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $9,840 | $9,967 | $11,691 | $11,608 | $13,962 | |
Average annual total return | –1.60% | –0.33% | 5.34% | 3.03% | 3.39% | ||
Blended Index | Growth of $10,000 | $10,851 | $12,606 | $14,201 | $17,170 | $22,990 | |
Average annual total return | 8.51% | 26.06% | 12.40% | 11.42% | 8.68% | ||
DWS Alternative Asset Allocation VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $10,900 | $12,395 | $12,390 | $12,589 | $13,461 | |
Average annual total return | 9.00% | 23.95% | 7.40% | 4.71% | 3.02% | ||
MSCI World Index | Growth of $10,000 | $11,305 | $13,904 | $15,205 | $19,964 | $27,516 | |
Average annual total return | 13.05% | 39.04% | 14.99% | 14.83% | 10.65% | ||
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $9,840 | $9,967 | $11,691 | $11,608 | $13,962 | |
Average annual total return | –1.60% | –0.33% | 5.34% | 3.03% | 3.39% | ||
Blended Index | Growth of $10,000 | $10,851 | $12,606 | $14,201 | $17,170 | $22,990 | |
Average annual total return | 8.51% | 26.06% | 12.40% | 11.42% | 8.68% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation* (As a % of Investment Portfolio) | 6/30/21 | 12/31/20 |
Real Asset | 45% | 41% |
DWS Enhanced Commodity Strategy Fund | 15% | 12% |
DWS RREEF Global Infrastructure Fund | 12% | 11% |
DWS RREEF Real Estate Securities Fund | 12% | 10% |
iShares Global Infrastructure ETF | 5% | 5% |
DWS RREEF Global Real Estate Securities Fund | 1% | 1% |
SPDR S&P Global Natural Resources ETF | — | 2% |
Alternative Fixed Income | 18% | 19% |
DWS Floating Rate Fund | 9% | 9% |
DWS Emerging Markets Fixed Income Fund | 5% | 5% |
iShares JP Morgan USD Emerging Markets Bond ETF | 4% | 5% |
Alternative Equity | 27% | 30% |
SPDR Bloomberg Barclays Convertible Securities ETF | 18% | 21% |
ishares Preferred & Income Securities ETF | 6% | — |
SPDR Blackstone Senior Loan ETF | 3% | — |
iShares U.S. Preferred Stock ETF | — | 9% |
Absolute Return | 7% | 5% |
DWS Global Macro Fund | 7% | 5% |
Cash Equivalents | 3% | 5% |
DWS Central Cash Management Government Fund | 3% | 5% |
100% | 100% |
* | During the periods indicated, asset categories and investment strategies represented in the Fund’s portfolio fell into the following categories: Real Assets, Alternative Fixed Income, Alternative Equity, and Absolute Return. Real Asset investments have a tangible or physical aspect such as real estate or commodities. Alternative Fixed Income investments seek to offer exposure to categories generally not included in investors’ allocations and to foreign investments, many of which are not denominated in US dollars. Alternative Equity investments are investments primarily in convertible and preferred instruments that offer equity exposure. Absolute Return investments seek positive returns in all market environments or seek to increase the diversification or liquidity of the Fund’s portfolio. |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 5 |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Mutual Funds 60.9% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,699,272 | 25,589,101 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 6,610,936 | 75,364,670 | |
DWS Floating Rate Fund "Institutional" (a) | 5,246,156 | 41,706,941 | |
DWS Global Macro Fund "Institutional" (a) | 3,188,487 | 33,574,764 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,299,461 | 57,080,668 | |
DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | 632,538 | 5,610,608 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 2,269,653 | 56,491,669 | |
Total Mutual Funds (Cost $265,968,864) | 295,418,421 | ||
Exchange-Traded Funds 36.1% | |||
ishares Global Infrastructure ETF | 490,135 | 22,242,326 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 187,560 | 21,092,998 |
Shares | Value ($) | ||
ishares Preferred & Income Securities ETF | 723,343 | 28,452,697 | |
SPDR Blackstone Senior Loan ETF | 333,851 | 15,453,963 | |
SPDR Bloomberg Barclays Convertible Securities ETF | 1,013,414 | 87,893,396 | |
Total Exchange-Traded Funds (Cost $136,690,905) | 175,135,380 | ||
Cash Equivalents 3.1% | |||
DWS Central Cash Management Government Fund, 0.02% (a) (b) (Cost $15,169,567) | 15,169,567 | 15,169,567 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $417,829,336) | 100.1 | 485,723,368 | |
Other Assets and Liabilities, Net | (0.1) | (445,303) | |
Net Assets | 100.0 | 485,278,065 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Mutual Funds 60.9% | ||||||||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | ||||||||
24,932,114 | 543,902 | — | — | 113,085 | 543,902 | — | 2,699,272 | 25,589,101 |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | ||||||||
53,979,797 | 8,538,043 | — | — | 12,846,830 | 163,743 | — | 6,610,936 | 75,364,670 |
DWS Floating Rate Fund "Institutional" (a) | ||||||||
40,691,313 | 704,853 | — | — | 310,775 | 704,853 | — | 5,246,156 | 41,706,941 |
DWS Global Macro Fund "Institutional" (a) | ||||||||
22,250,874 | 10,250,166 | — | — | 1,073,724 | 137,865 | — | 3,188,487 | 33,574,764 |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | ||||||||
53,154,596 | 1,350,353 | 2,399,200 | 222,890 | 4,752,029 | 1,350,354 | 1,011,527 | 3,299,461 | 57,080,668 |
DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | ||||||||
4,792,369 | 141,674 | — | — | 676,565 | 141,674 | — | 632,538 | 5,610,608 |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | ||||||||
44,650,237 | 5,174,881 | 2,399,200 | 379,935 | 8,685,816 | 343,882 | — | 2,269,653 | 56,491,669 |
Cash Equivalents 3.1% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (a) (b) | ||||||||
23,563,848 | 41,899,770 | 50,294,051 | — | — | 2,930 | — | 15,169,567 | 15,169,567 |
6 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
DWS ESG Liquidity Fund, 0.001% (a) (b) | ||||||||
— | — | — | — | — | 1,045 | — | — | — |
268,015,148 | 68,603,642 | 55,092,451 | 602,825 | 28,458,824 | 3,390,248 | 1,011,527 | 39,116,070 | 310,587,988 |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. |
(b) | The rate shown is the annualized seven-day yield at period end. |
SPDR: Standard & Poor's Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Mutual Funds | $ 295,418,421 | $ — | $ — | $ 295,418,421 |
Exchange-Traded Funds | 175,135,380 | — | — | 175,135,380 |
Short-Term Investments | 15,169,567 | — | — | 15,169,567 |
Total | $ 485,723,368 | $ — | $ — | $ 485,723,368 |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 7 |
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $136,690,905) | $ 175,135,380 |
Investments in affiliated Underlying Funds, at value (cost $281,138,431) | 310,587,988 |
Receivable for Fund shares sold | 562 |
Interest receivable | 105 |
Other assets | 5,070 |
Total assets | 485,729,105 |
Liabilities | |
Payable for Fund shares redeemed | 128,018 |
Accrued management fee | 40,596 |
Accrued Trustees' fees | 460 |
Other accrued expenses and payables | 281,966 |
Total liabilities | 451,040 |
Net assets, at value | $ 485,278,065 |
Net Assets Consist of | |
Distributable earnings (loss) | 57,706,326 |
Paid-in capital | 427,571,739 |
Net assets, at value | $ 485,278,065 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($40,914,787 ÷ 2,792,817 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.65 |
Class B | |
Net Asset Value, offering and redemption price per share ($444,363,278 ÷ 30,316,422 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.66 |
Investment Income | |
Income: | |
Dividends | $ 1,047,766 |
Income distributions from affiliated Underlying Funds | 3,390,248 |
Total income | 4,438,014 |
Expenses: | |
Management fee | 234,612 |
Administration fee | 227,573 |
Services to shareholders | 747 |
Record keeping fee (Class B) | 284,175 |
Distribution service fee (Class B) | 538,211 |
Custodian fee | 2,835 |
Professional fees | 36,231 |
Reports to shareholders | 21,933 |
Trustees' fees and expenses | 8,863 |
Other | 4,946 |
Total expenses before expense reductions | 1,360,126 |
Expense reductions | (43,984) |
Total expenses after expense reductions | 1,316,142 |
Net investment income | 3,121,872 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | 602,825 |
Sale of non-affiliated Underlying Funds | 5,566,411 |
Capital gain distributions from affiliated Underlying Funds | 1,011,527 |
7,180,763 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | 28,458,824 |
Non-affiliated Underlying Funds | 1,883,009 |
30,341,833 | |
Net gain (loss) | 37,522,596 |
Net increase (decrease) in net assets resulting from operations | $40,644,468 |
8 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 3,121,872 | $ 8,122,677 |
Net realized gain (loss) | 7,180,763 | (8,427,570) |
Change in net unrealized appreciation (depreciation) | 30,341,833 | 28,215,922 |
Net increase (decrease) in net assets resulting from operations | 40,644,468 | 27,911,029 |
Distributions to shareholders: | ||
Class A | (808,613) | (873,617) |
Class B | (7,405,682) | (8,977,130) |
Total distributions | (8,214,295) | (9,850,747) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,490,933 | 5,411,306 |
Reinvestment of distributions | 808,613 | 873,617 |
Payments for shares redeemed | (1,974,508) | (4,249,598) |
Net increase (decrease) in net assets from Class A share transactions | 1,325,038 | 2,035,325 |
Class B | ||
Proceeds from shares sold | 4,739,252 | 73,640,815 |
Reinvestment of distributions | 7,405,682 | 8,977,130 |
Payments for shares redeemed | (24,672,571) | (21,769,862) |
Net increase (decrease) in net assets from Class B share transactions | (12,527,637) | 60,848,083 |
Increase (decrease) in net assets | 21,227,574 | 80,943,690 |
Net assets at beginning of period | 464,050,491 | 383,106,801 |
Net assets at end of period | $485,278,065 | $464,050,491 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 2,699,800 | 2,541,554 |
Shares sold | 175,299 | 433,052 |
Shares issued to shareholders in reinvestment of distributions | 56,428 | 76,499 |
Shares redeemed | (138,710) | (351,305) |
Net increase (decrease) in Class A shares | 93,017 | 158,246 |
Shares outstanding at end of period | 2,792,817 | 2,699,800 |
Class B | ||
Shares outstanding at beginning of period | 31,208,785 | 26,180,029 |
Shares sold | 331,009 | 5,958,291 |
Shares issued to shareholders in reinvestment of distributions | 516,435 | 785,401 |
Shares redeemed | (1,739,807) | (1,714,936) |
Net increase (decrease) in Class B shares | (892,363) | 5,028,756 |
Shares outstanding at end of period | 30,316,422 | 31,208,785 |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 9 |
DWS Alternative Asset Allocation VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.70 | $13.35 | $12.10 | $13.61 | $12.97 | $12.60 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .12 | .29 | .40 | .61 | .33 | .35 |
Net realized and unrealized gain (loss) | 1.13 | .40 | 1.35 | (1.84) | .62 | .31 |
Total from investment operations | 1.25 | .69 | 1.75 | (1.23) | .95 | .66 |
Less distributions from: | ||||||
Net investment income | (.30) | (.34) | (.50) | (.28) | (.31) | (.29) |
Net asset value, end of period | $14.65 | $13.70 | $13.35 | $12.10 | $13.61 | $12.97 |
Total Return (%)b | 9.17 * | 5.71 | 14.68 c | (9.14) c | 7.41 c | 5.30 c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 41 | 37 | 34 | 26 | 27 | 24 |
Ratio of expenses before expense reductions (%)d,e | .23 ** | .23 | .56 | .73 | .64 | .56 |
Ratio of expenses after expense reductions (%)d,e | .23 ** | .23 | .23 | .16 | .19 | .27 |
Ratio of net investment income (%) | 1.68 ** | 2.29 | 3.09 | 4.78 | 2.50 | 2.70 |
Portfolio turnover rate (%) | 9 * | 18 | 10 | 32 | 55 | 51 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
DWS Alternative Asset Allocation VIP — Class B | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.68 | $13.34 | $12.09 | $13.59 | $12.96 | $12.59 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .09 | .24 | .37 | .62 | .31 | .31 |
Net realized and unrealized gain (loss) | 1.14 | .41 | 1.34 | (1.88) | .59 | .31 |
Total from investment operations | 1.23 | .65 | 1.71 | (1.26) | .90 | .62 |
Less distributions from: | ||||||
Net investment income | (.25) | (.31) | (.46) | (.24) | (.27) | (.25) |
Net asset value, end of period | $14.66 | $13.68 | $13.34 | $12.09 | $13.59 | $12.96 |
Total Return (%)b,c | 9.00 * | 5.32 | 14.35 | (9.35) | 7.01 | 4.99 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 444 | 427 | 349 | 208 | 157 | 107 |
Ratio of expenses before expense reductions (%)d,e | .61 ** | .61 | .92 | 1.08 | .93 | .85 |
Ratio of expenses after expense reductions (%)d,e | .59 ** | .59 | .52 | .45 | .48 | .57 |
Ratio of net investment income (%) | 1.30 ** | 1.94 | 2.90 | 4.85 | 2.31 | 2.45 |
Portfolio turnover rate (%) | 9 * | 18 | 10 | 32 | 55 | 51 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 11 |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
12 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
B. | Purchases and Sales of Securities |
C. | Related Parties |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 13 |
On assets invested in exchange-traded funds and mutual funds | .10% |
On assets invested in all other assets not considered exchange-traded funds and mutual funds | 1.00% |
Class A | .86% |
Class B | 1.15% |
Class A | 1.20% | |
Class B | 1.58% |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 100 | $ 26 |
Class B | 164 | 47 |
$ 264 | $ 73 |
14 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
D. | Ownership of the Fund |
E. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 15 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,091.70 | $ 1,090.00 |
Expenses Paid per $1,000* | $ 1.19 | $ 3.06 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,023.65 | $ 1,021.87 |
Expenses Paid per $1,000* | $ 1.15 | $ 2.96 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios** | Class A | Class B |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | .23% | .59% |
** | The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
16 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 17 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreements, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
18 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
17 | Information About Your Fund's Expenses |
18 | Liquidity Risk Management |
18 | Proxy Voting |
19 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS CROCI® U.S. VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $11,524 | $13,061 | $12,224 | $15,466 | $19,677 | |
Average annual total return | 15.24% | 30.61% | 6.92% | 9.11% | 7.00% | ||
Russell 1000® Value Index | Growth of $10,000 | $11,705 | $14,368 | $14,207 | $17,525 | $30,001 | |
Average annual total return | 17.05% | 43.68% | 12.42% | 11.87% | 11.61% | ||
DWS CROCI® U.S. VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $11,506 | $13,022 | $12,113 | $15,240 | $19,092 | |
Average annual total return | 15.06% | 30.22% | 6.60% | 8.79% | 6.68% | ||
Russell 1000® Value Index | Growth of $10,000 | $11,705 | $14,368 | $14,207 | $17,525 | $30,001 | |
Average annual total return | 17.05% | 43.68% | 12.42% | 11.87% | 11.61% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 100% | 100% |
Cash Equivalents | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Health Care | 29% | 25% |
Consumer Staples | 21% | 24% |
Information Technology | 16% | 16% |
Consumer Discretionary | 11% | 12% |
Financials | 8% | 5% |
Communication Services | 7% | 11% |
Industrials | 7% | 7% |
Materials | 1% | — |
Energy | 0% | — |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 99.7% | |||
Communication Services 7.4% | |||
Diversified Telecommunication Services 3.0% | |||
AT&T, Inc. | 76,251 | 2,194,504 | |
Verizon Communications, Inc. | 39,382 | 2,206,573 | |
4,401,077 | |||
Interactive Media & Services 1.7% | |||
Facebook, Inc. "A"* | 7,286 | 2,533,415 | |
Media 2.7% | |||
Comcast Corp. "A" | 11,875 | 677,113 | |
Fox Corp. "A" | 88,369 | 3,281,141 | |
ViacomCBS, Inc. "B" | 2,926 | 132,255 | |
4,090,509 | |||
Consumer Discretionary 10.9% | |||
Distributors 0.1% | |||
Genuine Parts Co. | 963 | 121,791 | |
Household Durables 2.8% | |||
D.R. Horton, Inc. | 39,028 | 3,526,961 | |
Garmin Ltd. | 4,063 | 587,672 | |
4,114,633 | |||
Internet & Direct Marketing Retail 2.1% | |||
eBay, Inc. | 44,709 | 3,139,019 | |
Multiline Retail 2.7% | |||
Dollar General Corp. | 16,806 | 3,636,650 | |
Target Corp. | 1,354 | 327,316 | |
3,963,966 | |||
Specialty Retail 3.1% | |||
AutoZone, Inc.* | 2,444 | 3,646,986 | |
Best Buy Co., Inc. | 1,071 | 123,144 | |
Lowe's Companies, Inc. | 2,572 | 498,891 | |
O'Reilly Automotive, Inc.* | 236 | 133,625 | |
Tractor Supply Co. | 1,121 | 208,573 | |
4,611,219 | |||
Textiles, Apparel & Luxury Goods 0.1% | |||
Tapestry, Inc.* | 3,140 | 136,527 | |
Consumer Staples 20.7% | |||
Beverages 0.4% | |||
Constellation Brands, Inc. "A" | 2,368 | 553,852 | |
Food & Staples Retailing 2.1% | |||
Kroger Co. | 82,538 | 3,162,031 | |
Food Products 11.2% | |||
Campbell Soup Co. | 50,729 | 2,312,735 | |
Conagra Brands, Inc. | 86,182 | 3,135,301 | |
General Mills, Inc. | 40,059 | 2,440,795 | |
J M Smucker Co. | 24,412 | 3,163,063 | |
Kellogg Co. | 38,785 | 2,495,039 |
Shares | Value ($) | ||
Tyson Foods, Inc. "A" | 41,994 | 3,097,477 | |
16,644,410 | |||
Household Products 2.3% | |||
Kimberly-Clark Corp. | 17,099 | 2,287,504 | |
Procter & Gamble Co. | 8,101 | 1,093,068 | |
3,380,572 | |||
Tobacco 4.7% | |||
Altria Group, Inc. | 65,892 | 3,141,731 | |
Philip Morris International, Inc. | 37,885 | 3,754,782 | |
6,896,513 | |||
Energy 0.4% | |||
Oil, Gas & Consumable Fuels | |||
ONEOK, Inc. | 4,611 | 256,556 | |
Williams Companies, Inc. | 11,220 | 297,891 | |
554,447 | |||
Financials 8.4% | |||
Banks 2.7% | |||
Bank of America Corp. | 20,836 | 859,068 | |
Citigroup, Inc. | 5,783 | 409,147 | |
Fifth Third Bancorp. | 8,206 | 313,715 | |
JPMorgan Chase & Co. | 6,759 | 1,051,295 | |
Truist Financial Corp. | 8,300 | 460,650 | |
U.S. Bancorp. | 14,420 | 821,508 | |
3,915,383 | |||
Capital Markets 5.2% | |||
Bank of New York Mellon Corp. | 78,603 | 4,026,832 | |
Northern Trust Corp. | 1,525 | 176,320 | |
State Street Corp. | 42,688 | 3,512,369 | |
7,715,521 | |||
Consumer Finance 0.5% | |||
Capital One Financial Corp. | 2,764 | 427,563 | |
Discover Financial Services | 1,973 | 233,386 | |
Synchrony Financial | 2,470 | 119,845 | |
780,794 | |||
Health Care 28.6% | |||
Biotechnology 11.9% | |||
AbbVie, Inc. | 31,371 | 3,533,629 | |
Alexion Pharmaceuticals, Inc.* | 17,711 | 3,253,688 | |
Amgen, Inc. | 13,156 | 3,206,775 | |
Biogen, Inc.* | 7,952 | 2,753,539 | |
Gilead Sciences, Inc. | 34,100 | 2,348,126 | |
Regeneron Pharmaceuticals, Inc.* | 4,592 | 2,564,816 | |
17,660,573 | |||
Health Care Providers & Services 6.6% | |||
Cardinal Health, Inc. | 43,317 | 2,472,968 | |
HCA Healthcare, Inc. | 1,708 | 353,112 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 5 |
Shares | Value ($) | ||
Laboratory Corp. of America Holdings* | 12,547 | 3,461,090 | |
McKesson Corp. | 1,005 | 192,196 | |
Quest Diagnostics, Inc. | 23,917 | 3,156,326 | |
Tenet Healthcare Corp.* | 1,826 | 122,324 | |
9,758,016 | |||
Life Sciences Tools & Services 0.7% | |||
Thermo Fisher Scientific, Inc. | 2,013 | 1,015,498 | |
Pharmaceuticals 9.4% | |||
Bristol-Myers Squibb Co. | 35,900 | 2,398,838 | |
Eli Lilly & Co. | 2,049 | 470,287 | |
Johnson & Johnson | 20,460 | 3,370,580 | |
Merck & Co., Inc. | 29,161 | 2,267,851 | |
Pfizer, Inc. | 95,609 | 3,744,048 | |
Viatris, Inc. | 120,445 | 1,721,159 | |
13,972,763 | |||
Industrials 6.8% | |||
Aerospace & Defense 1.9% | |||
Lockheed Martin Corp. | 6,679 | 2,527,000 | |
Northrop Grumman Corp. | 770 | 279,841 | |
2,806,841 | |||
Air Freight & Logistics 4.1% | |||
C.H. Robinson Worldwide, Inc. | 32,927 | 3,084,272 | |
Expeditors International of Washington, Inc. | 23,930 | 3,029,538 | |
6,113,810 | |||
Electrical Equipment 0.1% | |||
Acuity Brands, Inc. | 662 | 123,814 | |
Industrial Conglomerates 0.3% | |||
3M Co. | 2,206 | 438,178 | |
Machinery 0.3% | |||
Cummins, Inc. | 1,296 | 315,978 | |
PACCAR, Inc. | 1,964 | 175,287 | |
491,265 | |||
Professional Services 0.1% | |||
ManpowerGroup, Inc. | 1,006 | 119,623 | |
Information Technology 15.7% | |||
Communications Equipment 2.6% | |||
Cisco Systems, Inc. | 73,223 | 3,880,819 | |
Electronic Equipment, Instruments & Components 0.2% | |||
Flex Ltd.* | 19,081 | 340,977 | |
IT Services 3.5% | |||
Amdocs Ltd. | 43,327 | 3,351,777 | |
Cognizant Technology Solutions Corp. "A" | 13,030 | 902,458 | |
International Business Machines Corp. | 6,451 | 945,652 | |
5,199,887 |
Shares | Value ($) | ||
Semiconductors & Semiconductor Equipment 5.0% | |||
Applied Materials, Inc. | 5,252 | 747,885 | |
Broadcom, Inc. | 3,020 | 1,440,057 | |
Intel Corp. | 36,211 | 2,032,885 | |
KLA Corp. | 1,461 | 473,671 | |
Lam Research Corp. | 925 | 601,897 | |
Qorvo, Inc.* | 3,487 | 682,231 | |
QUALCOMM, Inc. | 4,761 | 680,490 | |
Skyworks Solutions, Inc. | 3,797 | 728,075 | |
7,387,191 | |||
Software 4.0% | |||
Oracle Corp. | 54,677 | 4,256,058 | |
SS&C Technologies Holdings, Inc. | 22,072 | 1,590,508 | |
5,846,566 | |||
Technology Hardware, Storage & Peripherals 0.4% | |||
Hewlett Packard Enterprise Co. | 25,224 | 367,766 | |
HP, Inc. | 6,683 | 201,760 | |
569,526 | |||
Materials 0.8% | |||
Chemicals 0.2% | |||
LyondellBasell Industries NV "A" | 2,716 | 279,395 | |
Containers & Packaging 0.2% | |||
Amcor PLC | 11,074 | 126,908 | |
Westrock Co. | 3,156 | 167,962 | |
294,870 | |||
Metals & Mining 0.4% | |||
Newmont Corp. | 7,827 | 496,075 | |
Nucor Corp. | 1,675 | 160,683 | |
656,758 | |||
Total Common Stocks (Cost $129,786,795) | 147,672,049 | ||
Cash Equivalents 0.3% | |||
DWS Central Cash Management Government Fund, 0.02% (a) (Cost $456,408) | 456,408 | 456,408 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $130,243,203) | 100.0 | 148,128,457 | |
Other Assets and Liabilities, Net | 0.0 | 20,736 | |
Net Assets | 100.0 | 148,149,193 |
6 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (a) (b) | ||||||||
4,309,705 | — | 4,309,705 (c) | — | — | 1,113 | — | — | — |
Cash Equivalents 0.3% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (a) | ||||||||
621,226 | 4,684,133 | 4,848,951 | — | — | 117 | — | 456,408 | 456,408 |
4,930,931 | 4,684,133 | 9,158,656 | — | — | 1,230 | — | 456,408 | 456,408 |
* | Non-income producing security. |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(b) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(c) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 147,672,049 | $ — | $ — | $ 147,672,049 |
Short-Term Investments | 456,408 | — | — | 456,408 |
Total | $ 148,128,457 | $ — | $ — | $ 148,128,457 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 7 |
Assets | |
Investments in non-affiliated securities, at value (cost $129,786,795) | $ 147,672,049 |
Investment in DWS Central Cash Management Government Fund (cost $456,408) | 456,408 |
Cash | 1,937 |
Receivable for Fund shares sold | 238 |
Dividends receivable | 244,954 |
Interest receivable | 4 |
Other assets | 1,437 |
Total assets | 148,377,027 |
Liabilities | |
Payable for Fund shares redeemed | 93,950 |
Accrued management fee | 69,890 |
Accrued Trustees' fees | 1,407 |
Other accrued expenses and payables | 62,587 |
Total liabilities | 227,834 |
Net assets, at value | $ 148,149,193 |
Net Assets Consist of | |
Distributable earnings (loss) | 10,673,858 |
Paid-in capital | 137,475,335 |
Net assets, at value | $ 148,149,193 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($144,508,467 ÷ 9,895,252 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.60 |
Class B | |
Net Asset Value, offering and redemption price per share ($3,640,726 ÷ 247,986 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.68 |
Investment Income | |
Income: | |
Dividends | $ 1,817,358 |
Income distributions — DWS Central Cash Management Government Fund | 117 |
Securities lending income, net of borrower rebates | 1,113 |
Total income | 1,818,588 |
Expenses: | |
Management fee | 424,068 |
Administration fee | 68,558 |
Services to shareholders | 1,713 |
Record keeping fee (Class B) | 1,031 |
Distribution service fee (Class B) | 4,216 |
Custodian fee | 1,569 |
Professional fees | 36,562 |
Reports to shareholders | 14,812 |
Trustees' fees and expenses | 3,259 |
Other | 3,634 |
Total expenses before expense reductions | 559,422 |
Expense reductions | (51,648) |
Total expenses after expense reductions | 507,774 |
Net investment income | 1,310,814 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 8,172,562 |
Change in net unrealized appreciation (depreciation) on investments | 10,509,998 |
Net gain (loss) | 18,682,560 |
Net increase (decrease) in net assets resulting from operations | $19,993,374 |
8 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 1,310,814 | $ 2,848,860 |
Net realized gain (loss) | 8,172,562 | (16,282,685) |
Change in net unrealized appreciation (depreciation) | 10,509,998 | (5,587,930) |
Net increase (decrease) in net assets resulting from operations | 19,993,374 | (19,021,755) |
Distributions to shareholders: | ||
Class A | (2,764,720) | (9,467,191) |
Class B | (57,047) | (221,204) |
Total distributions | (2,821,767) | (9,688,395) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,605,447 | 6,978,119 |
Reinvestment of distributions | 2,764,720 | 9,467,191 |
Payments for shares redeemed | (6,184,378) | (11,817,632) |
Net increase (decrease) in net assets from Class A share transactions | (1,814,211) | 4,627,678 |
Class B | ||
Proceeds from shares sold | 219,394 | 784,815 |
