UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
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: | 12/31/2021 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) |
3 | Performance Summary |
5 | Management Summary |
7 | Portfolio Summary |
8 | Investment Portfolio |
10 | Statement of Assets and Liabilities |
10 | Statement of Operations |
11 | Statements of Changes in Net Assets |
12 | Financial Highlights |
14 | Notes to Financial Statements |
18 | Report of Independent Registered Public Accounting Firm |
19 | Information About Your Fund's Expenses |
20 | Tax Information |
20 | Proxy Voting |
21 | Advisory Agreement Board Considerations and Fee Evaluation |
24 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 3 |
Comparative Results | ||||||
DWS Alternative Asset Allocation VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $11,274 | $13,668 | $13,340 | $15,087 | |
Average annual total return | 12.74% | 10.98% | 5.93% | 4.20% | ||
MSCI World Index | Growth of $10,000 | $12,182 | $18,026 | $20,141 | $33,050 | |
Average annual total return | 21.82% | 21.70% | 15.03% | 12.70% | ||
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $9,846 | $11,508 | $11,916 | $13,307 | |
Average annual total return | –1.54% | 4.79% | 3.57% | 2.90% | ||
Blended Index | Growth of $10,000 | $11,446 | $15,910 | $17,422 | $25,661 | |
Average annual total return | 14.46% | 16.74% | 11.74% | 9.88% | ||
DWS Alternative Asset Allocation VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $11,235 | $13,530 | $13,125 | $14,650 | |
Average annual total return | 12.35% | 10.60% | 5.59% | 3.89% | ||
MSCI World Index | Growth of $10,000 | $12,182 | $18,026 | $20,141 | $33,050 | |
Average annual total return | 21.82% | 21.70% | 15.03% | 12.70% | ||
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $9,846 | $11,508 | $11,916 | $13,307 | |
Average annual total return | –1.54% | 4.79% | 3.57% | 2.90% | ||
Blended Index | Growth of $10,000 | $11,446 | $15,910 | $17,422 | $25,661 | |
Average annual total return | 14.46% | 16.74% | 11.74% | 9.88% | ||
The growth of $10,000 is cumulative. |
4 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Management Summary | December 31, 2021 (Unaudited) |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 5 |
6 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation* (As a % of Investment Portfolio) | 12/31/21 | 12/31/20 |
Real Asset | 44% | 41% |
DWS Enhanced Commodity Strategy Fund | 16% | 12% |
DWS RREEF Global Infrastructure Fund | 12% | 11% |
DWS RREEF Real Estate Securities Fund | 11% | 10% |
iShares Global Infrastructure ETF | 4% | 5% |
DWS RREEF Global Real Estate Securities Fund | 1% | 1% |
SPDR S&P Global Natural Resources ETF | — | 2% |
Alternative Fixed Income | 20% | 19% |
DWS Floating Rate Fund | 8% | 9% |
DWS Emerging Markets Fixed Income Fund | 5% | 5% |
iShares JP Morgan USD Emerging Markets Bond ETF | 5% | 5% |
SPDR Blackstone Senior Loan ETF | 2% | — |
Alternative Equity | 20% | 30% |
SPDR Bloomberg Barclays Convertible Securities ETF | 14% | 21% |
iShares Preferred & Income Securities ETF | 6% | 9% |
Absolute Return | 7% | 5% |
DWS Global Macro Fund | 7% | 5% |
Cash Equivalents | 9% | 5% |
DWS ESG Liquidity Fund | 7% | — |
DWS Central Cash Management Government Fund | 2% | 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 | | 7 |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Mutual Funds 60.0% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,765,811 | 24,615,718 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 9,522,257 | 79,225,180 | |
DWS Floating Rate Fund "Institutional" (a) | 5,026,625 | 39,810,871 | |
DWS Global Macro Fund "Institutional" (a) | 3,209,502 | 33,828,146 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,427,302 | 61,417,258 | |
DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | 571,794 | 5,306,244 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 1,917,820 | 52,375,661 | |
Total Mutual Funds (Cost $281,924,824) | 296,579,078 | ||
Exchange-Traded Funds 31.4% | |||
iShares Global Infrastructure ETF | 411,223 | 19,570,103 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 210,018 | 22,904,563 |
Shares | Value ($) | ||
iShares Preferred & Income Securities ETF | 723,343 | 28,521,414 | |
SPDR Blackstone Senior Loan ETF | 280,331 | 12,791,504 | |
SPDR Bloomberg Convertible Securities ETF | 861,680 | 71,484,973 | |
Total Exchange-Traded Funds (Cost $123,838,858) | 155,272,557 | ||
Cash Equivalents 8.7% | |||