Reinvestment of distributions | 57,047 | 221,204 |
Payments for shares redeemed | (174,792) | (873,871) |
Net increase (decrease) in net assets from Class B share transactions | 101,649 | 132,148 |
Increase (decrease) in net assets | 15,459,045 | (23,950,324) |
Net assets at beginning of period | 132,690,148 | 156,640,472 |
Net assets at end of period | $148,149,193 | $132,690,148 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 10,025,875 | 9,489,452 |
Shares sold | 115,532 | 567,975 |
Shares issued to shareholders in reinvestment of distributions | 194,562 | 895,666 |
Shares redeemed | (440,717) | (927,218) |
Net increase (decrease) in Class A shares | (130,623) | 536,423 |
Shares outstanding at end of period | 9,895,252 | 10,025,875 |
Class B | ||
Shares outstanding at beginning of period | 240,926 | 226,957 |
Shares sold | 15,303 | 65,344 |
Shares issued to shareholders in reinvestment of distributions | 3,989 | 20,809 |
Shares redeemed | (12,232) | (72,184) |
Net increase (decrease) in Class B shares | 7,060 | 13,969 |
Shares outstanding at end of period | 247,986 | 240,926 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 9 |
DWS CROCI® U.S. VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.92 | $16.12 | $13.46 | $16.64 | $13.75 | $15.29 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .13 | .28 | .31 | .29 | .24 | .23 |
Net realized and unrealized gain (loss) | 1.83 | (2.47) | 3.92 | (1.89) | 2.88 | (.93) |
Total from investment operations | 1.96 | (2.19) | 4.23 | (1.60) | 3.12 | (.70) |
Less distributions from: | ||||||
Net investment income | (.28) | (.31) | (.30) | (.41) | (.23) | (.14) |
Net realized gains | — | (.70) | (1.27) | (1.17) | — | (.70) |
Total distributions | (.28) | (1.01) | (1.57) | (1.58) | (.23) | (.84) |
Net asset value, end of period | $14.60 | $12.92 | $16.12 | $13.46 | $16.64 | $13.75 |
Total Return (%)b | 15.24 * | (12.16) | 32.95 | (10.50) | 22.88 c | (4.39) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 145 | 130 | 153 | 125 | 153 | 227 |
Ratio of expenses before expense reductions (%)d | .78 ** | .84 | .84 | .84 | .82 | .81 |
Ratio of expenses after expense reductions (%)d | .71 ** | .69 | .70 | .72 | .72 | .74 |
Ratio of net investment income (%) | 1.86 ** | 2.28 | 2.13 | 1.89 | 1.59 | 1.66 |
Portfolio turnover rate (%) | 36 * | 122 | 111 | 100 | 97 | 293 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | The Fund’s total return includes a reimbursement by the Adviser for commission costs incurred in connection with purchases and sales of portfolio assets due to the change in investment strategy, which otherwise would have reduced total return by 0.03%. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
DWS CROCI® U.S. VIP — Class B | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.97 | $16.17 | $13.50 | $16.67 | $13.78 | $15.31 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .11 | .24 | .27 | .24 | .20 | .19 |
Net realized and unrealized gain (loss) | 1.84 | (2.47) | 3.92 | (1.88) | 2.87 | (.92) |
Total from investment operations | 1.95 | (2.23) | 4.19 | (1.64) | 3.07 | (.73) |
Less distributions from: | ||||||
Net investment income | (.24) | (.27) | (.25) | (.36) | (.18) | (.10) |
Net realized gains | — | (.70) | (1.27) | (1.17) | — | (.70) |
Total distributions | (.24) | (.97) | (1.52) | (1.53) | (.18) | (.80) |
Net asset value, end of period | $14.68 | $12.97 | $16.17 | $13.50 | $16.67 | $13.78 |
Total Return (%)b | 15.06 * | (12.41) | 32.49 | (10.71) | 22.45 c | (4.62) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 4 | 3 | 4 | 3 | 4 | 4 |
Ratio of expenses before expense reductions (%)d | 1.10 ** | 1.16 | 1.16 | 1.16 | 1.15 | 1.13 |
Ratio of expenses after expense reductions (%)d | 1.02 ** | 1.00 | 1.02 | 1.04 | 1.03 | 1.05 |
Ratio of net investment income (%) | 1.55 ** | 1.96 | 1.82 | 1.55 | 1.31 | 1.37 |
Portfolio turnover rate (%) | 36 * | 122 | 111 | 100 | 97 | 293 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | The Fund’s total return includes a reimbursement by the Adviser for commission costs incurred in connection with purchases and sales of portfolio assets due to the change in investment strategy, which otherwise would have reduced total return by 0.03%. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 11 |
Notes to Financial Statements | (Unaudited) |
A. Organization and Significant Accounting Policies |
12 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 13 |
B. | Purchases and Sales of Securities |
C. | Related Parties |
First $250 million | .600% |
Next $750 million | .575% |
Next $1.5 billion | .550% |
Next $2.5 billion | .525% |
Next $2.5 billion | .500% |
Next $2.5 billion | .475% |
Next $2.5 billion | .450% |
Over $12.5 billion | .425% |
Class A | .69% |
Class B | 1.00% |
14 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Class A | .75% | |
Class B | 1.06% |
Class A | $ 50,267 |
Class B | 1,381 |
$ 51,648 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 239 | $ 72 |
Class B | 144 | 45 |
$ 383 | $ 117 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | �� | 15 |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
16 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,152.40 | $ 1,150.60 |
Expenses Paid per $1,000* | $ 3.79 | $ 5.44 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,021.27 | $ 1,019.74 |
Expenses Paid per $1,000* | $ 3.56 | $ 5.11 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | .71% | 1.02% |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 17 |
18 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 21 |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Managerl |
5 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
11 | Notes to Financial Statements |
16 | Information About Your Fund's Expenses |
17 | Liquidity Risk Management |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS Global Equity VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $11,027 | $13,455 | $16,545 | $21,255 | $25,516 | |
Average annual total return | 10.27% | 34.55% | 18.27% | 16.28% | 9.82% | ||
MSCI All Country World Index | Growth of $10,000 | $11,230 | $13,926 | $15,037 | $19,778 | $25,700 | |
Average annual total return | 12.30% | 39.26% | 14.57% | 14.61% | 9.90% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 99% | 99% |
Cash Equivalents | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Information Technology | 28% | 27% |
Financials | 15% | 15% |
Health Care | 14% | 17% |
Consumer Discretionary | 12% | 11% |
Communication Services | 11% | 11% |
Industrials | 10% | 8% |
Consumer Staples | 5% | 7% |
Materials | 4% | 3% |
Energy | 1% | 1% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
United States | 57% | 57% |
China | 6% | 7% |
Germany | 5% | 6% |
Switzerland | 5% | 5% |
Canada | 5% | 5% |
France | 5% | 3% |
Japan | 3% | 4% |
United Kingdom | 3% | 3% |
Ireland | 3% | 3% |
Argentina | 3% | 2% |
Sweden | 2% | 2% |
Other | 3% | 3% |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 99.0% | |||
Argentina 2.6% | |||
Globant SA* | 3,170 | 694,800 | |
MercadoLibre, Inc.* | 125 | 194,724 | |
(Cost $426,871) | 889,524 | ||
Brazil 0.9% | |||
Pagseguro Digital Ltd. "A"* (Cost $222,301) | 5,800 | 324,336 | |
Canada 5.0% | |||
Agnico Eagle Mines Ltd. | 4,650 | 281,092 | |
Alimentation Couche-Tard, Inc. "B" | 7,100 | 260,895 | |
Brookfield Asset Management Reinsurance Partners Ltd. "A"* | 157 | 8,296 | |
Brookfield Asset Management, Inc. "A" | 22,840 | 1,165,216 | |
(Cost $602,581) | 1,715,499 | ||
China 5.7% | |||
Alibaba Group Holding Ltd. (ADR)* | 2,400 | 544,272 | |
New Oriental Education & Technology Group, Inc. (ADR)* | 16,600 | 135,954 | |
Ping An Insurance (Group) Co. of China Ltd. "H" | 41,500 | 406,485 | |
Tencent Holdings Ltd. | 11,200 | 842,420 | |
(Cost $1,131,500) | 1,929,131 | ||
Denmark 0.2% | |||
Ambu A/S "B" (Cost $80,154) | 2,000 | 76,891 | |
France 4.7% | |||
Arkema SA | 2,500 | 313,631 | |
Cie de Saint-Gobain | 5,400 | 355,625 | |
LVMH Moet Hennessy Louis Vuitton SE | 275 | 215,638 | |
Schneider Electric SE | 971 | 152,763 | |
TotalEnergies SE | 4,000 | 180,969 | |
VINCI SA | 3,450 | 368,134 | |
(Cost $1,294,608) | 1,586,760 | ||
Germany 5.4% | |||
adidas AG | 485 | 180,521 | |
Allianz SE (Registered) | 1,900 | 473,790 | |
Deutsche Boerse AG | 3,650 | 637,080 | |
Evonik Industries AG | 9,400 | 315,210 | |
Fresenius Medical Care AG & Co. KGaA | 2,870 | 238,353 | |
(Cost $1,395,712) | 1,844,954 | ||
Ireland 2.7% | |||
Experian PLC | 11,041 | 425,506 | |
Kerry Group PLC "A" (a) | 3,451 | 482,040 | |
Kerry Group PLC "A" (a) | 49 | 6,804 | |
(Cost $484,487) | 914,350 |
Shares | Value ($) | ||
Israel 0.7% | |||
Kornit Digital Ltd.* (Cost $162,162) | 1,800 | 223,794 | |
Japan 3.0% | |||
Kao Corp. | 2,800 | 172,267 | |
Keyence Corp. | 1,200 | 605,644 | |
SMC Corp. | 435 | 257,057 | |
(Cost $691,433) | 1,034,968 | ||
Luxembourg 0.8% | |||
Eurofins Scientific SE* (Cost $50,255) | 2,330 | 266,334 | |
Singapore 1.0% | |||
DBS Group Holdings Ltd. (Cost $279,300) | 15,200 | 336,961 | |
Sweden 1.8% | |||
Assa Abloy AB "B" | 6,700 | 201,827 | |
Spotify Technology SA* (b) | 1,445 | 398,228 | |
(Cost $343,592) | 600,055 | ||
Switzerland 5.1% | |||
Lonza Group AG (Registered) | 1,524 | 1,080,183 | |
Nestle SA (Registered) | 5,185 | 645,680 | |
(Cost $404,923) | 1,725,863 | ||
United Kingdom 2.8% | |||
Aon PLC "A" (b) | 1,500 | 358,140 | |
Halma PLC | 7,500 | 279,288 | |
Spirax-Sarco Engineering PLC | 1,750 | 329,589 | |
(Cost $282,015) | 967,017 | ||
United States 56.6% | |||
1stdibs.com, Inc.* | 5,000 | 174,050 | |
Activision Blizzard, Inc. | 3,400 | 324,496 | |
Alphabet, Inc. "A"* | 450 | 1,098,805 | |
Amazon.com, Inc.* | 185 | 636,430 | |
AMETEK, Inc. | 4,195 | 560,032 | |
Amphenol Corp. "A" | 11,200 | 766,192 | |
Apple, Inc. | 4,620 | 632,755 | |
Applied Materials, Inc. | 5,100 | 726,240 | |
AZEK Co., Inc.* | 5,350 | 227,161 | |
Certara, Inc.* | 4,400 | 124,652 | |
Danaher Corp. | 4,980 | 1,336,433 | |
DexCom, Inc.* | 920 | 392,840 | |
Ecolab, Inc. | 2,280 | 469,612 | |
EPAM Systems, Inc.* | 1,350 | 689,796 | |
Exact Sciences Corp.* | 2,005 | 249,242 | |
Fiserv, Inc.* | 4,400 | 470,316 | |
Generac Holdings, Inc.* | 710 | 294,756 | |
Hologic, Inc.* | 3,500 | 233,520 | |
Intuit, Inc. | 1,050 | 514,678 | |
iRhythm Technologies, Inc.* | 810 | 53,744 | |
JPMorgan Chase & Co. | 4,550 | 707,707 | |
MasterCard, Inc. "A" | 1,740 | 635,257 |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 5 |
Shares | Value ($) | ||
Match Group, Inc.* | 2,820 | 454,725 | |
McDonald's Corp. | 1,800 | 415,782 | |
Microsoft Corp. | 4,290 | 1,162,161 | |
Mondelez International, Inc. "A" | 4,270 | 266,619 | |
NVIDIA Corp. | 1,130 | 904,113 | |
Progressive Corp. | 8,611 | 845,686 | |
Quidel Corp.* | 955 | 122,355 | |
RingCentral, Inc. "A"* | 690 | 200,500 | |
Schlumberger NV | 6,700 | 214,467 | |
ServiceNow, Inc.* | 1,375 | 755,631 | |
Terminix Global Holdings, Inc.* | 8,100 | 386,451 | |
TJX Companies, Inc. | 3,631 | 244,802 | |
T-Mobile U.S., Inc.* | 3,500 | 506,905 | |
Vroom, Inc.* | 5,200 | 217,672 | |
YETI Holdings, Inc.* | 6,800 | 624,376 | |
Zoetis, Inc. | 3,260 | 607,534 | |
(Cost $7,991,772) | 19,248,493 | ||
Total Common Stocks (Cost $15,843,666) | 33,684,930 |
Shares | Value ($) | ||
Cash Equivalents 1.0% | |||
DWS Central Cash Management Government Fund, 0.02% (c) (Cost $358,046) | 358,046 | 358,046 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $16,201,712) | 100.0 | 34,042,976 | |
Other Assets and Liabilities, Net | (0.0) | (10,934) | |
Net Assets | 100.0 | 34,032,042 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (c) (d) | ||||||||
117,216 | — | 117,216 (e) | — | — | 1,390 | — | — | — |
Cash Equivalents 1.1% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (c) | ||||||||
302,262 | 2,886,064 | 2,830,280 | — | — | 48 | — | 358,046 | 358,046 |
419,478 | 2,886,064 | 2,947,496 | — | — | 1,438 | — | 358,046 | 358,046 |
* | Non-income producing security. |
(a) | Securities with the same description are the same corporate entity but trade on different stock exchanges. |
(b) | Listed on the New York Stock Exchange. |
(c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
ADR: American Depositary Receipt |
6 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Argentina | $ 889,524 | $ — | $ — | $ 889,524 |
Brazil | 324,336 | — | — | 324,336 |
Canada | 1,715,499 | — | — | 1,715,499 |
China | 1,929,131 | — | — | 1,929,131 |
Denmark | 76,891 | — | — | 76,891 |
France | 1,586,760 | — | — | 1,586,760 |
Germany | 1,844,954 | — | — | 1,844,954 |
Ireland | 914,350 | — | — | 914,350 |
Israel | 223,794 | — | — | 223,794 |
Japan | 1,034,968 | — | — | 1,034,968 |
Luxembourg | 266,334 | — | — | 266,334 |
Singapore | 336,961 | — | — | 336,961 |
Sweden | 600,055 | — | — | 600,055 |
Switzerland | 1,725,863 | — | — | 1,725,863 |
United Kingdom | 967,017 | — | — | 967,017 |
United States | 19,248,493 | — | — | 19,248,493 |
Short-Term Investments | 358,046 | — | — | 358,046 |
Total | $34,042,976 | $ — | $ — | $34,042,976 |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 7 |
Assets | |
Investments in non-affiliated securities, at value (cost $15,843,666) | $ 33,684,930 |
Investment in DWS Central Cash Management Government Fund (cost $358,046) | 358,046 |
Foreign currency, at value (cost $30,058) | 28,874 |
Receivable for Fund shares sold | 64 |
Dividends receivable | 22,314 |
Interest receivable | 45 |
Foreign taxes recoverable | 16,650 |
Other assets | 273 |
Total assets | 34,111,196 |
Liabilities | |
Payable for investments purchased | 8,768 |
Payable for Fund shares redeemed | 16,023 |
Accrued management fee | 9,776 |
Accrued Trustees' fees | 156 |
Other accrued expenses and payables | 44,431 |
Total liabilities | 79,154 |
Net assets, at value | $ 34,032,042 |
Net Assets Consist of | |
Distributable earnings (loss) | 19,100,309 |
Paid-in capital | 14,931,733 |
Net assets, at value | $ 34,032,042 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($34,032,042 ÷ 2,105,249 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 16.17 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $19,424) | $ 230,918 |
Income distributions — DWS Central Cash Management Government Fund | 48 |
Securities lending income, net of borrower rebates | 1,390 |
Total income | 232,356 |
Expenses: | |
Management fee | 105,176 |
Administration fee | 15,695 |
Services to shareholders | 88 |
Custodian fee | 3,318 |
Professional fees | 36,109 |
Reports to shareholders | 12,821 |
Trustees' fees and expenses | 1,598 |
Other | 4,850 |
Total expenses before expense reductions | 179,655 |
Expense reductions | (43,181) |
Total expenses after expense reductions | 136,474 |
Net investment income | 95,882 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 1,240,398 |
Foreign currency | 2,772 |
1,243,170 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 1,881,086 |
Foreign currency | (3,911) |
1,877,175 | |
Net gain (loss) | 3,120,345 |
Net increase (decrease) in net assets resulting from operations | $3,216,227 |
8 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 95,882 | $ 108,295 |
Net realized gain (loss) | 1,243,170 | 1,394,668 |
Change in net unrealized appreciation (depreciation) | 1,877,175 | 4,807,712 |
Net increase (decrease) in net assets resulting from operations | 3,216,227 | 6,310,675 |
Distributions to shareholders: | ||
Class A | (1,500,691) | (1,173,276) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 717,605 | 850,800 |
Reinvestment of distributions | 1,500,691 | 1,173,276 |
Payments for shares redeemed | (1,846,243) | (5,118,359) |
Net increase (decrease) in net assets from Class A share transactions | 372,053 | (3,094,283) |
Increase (decrease) in net assets | 2,087,589 | 2,043,116 |
Net assets at beginning of period | 31,944,453 | 29,901,337 |
Net assets at end of period | $34,032,042 | $31,944,453 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 2,081,012 | 2,310,277 |
Shares sold | 45,918 | 63,092 |
Shares issued to shareholders in reinvestment of distributions | 95,101 | 107,739 |
Shares redeemed | (116,782) | (400,096) |
Net increase (decrease) in Class A shares | 24,237 | (229,265) |
Shares outstanding at end of period | 2,105,249 | 2,081,012 |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 9 |
DWS Global Equity VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $15.35 | $12.94 | $10.32 | $11.70 | $9.48 | $9.00 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .05 | .05 | .08 | .06 | .05 | .04 |
Net realized and unrealized gain (loss) | 1.50 | 2.90 | 3.55 | (1.35) | 2.22 | .51 |
Total from investment operations | 1.55 | 2.95 | 3.63 | (1.29) | 2.27 | .55 |
Less distributions from: | ||||||
Net investment income | (.05) | (.09) | (.06) | (.09) | (.05) | (.07) |
Net realized gains | (.68) | (.45) | (.95) | — | — | — |
Total distributions | (.73) | (.54) | (1.01) | (.09) | (.05) | (.07) |
Net asset value, end of period | $16.17 | $15.35 | $12.94 | $10.32 | $11.70 | $9.48 |
Total Return (%)b | 10.27 * | 24.52 | 36.26 | (11.12) | 24.04 | 6.11 c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 34 | 32 | 30 | 25 | 31 | 43 |
Ratio of expenses before expense reductions (%)d | 1.11 ** | 1.16 | 1.22 | 1.22 | 1.06 | 1.03 |
Ratio of expenses after expense reductions (%)d | .84 ** | .84 | .88 | .92 | .95 | .95 |
Ratio of net investment income (%) | .59 ** | .38 | .69 | .51 | .49 | .49 |
Portfolio turnover rate (%) | 9 * | 13 | 12 | 43 | 19 | 46 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Includes a reimbursement by the Advisor for a realized loss on a trade executed incorrectly, which otherwise would have reduced total return by 0.31%. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 11 |
12 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
B. | Purchases and Sales of Securities |
C. | Related Parties |
First $1.5 billion | .650% |
Next $1.75 billion | .635% |
Next $1.75 billion | .620% |
Over $5 billion | .605% |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 13 |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
14 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
G. | Fund Liquidation |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 15 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,102.70 |
Expenses Paid per $1,000* | $ 4.38 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,020.63 |
Expenses Paid per $1,000* | $ 4.21 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Global Equity VIP | .84% |
16 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 17 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
18 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
Deutsche DWS Variable Series II —DWS Global Equity VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS Global Equity VIP |
3 | Performance Summary |
5 | Portfolio Summary |
6 | Portfolio Management Team |
7 | Investment Portfolio |
20 | Statement of Assets and Liabilities |
21 | Statement of Operations |
22 | Statements of Changes in Net Assets |
23 | Financial Highlights |
25 | Notes to Financial Statements |
34 | Information About Your Fund's Expenses |
35 | Liquidity Risk Management |
35 | Proxy Voting |
36 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS Global Income Builder VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,805 | $12,438 | $13,234 | $15,655 | $20,728 | |
Average annual total return | 8.05% | 24.38% | 9.79% | 9.38% | 7.56% | ||
MSCI All Country World Index | Growth of $10,000 | $11,230 | $13,926 | $15,037 | $19,778 | $25,700 | |
Average annual total return | 12.30% | 39.26% | 14.57% | 14.61% | 9.90% | ||
Blended Index 60/40 | Growth of $10,000 | $10,679 | $12,276 | $13,821 | $16,363 | $21,002 | |
Average annual total return | 6.79% | 22.76% | 11.39% | 10.35% | 7.70% | ||
Bloomberg U.S. Universal Index | Growth of $10,000 | $9,885 | $10,112 | $11,790 | $11,864 | $14,443 | |
Average annual total return | –1.15% | 1.12% | 5.64% | 3.48% | 3.74% |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 3 |
Comparative Results | ||||||
DWS Global Income Builder VIP | 6-Month ‡ | 1-Year | 3-Year | Life of Class* | ||
Class B | Growth of $10,000 | $10,791 | $12,397 | $13,141 | $13,141 | |
Average annual total return | 7.91% | 23.97% | 9.53% | 9.01% | ||
MSCI All Country World Index | Growth of $10,000 | $11,230 | $13,926 | $15,037 | $14,975 | |
Average annual total return | 12.30% | 39.26% | 14.57% | 13.60% | ||
Blended Index 60/40 | Growth of $10,000 | $10,679 | $12,276 | $13,821 | $13,811 | |
Average annual total return | 6.79% | 22.76% | 11.39% | 12.46% | ||
Bloomberg U.S. Universal Index | Growth of $10,000 | $9,885 | $10,112 | $11,790 | $11,837 | |
Average annual total return | –1.15% | 1.12% | 5.64% | 5.47% | ||
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Equity | 62% | 61% |
Common Stocks | 58% | 57% |
Preferred Stocks | 4% | 4% |
Warrants | 0% | 0% |
Fixed Income | 34% | 37% |
Corporate Bonds | 21% | 15% |
Exchange-Traded Funds | 3% | 3% |
Asset-Backed | 3% | 5% |
Collateralized Mortgage Obligations | 2% | 3% |
Commercial Mortgage-Backed Securities | 2% | 4% |
Short-Term U.S. Treasury Obligations | 2% | 2% |
Government & Agency Obligations | 1% | 1% |
Mortgage-Backed Securities Pass-Throughs | 0% | 4% |
Cash Equivalents | 4% | 2% |
Cash Equivalents | 4% | 2% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Warrants and Corporate Bonds) | 6/30/21 | 12/31/20 |
Financials | 21% | 19% |
Information Technology | 20% | 20% |
Communication Services | 11% | 10% |
Health Care | 9% | 9% |
Consumer Discretionary | 8% | 9% |
Industrials | 7% | 7% |
Energy | 6% | 5% |
Utilities | 5% | 6% |
Consumer Staples | 5% | 6% |
Materials | 4% | 5% |
Real Estate | 4% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
United States | 60% | 63% |
Japan | 5% | 5% |
Canada | 4% | 3% |
United Kingdom | 4% | 3% |
Switzerland | 4% | 3% |
Germany | 2% | 2% |
France | 2% | 1% |
Cayman Islands | 2% | 1% |
Australia | 2% | 2% |
Ireland | 1% | 2% |
Hong Kong | 1% | 2% |
Other | 13% | 13% |
100% | 100% |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 5 |
6 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 58.0% | |||
Communication Services 6.0% | |||
Diversified Telecommunication Services 2.6% | |||
AT&T, Inc. | 17,174 | 494,268 | |
BCE, Inc. | 7,650 | 377,254 | |
Deutsche Telekom AG (Registered) | 13,284 | 280,566 | |
Elisa Oyj | 2,892 | 172,557 | |
Koninklijke KPN NV | 51,092 | 159,574 | |
Lumen Technologies, Inc. | 11,300 | 153,567 | |
Nippon Telegraph & Telephone Corp. | 9,646 | 251,320 | |
Orange SA | 12,842 | 146,411 | |
Swisscom AG (Registered) | 288 | 164,411 | |
Telenor ASA | 12,421 | 209,321 | |
Telia Co. AB | 57,712 | 256,120 | |
Telstra Corp., Ltd. | 68,414 | 192,915 | |
TELUS Corp. | 7,878 | 176,677 | |
Verizon Communications, Inc. | 6,194 | 347,050 | |
3,382,011 | |||
Entertainment 0.6% | |||
Activision Blizzard, Inc. | 1,136 | 108,420 | |
Netflix, Inc.* | 400 | 211,284 | |
Nintendo Co., Ltd. | 356 | 207,072 | |
Sea Ltd. (ADR)* | 900 | 247,140 | |
773,916 | |||
Interactive Media & Services 1.8% | |||
Alphabet, Inc. "A"* | 100 | 244,179 | |
Alphabet, Inc. "C"* | 100 | 250,632 | |
Facebook, Inc. "A"* | 1,300 | 452,023 | |
Match Group, Inc.* | 1,500 | 241,875 | |
Pinterest, Inc. "A"* | 2,200 | 173,690 | |
Snap, Inc. "A"* | 3,100 | 211,234 | |
Tencent Holdings Ltd. (ADR) (a) | 3,800 | 286,140 | |
Twitter, Inc.* | 3,700 | 254,597 | |
Zillow Group, Inc. "A"* | 900 | 110,277 | |
Zillow Group, Inc. "C"* | 1,000 | 122,220 | |
2,346,867 | |||
Media 0.4% | |||
Comcast Corp. "A" | 5,338 | 304,373 | |
Interpublic Group of Companies, Inc. | 6,392 | 207,676 | |
512,049 | |||
Wireless Telecommunication Services 0.6% | |||
KDDI Corp. | 6,341 | 197,773 | |
SoftBank Corp. | 24,401 | 319,248 | |
Vodafone Group PLC | 189,190 | 317,554 | |
834,575 |
Shares | Value ($) | ||
Consumer Discretionary 4.6% | |||
Auto Components 0.2% | |||
Denso Corp. | 3,652 | 249,143 | |
Automobiles 0.8% | |||
Bayerische Motoren Werke AG | 1,742 | 184,476 | |
Tesla, Inc.* | 831 | 564,831 | |
Toyota Motor Corp. | 2,938 | 256,789 | |
1,006,096 | |||
Hotels, Restaurants & Leisure 0.7% | |||
Evolution AB 144A | 1,476 | 233,246 | |
McDonald's Corp. | 610 | 140,904 | |
Restaurant Brands International, Inc. | 1,712 | 110,308 | |
Starbucks Corp. | 2,289 | 255,933 | |
Yum! Brands, Inc. | 1,051 | 120,896 | |
861,287 | |||
Household Durables 0.3% | |||
Garmin Ltd. | 1,042 | 150,715 | |
Persimmon PLC | 4,417 | 180,735 | |
Sekisui House Ltd. | 6,426 | 131,794 | |
463,244 | |||
Internet & Direct Marketing Retail 1.5% | |||
Amazon.com, Inc.* | 528 | 1,816,404 | |
Delivery Hero SE 144A* | 989 | 130,640 | |
1,947,044 | |||
Multiline Retail 0.4% | |||
Target Corp. | 1,241 | 299,999 | |
Wesfarmers Ltd. | 4,953 | 219,527 | |
519,526 | |||
Specialty Retail 0.7% | |||
Best Buy Co., Inc. | 1,375 | 158,097 | |
Chow Tai Fook Jewellery Group, Ltd. | 109,200 | 249,502 | |
Home Depot, Inc. | 1,112 | 354,606 | |
Lowe's Companies, Inc. | 1,039 | 201,535 | |
963,740 | |||
Consumer Staples 3.7% | |||
Beverages 0.5% | |||
Coca-Cola Co. | 6,482 | 350,741 | |
PepsiCo, Inc. | 2,306 | 341,680 | |
692,421 | |||
Food & Staples Retailing 0.7% | |||
Endeavour Group Ltd.* | 5,011 | 23,638 | |
Koninklijke Ahold Delhaize NV | 5,782 | 171,880 | |
Tesco PLC | 53,931 | 166,327 | |
Walgreens Boots Alliance, Inc. | 4,120 | 216,753 | |
Walmart, Inc. | 1,543 | 217,594 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 7 |
Shares | Value ($) | ||
Woolworths Group Ltd. | 5,011 | 143,292 | |
939,484 | |||
Food Products 0.9% | |||
General Mills, Inc. | 2,662 | 162,196 | |
Kellogg Co. | 2,170 | 139,596 | |
Kraft Heinz Co. | 5,680 | 231,630 | |
Nestle SA (Registered) | 2,656 | 330,748 | |
WH Group Ltd. 144A | 161,731 | 145,394 | |
Wilmar International Ltd. | 53,339 | 178,497 | |
1,188,061 | |||
Household Products 0.6% | |||
Colgate-Palmolive Co. | 1,255 | 102,095 | |
Kimberly-Clark Corp. | 1,055 | 141,138 | |
Procter & Gamble Co. | 2,540 | 342,722 | |
Reckitt Benckiser Group PLC | 1,930 | 170,785 | |
756,740 | |||
Personal Products 0.2% | |||
Unilever PLC | 5,270 | 308,439 | |
Tobacco 0.8% | |||
Altria Group, Inc. | 5,300 | 252,704 | |
Japan Tobacco, Inc. | 15,200 | 287,117 | |
Philip Morris International, Inc. | 4,502 | 446,193 | |
986,014 | |||
Energy 2.1% | |||
Oil, Gas & Consumable Fuels | |||
Canadian Natural Resources Ltd. | 6,200 | 225,073 | |
Chevron Corp. | 1,953 | 204,557 | |
Enbridge, Inc. | 8,200 | 328,304 | |
ENEOS Holdings, Inc. | 36,285 | 151,842 | |
Eni SpA | 15,336 | 186,757 | |
Exxon Mobil Corp. | 5,000 | 315,400 | |
Kinder Morgan, Inc. | 15,100 | 275,273 | |
ONEOK, Inc. | 3,400 | 189,176 | |
Repsol SA (a) | 14,567 | 182,297 | |
TC Energy Corp. | 5,595 | 276,861 | |
Thungela Resources Ltd.* | 345 | 950 | |
TotalEnergies SE | 8,451 | 382,343 | |
2,718,833 | |||
Financials 9.0% | |||
Banks 4.4% | |||
Banco Bilbao Vizcaya Argentaria SA* | 23,677 | 146,776 | |
Bank of Montreal | 2,784 | 285,362 | |
Bank of Nova Scotia | 3,715 | 241,613 | |
BOC Hong Kong Holdings Ltd. | 79,663 | 270,355 | |
Canadian Imperial Bank of Commerce | 1,720 | 195,796 | |
Citizens Financial Group, Inc. | 3,046 | 139,720 | |
Commonwealth Bank of Australia | 2,509 | 187,918 |
Shares | Value ($) | ||
Credit Agricole SA | 15,850 | 222,034 | |
DBS Group Holdings Ltd. | 12,132 | 268,949 | |
Fifth Third Bancorp. | 4,000 | 152,920 | |
Hang Seng Bank Ltd. | 10,494 | 209,629 | |
HSBC Holdings PLC | 29,323 | 169,267 | |
Huntington Bancshares, Inc. | 10,476 | 149,493 | |
JPMorgan Chase & Co. | 1,045 | 162,539 | |
KeyCorp. | 10,714 | 221,244 | |
Mitsubishi UFJ Financial Group, Inc. | 48,214 | 260,437 | |
Mizuho Financial Group, Inc. | 14,235 | 203,412 | |
Oversea-Chinese Banking Corp., Ltd. | 26,467 | 235,205 | |
PNC Financial Services Group, Inc. | 899 | 171,493 | |
Regions Financial Corp. | 11,494 | 231,949 | |
Royal Bank of Canada | 3,570 | 361,694 | |
Sumitomo Mitsui Financial Group, Inc. | 6,673 | 230,052 | |
Toronto-Dominion Bank | 5,210 | 365,112 | |
Truist Financial Corp. | 2,880 | 159,840 | |
U.S. Bancorp. | 4,120 | 234,716 | |
United Overseas Bank Ltd. | 14,182 | 272,313 | |
5,749,838 | |||
Capital Markets 1.6% | |||
3i Group PLC | 8,136 | 132,016 | |
Apollo Global Management, Inc. | 5,056 | 314,483 | |
BlackRock, Inc. | 237 | 207,368 | |
Blackstone Group, Inc. "A" | 4,633 | 450,050 | |
Franklin Resources., Inc. | 5,818 | 186,118 | |
Hong Kong Exchanges & Clearing Ltd. | 2,001 | 119,272 | |
Partners Group Holding AG | 195 | 295,371 | |
T. Rowe Price Group, Inc. | 1,255 | 248,452 | |
UBS Group AG (Registered) | 12,198 | 186,678 | |
2,139,808 | |||
Diversified Financial Services 0.3% | |||
M&G PLC | 50,946 | 161,314 | |
ORIX Corp. | 11,239 | 189,635 | |
350,949 | |||
Insurance 2.7% | |||
Allianz SE (Registered) | 1,217 | 303,475 | |
Assicurazioni Generali Spa | 8,050 | 161,363 | |
AXA SA | 7,591 | 192,487 | |
Dai-ichi Life Holdings, Inc. | 8,200 | 150,131 | |
Fidelity National Financial, Inc. | 2,970 | 129,076 | |
Legal & General Group PLC | 60,019 | 213,871 | |
Manulife Financial Corp. | 14,107 | 277,679 | |
MS&AD Insurance Group Holdings, Inc. | 3,798 | 109,672 | |
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | 496 | 135,829 | |
NN Group NV | 3,990 | 188,205 |
8 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Shares | Value ($) | ||
Poste Italiane SpA 144A | 15,326 | 202,627 | |
Progressive Corp. | 2,600 | 255,346 | |
Prudential Financial, Inc. | 3,064 | 313,968 | |
Sampo Oyj "A" | 3,381 | 155,390 | |
Sompo Holdings, Inc. | 2,882 | 106,517 | |
Swiss Re AG | 3,903 | 352,145 | |
Zurich Insurance Group AG | 818 | 328,172 | |
3,575,953 | |||
Health Care 5.8% | |||
Biotechnology 1.0% | |||
AbbVie, Inc. | 3,960 | 446,054 | |
Amgen, Inc. | 1,292 | 314,925 | |
Gilead Sciences, Inc. | 4,626 | 318,546 | |
Seagen, Inc.* | 1,700 | 268,396 | |
1,347,921 | |||
Health Care Equipment & Supplies 0.5% | |||
Abbott Laboratories | 2,558 | 296,549 | |
Coloplast AS "B" | 600 | 98,449 | |
Medtronic PLC | 2,289 | 284,134 | |
679,132 | |||
Health Care Providers & Services 0.6% | |||
Cardinal Health, Inc. | 2,923 | 166,874 | |
CVS Health Corp. | 3,069 | 256,077 | |
UnitedHealth Group, Inc. | 794 | 317,950 | |
740,901 | |||
Health Care Technology 0.1% | |||
M3, Inc. | 1,814 | 132,472 | |
Pharmaceuticals 3.6% | |||
Astellas Pharma, Inc. | 8,510 | 148,185 | |
AstraZeneca PLC | 2,318 | 278,420 | |
Bayer AG (Registered) | 4,345 | 263,838 | |
Bristol-Myers Squibb Co. | 4,739 | 316,660 | |
Chugai Pharmaceutical Co., Ltd. | 4,917 | 194,830 | |
Eli Lilly & Co. | 1,679 | 385,364 | |
GlaxoSmithKline PLC | 13,428 | 263,653 | |
Johnson & Johnson | 2,456 | 404,601 | |
Merck & Co., Inc. | 4,586 | 356,653 | |
Novartis AG (Registered) | 4,179 | 380,841 | |
Novo Nordisk AS "B" | 2,903 | 243,211 | |
Organon & Co.* | 458 | 13,859 | |
Pfizer, Inc. | 11,067 | 433,384 | |
Roche Holding AG | 1,635 | 630,351 | |
Sanofi | 2,447 | 256,379 | |
Takeda Pharmaceutical Co., Ltd. | 5,273 | 176,518 | |
4,746,747 | |||
Industrials 4.2% | |||
Aerospace & Defense 0.4% | |||
BAE Systems PLC | 31,578 | 228,019 | |
Lockheed Martin Corp. | 400 | 151,340 |
Shares | Value ($) | ||
Raytheon Technologies Corp. | 2,015 | 171,900 | |
551,259 | |||
Air Freight & Logistics 0.7% | |||
Deutsche Post AG (Registered) | 4,510 | 306,746 | |
FedEx Corp. | 729 | 217,482 | |
United Parcel Service, Inc. "B" | 1,702 | 353,965 | |
878,193 | |||
Building Products 0.2% | |||
Xinyi Glass Holdings Ltd. | 50,525 | 205,958 | |
Commercial Services & Supplies 0.0% | |||
Quad Graphics, Inc.* | 2 | 8 | |
Construction & Engineering 0.1% | |||
Bouygues SA | 3,822 | 141,351 | |
Electrical Equipment 0.5% | |||
ABB Ltd. (Registered) | 6,375 | 216,278 | |
Eaton Corp. PLC | 1,716 | 254,277 | |
Emerson Electric Co. | 1,726 | 166,110 | |
636,665 | |||
Industrial Conglomerates 0.8% | |||
3M Co. | 1,104 | 219,287 | |
CK Hutchison Holdings Ltd. | 31,960 | 249,035 | |
Honeywell International, Inc. | 899 | 197,196 | |
Jardine Matheson Holdings Ltd. | 2,426 | 155,070 | |
Siemens AG (Registered) | 1,348 | 213,577 | |
1,034,165 | |||
Machinery 0.3% | |||
Cummins, Inc. | 579 | 141,166 | |
Kone Oyj "B" | 1,250 | 101,975 | |
Techtronic Industries Co., Ltd. | 11,000 | 192,110 | |
435,251 | |||
Professional Services 0.2% | |||
Adecco Group AG (Registered) | 2,497 | 169,642 | |
Thomson Reuters Corp. | 1,373 | 136,381 | |
306,023 | |||
Road & Rail 0.2% | |||
Union Pacific Corp. | 941 | 206,954 | |
Trading Companies & Distributors 0.8% | |||
Fastenal Co. | 2,018 | 104,936 | |
ITOCHU Corp. | 6,571 | 189,272 | |
Marubeni Corp. | 17,100 | 148,704 | |
Mitsubishi Corp. | 9,109 | 248,274 | |
Mitsui & Co., Ltd. | 9,405 | 211,686 | |
Sumitomo Corp. | 14,738 | 197,400 | |
1,100,272 | |||
Information Technology 15.2% | |||
Communications Equipment 0.4% | |||
Cisco Systems, Inc. | 7,924 | 419,972 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
Telefonaktiebolaget LM Ericsson "B" | 11,725 | 147,362 | |
567,334 | |||
Electronic Equipment, Instruments & Components 0.5% | |||
Azbil Corp. | 2,475 | 102,591 | |
Corning, Inc. | 4,805 | 196,525 | |
Murata Manufacturing Co., Ltd. | 2,848 | 217,442 | |
TE Connectivity Ltd. | 1,499 | 202,680 | |
719,238 | |||
IT Services 3.2% | |||
Accenture PLC "A" | 1,110 | 327,217 | |
Adyen NV 144A* | 63 | 153,924 | |
Afterpay Ltd.* | 1,980 | 175,471 | |
Automatic Data Processing, Inc. | 1,141 | 226,625 | |
Broadridge Financial Solutions, Inc. | 698 | 112,748 | |
Fujitsu Ltd. | 1,239 | 231,975 | |
Infosys Ltd. (ADR) | 11,300 | 239,447 | |
International Business Machines Corp. | 3,102 | 454,722 | |
MasterCard, Inc. "A" | 576 | 210,292 | |
MongoDB, Inc.* | 700 | 253,064 | |
Paychex, Inc. | 2,595 | 278,444 | |
PayPal Holdings, Inc.* | 965 | 281,278 | |
Shopify, Inc. "A"* | 300 | 438,739 | |
Square, Inc. "A"* | 1,958 | 477,360 | |
Twilio, Inc. "A"* | 507 | 199,839 | |
Western Union Co. | 3,964 | 91,053 | |
4,152,198 | |||
Semiconductors & Semiconductor Equipment 3.8% | |||
Advanced Micro Devices, Inc.* | 3,400 | 319,362 | |
Analog Devices, Inc. | 1,144 | 196,951 | |
Applied Materials, Inc. | 1,509 | 214,882 | |
Broadcom, Inc. | 1,149 | 547,889 | |
Enphase Energy, Inc.* | 1,255 | 230,456 | |
Intel Corp. | 4,471 | 251,002 | |
KLA Corp. | 879 | 284,980 | |
Lam Research Corp. | 456 | 296,719 | |
Lasertec Corp. | 800 | 155,470 | |
Micron Technology, Inc.* | 3,200 | 271,936 | |
Monolithic Power Systems, Inc. | 1,100 | 410,795 | |
NVIDIA Corp. | 462 | 369,646 | |
QUALCOMM, Inc. | 2,984 | 426,503 | |
Skyworks Solutions, Inc. | 712 | 136,526 | |
SolarEdge Technologies, Inc.* | 526 | 145,371 | |
Texas Instruments, Inc. | 2,704 | 519,979 | |
Tokyo Electron Ltd. | 526 | 227,644 | |
5,006,111 |
Shares | Value ($) | ||
Software 3.8% | |||
Adobe, Inc.* | 600 | 351,384 | |
Crowdstrike Holdings, Inc. "A"* | 661 | 166,116 | |
DocuSign, Inc.* | 600 | 167,742 | |
Intuit, Inc. | 530 | 259,790 | |
Microsoft Corp. | 8,266 | 2,239,259 | |
Oracle Corp. | 4,314 | 335,802 | |
salesforce.com, Inc.* | 1,100 | 268,697 | |
SAP SE | 1,025 | 144,438 | |
ServiceNow, Inc.* | 258 | 141,784 | |
Trade Desk, Inc. "A"* | 3,050 | 235,948 | |
Zoom Video Communications, Inc. "A"* | 933 | 361,099 | |
Zscaler, Inc.* | 1,439 | 310,910 | |
4,982,969 | |||
Technology Hardware, Storage & Peripherals 3.5% | |||
Apple, Inc. | 19,309 | 2,644,561 | |
Hewlett Packard Enterprise Co. | 11,453 | 166,985 | |
HP, Inc. | 10,793 | 325,841 | |
Logitech International SA (Registered) | 2,404 | 291,260 | |
NetApp, Inc. | 4,351 | 355,999 | |
Samsung Electronics Co., Ltd. (GDR) (Registered) | 133 | 237,205 | |
Seagate Technology Holdings PLC | 3,512 | 308,810 | |
Seiko Epson Corp. | 10,701 | 188,215 | |
4,518,876 | |||
Materials 3.0% | |||
Chemicals 0.7% | |||
Air Products & Chemicals, Inc. | 488 | 140,388 | |
BASF SE | 2,693 | 212,158 | |
Dow, Inc. | 2,234 | 141,367 | |
Linde PLC | 406 | 117,375 | |
Nutrien Ltd. | 4,770 | 289,024 | |
900,312 | |||
Construction Materials 0.2% | |||
Holcim Ltd.* | 4,879 | 292,661 | |
Containers & Packaging 0.3% | |||
Amcor PLC | 14,993 | 171,820 | |
International Paper Co. | 3,531 | 216,486 | |
388,306 | |||
Metals & Mining 1.7% | |||
Anglo American PLC | 3,457 | 137,365 | |
B2Gold Corp. | 24,769 | 103,904 | |
BHP Group Ltd. | 9,282 | 338,098 | |
BHP Group PLC | 9,669 | 284,890 | |
Rio Tinto Ltd. | 3,558 | 337,916 | |
Rio Tinto PLC | 4,773 | 392,782 | |
Sibanye Stillwater Ltd. (ADR) | 8,000 | 133,840 |
10 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Shares | Value ($) | ||
Vale SA (ADR) | 18,000 | 410,580 | |
2,139,375 | |||
Paper & Forest Products 0.1% | |||
UPM-Kymmene Oyj | 3,791 | 143,396 | |
Real Estate 1.9% | |||
Equity Real Estate Investment Trusts (REITs) 1.8% | |||
Ascendas Real Estate Investment Trust | 38,565 | 84,604 | |
CapitaLand Integrated Commercial Trust | 102,052 | 158,614 | |
Crown Castle International Corp. | 873 | 170,322 | |
Iron Mountain, Inc. | 5,300 | 224,296 | |
Link REIT | 17,140 | 166,118 | |
Medical Properties Trust, Inc. | 12,392 | 249,079 | |
Omega Healthcare Investors, Inc. | 9,300 | 337,497 | |
Prologis, Inc. | 918 | 109,729 | |
Public Storage | 489 | 147,038 | |
Realty Income Corp. | 1,622 | 108,252 | |
VEREIT Inc. | 3,500 | 160,755 | |
VICI Properties, Inc. (a) | 9,162 | 284,205 | |
WP Carey, Inc. | 1,797 | 134,092 | |
2,334,601 | |||
Real Estate Management & Development 0.1% | |||
Sun Hung Kai Properties Ltd. | 11,190 | 166,748 | |
Utilities 2.5% | |||
Electric Utilities 1.8% | |||
American Electric Power Co., Inc. | 1,567 | 132,552 | |
CLP Holdings Ltd. | 10,088 | 99,785 | |
Duke Energy Corp. | 2,082 | 205,535 | |
EDP - Energias de Portugal SA | 35,365 | 187,445 | |
Enel SpA | 27,597 | 256,288 | |
Fortum Oyj | 8,626 | 237,910 | |
Iberdrola SA | 10,567 | 128,807 | |
NextEra Energy, Inc. | 1,958 | 143,482 | |
Power Assets Holdings Ltd. | 27,500 | 168,769 | |
PPL Corp. | 7,235 | 202,363 | |
Red Electrica Corp. SA (a) | 7,536 | 139,890 | |
Southern Co. | 3,469 | 209,909 | |
SSE PLC | 10,427 | 216,427 | |
2,329,162 | |||
Gas Utilities 0.2% | |||
Snam SpA | 34,289 | 198,209 | |
Multi-Utilities 0.5% | |||
Consolidated Edison, Inc. | 1,613 | 115,685 | |
Dominion Energy, Inc. | 2,104 | 154,791 | |
National Grid PLC | 13,358 | 170,147 | |
Public Service Enterprise Group, Inc. | 2,369 | 141,524 |
Shares | Value ($) | ||
Sempra Energy | 959 | 127,048 | |
709,195 | |||
Total Common Stocks (Cost $55,355,414) | 75,958,001 | ||
Preferred Stocks 3.5% | |||
Consumer Discretionary 0.2% | |||
Porsche Automobil Holding SE | 2,563 | 274,611 | |
Financials 1.9% | |||
AGNC Investment Corp., Series C, 7.0% | 14,427 | 389,817 | |
Capital One Financial Corp., Series G, 5.2% | 10,000 | 258,200 | |
Fifth Third Bancorp., Series I, 6.625% | 10,000 | 290,900 | |
KeyCorp., Series E, 6.125% | 10,000 | 305,800 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 295,200 | |
The Goldman Sachs Group, Inc., Series J, 5.5% | 17,000 | 465,800 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 397,200 | |
2,402,917 | |||
Real Estate 0.8% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 388,950 | |
Prologis, Inc., Series Q, 8.54% | 164 | 11,693 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 558,600 | |
VEREIT, Inc., Series F, 6.7% | 5,203 | 131,480 | |
1,090,723 | |||
Utilities 0.6% | |||
Dominion Energy, Inc., Series A, 5.25% | 30,000 | 766,800 | |
Total Preferred Stocks (Cost $4,360,129) | 4,535,051 | ||
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (b) (Cost $30,283) | 170 | 7,304 |
Principal Amount ($) (c) | Value ($) | ||
Corporate Bonds 20.7% | |||
Communication Services 3.2% | |||
Alibaba Group Holding Ltd., 3.4%, 12/6/2027 | 300,000 | 327,814 | |
America Movil SAB de CV, 4.375%, 4/22/2049 | 300,000 | 367,942 | |
AT&T, Inc.: | |||
1.65%, 2/1/2028 | 50,000 | 49,628 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 11 |
Principal Amount ($) (c) | Value ($) | ||
2.25%, 2/1/2032 | 95,000 | 93,239 | |
2.75%, 6/1/2031 | 60,000 | 62,369 | |
3.65%, 6/1/2051 | 100,000 | 103,815 | |
CCO Holdings LLC, 144A, 4.75%, 3/1/2030 | 100,000 | 105,750 | |
Charter Communications Operating LLC: | |||
3.5%, 6/1/2041 | 105,000 | 105,711 | |
3.7%, 4/1/2051 | 140,000 | 138,469 | |
4.4%, 12/1/2061 | 100,000 | 107,449 | |
5.05%, 3/30/2029 | 100,000 | 118,119 | |
CSC Holdings LLC: | |||
144A, 3.375%, 2/15/2031 | 200,000 | 188,982 | |
144A, 4.125%, 12/1/2030 | 200,000 | 198,750 | |
144A, 4.5%, 11/15/2031 | 200,000 | 201,228 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 42,336 | |
Grupo Televisa SAB, 5.25%, 5/24/2049 (a) | 300,000 | 379,358 | |
Netflix, Inc.: | |||
4.375%, 11/15/2026 | 100,000 | 113,722 | |
5.875%, 11/15/2028 | 140,000 | 171,840 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 | 300,000 | 298,883 | |
T-Mobile U.S.A., Inc.: | |||
2.05%, 2/15/2028 | 30,000 | 30,455 | |
2.25%, 11/15/2031 | 115,000 | 113,444 | |
2.625%, 4/15/2026 | 90,000 | 92,025 | |
3.3%, 2/15/2051 | 125,000 | 124,794 | |
3.375%, 4/15/2029 | 115,000 | 118,679 | |
3.6%, 11/15/2060 | 25,000 | 25,452 | |
4.375%, 4/15/2040 | 60,000 | 70,338 | |
Verizon Communications, Inc.: | |||
2.1%, 3/22/2028 | 55,000 | 56,150 | |
2.55%, 3/21/2031 (a) | 70,000 | 71,549 | |
2.65%, 11/20/2040 | 40,000 | 38,493 | |
3.7%, 3/22/2061 | 100,000 | 107,106 | |
ViacomCBS, Inc., 4.2%, 5/19/2032 | 55,000 | 63,477 | |
Vodafone Group PLC, 5.125%, 6/4/2081 | 80,000 | 80,800 | |
4,168,166 | |||
Consumer Discretionary 1.7% | |||
1011778 BC Unlimited Liability Co., 144A, 4.375%, 1/15/2028 | 225,000 | 228,094 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 80,000 | 83,800 | |
144A, 7.625%, 3/1/2026 | 97,000 | 105,366 | |
Dollar General Corp., 4.125%, 4/3/2050 | 20,000 | 23,429 | |
Ford Motor Credit Co. LLC: | |||
2.9%, 2/16/2028 | 200,000 | 199,052 | |
3.37%, 11/17/2023 | 350,000 | 362,839 | |
3.625%, 6/17/2031 | 240,000 | 244,651 |
Principal Amount ($) (c) | Value ($) | ||
General Motors Co., 5.4%, 4/1/2048 | 60,000 | 76,424 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 78,936 | |
2.7%, 6/10/2031 | 90,000 | 90,324 | |
Hilton Domestic Operating Co., Inc.: | |||
144A, 3.625%, 2/15/2032 | 225,000 | 222,188 | |
144A, 4.0%, 5/1/2031 | 125,000 | 126,109 | |
Hilton Grand Vacations Borrower Escrow LLC, 144A, 4.875%, 7/1/2031 | 40,000 | 39,895 | |
QVC, Inc., 4.75%, 2/15/2027 | 185,000 | 196,168 | |
Royal Caribbean Cruises Ltd.: | |||
144A, 4.25%, 7/1/2026 | 40,000 | 39,950 | |
144A, 5.5%, 4/1/2028 | 50,000 | 52,365 | |
2,169,590 | |||
Consumer Staples 0.4% | |||
Albertsons Companies, Inc.: | |||
144A, 3.25%, 3/15/2026 | 100,000 | 101,425 | |
144A, 3.5%, 3/15/2029 | 50,000 | 49,437 | |
Altria Group, Inc.: | |||
3.7%, 2/4/2051 | 50,000 | 47,432 | |
3.875%, 9/16/2046 | 20,000 | 19,861 | |
Anheuser-Busch InBev Worldwide, Inc.: | |||
4.439%, 10/6/2048 | 50,000 | 59,844 | |
5.55%, 1/23/2049 | 121,000 | 166,356 | |
BAT Capital Corp., 2.726%, 3/25/2031 | 60,000 | 59,237 | |
Keurig Dr Pepper, Inc., 3.8%, 5/1/2050 | 15,000 | 16,904 | |
Smithfield Foods, Inc., 144A, 3.0%, 10/15/2030 | 40,000 | 40,329 | |
560,825 | |||
Energy 2.6% | |||
BP Capital Markets America, Inc., 3.06%, 6/17/2041 | 100,000 | 100,756 | |
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 229,214 | |
Cheniere Energy Partners LP, 4.5%, 10/1/2029 | 175,000 | 188,125 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 362,103 | |
Energy Transfer Operating LP, 5.5%, 6/1/2027 | 100,000 | 117,279 | |
Enterprise Products Operating LLC, 4.2%, 1/31/2050 | 172,000 | 198,385 | |
Hess Corp., 5.8%, 4/1/2047 | 70,000 | 91,212 | |
MPLX LP, 2.65%, 8/15/2030 | 35,000 | 35,325 | |
Petroleos Mexicanos, 6.84%, 1/23/2030 | 625,000 | 644,063 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 53,503 |
12 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Saudi Arabian Oil Co.: | |||
144A, 2.25%, 11/24/2030 | 625,000 | 613,356 | |
REG S, 3.5%, 4/16/2029 | 300,000 | 324,750 | |
Sinopec Group Overseas Development Ltd., REG S, 2.7%, 5/13/2030 | 300,000 | 309,619 | |
Suncor Energy, Inc., 3.75%, 3/4/2051 | 70,000 | 75,720 | |
3,343,410 | |||
Financials 6.1% | |||
AerCap Ireland Capital DAC: | |||
3.15%, 2/15/2024 | 150,000 | 157,445 | |
4.625%, 10/15/2027 | 150,000 | 167,990 | |
Air Lease Corp.: | |||
3.0%, 2/1/2030 | 125,000 | 126,791 | |
4.65%, Perpetual (d) | 300,000 | 310,875 | |
Aircastle Ltd., 144A, 5.25%, Perpetual (d) | 130,000 | 131,300 | |
Ally Financial, Inc., 4.7%, Perpetual (d) | 500,000 | 517,850 | |
Avolon Holdings Funding Ltd.: | |||
144A, 2.75%, 2/21/2028 | 110,000 | 108,839 | |
144A, 4.25%, 4/15/2026 | 40,000 | 43,347 | |
Banco Nacional de Panama, 144A, 2.5%, 8/11/2030 | 200,000 | 193,706 | |
Bank of America Corp.: | |||
2.676%, 6/19/2041 | 60,000 | 58,230 | |
4.3%, Perpetual (d) | 102,000 | 105,468 | |
BBVA Bancomer SA, 144A, 1.875%, 9/18/2025 | 300,000 | 303,405 | |
Blackstone Secured Lending Fund, 144A, 3.625%, 1/15/2026 | 155,000 | 164,358 | |
BNP Paribas SA, 144A, 4.625%, Perpetual (d) | 200,000 | 208,204 | |
BPCE SA, 144A, 4.875%, 4/1/2026 | 300,000 | 340,121 | |
Capital One Financial Corp., 3.95%, Perpetual (d) | 350,000 | 357,437 | |
Charles Schwab Corp.: | |||
Series H, 4.0%, Perpetual (d) | 125,000 | 127,875 | |
Series I, 4.0%, Perpetual (d) | 265,000 | 276,262 | |
Citigroup, Inc.: | |||
2.561%, 5/1/2032 | 40,000 | 40,718 | |
2.572%, 6/3/2031 | 130,000 | 133,643 | |
4.0%, Perpetual (d) | 300,000 | 310,125 | |
HSBC Holdings PLC: | |||
2.804%, 5/24/2032 | 200,000 | 205,250 | |
4.0%, Perpetual (d) | 240,000 | 243,900 | |
4.6%, Perpetual (d) | 250,000 | 259,375 | |
Intesa Sanpaolo SpA: | |||
144A, 4.198%, 6/1/2032 | 325,000 | 333,047 | |
144A, 4.95%, 6/1/2042 | 250,000 | 258,881 |
Principal Amount ($) (c) | Value ($) | ||
JPMorgan Chase & Co.: | |||
2.956%, 5/13/2031 | 55,000 | 57,778 | |
3.65%, Perpetual (d) | 320,000 | 320,448 | |
Morgan Stanley, 3.217%, 4/22/2042 | 30,000 | 31,801 | |
Natwest Group PLC, 4.6%, Perpetual (d) | 230,000 | 231,081 | |
Park Aerospace Holdings Ltd., 144A, 5.25%, 8/15/2022 | 12,000 | 12,557 | |
REC Ltd., 144A, 4.75%, 5/19/2023 | 200,000 | 210,721 | |
Societe Generale SA, 144A, 5.375%, Perpetual (d) | 250,000 | 264,688 | |
The Goldman Sachs Group, Inc., 3.8%, Perpetual (d) | 325,000 | 330,785 | |
Truist Financial Corp., 4.8%, Perpetual (d) | 300,000 | 315,000 | |
UBS Group AG, 144A, 4.375%, Perpetual (d) | 200,000 | 204,340 | |
Wells Fargo & Co., 3.9%, Perpetual (d) | 265,000 | 274,354 | |
Westpac Banking Corp., 5.0%, Perpetual (d) | 200,000 | 214,567 | |
7,952,562 | |||
Health Care 1.8% | |||
AbbVie, Inc., 4.875%, 11/14/2048 | 75,000 | 96,607 | |
Bausch Health Companies, Inc., 144A, 4.875%, 6/1/2028 | 90,000 | 92,115 | |
Biogen, Inc., 3.15%, 5/1/2050 | 50,000 | 49,105 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 135,000 | 136,856 | |
Cigna Corp.: | |||
2.375%, 3/15/2031 | 50,000 | 50,701 | |
3.4%, 3/15/2051 | 100,000 | 104,405 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 227,303 | |
DaVita, Inc., 144A, 4.625%, 6/1/2030 | 140,000 | 143,951 | |
Fresenius Medical Care U.S. Finance III, Inc., 144A, 2.375%, 2/16/2031 | 150,000 | 146,342 | |
HCA, Inc., 5.25%, 6/15/2026 | 300,000 | 347,268 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | 925,000 | 879,906 | |
UnitedHealth Group, Inc., 3.25%, 5/15/2051 | 100,000 | 106,677 | |
2,381,236 | |||
Industrials 1.4% | |||
Aadvantage Loyalty IP Ltd., 144A, 5.5%, 4/20/2026 | 105,000 | 111,169 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (c) | Value ($) | ||
Adani Ports & Special Economic Zone Ltd., 144A, 4.2%, 8/4/2027 | 200,000 | 208,356 | |
Boeing Co.: | |||
2.196%, 2/4/2026 | 237,000 | 239,265 | |
2.75%, 2/1/2026 | 145,000 | 151,461 | |
4.875%, 5/1/2025 | 98,000 | 109,806 | |
5.04%, 5/1/2027 | 60,000 | 69,230 | |
Delta Air Lines, Inc., 144A, 4.5%, 10/20/2025 | 30,000 | 32,239 | |
FedEx Corp., 2.4%, 5/15/2031 | 60,000 | 61,063 | |
Gartner, Inc., 144A, 3.75%, 10/1/2030 | 60,000 | 61,387 | |
General Electric Co., 3.625%, 5/1/2030 | 40,000 | 44,603 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 100,000 | 102,750 | |
144A, 4.0%, 8/1/2028 | 150,000 | 148,177 | |
Nielsen Finance LLC, 144A, 4.5%, 7/15/2029 | 60,000 | 60,168 | |
Prime Security Services Borrower LLC: | |||
144A, 5.25%, 4/15/2024 | 255,000 | 273,240 | |
144A, 6.25%, 1/15/2028 | 70,000 | 74,462 | |
Salesforce.Com, 2.9%, 7/15/2051 (e) | 100,000 | 100,975 | |
1,848,351 | |||
Information Technology 0.9% | |||
Broadcom, Inc.: | |||
144A, 2.6%, 2/15/2033 | 70,000 | 68,451 | |
5.0%, 4/15/2030 | 70,000 | 82,584 | |
Dell International LLC, 8.35%, 7/15/2046 | 60,000 | 98,136 | |
MSCI, Inc., 144A, 3.625%, 9/1/2030 | 90,000 | 92,039 | |
NXP B.V., 144A, 2.5%, 5/11/2031 | 100,000 | 100,989 | |
Open Text Corp., 144A, 3.875%, 2/15/2028 | 175,000 | 177,415 | |
Oracle Corp.: | |||
2.875%, 3/25/2031 | 45,000 | 46,804 | |
3.6%, 4/1/2050 | 25,000 | 25,671 | |
3.65%, 3/25/2041 | 70,000 | 74,225 | |
SK Hynix, Inc., 144A, 1.5%, 1/19/2026 | 200,000 | 197,284 | |
Square, Inc.: | |||
144A, 2.75%, 6/1/2026 | 30,000 | 30,525 | |
144A, 3.5%, 6/1/2031 | 70,000 | 70,613 | |
Twilio, Inc., 3.625%, 3/15/2029 | 160,000 | 163,200 | |
1,227,936 | |||
Materials 0.8% | |||
AngloGold Ashanti Holdings PLC, 3.75%, 10/1/2030 (a) | 200,000 | 206,156 | |
Berry Global, Inc., 144A, 1.65%, 1/15/2027 | 300,000 | 297,402 |
Principal Amount ($) (c) | Value ($) | ||
Glencore Funding LLC, 144A, 3.875%, 4/27/2051 | 70,000 | 73,304 | |
LYB International Finance III LLC, 3.625%, 4/1/2051 | 30,000 | 31,670 | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 287,002 | |
Tronox, Inc., 144A, 4.625%, 3/15/2029 | 185,000 | 186,846 | |
1,082,380 | |||
Real Estate 0.6% | |||
American Tower Corp., (REIT), 2.95%, 1/15/2051 | 35,000 | 33,416 | |
Boston Properties LP, (REIT), 2.55%, 4/1/2032 | 75,000 | 75,465 | |
Crown Castle International Corp., (REIT), 2.9%, 4/1/2041 | 120,000 | 116,727 | |
Equinix, Inc., (REIT), 2.15%, 7/15/2030 | 34,000 | 33,783 | |
MPT Operating Partnership LP, (REIT), 3.5%, 3/15/2031 | 195,000 | 196,948 | |
SBA Communications Corp., 144A, (REIT), 3.125%, 2/1/2029 | 300,000 | 289,220 | |
Welltower, Inc., (REIT), 2.75%, 1/15/2031 | 40,000 | 41,219 | |
786,778 | |||
Utilities 1.2% | |||
CenterPoint Energy Inc, 2.65%, 6/1/2031 | 30,000 | 30,560 | |
ENN Energy Holdings, Ltd., 144A, 2.625%, 9/17/2030 | 200,000 | 199,522 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 222,500 | |
NextEra Energy Operating Partners LP: | |||
144A, 3.875%, 10/15/2026 | 190,000 | 200,687 | |
144A, 4.25%, 7/15/2024 | 275,000 | 290,125 | |
Pacific Gas and Electric Co.: | |||
2.5%, 2/1/2031 | 20,000 | 18,751 | |
3.3%, 8/1/2040 | 70,000 | 63,215 | |
3.5%, 8/1/2050 | 25,000 | 22,281 | |
Perusahaan Listrik Negara PT, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 329,490 |
Southern California Edison Co., 2.95%, 2/1/2051 | 60,000 | 54,331 | |
Southern Co, 3.75%, 9/15/2051 | 100,000 | 100,640 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 65,000 | 65,325 | |
1,597,427 | |||
Total Corporate Bonds (Cost $26,345,588) | 27,118,661 |
14 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Asset-Backed 2.9% | |||
Automobile Receivables 0.5% | |||