DWS Central Cash Management Government Fund, 0.05% (a) (b) | 11,467,666 | 11,467,666 | |
DWS ESG Liquidity Fund "Institutional", (a) 0.09% | 31,715,570 | 31,709,226 | |
Total Cash Equivalents (Cost $43,179,101) | 43,176,892 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $448,942,783) | 100.1 | 495,028,527 | |
Other Assets and Liabilities, Net | (0.1) | (405,888) | |
Net Assets | 100.0 | 494,622,639 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Mutual Funds 60.0% | ||||||||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | ||||||||
24,932,114 | 1,209,703 | — | — | (1,526,099) | 1,154,324 | — | 2,765,811 | 24,615,718 |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | ||||||||
53,979,797 | 37,432,857 | 4,808,000 | (2,836,040) | (4,543,434) | 24,176,556 | — | 9,522,257 | 79,225,180 |
DWS Floating Rate Fund "Institutional" (a) | ||||||||
40,691,313 | 1,425,056 | 2,442,607 | (340,883) | 477,992 | 1,413,344 | — | 5,026,625 | 39,810,871 |
DWS Global Macro Fund "Institutional" (a) | ||||||||
22,250,874 | 10,471,447 | — | — | 1,105,825 | 359,146 | — | 3,209,502 | 33,828,146 |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | ||||||||
53,154,596 | 3,498,108 | 2,399,200 | 222,889 | 6,940,865 | 730,927 | 2,830,250 | 3,427,302 | 61,417,258 |
DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | ||||||||
4,792,369 | 456,542 | 888,400 | 148,609 | 797,124 | 240,711 | 215,832 | 571,794 | 5,306,244 |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | ||||||||
44,650,237 | 13,570,567 | 19,465,800 | 3,209,409 | 10,411,248 | 740,459 | 3,117,108 | 1,917,820 | 52,375,661 |
Cash Equivalents 8.7% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (a) (b) | ||||||||
23,563,848 | 66,810,931 | 78,907,113 | — | — | 5,151 | — | 11,467,666 | 11,467,666 |
8 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
DWS ESG Liquidity Fund, 0.09% (a) | ||||||||
— | 37,189,531 | 5,477,000 | (1,096) | (2,209) | 6,777 | — | 31,715,570 | 31,709,226 |
268,015,148 | 172,064,742 | 114,388,120 | 402,888 | 13,661,312 | 28,827,395 | 6,163,190 | 69,624,347 | 339,755,970 |
(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 | $ 296,579,078 | $ — | $ — | $ 296,579,078 |
Exchange-Traded Funds | 155,272,557 | — | — | 155,272,557 |
Short-Term Investments | 43,176,892 | — | — | 43,176,892 |
Total | $ 495,028,527 | $ — | $ — | $ 495,028,527 |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 9 |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $123,838,858) | $ 155,272,557 |
Investments in affiliated Underlying Funds, at value (cost $325,103,925) | 339,755,970 |
Receivable for Fund shares sold | 176,171 |
Interest receivable | 440 |
Other assets | 8,328 |
Total assets | 495,213,466 |
Liabilities | |
Payable for Fund shares redeemed | 221,971 |
Accrued management fee | 41,852 |
Accrued Trustees' fees | 4,383 |
Other accrued expenses and payables | 322,621 |
Total liabilities | 590,827 |
Net assets, at value | $ 494,622,639 |
Net Assets Consist of | |
Distributable earnings (loss) | 72,802,123 |
Paid-in capital | 421,820,516 |
Net assets, at value | $ 494,622,639 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($47,310,523 ÷ 3,126,054 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 15.13 |
Class B | |
Net Asset Value, offering and redemption price per share ($447,312,116 ÷ 29,598,447 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 15.11 |
Statement of Operations |
Investment Income | |
Income: | |
Dividends | $ 4,938,975 |
Income distributions from affiliated Underlying Funds | 28,827,395 |
Total income | 33,766,370 |
Expenses: | |
Management fee | 482,189 |
Administration fee | 467,723 |
Services to shareholders | 1,448 |
Record keeping fee (Class B) | 589,375 |
Distribution service fee (Class B) | 1,099,974 |
Custodian fee | 6,539 |
Professional fees | 76,642 |
Reports to shareholders | 34,272 |
Trustees' fees and expenses | 17,827 |
Other | 12,258 |
Total expenses before expense reductions | 2,788,247 |
Expense reductions | (43,984) |
Total expenses after expense reductions | 2,744,263 |
Net investment income | 31,022,107 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | 402,888 |
Sale of non-affiliated Underlying Funds | 9,618,535 |
Capital gain distributions from affiliated Underlying Funds | 6,163,190 |
16,184,613 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | 13,661,312 |
Non-affiliated Underlying Funds | (5,127,767) |
8,533,545 | |
Net gain (loss) | 24,718,158 |