Avis Budget Rental Car Funding AESOP LLC, “C”, Series 2019-1A, 144A, 4.53%, 3/20/2023 | 100,000 | 101,588 | |
Chase Auto Credit Linked Notes, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 550,000 | 550,119 | |
651,707 | |||
Credit Card Receivables 0.6% | |||
Fair Square Issuance Trust, “A”, Series 2020-AA, 144A, 2.9%, 9/20/2024 | 800,000 | 808,721 | |
Miscellaneous 1.8% | |||
CF Hippolyta LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 552,000 | 556,686 | |
DB Master Finance LLC, “A2I”, Series 2019-1A, 144A, 3.787%, 5/20/2049 | 216,150 | 218,954 | |
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 328,950 | 354,950 | |
MVW Owner Trust, “A”, Series 2019-1A, 144A, 2.89%, 11/20/2036 | 246,141 | 252,959 | |
Taco Bell Funding LLC, “A2I”, Series 2018-1A, 144A, 4.318%, 11/25/2048 | 487,500 | 488,543 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 422,000 | 425,866 | |
2,297,958 | |||
Total Asset-Backed (Cost $3,702,618) | 3,758,386 | ||
Mortgage-Backed Securities Pass-Throughs 0.0% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 2,035 | 2,409 | |
Federal National Mortgage Association: | |||
4.5%, 9/1/2035 | 3,065 | 3,426 | |
6.0%, 1/1/2024 | 2,875 | 3,002 | |
Total Mortgage-Backed Securities Pass-Throughs (Cost $7,913) | 8,837 | ||
Commercial Mortgage-Backed Securities 1.7% | |||
Citigroup Commercial Mortgage Trust, “D”, Series 2019-PRM, 144A, 4.35%, 5/10/2036 | 500,000 | 518,667 |
Principal Amount ($) (c) | Value ($) | ||
Credit Suisse Commercial Mortgage Trust, “B”, Series 2020-TMIC, 144A, 1-month USD-LIBOR + 5.0%, 5.25% (f), 12/15/2035 | 700,000 | 711,398 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 3.768% (f), 1/25/2051 | 194,000 | 205,620 | |
GMAC Commercial Mortgage Securities, Inc., “G”, Series 2004-C1, 144A, 5.455%, 3/10/2038 | 394,448 | 241,226 | |
MTRO Commercial Mortgage Trust, “C”, Series 2019-TECH, 144A, 1-month USD-LIBOR + 1.3%, 1.373% (f), 12/15/2033 | 250,000 | 248,542 | |
Multifamily Connecticut Avenue Securities Trust, “M7”, Series 2019-01, 144A, 1-month USD-LIBOR + 1.7%, 1.792% (f), 10/15/2049 | 322,040 | 321,790 | |
Total Commercial Mortgage-Backed Securities (Cost $2,377,952) | 2,247,243 | ||
Collateralized Mortgage Obligations 2.4% | |||
Connecticut Avenue Securities Trust: | |||
“1M2”, Series 2019-R03, 144A, 1-month USD-LIBOR + 2.15%, 2.242% (f), 9/25/2031 | 54,249 | 54,635 | |
“1M2”, Series 2019-R02, 144A, 1-month USD-LIBOR + 2.3%, 2.392% (f), 8/25/2031 | 80,471 | 81,026 | |
Fannie Mae Connecticut Avenue Securities: | |||
“1M2”, Series 2018-C06, 1-month USD-LIBOR + 2.0%, 2.092% (f), 3/25/2031 | 104,021 | 104,818 | |
“1M2”, Series 2018-C01, 1-month USD-LIBOR + 2.25%, 2.342% (f), 7/25/2030 | 123,214 | 124,921 | |
“1M2”, Series 2018-C05, 1-month USD-LIBOR + 2.35%, 2.442% (f), 1/25/2031 | 387,544 | 392,189 | |
Federal Home Loan Mortgage Corp., “H”, Series 2278, 6.5%, 1/15/2031 | 94 | 103 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 15 |
Principal Amount ($) (c) | Value ($) | ||
Federal National Mortgage Association: | |||
“4”, Series 406, Interest Only, 4.0%, 9/25/2040 | 206,120 | 26,798 | |
“I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 72,811 | 14,542 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M2”, Series 2020-DNA2, 144A, 1-month USD-LIBOR + 1.85%, 1.942% (f), 2/25/2050 | 1,000,000 | 1,008,140 | |
“M2”, Series 2019-DNA3, 144A, 1-month USD-LIBOR + 2.05%, 2.142% (f), 7/25/2049 | 260,254 | 262,541 | |
“M2”, Series 2019-DNA2, 144A, 1-month USD-LIBOR + 2.45%, 2.542% (f), 3/25/2049 | 367,855 | 373,577 | |
“M2”, Series 2019-DNA1, 144A, 1-month USD-LIBOR + 2.65%, 2.742% (f), 1/25/2049 | 53,201 | 53,972 | |
Government National Mortgage Association: | |||
“PI”, Series 2015-40, Interest Only, 4.0%, 4/20/2044 | 74,084 | 4,532 | |
“IN”, Series 2009-69, Interest Only, 5.5%, 8/20/2039 | 91,217 | 20,288 | |
“IV”, Series 2009-69, Interest Only, 5.5%, 8/20/2039 | 88,814 | 19,674 | |
“IJ”, Series 2009-75, Interest Only, 6.0%, 8/16/2039 | 60,846 | 8,811 | |
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.295% (f), 10/25/2046 | 259,849 | 261,950 | |
STACR Trust, “M2”, Series 2018-DNA3, 144A, 1-month USD-LIBOR + 2.1%, 2.192% (f), 9/25/2048 | 324,324 | 328,588 | |
Total Collateralized Mortgage Obligations (Cost $3,045,762) | 3,141,105 | ||
Government & Agency Obligations 1.6% | |||
Sovereign Bonds | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 | 200,000 | 201,680 |
Principal Amount ($) (c) | Value ($) | ||
Perusahaan Penerbit SBSN Indonesia III, 144A, 2.8%, 6/23/2030 | 200,000 | 204,596 | |
Republic of Indonesia: | |||
2.85%, 2/14/2030 | 625,000 | 647,998 | |
3.85%, 10/15/2030 (a) | 300,000 | 333,911 | |
Republic of Philippines, 2.457%, 5/5/2030 | 625,000 | 649,382 | |
Total Government & Agency Obligations (Cost $2,095,615) | 2,037,567 | ||
Short-Term U.S. Treasury Obligations 1.6% | |||
U.S. Treasury Bills: | |||
0.058% (g), 5/19/2022 (h) | 1,700,000 | 1,698,951 | |
0.101% (g), 8/12/2021 (i) | 175,000 | 174,988 | |
0.125% (g), 8/12/2021 (i) | 250,000 | 249,983 | |
Total Short-Term U.S. Treasury Obligations (Cost $2,124,145) | 2,123,922 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.9% | |||
SPDR Bloomberg Barclays Convertible Securities ETF (a) (Cost $2,340,555) | 43,880 | 3,805,712 | |
Securities Lending Collateral 2.8% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (j) (k) (Cost $3,705,356) | 3,705,356 | 3,705,356 | |
Cash Equivalents 4.5% | |||
DWS Central Cash Management Government Fund, 0.02% (j) (Cost $5,899,790) | 5,899,790 | 5,899,790 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $111,391,120) | 102.6 | 134,346,935 | |
Other Assets and Liabilities, Net | (2.6) | (3,374,332) | |
Net Assets | 100.0 | 130,972,603 |
16 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 2.8% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (j) (k) | ||||||||
693,562 | 3,011,794 (l) | — | — | — | 3,695 | — | 3,705,356 | 3,705,356 |
Cash Equivalents 4.5% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (j) | ||||||||
2,394,743 | 27,733,850 | 24,228,803 | — | — | 451 | — | 5,899,790 | 5,899,790 |
3,088,305 | 30,745,644 | 24,228,803 | — | — | 4,146 | — | 9,605,146 | 9,605,146 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2021 amounted to $3,576,436, which is 2.7% of net assets. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Principal amount stated in U.S. dollars unless otherwise noted. |
(d) | Perpetual, callable security with no stated maturity date. |
(e) | When-issued, delayed delivery or forward commitment securities included. |
(f) | Variable or floating rate security. These securities are shown at their current rate as of June 30, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(g) | Annualized yield at time of purchase; not a coupon rate. |
(h) | At June 30, 2021, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
(i) | At June 30, 2021, this security has been pledged, in whole or in part, to cover initial margin requirements for open centrally cleared swap contracts. |
(j) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(k) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(l) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
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. |
ADR: American Depositary Receipt |
GDR: Global Depositary Receipt |
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. |
LIBOR: London Interbank Offered Rate |
MSCI: Morgan Stanley Capital International |
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, U.S. 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 |
S&P: Standard & Poor's |
SBSN: Surat Berharga Syariah Negara (Islamic Based Government Securities) |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 17 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
Euro Stoxx 50 Index | EUR | 9/17/2021 | 11 | 539,556 | 528,969 | (10,587) |
MSCI E-Mini Emerging Market Index | USD | 9/17/2021 | 88 | 6,030,420 | 6,005,120 | (25,300) |
Ultra Long U.S. Treasury Bond | USD | 9/21/2021 | 25 | 4,660,239 | 4,817,187 | 156,948 |
Total net unrealized appreciation | 121,061 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
10 Year U.S. Treasury Note | USD | 9/21/2021 | 15 | 1,979,040 | 1,987,500 | (8,460) |
5 Year U.S. Treasury Note | USD | 9/30/2021 | 60 | 7,405,633 | 7,405,781 | (148) |
S&P 500 E-Mini Index | USD | 9/17/2021 | 3 | 636,831 | 643,290 | (6,459) |
TOPIX Index | JPY | 9/9/2021 | 7 | 1,234,048 | 1,224,267 | 9,781 |
Ultra 10 Year U.S. Treasury Note | USD | 9/21/2021 | 19 | 2,755,340 | 2,796,860 | (41,520) |
Total net unrealized depreciation | (46,806) |
Centrally Cleared Swaps | |||||||
Cash Flows Paid by the Fund/ Frequency | Cash Flows Received by the Fund/ Frequency | Effective/ Expiration Date | Notional Amount ($) | Currency | Value ($) | Upfront Payments Paid/ (Received) ($) | Unrealized Depreciation ($) |
Fixed — 0.25% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2023 | 3,200,000 | USD | (1,434) | 260 | (1,694) |
Fixed — 0.45% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2024 | 2,100,000 | USD | (327) | (45) | (282) |
Fixed — 1.3% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2028 | 400,000 | USD | (5,058) | 91 | (5,149) |
Fixed — 1.63% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2031 | 300,000 | USD | (7,804) | 347 | (8,151) |
Total net unrealized depreciation | (15,276) |
β | 3-month LIBOR rate as of June 30, 2021 is 0.146%. |
LIBOR: London Interbank Offered Rate |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 450,000 | USD | 543,249 | 8/5/2021 | 9,289 | Citigroup, Inc. |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Depreciation ($) | Counterparty | ||
USD | 339,957 | EUR | 280,000 | 8/5/2021 | (7,715) | Toronto-Dominion Bank |
EUR | Euro |
JPY | Japanese Yen |
USD | United States Dollar |
18 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 75,958,001 | $ — | $ — | $ 75,958,001 |
Preferred Stocks (a) | 4,535,051 | — | — | 4,535,051 |
Warrants | — | — | 7,304 | 7,304 |
Corporate Bonds (a) | — | 27,118,661 | — | 27,118,661 |
Asset-Backed (a) | — | 3,758,386 | — | 3,758,386 |
Mortgage-Backed Securities Pass-Throughs | — | 8,837 | — | 8,837 |
Commercial Mortgage-Backed Securities | — | 2,247,243 | — | 2,247,243 |
Collateralized Mortgage Obligations | — | 3,141,105 | — | 3,141,105 |
Government & Agency Obligations | — | 2,037,567 | — | 2,037,567 |
Short-Term U.S. Treasury Obligations | — | 2,123,922 | — | 2,123,922 |
Exchange-Traded Funds | 3,805,712 | — | — | 3,805,712 |
Short-Term Investments (a) | 9,605,146 | — | — | 9,605,146 |
Derivatives (b) | ||||
Futures Contracts | 166,729 | — | — | 166,729 |
Forward Foreign Currency Contracts | — | 9,289 | — | 9,289 |
Total | $ 94,070,639 | $40,445,010 | $7,304 | $134,522,953 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $ (92,474) | $ — | $ — | $ (92,474) |
Interest Rate Swap Contracts | — | (15,276) | — | (15,276) |
Forward Foreign Currency Contracts | — | (7,715) | — | (7,715) |
Total | $ (92,474) | $ (22,991) | $ — | $ (115,465) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open futures contracts, interest rate swap contracts and forward foreign currency contracts. |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 19 |
Assets | |
Investments in non-affiliated securities, at value (cost $101,785,974) — including $3,576,436 of securities loaned | $ 124,741,789 |
Investment in DWS Government & Agency Securities Portfolio (cost $3,705,356)* | 3,705,356 |
Investment in DWS Central Cash Management Government Fund (cost $5,899,790) | 5,899,790 |
Cash | 21,234 |
Foreign currency, at value (cost $105,598) | 105,255 |
Receivable for investments sold | 102,749 |
Receivable for investments sold — when-issued/delayed delivery securities | 5,683,715 |
Receivable for Fund shares sold | 8,092 |
Dividends receivable | 167,116 |
Interest receivable | 264,176 |
Unrealized appreciation on forward foreign currency contracts | 9,289 |
Foreign taxes recoverable | 78,387 |
Other assets | 1,384 |
Total assets | 140,788,332 |
Liabilities | |
Payable upon return of securities loaned | 3,705,356 |
Payable for investments purchased — when-issued/delayed delivery securities | 5,786,609 |
Payable for Fund shares redeemed | 137,866 |
Payable for variation margin on futures contracts | 31,382 |
Payable for variation margin on centrally cleared swaps | 2,542 |
Unrealized depreciation on forward foreign currency contracts | 7,715 |
Accrued management fee | 39,765 |
Accrued Trustees' fees | 1,162 |
Other accrued expenses and payables | 103,332 |
Total liabilities | 9,815,729 |
Net assets, at value | $ 130,972,603 |
Net Assets Consist of | |
Distributable earnings (loss) | 31,067,785 |
Paid-in capital | 99,904,818 |
Net assets, at value | $ 130,972,603 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($130,959,463 ÷ 5,021,102 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 26.08 |
Class B | |
Net Asset Value, offering and redemption price per share ($13,140 ÷ 504 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $ 26.06 |
* | Represents collateral on securities loaned. |
** | Net asset value and redemption price per share may not recalculate due to rounding of net assets and/or shares outstanding. |
20 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $79,863) | $ 1,307,624 |
Interest | 669,367 |
Income distributions — DWS Central Cash Management Government Fund | 451 |
Securities lending income, net of borrower rebates | 3,695 |
Total income | 1,981,137 |
Expenses: | |
Management fee | 235,907 |
Administration fee | 61,846 |
Services to shareholders | 461 |
Distribution service fee (Class B) | 16 |
Custodian fee | 13,368 |
Professional fees | 48,599 |
Reports to shareholders | 24,648 |
Trustees' fees and expenses | 2,987 |
Other | 11,966 |
Total expenses before expense reductions | 399,798 |
Expense reductions | (7) |
Total expenses after expense reductions | 399,791 |
Net investment income | 1,581,346 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 7,002,138 |
Swap contracts | (141,461) |
Futures | 92,066 |
Forward foreign currency contracts | (22,683) |
Foreign currency | 7,269 |
6,937,329 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 1,087,233 |
Swap contracts | 144,848 |
Futures | 156,413 |
Forward foreign currency contracts | 40,211 |
Foreign currency | 42,981 |
1,471,686 | |
Net gain (loss) | 8,409,015 |
Net increase (decrease) in net assets resulting from operations | $ 9,990,361 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 21 |
Six Months Ended June 30, 2021 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2020 |
Operations: | ||
Net investment income | $ 1,581,346 | $ 2,995,370 |
Net realized gain (loss) | 6,937,329 | 1,789,241 |
Change in net unrealized appreciation (depreciation) | 1,471,686 | 4,431,654 |
Net increase (decrease) in net assets resulting from operations | 9,990,361 | 9,216,265 |
Distributions to shareholders: | ||
Class A | (4,841,632) | (6,579,884) |
Class B | (443) | (575) |
Total distributions | (4,842,075) | (6,580,459) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,805,297 | 2,458,485 |
Reinvestment of distributions | 4,841,632 | 6,579,884 |
Payments for shares redeemed | (7,577,519) | (14,768,561) |
Net increase (decrease) in net assets from Class A share transactions | (930,590) | (5,730,192) |
Class B | ||
Reinvestment of distributions | 443 | 575 |
Net increase (decrease) in net assets from Class B share transactions | 443 | 575 |
Increase (decrease) in net assets | 4,218,139 | (3,093,811) |
Net assets at beginning of period | 126,754,464 | 129,848,275 |
Net assets at end of period | $130,972,603 | $126,754,464 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,056,269 | 5,271,275 |
Shares sold | 70,383 | 106,312 |
Shares issued to shareholders in reinvestment of distributions | 189,422 | 324,451 |
Shares redeemed | (294,972) | (645,769) |
Net increase (decrease) in Class A shares | (35,167) | (215,006) |
Shares outstanding at end of period | 5,021,102 | 5,056,269 |
Class B | ||
Shares outstanding at beginning of period | 487 | 458.6 |
Shares issued to shareholders in reinvestment of distributions | 17 | 28.4 |
Net increase (decrease) in Class B shares | 17 | 28.4 |
Shares outstanding at end of period | 504 | 487 |
22 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
DWS Global Income Builder VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $25.07 | $24.63 | $21.33 | $26.56 | $23.50 | $22.93 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .32 | .57 | .69 | .80 | .71 | .61 |
Net realized and unrealized gain (loss) | 1.68 | 1.16 | 3.54 | (2.67) | 3.10 | .91 |
Total from investment operations | 2.00 | 1.73 | 4.23 | (1.87) | 3.81 | 1.52 |
Less distributions from: | ||||||
Net investment income | (.62) | (.74) | (.90) | (.98) | (.75) | (.95) |
Net realized gains | (.37) | (.55) | (.03) | (2.38) | — | — |
Total distributions | (.99) | (1.29) | (.93) | (3.36) | (.75) | (.95) |
Net asset value, end of period | $26.08 | $25.07 | $24.63 | $21.33 | $26.56 | $23.50 |
Total Return (%) | 8.05 * | 8.28 | 20.16 | (7.66) b | 16.54 | 6.81 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 131 | 127 | 130 | 120 | 147 | 185 |
Ratio of expenses before expense reductions (%)c | .63 ** | .64 | .68 | .69 | .63 | .62 |
Ratio of expenses after expense reductions (%)c | .63 ** | .64 | .68 | .68 | .63 | .62 |
Ratio of net investment income (%) | 2.48 ** | 2.51 | 2.96 | 3.34 | 2.85 | 2.66 |
Portfolio turnover rate (%) | 68 * | 137 | 182 | 70 | 122 | 135 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 23 |
DWS Global Income Builder VIP — Class B | ||||
Six Months Ended 6/30/21 | Years Ended December 31, | Period Ended | ||
(Unaudited) | 2020 | 2019 | 12/31/18 a | |
Selected Per Share Data | ||||
Net asset value, beginning of period | $25.01 | $24.61 | $21.30 | $22.65 |
Income (loss) from investment operations: | ||||
Net investment incomeb | .27 | .50 | .65 | .50 |
Net realized and unrealized gain (loss) | 1.69 | 1.15 | 3.55 | (1.85) |
Total from investment operations | 1.96 | 1.65 | 4.20 | (1.35) |
Less distributions from: | ||||
Net investment income | (.54) | (.70) | (.86) | — |
Net realized gains | (.37) | (.55) | (.03) | — |
Total distributions | (.91) | (1.25) | (.89) | — |
Net asset value, end of period | $26.06 | $25.01 | $24.61 | $21.30 |
Total Return (%)c | 7.91 * | 7.90 | 20.01 | (5.96) * |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ thousands) | 13 | 12 | 11 | 9 |
Ratio of expenses before expense reductions (%)d | 1.08 ** | 1.10 | 1.10 | 1.15 ** |
Ratio of expenses after expense reductions (%)d | .96 ** | .93 | .86 | .86 ** |
Ratio of net investment income (%) | 2.13 ** | 2.20 | 2.77 | 3.30 ** |
Portfolio turnover rate (%) | 68 * | 137 | 182 | 70 e |
a | For the period from May 1, 2018 (commencement of operations) to December 31, 2018. |
b | Based on average shares outstanding during the period. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
e | Represents the Fund’s portfolio turnover rate for the year ended December 31, 2018. |
* | Not annualized |
** | Annualized |
24 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 25 |
26 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |
Securities Lending Transactions | |||||
Common Stocks | $ 933,456 | $ — | $ — | $ — | $ 933,456 |
Corporate Bonds | 664,700 | — | — | — | 664,700 |
Government & Agency Obligations | 345,000 | — | — | — | 345,000 |
Exchange-Traded Funds | 1,762,200 | — | — | — | 1,762,200 |
Total Borrowings | $ 3,705,356 | $ — | $ — | $ — | $ 3,705,356 |
Gross amount of recognized liabilities for securities lending transactions: | $ 3,705,356 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 27 |
B. | Derivative Instruments |
28 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 29 |
Assets Derivative | Forward Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ 9,781 | $ 9,781 |
Interest Rate Contracts (a) | — | 156,948 | 156,948 |
Foreign Exchange Contracts (b) | 9,289 | — | 9,289 |
$ 9,289 | $ 166,729 | $ 176,018 | |
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts: |
(a) | Includes cumulative appreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
(b) | Unrealized appreciation on forward foreign currency contracts |
Liability Derivative | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ (42,346) | $ (42,346) |
Interest Rate Contracts (a) | — | (15,276) | (50,128) | (65,404) |
Foreign Exchange Contracts (b) | (7,715) | — | — | (7,715) |
$ (7,715) | $ (15,276) | $ (92,474) | $ (115,465) | |
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts: |
(a) | Includes cumulative depreciation of futures and centrally cleared swap contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
(b) | Unrealized depreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 225,124 | $ 225,124 |
Interest Rate Contracts (a) | — | (141,461) | (133,058) | (274,519) |
Foreign Exchange Contracts (a) | (22,683) | — | — | (22,683) |
$(22,683) | $(141,461) | $ 92,066 | $ (72,078) | |
Each of the above derivatives is located in the following Statement of Operations accounts: |
(a) | Net realized gain (loss) from forward foreign currency contracts, swap and futures contracts, respectively |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 15,508 | $ 15,508 |
Interest Rate Contracts (a) | — | 144,848 | 140,905 | 285,753 |
Foreign Exchange Contracts (a) | 40,211 | — | — | 40,211 |
$ 40,211 | $ 144,848 | $ 156,413 | $ 341,472 | |
Each of the above derivatives is located in the following Statement of Operations accounts: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts, swap and futures contracts, respectively |
30 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
Citigroup, Inc. | $ 9,289 | $ — | $ — | $ 9,289 |
Counterparty | Gross Amount of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Pledged | Net Amount of Derivative Liabilities |
Toronto-Dominion Bank | $ 7,715 | $ — | $ — | $ 7,715 |
C. | Purchases and Sales of Securities |
D. | Related Parties |
First $250 million | .370% |
Next $750 million | .345% |
Over $1 billion | .310% |
Class A | .71% |
Class B | .96% |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 31 |
Distribution Fee | Total Aggregated | Unpaid at June 30, 2021 |
Class B | $ 16 | $ 3 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 267 | $ 83 |
Class B | 13 | 4 |
$ 280 | $ 87 |
E. | Ownership of the Fund |
F. | Line of Credit |
32 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
G. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 33 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,080.50 | $ 1,079.10 |
Expenses Paid per $1,000* | $ 3.25 | $ 4.95 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,021.67 | $ 1,020.03 |
Expenses Paid per $1,000* | $ 3.16 | $ 4.81 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | .63% | .96% |
34 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 35 |
— | During the entire process, all of the Fund's Trustees were independent of DIMA and its affiliates (the "Independent Trustees"). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
36 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 37 |
38 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
3 | Portfolio Summary |
3 | Portfolio Management Team |
4 | Investment Portfolio |
6 | Statement of Assets and Liabilities |
6 | Statement of Operations |
7 | Statements of Changes in Net Assets |
8 | Financial Highlights |
9 | Notes to Financial Statements |
12 | Information About Your Fund's Expenses |
13 | Proxy Voting |
14 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio) | 6/30/21 | 12/31/20 |
Government & Agency Obligations | 67% | 77% |
Repurchase Agreements | 33% | 23% |
100% | 100% |
Weighted Average Maturity | 6/30/21 | 12/31/20 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 27 days | 26 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 34 days | 37 days |
* | The Fund is compared to its respective iMoneyNet Money Fund Average category: Gov’t & Agency Retail — Category includes the most broadly based of the government retail funds. These funds may invest in U.S. Treasury securities, securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities. |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 3 |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 67.5% | |||
U.S. Government Sponsored Agencies 12.1% | |||
Federal Farm Credit Bank, SOFR + 0.07%, 0.12% (a), 8/11/2022 | 500,000 | 500,028 | |
Federal Home Loan Bank: | |||
0.015% (b), 8/19/2021 | 2,500,000 | 2,499,949 | |
0.041% (b), 10/20/2021 | 2,000,000 | 1,999,753 | |
SOFR + 0.01%, 0.06% (a), 8/1/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.02%, 0.065% (a), 8/27/2021 | 1,000,000 | 1,000,000 | |
SOFR + 0.12%, 0.17% (a), 2/28/2022 | 1,000,000 | 1,000,000 | |
Federal Home Loan Mortgage Corp.: | |||
SOFR + 0.07%, 0.12% (a), 2/25/2022 | 3,000,000 | 3,000,000 | |
SOFR + 0.10%, 0.145% (a), 8/19/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.15%, 0.2% (a), 3/4/2022 | 1,750,000 | 1,748,381 | |
Federal National Mortgage Association: | |||
SOFR + 0.30%, 0.35% (a), 1/7/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.31%, 0.36% (a), 10/25/2021 | 1,500,000 | 1,500,000 | |
17,748,111 | |||
U.S. Treasury Obligations 55.4% | |||
U.S. Treasury Bills: | |||
0.005% (b), 7/13/2021 | 4,500,000 | 4,499,992 | |
0.007% (b), 8/12/2021 | 2,400,000 | 2,399,982 | |
0.008% (b), 7/13/2021 | 1,500,000 | 1,499,996 | |
0.011% (b), 8/19/2021 | 3,500,000 | 3,499,948 | |
0.015% (b), 8/12/2021 | 5,000,000 | 4,999,912 | |