Net increase (decrease) in net assets resulting from operations | $55,740,265 |
10 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 31,022,107 | $ 8,122,677 |
Net realized gain (loss) | 16,184,613 | (8,427,570) |
Change in net unrealized appreciation (depreciation) | 8,533,545 | 28,215,922 |
Net increase (decrease) in net assets resulting from operations | 55,740,265 | 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 | 8,392,486 | 5,411,306 |
Reinvestment of distributions | 808,613 | 873,617 |
Payments for shares redeemed | (2,937,240) | (4,249,598) |
Net increase (decrease) in net assets from Class A share transactions | 6,263,859 | 2,035,325 |
Class B | ||
Proceeds from shares sold | 11,611,634 | 73,640,815 |
Reinvestment of distributions | 7,405,682 | 8,977,130 |
Payments for shares redeemed | (42,234,997) | (21,769,862) |
Net increase (decrease) in net assets from Class B share transactions | (23,217,681) | 60,848,083 |
Increase (decrease) in net assets | 30,572,148 | 80,943,690 |
Net assets at beginning of period | 464,050,491 | 383,106,801 |
Net assets at end of period | $494,622,639 | $464,050,491 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 2,699,800 | 2,541,554 |
Shares sold | 573,373 | 433,052 |
Shares issued to shareholders in reinvestment of distributions | 56,428 | 76,499 |
Shares redeemed | (203,547) | (351,305) |
Net increase (decrease) in Class A shares | 426,254 | 158,246 |
Shares outstanding at end of period | 3,126,054 | 2,699,800 |
Class B | ||
Shares outstanding at beginning of period | 31,208,785 | 26,180,029 |
Shares sold | 791,155 | 5,958,291 |
Shares issued to shareholders in reinvestment of distributions | 516,435 | 785,401 |
Shares redeemed | (2,917,928) | (1,714,936) |
Net increase (decrease) in Class B shares | (1,610,338) | 5,028,756 |
Shares outstanding at end of period | 29,598,447 | 31,208,785 |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 11 |
DWS Alternative Asset Allocation VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.70 | $13.35 | $12.10 | $13.61 | $12.97 |
Income (loss) from investment operations: | |||||
Net investment incomea | 1.04 | .29 | .40 | .61 | .33 |
Net realized and unrealized gain (loss) | .69 | .40 | 1.35 | (1.84) | .62 |
Total from investment operations | 1.73 | .69 | 1.75 | (1.23) | .95 |
Less distributions from: | |||||
Net investment income | (.30) | (.34) | (.50) | (.28) | (.31) |
Net asset value, end of period | $15.13 | $13.70 | $13.35 | $12.10 | $13.61 |
Total Return (%)b | 12.74 | 5.71 | 14.68 c | (9.14) c | 7.41 c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 47 | 37 | 34 | 26 | 27 |
Ratio of expenses before expense reductions (%)d,e | .23 | .23 | .56 | .73 | .64 |
Ratio of expenses after expense reductions (%)d,e | .23 | .23 | .23 | .16 | .19 |
Ratio of net investment income (%) | 7.13 | 2.29 | 3.09 | 4.78 | 2.50 |
Portfolio turnover rate (%) | 19 | 18 | 10 | 32 | 55 |
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. |
12 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
DWS Alternative Asset Allocation VIP — Class B | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.68 | $13.34 | $12.09 | $13.59 | $12.96 |
Income (loss) from investment operations: | |||||
Net investment incomea | .93 | .24 | .37 | .62 | .31 |
Net realized and unrealized gain (loss) | .75 | .41 | 1.34 | (1.88) | .59 |
Total from investment operations | 1.68 | .65 | 1.71 | (1.26) | .90 |
Less distributions from: | |||||
Net investment income | (.25) | (.31) | (.46) | (.24) | (.27) |
Net asset value, end of period | $15.11 | $13.68 | $13.34 | $12.09 | $13.59 |
Total Return (%)b,c | 12.35 | 5.32 | 14.35 | (9.35) | 7.01 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 447 | 427 | 349 | 208 | 157 |
Ratio of expenses before expense reductions (%)d,e | .61 | .61 | .92 | 1.08 | .93 |
Ratio of expenses after expense reductions (%)d,e | .60 | .59 | .52 | .45 | .48 |
Ratio of net investment income (%) | 6.37 | 1.94 | 2.90 | 4.85 | 2.31 |
Portfolio turnover rate (%) | 19 | 18 | 10 | 32 | 55 |
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. |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 13 |
A. | Organization and Significant Accounting Policies |
14 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Undistributed ordinary income* | $ 32,017,106 |
Undistributed long-term capital gains | $ 455,895 |
Net unrealized appreciation (depreciation) on investments | $ 40,329,123 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 8,214,295 | $ 9,850,747 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