0.015% (b), 8/19/2021 | 2,500,000 | 2,499,949 | |
0.015% (b), 8/26/2021 | 3,000,000 | 2,999,930 | |
0.02% (b), 7/29/2021 | 500,000 | 499,992 | |
0.021% (b), 7/6/2021 | 20,000,000 | 19,999,943 | |
0.031% (b), 11/4/2021 | 7,000,000 | 6,999,253 | |
0.035% (b), 10/28/2021 | 3,000,000 | 2,999,653 | |
0.036% (b), 10/7/2021 | 450,000 | 449,957 | |
0.036% (b), 11/4/2021 | 4,500,000 | 4,499,449 | |
0.036% (b), 11/4/2021 | 500,000 | 499,938 | |
0.042% (b), 10/21/2021 | 5,000,000 | 4,999,362 | |
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield + 0.06%, 0.105% (a), 7/31/2022 | 3,500,000 | 3,501,404 |
Principal Amount ($) | Value ($) | ||
3-month U.S. Treasury Bill Money Market Yield + 0.11%, 0.164% (a), 4/30/2022 | 7,250,000 | 7,255,044 | |
3-month U.S. Treasury Bill Money Market Yield + 0.15%, 0.204% (a), 1/31/2022 | 1,250,000 | 1,251,085 | |
3-month U.S. Treasury Bill Money Market Yield + 0.22%, 0.27% (a), 7/31/2021 | 3,650,000 | 3,650,663 | |
3-month U.S. Treasury Bill Money Market Yield + 0.30%, 0.35% (a), 10/31/2021 | 2,250,000 | 2,252,257 | |
81,257,709 | |||
Total Government & Agency Obligations (Cost $99,005,820) | 99,005,820 | ||
Repurchase Agreements 33.4% | |||
Citigroup Global Markets, Inc., 0.05%, dated 6/30/2021, to be repurchased at $21,700,030 on 7/1/2021 (c) | 21,700,000 | 21,700,000 | |
Wells Fargo Bank, 0.06%, dated 6/30/2021, to be repurchased at $27,400,183 on 7/1/2021 (d) | 27,400,000 | 27,400,000 | |
Total Repurchase Agreements (Cost $49,100,000) | 49,100,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $148,105,820) | 100.9 | 148,105,820 | |
Other Assets and Liabilities, Net | (0.9) | (1,326,078) | |
Net Assets | 100.0 | 146,779,742 |
(a) | Floating rate security. These securities are shown at their current rate as of June 30, 2021. |
(b) | Annualized yield at time of purchase; not a coupon rate. |
4 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
(c) | Collateralized by $22,138,600 U.S. Treasury Bills, Zero Coupon, with various maturity dates from 10/28/2021-11/26/2021 with a value of $22,134,022. |
(d) | Collateralized by $25,404,340 Federal National Mortgage Association, 3-4.5%, with various maturity dates from 8/1/2048-2/1/2051 with a value of $27,984,000. |
SOFR: Secured Overnight Financing Rate |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $ — | $ 99,005,820 | $ — | $ 99,005,820 |
Repurchase Agreements | — | 49,100,000 | — | 49,100,000 |
Total | $ — | $148,105,820 | $ — | $148,105,820 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 5 |
Assets | |
Investments in securities, valued at amortized cost | $99,005,820 |
Repurchase agreements, valued at amortized cost | 49,100,000 |
Cash | 60,438 |
Receivable for Fund shares sold | 204,789 |
Interest receivable | 8,413 |
Due from Advisor | 9,565 |
Other assets | 1,800 |
Total assets | 148,390,825 |
Liabilities | |
Payable for investments purchased | 1,500,000 |
Payable for Fund shares redeemed | 47,654 |
Distributions payable | 630 |
Accrued Trustees' fees | 972 |
Other accrued expenses and payables | 61,827 |
Total liabilities | 1,611,083 |
Net assets, at value | $146,779,742 |
Net Assets Consist of | |
Distributable earnings (loss) | 14,984 |
Paid-in capital | 146,764,758 |
Net assets, at value | $146,779,742 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($146,779,742 ÷ 146,848,474 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Investment Income | |
Income: | |
Interest | $ 51,094 |
Expenses: | |
Management fee | 177,830 |
Administration fee | 73,402 |
Services to shareholders | 1,311 |
Custodian fee | 2,232 |
Professional fees | 25,159 |
Reports to shareholders | 32,067 |
Trustees' fees and expenses | 5,265 |
Other | 6,018 |
Total expenses before expense reductions | 323,284 |
Expense reductions | (279,767) |
Total expenses after expense reductions | 43,517 |
Net investment income | 7,577 |
Net realized gain (loss) from investments | (29) |
Net increase (decrease) in net assets resulting from operations | $ 7,548 |
6 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 7,577 | $ 308,578 |
Net realized gain (loss) | (29) | 144 |
Net increase (decrease) in net assets resulting from operations | 7,548 | 308,722 |
Distributions to shareholders: | ||
Class A | (7,577) | (308,575) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 71,854,576 | 180,940,347 |
Reinvestment of distributions | 7,630 | 366,986 |
Payments for shares redeemed | (78,339,649) | (150,319,848) |
Net increase (decrease) in net assets from Class A share transactions | (6,477,443) | 30,987,485 |
Increase (decrease) in net assets | (6,477,472) | 30,987,632 |
Net assets at beginning of period | 153,257,214 | 122,269,582 |
Net assets at end of period | $146,779,742 | $ 153,257,214 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 153,325,917 | 122,338,432 |
Shares sold | 71,854,576 | 180,940,347 |
Shares issued to shareholders in reinvestment of distributions | 7,630 | 366,986 |
Shares redeemed | (78,339,649) | (150,319,848) |
Net increase (decrease) in Class A shares | (6,477,443) | 30,987,485 |
Shares outstanding at end of period | 146,848,474 | 153,325,917 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 7 |
DWS Government Money Market VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations: | ||||||
Net investment income | .000 * | .002 | .018 | .014 | .005 | .001 a |
Net realized gain (loss) | (.000) * | .000 * | .000 * | (.000) * | .000 * | .000 * |
Total from investment operations | .000 * | .002 | .018 | .014 | .005 | .001 |
Less distributions from: | ||||||
Net investment income | (.000) * | (.002) | (.018) | (.014) | (.005) | (.001) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%) | .00 b** | .24 b | 1.77 b | 1.39 b | .45 | .05 a,b |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 147 | 153 | 122 | 107 | 111 | 122 |
Ratio of expenses before expense reductions (%)c | .43 *** | .42 | .47 | .50 | .48 | .51 |
Ratio of expenses after expense reductions (%)c | .06 *** | .23 | .47 | .50 | .48 | .44 |
Ratio of net investment income (%) | .01 *** | .20 | 1.74 | 1.37 | .45 | .05 a |
a | Includes a non-recurring payment for overbilling of prior years’ custodian out-of-pocket fees. Excluding this payment, net investment income per share, total return, and ratio of net investment income to average net assets would have been reduced by $.0004, 0.04%, and 0.04%, respectively. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Amount is less than $.0005. |
** | Not annualized |
*** | Annualized |
8 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 9 |
B. | Related Parties |
First $500 million | .235% |
Next $500 million | .220% |
Next $1.0 billion | .205% |
Over $2.0 billion | .190% |
10 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
C. | Ownership of the Fund |
D. | Line of Credit |
E. | Money Market Fund Investments and Yield |
F. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 11 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,000.05 |
Expenses Paid per $1,000* | $ .30 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,024.50 |
Expenses Paid per $1,000* | $ .30 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | .06% |
12 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 13 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
14 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 15 |
16 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
14 | Statement of Assets and Liabilities |
14 | Statement of Operations |
15 | Statements of Changes in Net Assets |
16 | Financial Highlights |
18 | Notes to Financial Statements |
25 | Information About Your Fund's Expenses |
26 | Liquidity Risk Management |
26 | Proxy Voting |
27 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS High Income VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,266 | $11,360 | $12,337 | $14,123 | $17,920 | |
Average annual total return | 2.66% | 13.60% | 7.25% | 7.15% | 6.01% | ||
ICE BofA US High Yield Index | Growth of $10,000 | $10,370 | $11,560 | $12,291 | $14,208 | $18,749 | |
Average annual total return | 3.70% | 15.60% | 7.12% | 7.28% | 6.49% | ||
DWS High Income VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $10,262 | $11,314 | $12,220 | $13,935 | $17,382 | |
Average annual total return | 2.62% | 13.14% | 6.91% | 6.86% | 5.68% | ||
ICE BofA US High Yield Index | Growth of $10,000 | $10,370 | $11,560 | $12,291 | $14,208 | $18,749 | |
Average annual total return | 3.70% | 15.60% | 7.12% | 7.28% | 6.49% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Corporate Bonds | 97% | 98% |
Cash Equivalents | 2% | 1% |
Loan Participations and Assignments | 1% | 1% |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Consumer Discretionary | 23% | 22% |
Communication Services | 16% | 19% |
Energy | 15% | 13% |
Industrials | 13% | 10% |
Materials | 9% | 11% |
Health Care | 8% | 8% |
Real Estate | 5% | 5% |
Utilities | 4% | 4% |
Financials | 3% | 2% |
Consumer Staples | 2% | 4% |
Information Technology | 2% | 2% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
BBB | 5% | 4% |
BB | 56% | 61% |
B | 32% | 30% |
CCC | 7% | 5% |
Not Rated | 0% | 0% |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 96.3% | |||
Communication Services 15.4% | |||
Altice France Holding SA: | |||
144A, 6.0%, 2/15/2028 | 200,000 | 199,160 | |
144A, 10.5%, 5/15/2027 | 200,000 | 222,250 | |
Altice France SA: | |||
144A, 5.5%, 1/15/2028 | 200,000 | 207,540 | |
144A, 7.375%, 5/1/2026 | 312,000 | 324,458 | |
144A, 8.125%, 2/1/2027 | 200,000 | 217,900 | |
Audacy Capital Corp.: | |||
144A, 6.5%, 5/1/2027 | 75,000 | 78,000 | |
144A, 6.75%, 3/31/2029 | 55,000 | 57,069 | |
Avaya, Inc., 144A, 6.125%, 9/15/2028 | 130,000 | 139,139 | |
CCO Holdings LLC: | |||
144A, 4.75%, 3/1/2030 | 140,000 | 148,050 | |
144A, 5.0%, 2/1/2028 | 150,000 | 157,313 | |
144A, 5.125%, 5/1/2027 | 275,000 | 288,447 | |
Clear Channel Outdoor Holdings, Inc., 144A, 7.5%, 6/1/2029 | 80,000 | 82,827 | |
Clear Channel Worldwide Holdings, Inc., 144A, 5.125%, 8/15/2027 | 320,000 | 328,070 | |
Cogent Communications Group, Inc., 144A, 3.5%, 5/1/2026 | 90,000 | 92,025 | |
CommScope Technologies LLC, 144A, 5.0%, 3/15/2027 | 250,000 | 255,937 | |
CommScope, Inc.: | |||
144A, 5.5%, 3/1/2024 | 130,000 | 133,738 | |
144A, 7.125%, 7/1/2028 | 75,000 | 81,281 | |
144A, 8.25%, 3/1/2027 | 130,000 | 138,944 | |
Consolidated Communications, Inc., 144A, 6.5%, 10/1/2028 | 155,000 | 166,741 | |
CSC Holdings LLC: | |||
144A, 5.5%, 4/15/2027 | 345,000 | 362,267 | |
144A, 5.75%, 1/15/2030 | 200,000 | 207,750 | |
144A, 6.5%, 2/1/2029 | 200,000 | 221,520 | |
Diamond Sports Group LLC, 144A, 5.375%, 8/15/2026 | 45,000 | 29,138 | |
DISH DBS Corp.: | |||
5.875%, 11/15/2024 | 96,000 | 103,080 | |
7.375%, 7/1/2028 | 50,000 | 53,807 | |
7.75%, 7/1/2026 | 90,000 | 101,925 | |
Endure Digital, Inc., 144A, 6.0%, 2/15/2029 | 145,000 | 143,550 | |
Frontier Communications Corp.: | |||
144A, 5.0%, 5/1/2028 | 165,000 | 170,582 | |
144A, 5.875%, 10/15/2027 | 75,000 | 80,344 | |
iHeartCommunications, Inc.: | |||
144A, 5.25%, 8/15/2027 | 125,000 | 130,675 |
Principal Amount ($)(a) | Value ($) | ||
8.375%, 5/1/2027 | 75,000 | 80,344 | |
Lamar Media Corp., 4.875%, 1/15/2029 | 80,000 | 84,400 | |
LCPR Senior Secured Financing DAC, 144A, 6.75%, 10/15/2027 | 210,000 | 226,317 | |
Outfront Media Capital LLC: | |||
144A, 4.25%, 1/15/2029 | 70,000 | 70,438 | |
144A, 5.0%, 8/15/2027 | 140,000 | 144,955 | |
QualityTech LP, 144A, 3.875%, 10/1/2028 | 140,000 | 149,716 | |
Radiate Holdco LLC: | |||
144A, 4.5%, 9/15/2026 | 55,000 | 56,925 | |
144A, 6.5%, 9/15/2028 | 210,000 | 220,636 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 155,000 | 184,837 | |
Uber Technologies, Inc.: | |||
144A, 6.25%, 1/15/2028 | 25,000 | 26,905 | |
144A, 7.5%, 5/15/2025 | 120,000 | 129,504 | |
144A, 7.5%, 9/15/2027 | 50,000 | 54,949 | |
ViaSat, Inc.: | |||
144A, 5.625%, 9/15/2025 | 135,000 | 137,565 | |
144A, 5.625%, 4/15/2027 | 120,000 | 125,260 | |
144A, 6.5%, 7/15/2028 | 105,000 | 111,978 | |
Virgin Media Secured Finance PLC: | |||
144A, 5.5%, 8/15/2026 | 215,000 | 221,719 | |
144A, 5.5%, 5/15/2029 | 345,000 | 370,875 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 185,000 | 224,170 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 370,000 | 432,366 |
Ziggo BV, 144A, 4.875%, 1/15/2030 | 290,000 | 297,250 | |
8,274,636 | |||
Consumer Discretionary 22.1% | |||
Affinity Gaming, 144A, 6.875%, 12/15/2027 | 120,000 | 127,350 | |
American Axle & Manufacturing, Inc., 6.875%, 7/1/2028 | 75,000 | 81,914 | |
Beacon Roofing Supply, Inc., 144A, 4.125%, 5/15/2029 | 30,000 | 29,923 | |
Beazer Homes U.S.A., Inc., 5.875%, 10/15/2027 | 35,000 | 36,577 | |
Boyd Gaming Corp.: | |||
4.75%, 12/1/2027 | 130,000 | 134,550 | |
144A, 4.75%, 6/15/2031 | 60,000 | 62,250 | |
144A, 8.625%, 6/1/2025 | 120,000 | 132,284 | |
Caesars Entertainment, Inc.: | |||
144A, 6.25%, 7/1/2025 | 270,000 | 286,200 | |
144A, 8.125%, 7/1/2027 | 410,000 | 456,002 | |
Caesars Resort Collection LLC, 144A, 5.75%, 7/1/2025 | 20,000 | 21,075 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 5 |
Principal Amount ($)(a) | Value ($) | ||
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 170,000 | 178,075 | |
144A, 7.625%, 3/1/2026 | 98,000 | 106,453 | |
144A, 9.875%, 8/1/2027 | 130,000 | 151,775 | |
144A, 10.5%, 2/1/2026 | 80,000 | 93,140 | |
144A, 11.5%, 4/1/2023 | 145,000 | 163,183 | |
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 122,652 |
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 245,303 |
144A, 6.25%, 5/15/2026 | 49,000 | 52,200 | |
144A, 6.75%, 5/15/2025 | 72,000 | 76,679 | |
144A, 8.5%, 5/15/2027 | 55,000 | 59,961 | |
Dana, Inc.: | |||
5.375%, 11/15/2027 | 55,000 | 58,575 | |
5.625%, 6/15/2028 | 25,000 | 27,055 | |
Empire Communities Corp., 144A, 7.0%, 12/15/2025 | 80,000 | 84,000 | |
Everi Holdings, Inc., 144A, 5.0%, 7/15/2029 (b) | 10,000 | 10,000 | |
Ford Motor Co.: | |||
4.346%, 12/8/2026 | 160,000 | 171,400 | |
8.5%, 4/21/2023 | 90,000 | 100,436 | |
9.0%, 4/22/2025 | 285,000 | 351,368 | |
9.625%, 4/22/2030 | 170,000 | 243,950 | |
Ford Motor Credit Co. LLC: | |||
3.375%, 11/13/2025 | 209,000 | 216,723 | |
3.625%, 6/17/2031 | 240,000 | 244,651 | |
5.113%, 5/3/2029 | 200,000 | 223,896 | |
5.125%, 6/16/2025 | 230,000 | 253,287 | |
Forestar Group, Inc., 144A, 3.85%, 5/15/2026 | 90,000 | 90,815 | |
Foundation Building Materials, Inc., 144A, 6.0%, 3/1/2029 | 110,000 | 108,900 | |
Hilton Domestic Operating Co., Inc.: | |||
144A, 3.75%, 5/1/2029 | 240,000 | 242,400 | |
4.875%, 1/15/2030 | 139,000 | 148,382 | |
144A, 5.375%, 5/1/2025 | 30,000 | 31,575 | |
Hilton Grand Vacations Borrower Escrow LLC: | |||
144A, 4.875%, 7/1/2031 | 30,000 | 29,921 | |
144A, 5.0%, 6/1/2029 | 90,000 | 92,025 | |
Jaguar Land Rover Automotive PLC, 144A, 5.875%, 1/15/2028 | 200,000 | 210,500 | |
L Brands, Inc.: | |||
144A, 6.625%, 10/1/2030 | 70,000 | 81,025 | |
6.875%, 11/1/2035 | 200,000 | 253,250 | |
144A, 9.375%, 7/1/2025 | 60,000 | 77,550 | |
M/I Homes, Inc., 4.95%, 2/1/2028 | 130,000 | 135,622 | |
Macy's Retail Holdings LLC, 144A, 5.875%, 4/1/2029 | 145,000 | 155,937 | |
MajorDrive Holdings IV LLC, 144A, 6.375%, 6/1/2029 | 185,000 | 184,537 |
Principal Amount ($)(a) | Value ($) | ||
Marriott Ownership Resorts, Inc.: | |||
144A, 4.5%, 6/15/2029 | 50,000 | 50,688 | |
144A, 6.125%, 9/15/2025 | 150,000 | 159,517 | |
Mattel, Inc.: | |||
144A, 3.375%, 4/1/2026 | 75,000 | 77,813 | |
144A, 3.75%, 4/1/2029 | 50,000 | 52,000 | |
Meritage Homes Corp., 144A, 3.875%, 4/15/2029 | 105,000 | 108,675 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 100,125 | |
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 | 100,000 | 96,500 | |
144A, 5.875%, 3/15/2026 | 250,000 | 261,875 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 62,877 | |
Newell Brands, Inc., 4.7%, 4/1/2026 | 440,000 | 490,653 | |
Peninsula Pacific Entertainment LLC, 144A, 8.5%, 11/15/2027 | 60,000 | 64,440 | |
Picasso Finance Sub, Inc., 144A, 6.125%, 6/15/2025 | 97,000 | 102,553 | |
Prestige Brands, Inc., 144A, 5.125%, 1/15/2028 | 90,000 | 94,748 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 120,000 | 121,678 | |
Real Hero Merger Sub 2, Inc., 144A, 6.25%, 2/1/2029 | 80,000 | 82,976 | |
Royal Caribbean Cruises Ltd.: | |||
3.7%, 3/15/2028 | 55,000 | 52,530 | |
144A, 4.25%, 7/1/2026 | 10,000 | 9,988 | |
144A, 5.5%, 4/1/2028 | 110,000 | 115,203 | |
144A, 9.125%, 6/15/2023 | 210,000 | 230,475 | |
144A, 10.875%, 6/1/2023 | 110,000 | 125,263 | |
144A, 11.5%, 6/1/2025 | 50,000 | 57,625 | |
Scientific Games International, Inc.: | |||
144A, 7.0%, 5/15/2028 | 235,000 | 256,667 | |
144A, 7.25%, 11/15/2029 | 125,000 | 141,000 | |
SeaWorld Parks & Entertainment, Inc., 144A, 9.5%, 8/1/2025 | 90,000 | 96,525 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 210,000 | 217,504 | |
Stars Group Holdings BV, 144A, 7.0%, 7/15/2026 | 105,000 | 108,679 | |
Taylor Morrison Communities, Inc.: | |||
144A, 5.125%, 8/1/2030 | 75,000 | 81,291 | |
144A, 5.75%, 1/15/2028 | 170,000 | 191,930 | |
Tenneco, Inc., 144A, 7.875%, 1/15/2029 | 13,000 | 14,682 | |
TRI Pointe Group, Inc.: | |||
5.25%, 6/1/2027 | 55,000 | 59,675 | |
5.7%, 6/15/2028 | 80,000 | 88,200 |
6 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
United Rentals North America, Inc., 5.25%, 1/15/2030 | 80,000 | 87,631 | |
Univar Solutions U.S.A., Inc., 144A, 5.125%, 12/1/2027 | 160,000 | 168,200 | |
Vail Resorts, Inc., 144A, 6.25%, 5/15/2025 | 100,000 | 107,038 | |
Victoria's Secret & Co., 144A, 4.625%, 7/15/2029 (b) | 30,000 | 30,000 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 103,761 | |
144A, 7.0%, 2/15/2029 | 30,000 | 31,213 | |
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 15,000 | 15,150 | |
Williams Scotsman International, Inc., 144A, 4.625%, 8/15/2028 | 60,000 | 61,962 | |
Wolverine World Wide, Inc., 144A, 6.375%, 5/15/2025 | 150,000 | 159,580 | |
Wyndham Destinations, Inc., 144A, 6.625%, 7/31/2026 | 120,000 | 135,960 | |
Wyndham Hotels & Resorts, Inc., 144A, 4.375%, 8/15/2028 | 50,000 | 51,911 | |
Wynn Las Vegas LLC, 144A, 5.5%, 3/1/2025 | 100,000 | 107,686 | |
Wynn Macau Ltd.: | |||
144A, 5.5%, 1/15/2026 | 200,000 | 209,628 | |
144A, 5.625%, 8/26/2028 | 200,000 | 208,500 | |
Wynn Resorts Finance LLC, 144A, 5.125%, 10/1/2029 | 140,000 | 147,875 | |
11,845,776 | |||
Consumer Staples 2.6% | |||
Albertsons Companies, Inc.: | |||
144A, 4.625%, 1/15/2027 | 200,000 | 209,190 | |
144A, 5.875%, 2/15/2028 | 60,000 | 64,644 | |
Chobani LLC, 144A, 4.625%, 11/15/2028 | 30,000 | 31,087 | |
Edgewell Personal Care Co., 144A, 5.5%, 6/1/2028 | 70,000 | 74,200 | |
JBS U.S.A. LUX SA: | |||
144A, 5.5%, 1/15/2030 | 60,000 | 67,103 | |
144A, 6.5%, 4/15/2029 | 132,000 | 148,336 | |
144A, 6.75%, 2/15/2028 | 235,000 | 258,206 | |
Kraft Heinz Foods Co., 4.25%, 3/1/2031 | 110,000 | 124,959 | |
Pilgrim's Pride Corp.: | |||
144A, 4.25%, 4/15/2031 | 75,000 | 77,719 | |
144A, 5.875%, 9/30/2027 | 230,000 | 244,950 | |
U.S. Foods, Inc., 144A, 4.75%, 2/15/2029 | 90,000 | 91,800 | |
1,392,194 | |||
Energy 15.8% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 70,000 | 72,975 | |
144A, 5.75%, 3/1/2027 | 130,000 | 135,200 | |
144A, 5.75%, 1/15/2028 | 90,000 | 94,704 |
Principal Amount ($)(a) | Value ($) | ||
Antero Resources Corp.: | |||
144A, 5.375%, 3/1/2030 | 50,000 | 51,032 | |
144A, 7.625%, 2/1/2029 | 165,000 | 183,150 | |
144A, 8.375%, 7/15/2026 | 42,000 | 47,775 | |
Apache Corp.: | |||
4.875%, 11/15/2027 | 55,000 | 59,564 | |
5.1%, 9/1/2040 | 57,000 | 59,708 | |
Archrock Partners LP: | |||
144A, 6.25%, 4/1/2028 | 220,000 | 229,660 | |
144A, 6.875%, 4/1/2027 | 110,000 | 116,737 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 30,000 | 30,000 | |
144A, 8.25%, 12/31/2028 | 65,000 | 71,500 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 82,025 | |
Cheniere Energy Partners LP: | |||
4.5%, 10/1/2029 | 272,000 | 292,400 | |
5.625%, 10/1/2026 | 80,000 | 83,000 | |
Cheniere Energy, Inc., 144A, 4.625%, 10/15/2028 | 25,000 | 26,375 | |
Chesapeake Energy Corp., 144A, 5.875%, 2/1/2029 | 75,000 | 81,184 | |
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 145,965 | |
144A, 7.25%, 3/14/2027 | 100,000 | 107,156 | |
Colgate Energy Partners III LLC, 144A, 5.875%, 7/1/2029 | 60,000 | 62,250 | |
Comstock Resources, Inc.: | |||
144A, 5.875%, 1/15/2030 | 30,000 | 30,600 | |
144A, 6.75%, 3/1/2029 | 155,000 | 165,111 | |
144A, 7.5%, 5/15/2025 | 18,000 | 18,675 | |
Continental Resources, Inc., 144A, 5.75%, 1/15/2031 | 65,000 | 77,837 | |
DCP Midstream Operating LP: | |||
5.125%, 5/15/2029 | 80,000 | 88,400 | |
5.375%, 7/15/2025 | 367,000 | 408,728 | |
5.625%, 7/15/2027 | 50,000 | 56,875 | |
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 30,000 | 30,460 | |
144A, 4.375%, 6/15/2031 | 30,000 | 30,654 | |
Endeavor Energy Resources LP: | |||
144A, 5.5%, 1/30/2026 | 155,000 | 161,006 | |
144A, 5.75%, 1/30/2028 | 70,000 | 74,638 | |
144A, 6.625%, 7/15/2025 | 35,000 | 37,450 | |
EQM Midstream Partners LP: | |||
144A, 4.5%, 1/15/2029 | 50,000 | 50,869 | |
144A, 4.75%, 1/15/2031 | 75,000 | 77,283 | |
5.5%, 7/15/2028 | 55,000 | 59,432 | |
144A, 6.0%, 7/1/2025 | 140,000 | 152,250 | |
144A, 6.5%, 7/1/2027 | 80,000 | 89,200 | |
EQT Corp.: | |||
144A, 3.625%, 5/15/2031 | 100,000 | 104,250 | |
5.0%, 1/15/2029 | 85,000 | 94,772 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
7.625%, 2/1/2025 | 105,000 | 122,481 | |
8.5%, 2/1/2030 | 80,000 | 104,233 | |
Genesis Energy LP, 7.75%, 2/1/2028 | 75,000 | 77,508 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 168,330 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 161,587 | |
144A, 6.0%, 2/1/2031 | 110,000 | 116,600 | |
144A, 6.25%, 11/1/2028 | 35,000 | 37,188 | |
Indigo Natural Resources LLC, 144A, 5.375%, 2/1/2029 | 120,000 | 125,400 | |
Murphy Oil U.S.A., Inc.: | |||
4.75%, 9/15/2029 | 55,000 | 57,871 | |
5.625%, 5/1/2027 | 65,000 | 68,575 | |
NuStar Logistics LP: | |||
5.75%, 10/1/2025 | 80,000 | 87,000 | |
6.375%, 10/1/2030 | 30,000 | 33,147 | |
Oasis Petroleum, Inc., 144A, 6.375%, 6/1/2026 | 40,000 | 41,709 | |
Occidental Petroleum Corp.: | |||
5.5%, 12/1/2025 | 135,000 | 149,178 | |
5.55%, 3/15/2026 | 105,000 | 116,025 | |
6.125%, 1/1/2031 | 255,000 | 300,015 | |
6.45%, 9/15/2036 | 105,000 | 125,538 | |
6.625%, 9/1/2030 | 225,000 | 270,000 | |
8.0%, 7/15/2025 | 175,000 | 209,562 | |
8.5%, 7/15/2027 | 100,000 | 125,920 | |
Parkland Corp., 144A, 5.875%, 7/15/2027 | 80,000 | 85,270 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 30,900 | |
Range Resources Corp.: | |||
144A, 8.25%, 1/15/2029 | 280,000 | 315,700 | |
9.25%, 2/1/2026 | 50,000 | 55,125 | |
Rattler Midstream LP, 144A, 5.625%, 7/15/2025 | 75,000 | 78,844 | |
Renewable Energy Group, Inc., 144A, 5.875%, 6/1/2028 | 60,000 | 62,925 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 82,200 | |
Southwestern Energy Co.: | |||
6.45%, 1/23/2025 | 140,000 | 154,980 | |
7.75%, 10/1/2027 | 100,000 | 108,499 | |
8.375%, 9/15/2028 | 50,000 | 56,500 | |
Suburban Propane Partners LP, 144A, 5.0%, 6/1/2031 | 60,000 | 61,425 | |
Sunoco LP: | |||
144A, 4.5%, 5/15/2029 | 56,000 | 56,980 | |
5.875%, 3/15/2028 | 35,000 | 37,188 | |
6.0%, 4/15/2027 | 52,000 | 54,379 | |
Superior Plus LP, 144A, 4.5%, 3/15/2029 | 30,000 | 30,901 | |
Targa Resources Partners LP: | |||
144A, 4.875%, 2/1/2031 | 30,000 | 32,475 | |
5.0%, 1/15/2028 | 265,000 | 279,575 | |
5.5%, 3/1/2030 | 90,000 | 98,969 |
Principal Amount ($)(a) | Value ($) | ||
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 50,000 | 50,250 | |
USA Compression Partners LP: | |||
6.875%, 4/1/2026 | 142,000 | 148,745 | |
6.875%, 9/1/2027 | 100,000 | 106,828 | |
Western Midstream Operating LP: | |||
4.35%, 2/1/2025 | 80,000 | 84,527 | |
5.3%, 3/1/2048 | 25,000 | 26,625 | |
8,438,527 | |||
Financials 1.3% | |||
Navient Corp., 6.125%, 3/25/2024 | 393,000 | 424,149 | |
OneMain Finance Corp.: | |||
5.375%, 11/15/2029 | 80,000 | 87,019 | |
8.875%, 6/1/2025 | 50,000 | 55,435 | |
Quicken Loans LLC, 144A, 3.625%, 3/1/2029 | 120,000 | 118,500 | |
Sabre GLBL, Inc., 144A, 7.375%, 9/1/2025 | 30,000 | 32,625 | |
717,728 | |||
Health Care 8.6% | |||
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 250,000 | 260,730 | |
AdaptHealth LLC: | |||
144A, 4.625%, 8/1/2029 | 55,000 | 55,688 | |
144A, 6.125%, 8/1/2028 | 80,000 | 85,191 | |
AHP Health Partners, Inc., 144A, 5.75%, 7/15/2029 (b) | 105,000 | 106,444 | |
Bausch Health Americas, Inc.: | |||
144A, 8.5%, 1/31/2027 | 195,000 | 211,945 | |
144A, 9.25%, 4/1/2026 | 135,000 | 146,839 | |
Bausch Health Companies, Inc.: | |||
144A, 5.25%, 2/15/2031 | 50,000 | 46,673 | |
144A, 6.125%, 4/15/2025 | 145,000 | 148,625 | |
Catalent Pharma Solutions, Inc., 144A, 5.0%, 7/15/2027 | 125,000 | 130,620 | |
Centene Corp.: | |||
2.45%, 7/15/2028 (b) | 40,000 | 40,540 | |
4.625%, 12/15/2029 | 275,000 | 302,437 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 65,894 | |
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 115,431 | |
144A, 5.625%, 3/15/2027 | 60,000 | 64,050 | |
144A, 6.0%, 1/15/2029 | 65,000 | 69,550 | |
144A, 6.125%, 4/1/2030 | 50,000 | 50,750 | |
144A, 6.875%, 4/15/2029 | 90,000 | 94,182 | |
Encompass Health Corp.: | |||
4.5%, 2/1/2028 | 45,000 | 46,686 | |
4.75%, 2/1/2030 | 137,000 | 145,562 |
8 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Endo Luxembourg Finance Company I S.a r.l., 144A, 6.125%, 4/1/2029 | 70,000 | 68,600 | |
HCA, Inc., 5.625%, 9/1/2028 | 300,000 | 355,500 | |
IQVIA, Inc., 144A, 5.0%, 5/15/2027 | 220,000 | 230,450 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 75,900 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 | 225,000 | 219,375 | |
Molina Healthcare, Inc.: | |||
144A, 3.875%, 11/15/2030 | 75,000 | 78,094 | |
144A, 4.375%, 6/15/2028 | 100,000 | 104,250 | |
Organon & Co, 144A, 4.125%, 4/30/2028 | 200,000 | 203,960 | |
Prime Healthcare Services, Inc., 144A, 7.25%, 11/1/2025 | 70,000 | 75,781 | |
RegionalCare Hospital Partners Holdings, Inc., 144A, 9.75%, 12/1/2026 | 60,000 | 64,575 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 133,128 | |
Syneos Health, Inc., 144A, 3.625%, 1/15/2029 | 100,000 | 99,000 | |
Tenet Healthcare Corp.: | |||
144A, 4.25%, 6/1/2029 | 90,000 | 91,125 | |
4.625%, 7/15/2024 | 50,000 | 50,735 | |
144A, 4.875%, 1/1/2026 | 190,000 | 197,068 | |
144A, 5.125%, 11/1/2027 | 150,000 | 157,312 | |
144A, 6.125%, 10/1/2028 | 85,000 | 90,579 | |
144A, 6.25%, 2/1/2027 | 75,000 | 78,281 | |
144A, 7.5%, 4/1/2025 | 50,000 | 54,007 | |
4,615,557 | |||
Industrials 11.5% | |||
Aadvantage Loyalty IP Ltd.: | |||
144A, 5.5%, 4/20/2026 | 140,000 | 148,225 | |
144A, 5.75%, 4/20/2029 | 135,000 | 145,969 | |
Allied Universal Holdco LLC, 144A, 6.0%, 6/1/2029 | 200,000 | 202,758 | |
American Airlines, Inc., 144A, 11.75%, 7/15/2025 | 80,000 | 100,400 | |
ATS Automation Tooling Systems, Inc., 144A, 4.125%, 12/15/2028 | 30,000 | 30,713 | |
Bombardier, Inc., 144A, 7.5%, 3/15/2025 | 95,000 | 97,693 | |
Brundage-Bone Concrete Pumping Holdings, Inc., 144A, 6.0%, 2/1/2026 | 55,000 | 57,899 | |
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 100,000 | 101,983 | |
Cimpress PLC, 144A, 7.0%, 6/15/2026 | 150,000 | 158,125 | |
Clark Equipment Co., 144A, 5.875%, 6/1/2025 | 55,000 | 58,163 | |
Covanta Holding Corp., 5.0%, 9/1/2030 | 195,000 | 204,750 |
Principal Amount ($)(a) | Value ($) | ||
CP Atlas Buyer, Inc., 144A, 7.0%, 12/1/2028 | 28,000 | 29,015 | |
Delta Air Lines, Inc., 144A, 7.0%, 5/1/2025 | 120,000 | 140,039 | |
EnerSys, 144A, 4.375%, 12/15/2027 | 90,000 | 93,662 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 80,000 | 82,200 | |
144A, 4.25%, 6/1/2025 | 40,000 | 41,662 | |
144A, 4.75%, 6/15/2029 | 30,000 | 31,149 | |
144A, 5.125%, 12/15/2026 | 50,000 | 52,896 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 225,000 | 241,562 | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | 140,000 | 162,957 | |
Imola Merger Corp., 144A, 4.75%, 5/15/2029 | 365,000 | 375,494 | |
Jaguar Holding Co. II: | |||
144A, 4.625%, 6/15/2025 | 55,000 | 57,750 | |
144A, 5.0%, 6/15/2028 | 45,000 | 48,776 | |
JELD-WEN, Inc., 144A, 4.625%, 12/15/2025 | 80,000 | 81,501 | |
Madison IAQ LLC: | |||
144A, 4.125%, 6/30/2028 | 90,000 | 90,900 | |
144A, 5.875%, 6/30/2029 | 60,000 | 61,050 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 74,000 | 78,416 | |
Metis Merger Sub LLC, 144A, 6.5%, 5/15/2029 | 60,000 | 59,091 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 130,000 | 143,130 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 165,600 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 99,156 | |
Nielsen Finance LLC: | |||
144A, 4.5%, 7/15/2029 | 30,000 | 30,084 | |
144A, 5.625%, 10/1/2028 | 265,000 | 279,864 | |
Owens & Minor, Inc., 144A, 4.5%, 3/31/2029 | 55,000 | 56,513 | |
Patrick Industries, Inc., 144A, 4.75%, 5/1/2029 | 135,000 | 134,156 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 70,000 | 67,900 | |
144A, 5.75%, 4/15/2026 | 135,000 | 149,130 | |
144A, 6.25%, 1/15/2028 | 275,000 | 292,531 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 156,119 | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 114,000 | 128,934 | |
TransDigm, Inc.: | |||
144A, 4.625%, 1/15/2029 | 85,000 | 85,030 | |
5.5%, 11/15/2027 | 115,000 | 119,887 | |
144A, 6.25%, 3/15/2026 | 335,000 | 353,425 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 165,629 | |
Vertical U.S. Newco, Inc., 144A, 5.25%, 7/15/2027 | 200,000 | 210,750 | |
Vine Energy Holdings LLC, 144A, 6.75%, 4/15/2029 | 330,000 | 347,325 | |
WESCO Distribution, Inc.: | |||
144A, 7.125%, 6/15/2025 | 40,000 | 43,228 | |
144A, 7.25%, 6/15/2028 | 105,000 | 116,954 | |
6,180,143 | |||
Information Technology 1.7% | |||
Ahead DB Holdings LLC, 144A, 6.625%, 5/1/2028 | 120,000 | 124,145 | |
Banff Merger Sub, Inc., 144A, 9.75%, 9/1/2026 | 75,000 | 78,938 | |
Boxer Parent Co., Inc., 144A, 7.125%, 10/2/2025 | 60,000 | 64,200 | |
Camelot Finance SA, 144A, 4.5%, 11/1/2026 | 55,000 | 57,544 | |
Clarivate Science Holdings Corp.: | |||
144A, 3.875%, 6/30/2028 | 90,000 | 90,820 | |
144A, 4.875%, 6/30/2029 | 60,000 | 61,575 | |
Microchip Technology, Inc., 4.25%, 9/1/2025 | 140,000 | 146,981 | |
NCR Corp., 144A, 5.125%, 4/15/2029 | 190,000 | 195,937 | |
Presidio Holdings, Inc.: | |||
144A, 4.875%, 2/1/2027 | 50,000 | 51,438 | |
144A, 8.25%, 2/1/2028 | 30,000 | 32,625 | |
904,203 | |||
Materials 9.0% | |||
Arconic Corp., 144A, 6.125%, 2/15/2028 | 185,000 | 198,453 | |
Cascades, Inc.: | |||
144A, 5.125%, 1/15/2026 | 10,000 | 10,650 | |
144A, 5.375%, 1/15/2028 | 90,000 | 94,613 | |
Chemours Co.: | |||
5.375%, 5/15/2027 | 95,000 | 103,034 | |
144A, 5.75%, 11/15/2028 | 290,000 | 310,233 | |
Clearwater Paper Corp.: | |||
144A, 4.75%, 8/15/2028 | 80,000 | 79,700 | |
144A, 5.375%, 2/1/2025 | 110,000 | 117,150 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.625%, 3/1/2029 | 31,000 | 32,620 | |
144A, 4.875%, 3/1/2031 | 141,000 | 148,050 | |
144A, 6.75%, 3/15/2026 | 175,000 | 188,781 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 209,222 | |
144A, 6.875%, 10/15/2027 | 300,000 | 326,910 | |
Freeport-McMoRan, Inc.: | |||
4.125%, 3/1/2028 | 270,000 | 281,812 | |
4.375%, 8/1/2028 | 90,000 | 95,063 | |
4.625%, 8/1/2030 | 90,000 | 98,550 | |
5.0%, 9/1/2027 | 105,000 | 110,906 |
Principal Amount ($)(a) | Value ($) | ||
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 60,000 | 60,225 | |
144A, 6.125%, 4/1/2029 | 100,000 | 106,500 | |
Kaiser Aluminum Corp.: | |||
144A, 4.5%, 6/1/2031 | 50,000 | 51,277 | |
144A, 4.625%, 3/1/2028 | 70,000 | 72,319 | |
Kraton Polymers LLC, 144A, 4.25%, 12/15/2025 | 125,000 | 127,500 | |
LABL Escrow Issuer LLC, 144A, 6.75%, 7/15/2026 | 100,000 | 106,673 | |
Mauser Packaging Solutions Holding Co., 144A, 7.25%, 4/15/2025 | 105,000 | 102,900 | |
Mercer International, Inc., 144A, 5.125%, 2/1/2029 | 10,000 | 10,290 | |
Methanex Corp.: | |||
5.125%, 10/15/2027 | 180,000 | 194,400 | |
5.25%, 12/15/2029 | 50,000 | 53,875 | |
Nouryon Holding BV, 144A, 8.0%, 10/1/2026 | 150,000 | 159,000 | |
Novelis Corp.: | |||
144A, 4.75%, 1/30/2030 | 375,000 | 393,750 | |
144A, 5.875%, 9/30/2026 | 230,000 | 239,259 | |
Resolute Forest Products, Inc., 144A, 4.875%, 3/1/2026 | 55,000 | 56,815 | |
SCIH Salt Holdings, Inc., 144A, 4.875%, 5/1/2028 | 110,000 | 109,987 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 130,312 | |
Tronox, Inc.: | |||
144A, 4.625%, 3/15/2029 | 370,000 | 373,693 | |
144A, 6.5%, 5/1/2025 | 30,000 | 31,749 | |
United States Steel Corp., 6.875%, 3/1/2029 | 35,000 | 37,450 | |
4,823,721 | |||
Real Estate 4.8% | |||
Cushman & Wakefield U.S. Borrower LLC, 144A, 6.75%, 5/15/2028 | 120,000 | 129,415 | |
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 61,932 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 77,846 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 105,858 | |
iStar, Inc.: | |||
(REIT), 4.25%, 8/1/2025 | 100,000 | 102,875 | |
(REIT), 4.75%, 10/1/2024 | 170,000 | 178,925 | |
MGM Growth Properties Operating Partnership LP: | |||
144A, (REIT), 3.875%, 2/15/2029 | 90,000 | 91,401 | |
144A, (REIT), 4.625%, 6/15/2025 | 233,000 | 248,930 | |
(REIT), 5.75%, 2/1/2027 | 310,000 | 344,912 |
10 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
MPT Operating Partnership LP: | |||
(REIT), 3.5%, 3/15/2031 | 105,000 | 106,049 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 149,864 | |
Realogy Group LLC: | |||
144A, 5.75%, 1/15/2029 | 240,000 | 250,894 | |
144A, 7.625%, 6/15/2025 | 185,000 | 200,670 | |
Service Properties Trust, (REIT), 7.5%, 9/15/2025 | 160,000 | 181,152 | |
VICI Properties LP: | |||
144A, (REIT), 3.5%, 2/15/2025 | 10,000 | 10,197 | |
144A, (REIT), 3.75%, 2/15/2027 | 30,000 | 30,514 | |
144A, (REIT), 4.125%, 8/15/2030 | 155,000 | 159,157 | |
144A, (REIT), 4.625%, 12/1/2029 | 16,000 | 17,000 | |
WeWork Companies, Inc., 144A, 7.875%, 5/1/2025 | 80,000 | 83,600 | |
XHR LP, 144A, (REIT), 4.875%, 6/1/2029 | 40,000 | 41,300 | |
2,572,491 | |||
Utilities 3.5% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 224,987 | |
5.75%, 5/20/2027 | 110,000 | 122,650 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 204,000 | |
144A, 4.625%, 2/1/2029 | 30,000 | 29,494 | |
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 120,606 | |
NextEra Energy Operating Partners LP, 144A, 4.25%, 7/15/2024 | 210,000 | 221,550 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 142,492 | |
144A, 5.25%, 6/15/2029 | 157,000 | 167,009 | |
5.75%, 1/15/2028 | 200,000 | 213,000 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 93,168 | |
Talen Energy Supply LLC: | |||
144A, 7.25%, 5/15/2027 | 225,000 | 209,938 | |
144A, 7.625%, 6/1/2028 | 60,000 | 56,143 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 60,000 | 60,300 | |
1,865,337 | |||
Total Corporate Bonds (Cost $49,146,014) | 51,630,313 |
Principal Amount ($)(a) | Value ($) | ||
Loan Participations and Assignments 0.5% | |||
Senior Loans (c) | |||
Brand Energy & Infrastructure Services, Inc., Term Loan, 3-month USD-LIBOR + 4.25%, 5.25%, 6/21/2024 | 168,683 | 166,178 | |
Flex Acquisition Co., Inc., Term Loan, 3-month USD-LIBOR + 3.5%, 4.0%, 2/23/2028 | 80,931 | 80,679 | |
Total Loan Participations and Assignments (Cost $246,796) | 246,857 |
Shares | Value ($) | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (Cost $0) | 287 | 1,191 | |
Warrants 0.1% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (d) (Cost $244,286) | 1,100 | 47,259 | |
Cash Equivalents 2.1% | |||
DWS Central Cash Management Government Fund, 0.02% (e) (Cost $1,116,541) | 1,116,541 | 1,116,541 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $50,753,637) | 99.0 | 53,042,161 | |
Other Assets and Liabilities, Net | 1.0 | 559,714 | |
Net Assets | 100.0 | 53,601,875 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 11 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (e) (f) | ||||||||
633,205 | — | 633,205 (g) | — | — | 344 | — | — | — |
Cash Equivalents 2.1% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (e) | ||||||||
843,071 | 11,266,380 | 10,992,910 | — | — | 172 | — | 1,116,541 | 1,116,541 |
1,476,276 | 11,266,380 | 11,626,115 | — | — | 516 | — | 1,116,541 | 1,116,541 |
* | Non-income producing security. |
(a) | Principal amount stated in U.S. dollars unless otherwise noted. |
(b) | When-issued, delayed delivery or forward commitment securities included. |
(c) | Variable or floating rate security. These securities are shown at their current rate as of June 30, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(d) | Investment was valued using significant unobservable inputs. |
(e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
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. |
LIBOR: London Interbank Offered Rate |
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, U.S. 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 |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 698,948 | USD | 834,659 | 7/30/2021 | 5,350 | State Street Bank and Trust |
EUR | Euro |
USD | United States Dollar |
12 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $ — | $ 51,630,313 | $ — | $ 51,630,313 |
Loan Participations and Assignments | — | 246,857 | — | 246,857 |
Common Stocks | 1,191 | — | — | 1,191 |
Warrants | — | — | 47,259 | 47,259 |
Short-Term Investments | 1,116,541 | — | — | 1,116,541 |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | — | 5,350 | — | 5,350 |
Total | $1,117,732 | $ 51,882,520 | $47,259 | $ 53,047,511 |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open forward foreign currency contracts. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 13 |
Assets | |
Investments in non-affiliated securities, at value (cost $49,637,096) | $ 51,925,620 |
Investment in DWS Central Cash Management Government Fund (cost $1,116,541) | 1,116,541 |
Cash | 10,000 |
Foreign currency, at value (cost $17,525) | 17,534 |
Receivable for investments sold | 216,832 |
Receivable for investments sold — when-issued/delayed delivery securities | 150,838 |
Receivable for Fund shares sold | 3,185 |
Interest receivable | 814,565 |
Unrealized appreciation on forward foreign currency contracts | 5,350 |
Other assets | 603 |
Total assets | 54,261,068 |
Liabilities | |
Payable for investments purchased | 222,895 |
Payable for investments purchased — when-issued/delayed delivery securities | 336,125 |
Payable for Fund shares redeemed | 14,812 |
Accrued management fee | 16,283 |
Accrued Trustees' fees | 765 |
Other accrued expenses and payables | 68,313 |
Total liabilities | 659,193 |
Net assets, at value | $ 53,601,875 |
Net Assets Consist of | |
Distributable earnings (loss) | (3,129,169) |
Paid-in capital | 56,731,044 |
Net assets, at value | $ 53,601,875 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($53,202,299 ÷ 8,724,735 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 6.10 |
Class B | |
Net Asset Value, offering and redemption price per share ($399,576 ÷ 65,216 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 6.13 |
Investment Income | |
Income: | |
Interest | $ 1,375,308 |
Income distributions — DWS Central Cash Management Government Fund | 172 |
Securities lending income, net of borrower rebates | 344 |
Total income | 1,375,824 |
Expenses: | |
Management fee | 132,177 |
Administration fee | 25,642 |
Services to shareholders | 385 |
Record keeping fee (Class B) | 156 |
Distribution service fee (Class B) | 244 |
Custodian fee | 3,562 |
Professional fees | 44,315 |
Reports to shareholders | 16,956 |
Trustees' fees and expenses | 1,901 |
Other | 1,642 |
Total expenses before expense reductions | 226,980 |
Expense reductions | (38,894) |
Total expenses after expense reductions | 188,086 |
Net investment income | 1,187,738 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 950,092 |
Forward foreign currency contracts | 34,163 |
Foreign currency | (7,932) |
976,323 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (753,007) |
Forward foreign currency contracts | 5,127 |
Foreign currency | (387) |
(748,267) | |
Net gain (loss) | 228,056 |
Net increase (decrease) in net assets resulting from operations | $ 1,415,794 |
14 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 1,187,738 | $ 2,533,908 |
Net realized gain (loss) | 976,323 | (892,054) |
Change in net unrealized appreciation (depreciation) | (748,267) | 1,341,265 |
Net increase (decrease) in net assets resulting from operations | 1,415,794 | 2,983,119 |
Distributions to shareholders: | ||
Class A | (2,455,814) | (2,873,076) |
Class B | (6,327) | (8,104) |
Total distributions | (2,462,141) | (2,881,180) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,422,785 | 6,977,525 |
Reinvestment of distributions | 2,455,814 | 2,873,076 |
Payments for shares redeemed | (4,588,649) | (11,869,783) |
Net increase (decrease) in net assets from Class A share transactions | 289,950 | (2,019,182) |
Class B | ||
Proceeds from shares sold | 249,108 | 9,694 |
Reinvestment of distributions | 6,327 | 8,104 |
Payments for shares redeemed | (4,128) | (29,136) |
Net increase (decrease) in net assets from Class B share transactions | 251,307 | (11,338) |
Increase (decrease) in net assets | (505,090) | (1,928,581) |
Net assets at beginning of period | 54,106,965 | 56,035,546 |
Net assets at end of period | $53,601,875 | $ 54,106,965 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,668,128 | 8,976,023 |
Shares sold | 390,954 | 1,182,798 |
Shares issued to shareholders in reinvestment of distributions | 408,621 | 536,022 |
Shares redeemed | (742,968) | (2,026,715) |
Net increase (decrease) in Class A shares | 56,607 | (307,895) |
Shares outstanding at end of period | 8,724,735 | 8,668,128 |
Class B | ||
Shares outstanding at beginning of period | 23,669 | 25,470 |
Shares sold | 41,170 | 1,573 |
Shares issued to shareholders in reinvestment of distributions | 1,048 | 1,501 |
Shares redeemed | (671) | (4,875) |
Net increase (decrease) in Class B shares | 41,547 | (1,801) |
Shares outstanding at end of period | 65,216 | 23,669 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 15 |
DWS High Income VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $6.23 | $6.23 | $5.71 | $6.36 | $6.28 | $5.93 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .14 | .29 | .31 | .33 | .31 | .32 |
Net realized and unrealized gain (loss) | .02 | .04 | .56 | (.48) | .15 | .41 |
Total from investment operations | .16 | .33 | .87 | (.15) | .46 | .73 |
Less distributions from: | ||||||
Net investment income | (.29) | (.33) | (.35) | (.50) | (.38) | (.38) |
Net asset value, end of period | $6.10 | $6.23 | $6.23 | $5.71 | $6.36 | $6.28 |
Total Return (%)b | 2.66 * | 6.24 | 15.69 | (2.52) | 7.51 | 12.87 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 53 | 54 | 56 | 52 | 61 | 100 |
Ratio of expenses before expense reductions (%)c | .86 ** | .87 | .96 | .94 | .78 | .80 |
Ratio of expenses after expense reductions (%)c | .71 ** | .70 | .68 | .69 | .72 | .72 |
Ratio of net investment income (%) | 4.49 ** | 4.86 | 5.09 | 5.41 | 4.98 | 5.38 |
Portfolio turnover rate (%) | 39 * | 94 | 82 | 62 | 71 | 77 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
16 | | Deutsche DWS Variable Series II —DWS High Income VIP |
DWS High Income VIP — Class B | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $6.24 | $6.25 | $5.73 | $6.38 | $6.30 | $5.94 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .12 | .27 | .29 | .31 | .31 | .31 |
Net realized and unrealized gain (loss) | .04 | .04 | .57 | (.48) | .13 | .41 |
Total from investment operations | .16 | .31 | .86 | (.17) | .44 | .72 |
Less distributions from: | ||||||
Net investment income | (.27) | (.32) | (.34) | (.48) | (.36) | (.36) |
Net asset value, end of period | $6.13 | $6.24 | $6.25 | $5.73 | $6.38 | $6.30 |
Total Return (%)b | 2.62 * | 5.77 | 15.33 | (2.76) | 7.21 | 12.67 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .4 | .1 | .2 | .1 | .1 | 2 |
Ratio of expenses before expense reductions (%)c | 1.30 ** | 1.30 | 1.40 | 1.34 | 1.15 | 1.21 |
Ratio of expenses after expense reductions (%)c | 1.11 ** | 1.05 | .94 | .96 | .98 | .98 |
Ratio of net investment income (%) | 4.08 ** | 4.52 | 4.82 | 5.14 | 4.88 | 5.15 |
Portfolio turnover rate (%) | 39 * | 94 | 82 | 62 | 71 | 77 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS High Income VIP | | 17 |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
18 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Deutsche DWS Variable Series II —DWS High Income VIP | | 19 |
B. | Derivative Instruments |
20 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Assets Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $ 5,350 |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized appreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts |
Foreign Exchange Contracts (a) | $ 34,163 |
The above derivative is located in the following Statement of Operations account: |
(a) | Net realized gain (loss) from forward foreign currency contracts |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts |
Foreign Exchange Contracts (a) | $ 5,127 |
The above derivative is located in the following Statement of Operations account: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
State Street Bank and Trust | $ 5,350 | $ — | $ — | $ 5,350 |
C. | Purchases and Sales of Securities |
D. | Related Parties |
Deutsche DWS Variable Series II —DWS High Income VIP | | 21 |
First $250 million | .500% |
Next $750 million | .470% |
Next $1.5 billion | .450% |
Next $2.5 billion | .430% |
Next $2.5 billion | .400% |
Next $2.5 billion | .380% |
Next $2.5 billion | .360% |
Over $12.5 billion | .340% |
Class A | .71% |
Class B | 1.10% |
Class A | $ 38,703 |
Class B | 191 |
$ 38,894 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 159 | $ 47 |
Class B | 36 | 11 |
$ 195 | $ 58 |
22 | | Deutsche DWS Variable Series II —DWS High Income VIP |
E. | Investing in High-Yield Debt Securities |
F. | Ownership of the Fund |
G. | Line of Credit |
Deutsche DWS Variable Series II —DWS High Income VIP | | 23 |
H. | Other — COVID-19 Pandemic |
24 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,026.60 | $ 1,026.20 |
Expenses Paid per $1,000* | $ 3.57 | $ 5.58 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,021.27 | $ 1,019.29 |
Expenses Paid per $1,000* | $ 3.56 | $ 5.56 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS High Income VIP | .71% | 1.11% |
Deutsche DWS Variable Series II —DWS High Income VIP | | 25 |
26 | | Deutsche DWS Variable Series II —DWS High Income VIP |
— | During the entire process, all of the Fund's Trustees were independent of DIMA and its affiliates (the "Independent Trustees"). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund's contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 27 |
28 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Deutsche DWS Variable Series II —DWS High Income VIP | | 29 |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
17 | Information About Your Fund's Expenses |
18 | Liquidity Risk Management |
18 | Proxy Voting |
19 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS International Growth VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,581 | $13,087 | $14,560 | $18,385 | $21,803 | |
Average annual total return | 5.81% | 30.87% | 13.34% | 12.95% | 8.11% | ||
MSCI All Country World ex-USA Index | Growth of $10,000 | $10,916 | $13,572 | $13,087 | $16,910 | $16,997 | |
Average annual total return | 9.16% | 35.72% | 9.38% | 11.08% | 5.45% | ||
DWS International Growth VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $10,570 | $13,043 | $14,426 | $18,155 | $21,159 | |
Average annual total return | 5.70% | 30.43% | 12.99% | 12.67% | 7.78% | ||
MSCI All Country World ex-USA Index | Growth of $10,000 | $10,916 | $13,572 | $13,087 | $16,910 | $16,997 | |
Average annual total return | 9.16% | 35.72% | 9.38% | 11.08% | 5.45% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 98% | 96% |
Preferred Stocks | 1% | 1% |
Cash Equivalents | 1% | 2% |
Exchange-Traded Funds | — | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Information Technology | 25% | 24% |
Industrials | 19% | 15% |
Financials | 14% | 13% |
Health Care | 13% | 16% |
Consumer Discretionary | 11% | 13% |
Consumer Staples | 6% | 7% |
Materials | 5% | 5% |
Communication Services | 5% | 6% |
Energy | 2% | 1% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Germany | 15% | 15% |
France | 12% | 12% |
Japan | 10% | 10% |
Netherlands | 9% | 6% |
United States | 8% | 8% |
Switzerland | 8% | 9% |
Canada | 8% | 7% |
China | 7% | 8% |
Ireland | 3% | 4% |
United Kingdom | 3% | 4% |
Sweden | 3% | 3% |
Argentina | 3% | 2% |
Korea | 2% | 2% |
Taiwan | 2% | 2% |
Singapore | 2% | 2% |
Brazil | 2% | 2% |
Other | 3% | 4% |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 98.0% | |||
Argentina 2.6% | |||
Globant SA* (a) | 1,931 | 423,237 | |
MercadoLibre, Inc.* (b) | 70 | 109,045 | |
(Cost $226,872) | 532,282 | ||
Australia 0.2% | |||
Appen Ltd. (Cost $76,126) | 3,592 | 36,636 | |
Brazil 2.0% | |||
Magazine Luiza SA | 33,569 | 142,745 | |
Pagseguro Digital Ltd. "A"* (a) | 4,547 | 254,268 | |
(Cost $236,171) | 397,013 | ||
Canada 7.5% | |||
Agnico Eagle Mines Ltd. | 3,635 | 219,813 | |
Alimentation Couche-Tard, Inc. "B" | 5,727 | 210,443 | |
Brookfield Asset Management Reinsurance Partners Ltd. "A"* | 99 | 5,231 | |
Brookfield Asset Management, Inc. "A" | 14,429 | 736,116 | |
Canadian National Railway Co. | 2,530 | 266,940 | |
Nuvei Corp. 144A* | 900 | 73,664 | |
(Cost $714,872) | 1,512,207 | ||
China 6.8% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,758 | 398,679 | |
Dada Nexus Ltd. (ADR)* | 565 | 16,391 | |
Minth Group Ltd. | 16,870 | 80,175 | |
New Oriental Education & Technology Group, Inc. (ADR)* | 12,000 | 98,280 | |
Ping An Insurance (Group) Co. of China Ltd. "H" | 36,500 | 357,511 | |
Tencent Holdings Ltd. | 5,600 | 421,210 | |
(Cost $828,980) | 1,372,246 | ||
France 12.0% | |||
Capgemini SE | 1,286 | 247,030 | |
Cie de Saint-Gobain | 3,115 | 205,143 | |
LVMH Moet Hennessy Louis Vuitton SE | 729 | 571,635 | |
Orpea SA* | 1,111 | 141,288 | |
Schneider Electric SE | 494 | 77,719 | |
SMCP SA 144A* | 6,363 | 46,137 | |
Teleperformance | 998 | 405,070 | |
TotalEnergies SE | 5,830 | 263,763 | |
VINCI SA | 2,773 | 295,895 | |
Vivendi SA | 5,306 | 178,241 | |
(Cost $1,628,351) | 2,431,921 | ||
Germany 13.5% | |||
adidas AG | 339 | 126,178 | |
Allianz SE (Registered) | 1,372 | 342,126 | |
Auto1 Group SE 144A* | 1,692 | 74,333 | |
BASF SE | 2,558 | 201,522 |
Shares | Value ($) | ||
Brenntag SE | 1,615 | 150,173 | |
Deutsche Boerse AG | 2,313 | 403,717 | |
Deutsche Post AG (Registered) | 2,400 | 163,235 | |
Evonik Industries AG | 6,580 | 220,647 | |
Evotec SE* | 4,050 | 183,592 | |
Fresenius Medical Care AG & Co. KGaA | 1,840 | 152,812 | |
KION Group AG | 610 | 65,011 | |
MYT Netherlands Parent BV (ADR)* (b) | 2,835 | 86,269 | |
SAP SE | 1,500 | 211,372 | |
TeamViewer AG 144A* | 7,200 | 270,806 | |
Wacker Chemie AG | 482 | 74,328 | |
(Cost $2,278,233) | 2,726,121 | ||
Hong Kong 1.4% | |||
Techtronic Industries Co., Ltd. (Cost $46,071) | 16,597 | 289,859 | |
Ireland 3.4% | |||
Experian PLC | 10,631 | 409,705 | |
Kerry Group PLC "A" | 2,052 | 286,626 | |
(Cost $387,655) | 696,331 | ||
Israel 0.8% | |||
Kornit Digital Ltd.* (Cost $133,860) | 1,350 | 167,846 | |
Japan 9.4% | |||
Daikin Industries Ltd. | 1,700 | 316,603 | |
Fast Retailing Co., Ltd. | 300 | 225,834 | |
Hoya Corp. | 2,600 | 344,732 | |
Kao Corp. | 1,100 | 67,676 | |
Keyence Corp. | 800 | 403,763 | |
Lasertec Corp. | 500 | 97,169 | |
MISUMI Group, Inc. | 4,011 | 135,752 | |
Shimadzu Corp. | 4,400 | 170,107 | |
Shiseido Co., Ltd. | 2,000 | 147,099 | |
(Cost $1,127,809) | 1,908,735 | ||
Korea 2.3% | |||
LG Chem Ltd. | 90 | 67,930 | |
Samsung Electronics Co., Ltd. | 5,632 | 403,590 | |
(Cost $317,267) | 471,520 | ||
Luxembourg 0.8% | |||
Eurofins Scientific SE* (Cost $32,197) | 1,480 | 169,173 | |
Netherlands 8.9% | |||
Adyen NV 144A* | 87 | 212,562 | |
Airbus SE* | 1,095 | 140,798 | |
ASML Holding NV | 533 | 366,184 | |
ING Groep NV | 16,829 | 222,299 | |
Koninklijke DSM NV | 1,225 | 228,630 | |
Koninklijke Philips NV | 5,005 | 248,010 | |
NXP Semiconductors NV (a) | 1,152 | 236,989 |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 5 |
Shares | Value ($) | ||
Prosus NV | 1,374 | 134,362 | |
(Cost $1,257,166) | 1,789,834 | ||
Singapore 2.1% | |||
DBS Group Holdings Ltd. (Cost $304,520) | 19,000 | 421,202 | |
Sweden 3.4% | |||
Assa Abloy AB "B" | 4,050 | 122,000 | |
Hexagon AB "B" | 7,763 | 115,020 | |
Nobina AB 144A | 21,904 | 198,869 | |
Spotify Technology SA* (a) | 899 | 247,755 | |
(Cost $402,610) | 683,644 | ||
Switzerland 7.5% | |||
Alcon, Inc. | 656 | 45,929 | |
Lonza Group AG (Registered) | 800 | 567,025 | |
Nestle SA (Registered) | 3,604 | 448,801 | |
Roche Holding AG | 790 | 297,600 | |
Zur Rose Group AG* | 420 | 160,919 | |
(Cost $675,605) | 1,520,274 | ||
Taiwan 2.2% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $137,146) | 21,000 | 448,452 | |
United Kingdom 3.4% | |||
Clarivate PLC* (a) | 7,250 | 199,593 | |
Farfetch Ltd. "A"* (a) | 2,770 | 139,497 | |
Halma PLC | 3,990 | 148,581 | |
Rentokil Initial PLC | 30,200 | 206,790 | |
(Cost $520,167) | 694,461 | ||
United States 7.8% | |||
Activision Blizzard, Inc. | 1,521 | 145,164 | |
EPAM Systems, Inc.* | 880 | 449,645 | |
Marsh & McLennan Companies, Inc. | 1,741 | 244,924 |
Shares | Value ($) | ||
MasterCard, Inc. "A" | 550 | 200,799 | |
NVIDIA Corp. | 280 | 224,028 | |
Schlumberger NV | 2,671 | 85,499 | |
Thermo Fisher Scientific, Inc. | 430 | 216,922 | |
(Cost $492,085) | 1,566,981 | ||
Total Common Stocks (Cost $11,823,763) | 19,836,738 | ||
Preferred Stocks 1.0% | |||
Germany | |||
Sartorius AG (Cost $101,309) | 390 | 203,012 | |
Securities Lending Collateral 1.0% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (c) (d) (Cost $199,138) | 199,138 | 199,138 | |
Cash Equivalents 0.7% | |||
DWS Central Cash Management Government Fund, 0.02% (c) (Cost $146,169) | 146,169 | 146,169 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $12,270,379) | 100.7 | 20,385,057 | |
Other Assets and Liabilities, Net | (0.7) | (143,890) | |
Net Assets | 100.0 | 20,241,167 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 1.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (c) (d) | ||||||||
— | 199,138 (e) | — | — | — | 378 | — | 199,138 | 199,138 |
Cash Equivalents 0.7% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (c) | ||||||||
458,187 | 1,893,135 | 2,205,153 | — | — | 47 | — | 146,169 | 146,169 |
458,187 | 2,092,273 | 2,205,153 | — | — | 425 | — | 345,307 | 345,307 |
* | Non-income producing security. |
(a) | Listed on the New York Stock Exchange. |
(b) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2021 amounted to $192,692, which is 1.0% of net assets. |
(c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
6 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
(e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
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. |
ADR: American Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Argentina | $ 532,282 | $ — | $ — | $ 532,282 |
Australia | 36,636 | — | — | 36,636 |
Brazil | 397,013 | — | — | 397,013 |
Canada | 1,512,207 | — | — | 1,512,207 |
China | 1,372,246 | — | — | 1,372,246 |
France | 2,431,921 | — | — | 2,431,921 |
Germany | 2,726,121 | — | — | 2,726,121 |
Hong Kong | 289,859 | — | — | 289,859 |
Ireland | 696,331 | — | — | 696,331 |
Israel | 167,846 | — | — | 167,846 |
Japan | 1,908,735 | — | — | 1,908,735 |
Korea | 471,520 | — | — | 471,520 |
Luxembourg | 169,173 | — | — | 169,173 |
Netherlands | 1,789,834 | — | — | 1,789,834 |
Singapore | 421,202 | — | — | 421,202 |
Sweden | 683,644 | — | — | 683,644 |
Switzerland | 1,520,274 | — | — | 1,520,274 |
Taiwan | 448,452 | — | — | 448,452 |
United Kingdom | 694,461 | — | — | 694,461 |
United States | 1,566,981 | — | — | 1,566,981 |
Preferred Stocks | 203,012 | — | — | 203,012 |
Short-Term Investments (a) | 345,307 | — | — | 345,307 |
Total | $20,385,057 | $ — | $ — | $20,385,057 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 7 |
Assets | |
Investments in non-affiliated securities, at value (cost $11,925,072) — including $192,692 of securities loaned | $ 20,039,750 |
Investment in DWS Government & Agency Securities Portfolio (cost $199,138)* | 199,138 |
Investment in DWS Central Cash Management Government Fund (cost $146,169) | 146,169 |
Foreign currency, at value (cost $86,756) | 84,236 |
Receivable for Fund shares sold | 266 |
Dividends receivable | 15,984 |
Interest receivable | 65 |
Foreign taxes recoverable | 23,854 |
Other assets | 194 |
Total assets | 20,509,656 |
Liabilities | |
Payable upon return of securities loaned | 199,138 |
Payable for investments purchased | 5,539 |
Payable for Fund shares redeemed | 12,339 |
Accrued management fee | 2,464 |
Accrued Trustees' fees | 347 |
Other accrued expenses and payables | 48,662 |
Total liabilities | 268,489 |
Net assets, at value | $ 20,241,167 |
Net Assets Consist of | |
Distributable earnings (loss) | 8,503,621 |
Paid-in capital | 11,737,546 |
Net assets, at value | $ 20,241,167 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($20,061,999 ÷ 1,090,098 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.40 |
Class B | |
Net Asset Value, offering and redemption price per share ($179,168 ÷ 9,704 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.46 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $30,748) | $ 191,353 |
Income distributions — DWS Central Cash Management Government Fund | 47 |
Securities lending income, net of borrower rebates | 378 |
Total income | 191,778 |
Expenses: | |
Management fee | 60,998 |
Administration fee | 9,543 |
Services to shareholders | 496 |
Distribution service fee (Class B) | 144 |
Custodian fee | 6,036 |
Professional fees | 38,856 |
Reports to shareholders | 12,218 |
Trustees' fees and expenses | 1,237 |
Other | 6,449 |
Total expenses before expense reductions | 135,977 |
Expense reductions | (48,539) |
Total expenses after expense reductions | 87,438 |
Net investment income | 104,340 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 319,463 |
Foreign currency | 4,892 |
324,355 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 718,064 |
Foreign currency | (5,973) |
712,091 | |
Net gain (loss) | 1,036,446 |
Net increase (decrease) in net assets resulting from operations | $1,140,786 |
8 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income | $ 104,340 | $ 68,931 |
Net realized gain (loss) | 324,355 | 266,287 |
Change in net unrealized appreciation (depreciation) | 712,091 | 3,136,891 |
Net increase (decrease) in net assets resulting from operations | 1,140,786 | 3,472,109 |
Distributions to shareholders: | ||
Class A | (300,260) | (248,933) |
Class B | (1,284) | (1,082) |
Total distributions | (301,544) | (250,015) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 857,188 | 1,646,537 |
Reinvestment of distributions | 300,260 | 248,933 |
Payments for shares redeemed | (1,222,012) | (3,319,251) |
Net increase (decrease) in net assets from Class A share transactions | (64,564) | (1,423,781) |
Class B | ||
Proceeds from shares sold | 68,838 | 1,708 |
Reinvestment of distributions | 1,284 | 1,082 |
Payments for shares redeemed | (2,568) | (73,265) |
Net increase (decrease) in net assets from Class B share transactions | 67,554 | (70,475) |
Increase (decrease) in net assets | 842,232 | 1,727,838 |
Net assets at beginning of period | 19,398,935 | 17,671,097 |
Net assets at end of period | $20,241,167 | $19,398,935 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,093,246 | 1,196,084 |
Shares sold | 48,695 | 111,439 |
Shares issued to shareholders in reinvestment of distributions | 16,498 | 20,388 |
Shares redeemed | (68,341) | (234,665) |
Net increase (decrease) in Class A shares | (3,148) | (102,838) |
Shares outstanding at end of period | 1,090,098 | 1,093,246 |
Class B | ||
Shares outstanding at beginning of period | 6,025 | 10,737 |
Shares sold | 3,752 | 134 |
Shares issued to shareholders in reinvestment of distributions | 70 | 88 |
Shares redeemed | (143) | (4,934) |
Net increase (decrease) in Class B shares | 3,679 | (4,712) |
Shares outstanding at end of period | 9,704 | 6,025 |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 9 |
DWS International Growth VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $17.65 | $14.64 | $11.47 | $13.90 | $11.12 | $10.81 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .09 | .06 | .22 | .16 | .08 | .06 |
Net realized and unrealized gain (loss) | .93 | 3.17 | 3.32 | (2.46) | 2.75 | .34 |
Total from investment operations | 1.02 | 3.23 | 3.54 | (2.30) | 2.83 | .40 |
Less distributions from: | ||||||
Net investment income | (.06) | (.22) | (.17) | (.13) | (.05) | (.09) |
Net realized gains | (.21) | — | (.20) | — | — | — |
Total distributions | (.27) | (.22) | (.37) | (.13) | (.05) | (.09) |
Net asset value, end of period | $18.40 | $17.65 | $14.64 | $11.47 | $13.90 | $11.12 |
Total Return (%)b | 5.81 * | 22.69 | 31.22 | (16.69) | 25.47 | 3.72 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 20 | 19 | 18 | 14 | 19 | 27 |
Ratio of expenses before expense reductions (%)c | 1.38 ** | 1.50 | 1.64 | 1.72 | 1.56 | 1.66 |
Ratio of expenses after expense reductions (%)c | .89 ** | .87 | .86 | .81 | .92 | .95 |
Ratio of net investment income (%) | 1.06 ** | .42 | 1.63 | 1.21 | .61 | .51 |
Portfolio turnover rate (%) | 13 * | 10 | 16 | 38 | 62 | 70 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
DWS International Growth VIP — Class B | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $17.67 | $14.66 | $11.49 | $13.93 | $11.13 | $10.82 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .07 | .01 | .18 | .12 | .02 | .02 |
Net realized and unrealized gain (loss) | .94 | 3.18 | 3.33 | (2.46) | 2.79 | .35 |
Total from investment operations | 1.01 | 3.19 | 3.51 | (2.34) | 2.81 | .37 |
Less distributions from: | ||||||
Net investment income | (.01) | (.18) | (.14) | (.10) | (.01) | (.06) |
Net realized gains | (.21) | — | (.20) | — | — | — |
Total distributions | (.22) | (.18) | (.34) | (.10) | (.01) | (.06) |
Net asset value, end of period | $18.46 | $17.67 | $14.66 | $11.49 | $13.93 | $11.13 |
Total Return (%)b | 5.70 * | 22.29 | 30.84 | (16.92) | 25.26 | 3.38 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .2 | .1 | .2 | .2 | .2 | .07 |
Ratio of expenses before expense reductions (%)c | 1.68 ** | 1.81 | 1.95 | 2.07 | 1.90 | 1.98 |
Ratio of expenses after expense reductions (%)c | 1.17 ** | 1.18 | 1.16 | 1.06 | 1.15 | 1.24 |
Ratio of net investment income (%) | .76 ** | .07 | 1.31 | .92 | .12 | .17 |
Portfolio turnover rate (%) | 13 * | 10 | 16 | 38 | 62 | 70 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 11 |
Notes to Financial Statements | (Unaudited) |
A. Organization and Significant Accounting Policies |
12 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 13 |
B. | Purchases and Sales of Securities |
C. | Related Parties |
Class A | .87% |
Class B | 1.17% |
14 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Class A | $ 48,244 |
Class B | 295 |
$ 48,539 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 136 | $ 47 |
Class B | 29 | 15 |
$ 165 | $ 62 |
D. | Ownership of the Fund |
E. | Line of Credit |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 15 |
F. | Other — COVID-19 Pandemic |
16 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,058.10 | $ 1,057.00 |
Expenses Paid per $1,000* | $ 4.54 | $ 5.97 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,020.38 | $ 1,018.99 |
Expenses Paid per $1,000* | $ 4.46 | $ 5.86 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS International Growth VIP | .89% | 1.17% |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 17 |
18 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 21 |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
9 | Statement of Assets and Liabilities |
9 | Statement of Operations |
10 | Statements of Changes in Net Assets |
11 | Financial Highlights |
12 | Notes to Financial Statements |
16 | Information About Your Fund's Expenses |
17 | Liquidity Risk Management |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS Small Mid Cap Growth VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,968 | $14,912 | $14,270 | $20,178 | $29,930 | |
Average annual total return | 9.68% | 49.12% | 12.58% | 15.07% | 11.59% | ||
Russell 2500 Growth Index | Growth of $10,000 | $10,867 | $14,963 | $17,344 | $25,597 | $39,871 | |
Average annual total return | 8.67% | 49.63% | 20.15% | 20.68% | 14.83% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 99% | 97% |
Cash Equivalents | 1% | 2% |
Exchange-Traded Funds | 0% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Information Technology | 29% | 29% |
Health Care | 27% | 29% |
Consumer Discretionary | 15% | 13% |
Industrials | 14% | 14% |
Financials | 5% | 5% |
Materials | 4% | 4% |
Real Estate | 3% | 3% |
Consumer Staples | 2% | 2% |
Communication Services | 1% | 1% |
Energy | 0% | 0% |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 98.9% | |||
Communication Services 0.8% | |||
Diversified Telecommunication Services 0.3% | |||
Bandwidth, Inc. "A"* | 1,484 | 204,673 | |
Entertainment 0.5% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 384,842 | |
Consumer Discretionary 14.4% | |||
Auto Components 1.2% | |||
Gentherm, Inc.* | 7,364 | 523,212 | |
Tenneco, Inc. "A"* | 18,953 | 366,172 | |
889,384 | |||
Diversified Consumer Services 1.5% | |||
Bright Horizons Family Solutions, Inc.* | 5,598 | 823,521 | |
Terminix Global Holdings, Inc.* | 6,718 | 320,516 | |
1,144,037 | |||
Hotels, Restaurants & Leisure 2.1% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 517,003 | |
Jack in the Box, Inc. | 7,892 | 879,484 | |
Penn National Gaming, Inc.* | 2,400 | 183,576 | |
1,580,063 | |||
Household Durables 3.9% | |||
Helen of Troy Ltd.* | 2,963 | 675,920 | |
iRobot Corp.* (a) | 6,273 | 585,835 | |
LGI Homes, Inc.* | 3,489 | 565,009 | |
TopBuild Corp.* | 5,977 | 1,182,131 | |
3,008,895 | |||
Internet & Direct Marketing Retail 0.3% | |||
Just Eat Takeaway.com NV (ADR)* | 12,289 | 224,397 | |
Leisure Products 1.9% | |||
YETI Holdings, Inc.* | 16,312 | 1,497,768 | |
Specialty Retail 3.5% | |||
Burlington Stores, Inc.* | 2,883 | 928,297 | |
Camping World Holdings, Inc. "A" (a) | 24,907 | 1,020,938 | |
Leslie's, Inc.* | 2,799 | 76,945 | |
The Children's Place, Inc.* | 6,488 | 603,773 | |
Vroom, Inc.* | 999 | 41,818 | |
2,671,771 | |||
Consumer Staples 1.9% | |||
Food & Staples Retailing 1.1% | |||
Casey's General Stores, Inc. | 4,371 | 850,772 | |
Household Products 0.8% | |||
Spectrum Brands Holdings, Inc. | 6,982 | 593,749 |
Shares | Value ($) | ||
Energy 0.5% | |||
Oil, Gas & Consumable Fuels | |||
Contango Oil & Gas Co.* | 39,242 | 169,526 | |
Ovintiv, Inc. | 6,811 | 214,342 | |
383,868 | |||
Financials 4.7% | |||
Banks 2.4% | |||
Pinnacle Financial Partners, Inc. | 5,944 | 524,795 | |
South State Corp. | 4,704 | 384,599 | |
SVB Financial Group* | 742 | 412,871 | |
Synovus Financial Corp. | 11,493 | 504,313 | |
1,826,578 | |||
Capital Markets 1.5% | |||
Lazard Ltd. "A" | 13,717 | 620,694 | |
Moelis & Co. "A" | 9,136 | 519,747 | |
1,140,441 | |||
Consumer Finance 0.4% | |||
Green Dot Corp. "A"* | 6,162 | 288,690 | |
Insurance 0.4% | |||
eHealth, Inc.* | 6,102 | 356,357 | |
Health Care 26.9% | |||
Biotechnology 10.8% | |||
Acceleron Pharma, Inc.* | 2,755 | 345,725 | |
Amicus Therapeutics, Inc.* | 17,294 | 166,714 | |
Apellis Pharmaceuticals, Inc.* | 5,451 | 344,503 | |
Arena Pharmaceuticals, Inc.* | 5,976 | 407,563 | |
Biohaven Pharmaceutical Holding Co., Ltd.* | 7,887 | 765,670 | |
Blueprint Medicines Corp.* | 4,684 | 412,005 | |
Deciphera Pharmaceuticals, Inc.* | 1,963 | 71,865 | |
Emergent BioSolutions, Inc.* | 8,761 | 551,855 | |
Fate Therapeutics, Inc.* | 3,846 | 333,794 | |
Global Blood Therapeutics, Inc.* | 4,524 | 158,430 | |
Heron Therapeutics, Inc.* | 22,719 | 352,599 | |
Insmed, Inc.* | 6,610 | 188,121 | |
Intellia Therapeutics, Inc.* | 1,898 | 307,305 | |
Invitae Corp.* | 5,038 | 169,932 | |
iTeos Therapeutics, Inc.* | 5,136 | 131,738 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 122,152 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 350,540 | |
Mirati Therapeutics, Inc.* | 2,178 | 351,812 | |
Natera, Inc.* | 4,935 | 560,271 | |
Neurocrine Biosciences, Inc.* | 7,085 | 689,512 | |
TG Therapeutics, Inc.* | 4,142 | 160,668 | |
Translate Bio, Inc.* | 9,407 | 259,069 | |
Travere Therapeutics, Inc.* | 23,478 | 342,544 | |
Turning Point Therapeutics, Inc.* | 2,679 | 209,016 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 5 |
Shares | Value ($) | ||
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 291,485 | |
Veracyte, Inc.* | 5,225 | 208,896 | |
8,253,784 | |||
Health Care Equipment & Supplies 2.4% | |||
Axonics, Inc.* | 4,613 | 292,510 | |
BioLife Solutions, Inc.* | 6,109 | 271,912 | |
Globus Medical, Inc. "A"* | 4,024 | 311,981 | |
Haemonetics Corp.* | 1,353 | 90,164 | |
iRhythm Technologies, Inc.* | 2,568 | 170,387 | |
Natus Medical, Inc.* | 9,520 | 247,330 | |
Nevro Corp.* | 1,428 | 236,748 | |
Outset Medical, Inc.* | 736 | 36,785 | |
Quidel Corp.* | 1,635 | 209,476 | |
1,867,293 | |||
Health Care Providers & Services 9.3% | |||
AMN Healthcare Services, Inc.* | 13,141 | 1,274,414 | |
Clover Health Investments Corp.* (a) | 15,307 | 203,889 | |
HealthEquity, Inc.* | 1,929 | 155,246 | |
ModivCare, Inc.* | 11,053 | 1,879,784 | |
Molina Healthcare, Inc.* | 4,119 | 1,042,354 | |
Option Care Health, Inc.* | 27,764 | 607,199 | |
RadNet, Inc.* | 55,477 | 1,869,020 | |
Tivity Health, Inc.* | 4,464 | 117,448 | |
7,149,354 | |||
Health Care Technology 0.6% | |||
Vocera Communications, Inc.* | 11,330 | 451,501 | |
Life Sciences Tools & Services 2.0% | |||
Avantor, Inc.* | 7,242 | 257,163 | |
Masimo Corp.* | 3,540 | 858,273 | |
Tandem Diabetes Care, Inc.* | 4,219 | 410,931 | |
1,526,367 | |||
Pharmaceuticals 1.8% | |||
Aclaris Therapeutics, Inc.* | 12,953 | 227,454 | |
ANI Pharmaceuticals, Inc.* | 8,521 | 298,661 | |
Avadel Pharmaceuticals PLC (ADR)* (a) | 18,916 | 127,305 | |
Pacira BioSciences, Inc.* | 11,807 | 716,449 | |
1,369,869 | |||
Industrials 14.0% | |||
Aerospace & Defense 0.9% | |||
HEICO Corp. | 5,006 | 697,937 | |
Building Products 4.1% | |||
Advanced Drainage Systems, Inc. | 3,825 | 445,880 | |
Allegion PLC | 7,499 | 1,044,611 | |
AZEK Co., Inc.* | 2,261 | 96,002 | |
Builders FirstSource, Inc.* | 18,923 | 807,255 | |
Masonite International Corp.* | 6,705 | 749,552 | |
3,143,300 |
Shares | Value ($) | ||
Commercial Services & Supplies 2.2% | |||
MSA Safety, Inc. | 2,627 | 434,979 | |
Tetra Tech, Inc. | 3,462 | 422,502 | |
The Brink's Co. | 11,036 | 848,006 | |
1,705,487 | |||
Construction & Engineering 0.7% | |||
MasTec, Inc.* | 4,674 | 495,911 | |
Electrical Equipment 1.6% | |||
Generac Holdings, Inc.* | 1,478 | 613,592 | |
Plug Power, Inc.* | 4,018 | 137,375 | |
Thermon Group Holdings, Inc.* | 26,199 | 446,431 | |
1,197,398 | |||
Machinery 0.7% | |||
IDEX Corp. | 2,502 | 550,565 | |
Professional Services 1.7% | |||
Kforce, Inc. | 20,225 | 1,272,759 | |
Trading Companies & Distributors 2.1% | |||
H&E Equipment Services, Inc. | 16,406 | 545,828 | |
Rush Enterprises, Inc. "A" | 16,590 | 717,352 | |
Titan Machinery, Inc.* | 11,743 | 363,328 | |
1,626,508 | |||
Information Technology 28.8% | |||
Communications Equipment 1.2% | |||
Calix, Inc.* | 8,844 | 420,090 | |
Lumentum Holdings, Inc.* (a) | 6,080 | 498,742 | |
918,832 | |||
Electronic Equipment, Instruments & Components 1.4% | |||
Cognex Corp. | 7,873 | 661,726 | |
IPG Photonics Corp.* | 1,883 | 396,880 | |
1,058,606 | |||
IT Services 3.1% | |||
Broadridge Financial Solutions, Inc. | 6,371 | 1,029,108 | |
MAXIMUS, Inc. | 8,556 | 752,671 | |
WEX, Inc.* | 2,932 | 568,515 | |
2,350,294 | |||
Semiconductors & Semiconductor Equipment 6.7% | |||
Advanced Energy Industries, Inc. | 12,629 | 1,423,415 | |
CMC Materials, Inc. | 3,131 | 471,967 | |
Entegris, Inc. | 6,342 | 779,876 | |
Monolithic Power Systems, Inc. | 2,547 | 951,177 | |
Semtech Corp.* | 7,632 | 525,082 | |
SiTime Corp.* | 4,087 | 517,373 | |
Ultra Clean Holdings, Inc.* | 9,195 | 493,955 | |
5,162,845 | |||
Software 16.4% | |||
Aspen Technology, Inc.* | 9,339 | 1,284,486 |
6 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
Cornerstone OnDemand, Inc.* | 11,656 | 601,216 | |
DocuSign, Inc.* | 1,548 | 432,774 | |
Envestnet, Inc.* | 9,852 | 747,373 | |
Five9, Inc.* | 13,670 | 2,506,941 | |
LivePerson, Inc.* | 7,263 | 459,312 | |
Proofpoint, Inc.* | 4,417 | 767,498 | |
QAD, Inc. "A" | 12,528 | 1,090,187 | |
Rapid7, Inc.* | 4,444 | 420,536 | |
Tyler Technologies, Inc.* | 4,558 | 2,061,902 | |
Varonis Systems, Inc.* | 37,511 | 2,161,384 | |
12,533,609 | |||
Materials 4.1% | |||
Construction Materials 1.2% | |||
Eagle Materials, Inc. | 6,501 | 923,857 | |
Containers & Packaging 0.7% | |||
Berry Global Group, Inc.* | 7,728 | 504,020 | |
Metals & Mining 2.2% | |||
Cleveland-Cliffs, Inc.* (a) | 61,077 | 1,316,820 | |
First Quantum Minerals Ltd. | 17,207 | 396,583 | |
1,713,403 | |||
Real Estate 2.8% | |||
Equity Real Estate Investment Trusts (REITs) | |||
Americold Realty Trust | 10,299 | 389,817 | |
EastGroup Properties, Inc. | 2,708 | 445,331 | |
Essential Properties Realty Trust, Inc. | 21,678 | 586,173 | |
Four Corners Property Trust, Inc. | 13,954 | 385,270 | |
QTS Realty Trust, Inc. "A" | 4,148 | 320,640 | |
2,127,231 | |||
Total Common Stocks (Cost $39,362,359) | 75,647,015 |
Shares | Value ($) | ||
Exchange-Traded Funds 0.5% | |||
SPDR S&P Biotech ETF (a) (Cost $247,239) | 2,719 | 368,153 | |
Securities Lending Collateral 5.1% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) (Cost $3,931,870) | 3,931,870 | 3,931,870 | |
Cash Equivalents 0.8% | |||
DWS Central Cash Management Government Fund, 0.02% (b) (Cost $614,193) | 614,193 | 614,193 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $44,155,661) | 105.3 | 80,561,231 | |
Other Assets and Liabilities, Net | (5.3) | (4,064,240) | |
Net Assets | 100.0 | 76,496,991 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 5.1% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) | ||||||||
5,457,727 | — | 1,525,857 (d) | — | — | 6,025 | — | 3,931,870 | 3,931,870 |
Cash Equivalents 0.8% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (b) | ||||||||
1,738,142 | 4,241,822 | 5,365,771 | — | — | 175 | — | 614,193 | 614,193 |
7,195,869 | 4,241,822 | 6,891,628 | — | — | 6,200 | — | 4,546,063 | 4,546,063 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2021 amounted to $3,880,116, which is 5.1% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 7 |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
ADR: American Depositary Receipt |
S&P: Standard & Poor's |
SPDR: Standard & Poor's Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 75,647,015 | $ — | $ — | $ 75,647,015 |
Exchange-Traded Funds | 368,153 | — | — | 368,153 |
Short-Term Investments (a) | 4,546,063 | — | — | 4,546,063 |
Total | $ 80,561,231 | $ — | $ — | $ 80,561,231 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Assets | |
Investments in non-affiliated securities, at value (cost $39,609,598) — including $3,880,116 of securities loaned | $ 76,015,168 |
Investment in DWS Government & Agency Securities Portfolio (cost $3,931,870)* | 3,931,870 |
Investment in DWS Central Cash Management Government Fund (cost $614,193) | 614,193 |
Cash | 12,700 |
Foreign currency, at value (cost $167) | 177 |
Receivable for investments sold | 154,367 |
Dividends receivable | 29,575 |
Interest receivable | 1,221 |
Other assets | 544 |
Total assets | 80,759,815 |
Liabilities | |
Payable upon return of securities loaned | 3,931,870 |
Payable for investments purchased | 201,742 |
Payable for Fund shares redeemed | 50,031 |
Accrued management fee | 33,998 |
Accrued Trustees' fees | 198 |
Other accrued expenses and payables | 44,985 |
Total liabilities | 4,262,824 |
Net assets, at value | $ 76,496,991 |
Net Assets Consist of | |
Distributable earnings (loss) | 40,330,837 |
Paid-in capital | 36,166,154 |
Net assets, at value | $ 76,496,991 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($76,496,991 ÷ 4,208,172 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.18 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $10) | $ 107,121 |
Income distributions — DWS Central Cash Management Government Fund | 175 |
Securities lending income, net of borrower rebates | 6,025 |
Total income | 113,321 |
Expenses: | |
Management fee | 205,998 |
Administration fee | 36,331 |
Services to shareholders | 384 |
Custodian fee | 1,176 |
Professional fees | 28,929 |
Reports to shareholders | 16,775 |
Trustees' fees and expenses | 2,441 |
Other | 1,990 |
Total expenses | 294,024 |
Net investment income (loss) | (180,703) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 4,300,375 |
Foreign currency | 1 |
4,300,376 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 2,758,191 |
Foreign currency | 2 |
2,758,193 | |
Net gain (loss) | 7,058,569 |
Net increase (decrease) in net assets resulting from operations | $6,877,866 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 9 |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income (loss) | $ (180,703) | $ (28,369) |
Net realized gain (loss) | 4,300,376 | 3,757,624 |
Change in net unrealized appreciation (depreciation) | 2,758,193 | 12,517,964 |
Net increase (decrease) in net assets resulting from operations | 6,877,866 | 16,247,219 |
Distributions to shareholders: | ||
Class A | (3,804,844) | (959,731) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,905,110 | 3,372,258 |
Reinvestment of distributions | 3,804,844 | 959,731 |
Payments for shares redeemed | (5,255,150) | (10,851,170) |
Net increase (decrease) in net assets from Class A share transactions | 454,804 | (6,519,181) |
Increase (decrease) in net assets | 3,527,826 | 8,768,307 |
Net assets at beginning of period | 72,969,165 | 64,200,858 |
Net assets at end of period | $76,496,991 | $ 72,969,165 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,186,167 | 4,698,629 |
Shares sold | 102,555 | 244,143 |
Shares issued to shareholders in reinvestment of distributions | 211,028 | 90,115 |
Shares redeemed | (291,578) | (846,720) |
Net increase (decrease) in Class A shares | 22,005 | (512,462) |
Shares outstanding at end of period | 4,208,172 | 4,186,167 |
10 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
DWS Small Mid Cap Growth VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $17.43 | $13.66 | $12.68 | $21.94 | $18.96 | $20.90 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.04) | (.01) | .01 | (.01) | (.02) | .02 |
Net realized and unrealized gain (loss) | 1.72 | 4.00 | 2.73 | (1.92) | 4.08 | 1.64 |
Total from investment operations | 1.68 | 3.99 | 2.74 | (1.93) | 4.06 | 1.66 |
Less distributions from: | ||||||
Net investment income | (.01) | (.01) | — | — | (.02) | — |
Net realized gains | (.92) | (.21) | (1.76) | (7.33) | (1.06) | (3.60) |
Total distributions | (.93) | (.22) | (1.76) | (7.33) | (1.08) | (3.60) |
Net asset value, end of period | $18.18 | $17.43 | $13.66 | $12.68 | $21.94 | $18.96 |
Total Return (%) | 9.68 * | 30.18 b | 22.41 b | (13.59) b | 22.12 | 9.08 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 76 | 73 | 64 | 64 | 77 | 118 |
Ratio of expenses before expense reductions (%)c | .79 ** | .82 | .82 | .81 | .75 | .75 |
Ratio of expenses after expense reductions (%)c | .79 ** | .81 | .81 | .80 | .75 | .75 |
Ratio of net investment income (loss) (%) | (.48) ** | (.05) | .11 | (.06) | (.08) | .11 |
Portfolio turnover rate (%) | 10 * | 12 | 10 | 32 | 32 | 28 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 11 |
Notes to Financial Statements | (Unaudited) |
A. Organization and Significant Accounting Policies |
12 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |
Securities Lending Transactions | |||||
Common Stocks | $ 3,557,920 | $ — | $ — | $ — | $ 3,557,920 |
Exchange-Traded Funds | 373,950 | — | — | — | 373,950 |
Total Borrowings | $ 3,931,870 | $ — | $ — | $ — | $ 3,931,870 |
Gross amount of recognized liabilities for securities lending transactions: | $ 3,931,870 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 13 |
B. | Purchases and Sales of Securities |
C. | Related Parties |
First $250 million of the Fund's average daily net assets | .550% |
Next $750 million | .525% |
Over $1 billion | .500% |
14 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 15 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,096.78 |
Expenses Paid per $1,000* | $ 4.11 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/21 | $1,000.00 |
Ending Account Value 6/30/21 | $1,020.88 |
Expenses Paid per $1,000* | $ 3.96 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | .79% |
16 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 17 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund's distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
18 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
9 | Statement of Assets and Liabilities |
9 | Statement of Operations |
10 | Statements of Changes in Net Assets |
11 | Financial Highlights |
13 | Notes to Financial Statements |
18 | Information About Your Fund's Expenses |
19 | Liquidity Risk Management |
19 | Proxy Voting |
20 | Advisory Agreement Board Considerations and Fee Evaluation |
2 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Performance Summary | June 30, 2021 (Unaudited) |
Comparative Results | |||||||
DWS Small Mid Cap Value VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $12,451 | $16,014 | $12,560 | $16,210 | $23,308 | |
Average annual total return | 24.51% | 60.14% | 7.90% | 10.14% | 8.83% | ||
Russell 2500 Value Index | Growth of $10,000 | $12,268 | $16,323 | $13,528 | $17,851 | $28,215 | |
Average annual total return | 22.68% | 63.23% | 10.60% | 12.29% | 10.93% | ||
DWS Small Mid Cap Value VIP | 6-Month ‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $12,432 | $15,942 | $12,421 | $15,919 | $22,485 | |
Average annual total return | 24.32% | 59.42% | 7.50% | 9.74% | 8.44% | ||
Russell 2500 Value Index | Growth of $10,000 | $12,268 | $16,323 | $13,528 | $17,851 | $28,215 | |
Average annual total return | 22.68% | 63.23% | 10.60% | 12.29% | 10.93% | ||
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 3 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 100% | 100% |
Cash Equivalents | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Financials | 21% | 20% |
Industrials | 17% | 17% |
Consumer Discretionary | 16% | 14% |
Real Estate | 10% | 12% |
Information Technology | 9% | 9% |
Health Care | 7% | 7% |
Materials | 6% | 7% |
Energy | 4% | 4% |
Communication Services | 4% | 3% |
Consumer Staples | 3% | 3% |
Utilities | 3% | 4% |
100% | 100% |
4 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 99.8% | |||
Communication Services 3.6% | |||
Entertainment 1.4% | |||
Lions Gate Entertainment Corp. "A"* | 51,576 | 1,067,623 | |
Madison Square Garden Sports Corp.* | 1,873 | 323,224 | |
1,390,847 | |||
Media 1.8% | |||
Interpublic Group of Companies, Inc. | 55,820 | 1,813,592 | |
Wireless Telecommunication Services 0.4% | |||
Telephone & Data Systems, Inc. | 20,448 | 463,351 | |
Consumer Discretionary 15.5% | |||
Auto Components 0.8% | |||
Goodyear Tire & Rubber Co.* | 47,665 | 817,455 | |
Automobiles 0.9% | |||
Winnebago Industries, Inc. (a) | 13,988 | 950,624 | |
Distributors 0.4% | |||
Core-Mark Holding Co., Inc. | 7,852 | 353,419 | |
Hotels, Restaurants & Leisure 4.0% | |||
Aramark (a) | 21,267 | 792,196 | |
Boyd Gaming Corp.* | 10,785 | 663,170 | |
Choice Hotels International, Inc. | 2,519 | 299,408 | |
International Game Technology PLC* (a) | 51,377 | 1,230,993 | |
Red Rock Resorts, Inc. "A"* (a) | 26,065 | 1,107,762 | |
4,093,529 | |||
Household Durables 2.1% | |||
Beazer Homes U.S.A., Inc.* | 25,280 | 487,651 | |
PulteGroup, Inc. | 29,316 | 1,599,774 | |
2,087,425 | |||
Internet & Direct Marketing Retail 2.4% | |||
Overstock.com, Inc.* | 14,352 | 1,323,255 | |
Qurate Retail, Inc. "A" | 86,535 | 1,132,743 | |
2,455,998 | |||
Leisure Products 2.0% | |||
Brunswick Corp. (a) | 16,400 | 1,633,768 | |
Nautilus, Inc.* (a) | 21,448 | 361,399 | |
1,995,167 | |||
Specialty Retail 0.5% | |||
American Eagle Outfitters, Inc. | 13,712 | 514,611 | |
Textiles, Apparel & Luxury Goods 2.4% | |||
Columbia Sportswear Co. | 15,364 | 1,511,203 |
Shares | Value ($) | ||
Under Armour, Inc. "A"* | 42,542 | 899,763 | |
2,410,966 | |||
Consumer Staples 3.4% | |||
Food & Staples Retailing 0.5% | |||
The Andersons, Inc. (a) | 17,817 | 543,953 | |
Food Products 1.0% | |||
Darling Ingredients, Inc.* | 10,689 | 721,508 | |
Hostess Brands, Inc.* (a) | 16,742 | 271,053 | |
992,561 | |||
Household Products 1.9% | |||
Central Garden & Pet Co.* (a) | 18,906 | 1,000,694 | |
Spectrum Brands Holdings, Inc. | 11,070 | 941,393 | |
1,942,087 | |||
Energy 4.3% | |||
Energy Equipment & Services 0.3% | |||
NexTier Oilfield Solutions, Inc.* | 63,879 | 304,064 | |
Oil, Gas & Consumable Fuels 4.0% | |||
Bonanza Creek Energy, Inc. (a) | 9,463 | 445,423 | |
Devon Energy Corp. | 39,008 | 1,138,644 | |
Renewable Energy Group, Inc.* | 5,134 | 320,054 | |
Targa Resources Corp. | 47,649 | 2,117,998 | |
4,022,119 | |||
Financials 20.5% | |||
Banks 9.1% | |||
BankUnited, Inc. | 40,858 | 1,744,228 | |
Commerce Bancshares, Inc. (a) | 3,269 | 243,737 | |
ConnectOne Bancorp., Inc. (a) | 10,991 | 287,634 | |
Eagle Bancorp., Inc. (a) | 28,325 | 1,588,466 | |
Flushing Financial Corp. | 13,671 | 292,970 | |
Hancock Whitney Corp. | 27,179 | 1,207,835 | |
Hilltop Holdings, Inc. (a) | 25,980 | 945,672 | |
Primis Financial Corp. | 24,377 | 371,993 | |
Simmons First National Corp. "A" | 30,801 | 903,701 | |
UMB Financial Corp. (a) | 14,325 | 1,333,084 | |
Valley National Bancorp. (a) | 21,242 | 285,280 | |
9,204,600 | |||
Capital Markets 1.3% | |||
Donnelley Financial Solutions, Inc.* | 41,779 | 1,378,707 | |
Consumer Finance 1.3% | |||
Credit Acceptance Corp.* (a) | 1,922 | 872,799 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 5 |
Shares | Value ($) | ||
Navient Corp. | 24,276 | 469,255 | |
1,342,054 | |||
Diversified Financial Services 1.0% | |||
Voya Financial, Inc. | 15,943 | 980,495 | |
Insurance 5.3% | |||
AMERISAFE, Inc. | 7,481 | 446,541 | |
Assurant, Inc. | 10,659 | 1,664,723 | |
Athene Holding Ltd. "A"* | 4,932 | 332,910 | |
Brown & Brown, Inc. | 39,183 | 2,082,184 | |
Everest Re Group Ltd. | 3,325 | 837,933 | |
5,364,291 | |||
Mortgage Real Estate Investment Trusts (REITs) 1.6% | |||
Blackstone Mortgage Trust, Inc. "A" (a) | 8,235 | 262,614 | |
Ellington Financial, Inc. | 38,422 | 735,781 | |
PennyMac Mortgage Investment Trust (a) | 17,700 | 372,762 | |
Redwood Trust, Inc. | 25,934 | 313,024 | |
1,684,181 | |||
Thrifts & Mortgage Finance 0.9% | |||
Walker & Dunlop, Inc. | 8,497 | 886,917 | |
Health Care 7.0% | |||
Biotechnology 2.5% | |||
Agios Pharmaceuticals, Inc.* (a) | 7,196 | 396,571 | |
Bluebird Bio, Inc.* (a) | 10,949 | 350,149 | |
Myriad Genetics, Inc.* | 28,279 | 864,772 | |
Novavax, Inc.* (a) | 2,525 | 536,083 | |
Sage Therapeutics, Inc.* (a) | 6,809 | 386,819 | |
2,534,394 | |||
Health Care Equipment & Supplies 1.2% | |||
ICU Medical, Inc.* | 1,523 | 313,434 | |
Invacare Corp.* (a) | 69,559 | 561,341 | |
Pulmonx Corp.* (a) | 7,136 | 314,840 | |
1,189,615 | |||
Health Care Providers & Services 0.7% | |||
Molina Healthcare, Inc.* | 2,825 | 714,895 | |
Life Sciences Tools & Services 2.0% | |||
Bruker Corp. (a) | 7,998 | 607,688 | |
PerkinElmer, Inc. | 6,317 | 975,408 | |
Syneos Health, Inc.* | 5,342 | 478,056 | |
2,061,152 | |||
Pharmaceuticals 0.6% | |||
Endo International PLC* (a) | 54,626 | 255,649 | |
Reata Pharmaceuticals, Inc. "A"* (a) | 2,709 | 383,405 | |
639,054 | |||
Industrials 16.9% | |||
Aerospace & Defense 1.8% | |||
Teledyne Technologies, Inc.* | 1,740 | 728,764 |
Shares | Value ($) | ||
Virgin Galactic Holdings Inc.* (a) | 24,377 | 1,121,342 | |
1,850,106 | |||
Air Freight & Logistics 1.5% | |||
Atlas Air Worldwide Holdings, Inc.* (a) | 10,970 | 747,167 | |
XPO Logistics, Inc.* | 5,557 | 777,369 | |
1,524,536 | |||
Airlines 0.3% | |||
Mesa Air Group, Inc.* (a) | 28,416 | 265,121 | |
Building Products 0.6% | |||
Resideo Technologies, Inc.* | 13,394 | 401,820 | |
Simpson Manufacturing Co., Inc. | 2,358 | 260,418 | |
662,238 | |||
Commercial Services & Supplies 0.7% | |||
IAA, Inc.* (a) | 8,930 | 487,042 | |
Interface, Inc. | 18,505 | 283,127 | |
770,169 | |||
Construction & Engineering 1.7% | |||
Jacobs Engineering Group, Inc. | 13,194 | 1,760,344 | |
Electrical Equipment 1.9% | |||
EnerSys | 19,537 | 1,909,351 | |
Industrial Conglomerates 1.8% | |||
Carlisle Companies, Inc. | 9,414 | 1,801,651 | |
IT Services 0.6% | |||
Leidos Holdings, Inc. (a) | 5,964 | 602,960 | |
Machinery 3.8% | |||
Hillenbrand, Inc. | 39,891 | 1,758,395 | |
Pentair PLC (a) | 6,838 | 461,497 | |
The Manitowoc Co., Inc.* (a) | 65,696 | 1,609,552 | |
3,829,444 | |||
Road & Rail 0.5% | |||
Knight-Swift Transportation Holdings, Inc. (a) | 10,968 | 498,605 | |
Trading Companies & Distributors 1.7% | |||
MRC Global, Inc.* (a) | 68,155 | 640,657 | |
NOW, Inc.* (a) | 110,764 | 1,051,150 | |
1,691,807 | |||
Information Technology 8.9% | |||
Communications Equipment 1.6% | |||
Ciena Corp.* | 8,005 | 455,405 | |
CommScope Holding Co., Inc.* | 55,124 | 1,174,692 | |
1,630,097 | |||
Electronic Equipment, Instruments & Components 2.8% | |||
Arlo Technologies, Inc.* (a) | 103,100 | 697,987 | |
Avnet, Inc. | 23,851 | 955,948 | |
Insight Enterprises, Inc.* | 6,858 | 685,869 |
6 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
SYNNEX Corp. | 3,858 | 469,750 | |
2,809,554 | |||
IT Services 1.5% | |||
Alliance Data Systems Corp. (a) | 8,972 | 934,793 | |
Concentrix Corp.* | 3,463 | 556,850 | |
1,491,643 | |||
Semiconductors & Semiconductor Equipment 1.0% | |||
Cirrus Logic, Inc.* | 12,060 | 1,026,547 | |
Software 2.0% | |||
Cloudera, Inc.* | 29,467 | 467,347 | |
Cognyte Software Ltd.* (a) | 24,927 | 610,711 | |
Verint Systems, Inc.* (a) | 20,784 | 936,735 | |
2,014,793 | |||
Materials 6.5% | |||
Chemicals 2.8% | |||
Albemarle Corp. | 1,936 | 326,139 | |
Avient Corp. (a) | 10,984 | 539,973 | |
H.B. Fuller Co. | 6,231 | 396,354 | |
Kraton Corp.* (a) | 40,580 | 1,310,328 | |
The Mosaic Co. | 9,410 | 300,273 | |
2,873,067 | |||
Containers & Packaging 0.5% | |||
Graphic Packaging Holding Co. | 24,711 | 448,257 | |
Metals & Mining 3.2% | |||
Coeur Mining, Inc.* (a) | 131,253 | 1,165,527 | |
Steel Dynamics, Inc. | 34,505 | 2,056,498 | |
3,222,025 | |||
Real Estate 10.0% | |||
Equity Real Estate Investment Trusts (REITs) | |||
Agree Realty Corp. | 10,124 | 713,641 | |
Duke Realty Corp. | 16,173 | 765,792 | |
Gaming and Leisure Properties, Inc. (a) | 32,357 | 1,499,100 | |
Highwoods Properties, Inc. | 27,352 | 1,235,490 | |
Iron Mountain, Inc. | 8,087 | 342,242 |
Shares | Value ($) | ||
Lexington Realty Trust (a) | 108,419 | 1,295,607 | |
NexPoint Residential Trust, Inc. (a) | 10,378 | 570,582 | |
Safehold, Inc. (a) | 3,722 | 292,177 | |
SITE Centers Corp. (a) | 38,885 | 585,608 | |
STAG Industrial, Inc. | 52,878 | 1,979,223 | |
Urban Edge Properties (a) | 47,255 | 902,570 | |
10,182,032 | |||
Utilities 3.2% | |||
Electric Utilities 2.3% | |||
IDACORP, Inc. (a) | 11,735 | 1,144,162 | |
PG&E Corp.* | 32,971 | 335,315 | |
Pinnacle West Capital Corp. | 10,509 | 861,423 | |
2,340,900 | |||
Gas Utilities 0.9% | |||
UGI Corp. | 20,166 | 933,888 | |
Total Common Stocks (Cost $71,622,125) | 101,271,258 | ||
Securities Lending Collateral 17.4% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) (Cost $17,646,074) | 17,646,074 | 17,646,074 | |
Cash Equivalents 0.4% | |||
DWS Central Cash Management Government Fund, 0.02% (b) (Cost $378,728) | 378,728 | 378,728 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $89,646,927) | 117.6 | 119,296,060 | |
Other Assets and Liabilities, Net | (17.6) | (17,816,487) | |
Net Assets | 100.0 | 101,479,573 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 7 |
Value ($) at 12/31/2020 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 17.4% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) | ||||||||
2,438,401 | 15,207,673 (d) | — | — | — | 5,780 | — | 17,646,074 | 17,646,074 |
Cash Equivalents 0.4% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (b) | ||||||||
259,282 | 8,149,465 | 8,030,019 | — | — | 156 | — | 378,728 | 378,728 |
2,697,683 | 23,357,138 | 8,030,019 | — | — | 5,936 | — | 18,024,802 | 18,024,802 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2021 amounted to $16,780,678, which is 16.5% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 101,271,258 | $ — | $ — | $ 101,271,258 |
Short-Term Investments (a) | 18,024,802 | — | — | 18,024,802 |
Total | $ 119,296,060 | $ — | $ — | $ 119,296,060 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Assets | |
Investments in non-affiliated securities, at value (cost $71,622,125) — including $16,780,678 of securities loaned | $ 101,271,258 |
Investment in DWS Government & Agency Securities Portfolio (cost $17,646,074)* | 17,646,074 |
Investment in DWS Central Cash Management Government Fund (cost $378,728) | 378,728 |
Cash | 12,462 |
Receivable for Fund shares sold | 2,835 |
Dividends receivable | 85,865 |
Interest receivable | 3,141 |
Other assets | 868 |
Total assets | 119,401,231 |
Liabilities | |
Payable upon return of securities loaned | 17,646,074 |
Payable for Fund shares redeemed | 161,872 |
Accrued management fee | 54,930 |
Accrued Trustees' fees | 709 |
Other accrued expenses and payables | 58,073 |
Total liabilities | 17,921,658 |
Net assets, at value | $ 101,479,573 |
Net Assets Consist of | |
Distributable earnings (loss) | 26,289,907 |
Paid-in capital | 75,189,666 |
Net assets, at value | $ 101,479,573 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($81,147,883 ÷ 5,498,056 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.76 |
Class B | |
Net Asset Value, offering and redemption price per share ($20,331,690 ÷ 1,375,979 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 14.78 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends | $ 372,775 |
Income distributions — DWS Central Cash Management Government Fund | 156 |
Securities lending income, net of borrower rebates | 5,780 |
Total income | 378,711 |
Expenses: | |
Management fee | 311,467 |
Administration fee | 46,480 |
Services to shareholders | 1,245 |
Record keeping fee (Class B) | 11,428 |
Distribution service fee (Class B) | 23,851 |
Custodian fee | 1,206 |
Professional fees | 25,823 |
Reports to shareholders | 17,468 |
Trustees' fees and expenses | 2,293 |
Other | 2,264 |
Total expenses before expense reductions | 443,525 |
Expense reductions | (11,854) |
Total expenses after expense reductions | 431,671 |
Net investment income (loss) | (52,960) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 5,464,794 |
Payments by affiliates (see Note F) | 8,938 |
5,473,732 | |
Change in net unrealized appreciation (depreciation) on investments | 14,997,872 |
Net gain (loss) | 20,471,604 |
Net increase (decrease) in net assets resulting from operations | $20,418,644 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 9 |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 |
Operations: | ||
Net investment income (loss) | $ (52,960) | $ 1,151,659 |
Net realized gain (loss) | 5,473,732 | (8,657,454) |
Change in net unrealized appreciation (depreciation) | 14,997,872 | 5,071,194 |
Net increase (decrease) in net assets resulting from operations | 20,418,644 | (2,434,601) |
Distributions to shareholders: | ||
Class A | (986,559) | (6,015,690) |
Class B | (171,519) | (1,399,898) |
Total distributions | (1,158,078) | (7,415,588) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 7,037,358 | 5,262,531 |
Reinvestment of distributions | 986,559 | 6,015,690 |
Payments for shares redeemed | (12,533,527) | (11,188,291) |
Net increase (decrease) in net assets from Class A share transactions | (4,509,610) | 89,930 |
Class B | ||
Proceeds from shares sold | 1,375,255 | 3,507,387 |
Reinvestment of distributions | 171,519 | 1,399,898 |
Payments for shares redeemed | (2,097,073) | (3,035,924) |
Net increase (decrease) in net assets from Class B share transactions | (550,299) | 1,871,361 |
Increase (decrease) in net assets | 14,200,657 | (7,888,898) |
Net assets at beginning of period | 87,278,916 | 95,167,814 |
Net assets at end of period | $101,479,573 | $ 87,278,916 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,853,631 | 5,666,170 |
Shares sold | 504,831 | 527,815 |
Shares issued to shareholders in reinvestment of distributions | 67,758 | 725,656 |
Shares redeemed | (928,164) | (1,066,010) |
Net increase (decrease) in Class A shares | (355,575) | 187,461 |
Shares outstanding at end of period | 5,498,056 | 5,853,631 |
Class B | ||
Shares outstanding at beginning of period | 1,418,467 | 1,216,620 |
Shares sold | 96,770 | 321,995 |
Shares issued to shareholders in reinvestment of distributions | 11,756 | 168,662 |
Shares redeemed | (151,014) | (288,810) |
Net increase (decrease) in Class B shares | (42,488) | 201,847 |
Shares outstanding at end of period | 1,375,979 | 1,418,467 |
10 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
DWS Small Mid Cap Value VIP — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.00 | $13.83 | $12.21 | $17.88 | $16.65 | $15.97 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.00) * | .16 | .18 | .10 | .17 | .15 |
Net realized and unrealized gain (loss) | 2.94 | (.90) | 2.53 b | (2.47) | 1.55 | 2.34 |
Total from investment operations | 2.94 | (.74) | 2.71 | (2.37) | 1.72 | 2.49 |
Less distributions from: | ||||||
Net investment income | (.18) | (.16) | (.10) | (.24) | (.12) | (.10) |
Net realized gains | — | (.93) | (.99) | (3.06) | (.37) | (1.71) |
Total distributions | (.18) | (1.09) | (1.09) | (3.30) | (.49) | (1.81) |
Net asset value, end of period | $14.76 | $12.00 | $13.83 | $12.21 | $17.88 | $16.65 |
Total Return (%)c | 24.51 ** | (1.80) | 22.76 b | (16.01) | 10.52 | 16.89 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 81 | 70 | 78 | 70 | 96 | 153 |
Ratio of expenses before expense reductions (%)d | .85 *** | .88 | .88 | .87 | .83 | .83 |
Ratio of expenses after expense reductions (%)d | .83 *** | .82 | .83 | .81 | .83 | .82 |
Ratio of net investment income (loss) (%) | (.04) *** | 1.57 | 1.35 | .65 | .98 | .99 |
Portfolio turnover rate (%) | 18 ** | 43 | 55 | 64 | 35 | 53 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 11 |
DWS Small Mid Cap Value VIP — Class B | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $11.99 | $13.82 | $12.20 | $17.86 | $16.63 | $15.95 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.03) | .13 | .13 | .05 | .11 | .09 |
Net realized and unrealized gain (loss) | 2.94 | (.90) | 2.53 b | (2.48) | 1.55 | 2.34 |
Total from investment operations | 2.91 | (.77) | 2.66 | (2.43) | 1.66 | 2.43 |
Less distributions from: | ||||||
Net investment income | (.12) | (.13) | (.05) | (.17) | (.06) | (.04) |
Net realized gains | — | (.93) | (.99) | (3.06) | (.37) | (1.71) |
Total distributions | (.12) | (1.06) | (1.04) | (3.23) | (.43) | (1.75) |
Net asset value, end of period | $14.78 | $11.99 | $13.82 | $12.20 | $17.86 | $16.63 |
Total Return (%)c | 24.32 * | (2.18) | 22.32 b | (16.32) | 10.13 | 16.47 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 20 | 17 | 17 | 15 | 19 | 15 |
Ratio of expenses before expense reductions (%)d | 1.22 ** | 1.25 | 1.25 | 1.24 | 1.19 | 1.19 |
Ratio of expenses after expense reductions (%)d | 1.20 ** | 1.19 | 1.19 | 1.16 | 1.19 | 1.18 |
Ratio of net investment income (loss) (%) | (.40) ** | 1.21 | .99 | .30 | .65 | .57 |
Portfolio turnover rate (%) | 18 * | 43 | 55 | 64 | 35 | 53 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
12 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 13 |
14 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
B. | Purchases and Sales of Securities |
C. | Related Parties |
First $250 million | .650% |
Next $750 million | .620% |
Next $1.5 billion | .600% |
Next $2.5 billion | .580% |
Next $2.5 billion | .550% |
Next $2.5 billion | .540% |
Next $2.5 billion | .530% |
Over $12.5 billion | .520% |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 15 |
Class A | .82% |
Class B | 1.19% |
Class A | .84% | |
Class B | 1.21% |
Class A | $ 9,333 |
Class B | 2,521 |
$ 11,854 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 416 | $ 127 |
Class B | 316 | 102 |
$ 732 | $ 229 |
16 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Payments by Affiliates |
G. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 17 |
Information About Your Fund’s Expenses | (Unaudited) |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,245.10 | $ 1,243.20 |
Expenses Paid per $1,000* | $ 4.62 | $ 6.67 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/21 | $ 1,020.68 | $ 1,018.84 |
Expenses Paid per $1,000* | $ 4.16 | $ 6.01 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | .83% | 1.20% |
18 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 19 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
20 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 21 |
22 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
Not applicable. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
Not applicable | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Not applicable | |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable | |
ITEM 6. | SCHEDULE OF INVESTMENTS |
Not applicable | |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | 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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Not applicable | |
(a)(2) | 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. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
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: | Deutsche DWS Variable Series II |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/13/2021 |
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/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/13/2021 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 8/13/2021 |