B. | Purchases and Sales of Securities |
C. | Related Parties |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 15 |
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% |
Class A | 1.03% | ||
Class B | 1.41% |
16 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 220 | $ 37 |
Class B | 353 | 59 |
$ 573 | $ 96 |
D. | Ownership of the Fund |
E. | Other — COVID-19 Pandemic |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 17 |
18 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation 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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,032.80 | $ 1,030.70 |
Expenses Paid per $1,000* | $ 1.18 | $ 3.12 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,024.05 | $ 1,022.13 |
Expenses Paid per $1,000* | $ 1.17 | $ 3.11 |
* | 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 184 (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% | .61% |
** | 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. |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 19 |
Tax Information | (Unaudited) |
20 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation 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 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. |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 21 |
22 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 23 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
24 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP | | 25 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
26 | | Deutsche DWS Variable Series II —DWS Alternative Asset Allocation VIP |
3 | Performance Summary |
4 | Management Summary |
6 | Portfolio Summary |
7 | Investment Portfolio |
10 | Statement of Assets and Liabilities |
10 | Statement of Operations |
11 | Statements of Changes in Net Assets |
12 | Financial Highlights |
14 | Notes to Financial Statements |
20 | Report of Independent Registered Public Accounting Firm |
21 | Information About Your Fund's Expenses |
22 | Tax Information |
22 | Proxy Voting |
23 | Advisory Agreement Board Considerations and Fee Evaluation |
26 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $12,669 | $14,795 | $16,272 | $23,053 | |
Average annual total return | 26.69% | 13.95% | 10.23% | 8.71% | ||
Russell 1000® Value Index | Growth of $10,000 | $12,516 | $16,281 | $16,976 | $33,846 | |
Average annual total return | 25.16% | 17.64% | 11.16% | 12.97% | ||
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $12,627 | $14,652 | $16,021 | $22,364 | |
Average annual total return | 26.27% | 13.58% | 9.88% | 8.38% | ||
Russell 1000® Value Index | Growth of $10,000 | $12,516 | $16,281 | $16,976 | $33,846 | |
Average annual total return | 25.16% | 17.64% | 11.16% | 12.97% | ||
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 3 |
Management Summary | December 31, 2021 (Unaudited) |
4 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
* | Not held at December 31, 2021. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 5 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Common Stocks | 100% | 100% |
Cash Equivalents | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
Information Technology | 30% | 16% |
Health Care | 23% | 25% |
Financials | 12% | 5% |
Consumer Discretionary | 10% | 12% |
Consumer Staples | 9% | 24% |
Communication Services | 8% | 11% |
Industrials | 5% | 7% |
Materials | 2% | — |
Energy | 1% | — |
100% | 100% |
6 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Common Stocks 99.7% | |||
Communication Services 8.0% | |||
Interactive Media & Services 6.5% | |||
Alphabet, Inc. "A"* | 1,124 | 3,256,273 | |
Meta Platforms, Inc. "A"* | 19,802 | 6,660,402 | |
9,916,675 | |||
Media 1.5% | |||
Fox Corp. "A" | 50,549 | 1,865,258 | |
ViacomCBS, Inc. "B" | 12,365 | 373,176 | |
2,238,434 | |||
Consumer Discretionary 9.7% | |||
Hotels, Restaurants & Leisure 0.6% | |||
Boyd Gaming Corp.* | 12,776 | 837,722 | |
Household Durables 2.1% | |||
D.R. Horton, Inc. | 30,125 | 3,267,056 | |
Internet & Direct Marketing Retail 1.1% | |||
eBay, Inc. | 26,072 | 1,733,788 | |
Multiline Retail 2.4% | |||
Dollar General Corp. | 15,554 | 3,668,100 | |
Specialty Retail 3.3% | |||
AutoNation, Inc.* | 7,795 | 910,846 | |
AutoZone, Inc.* | 679 | 1,423,449 | |
Bath & Body Works, Inc. | 6,423 | 448,261 | |
Lowe's Companies, Inc. | 8,352 | 2,158,825 | |
4,941,381 | |||
Textiles, Apparel & Luxury Goods 0.2% | |||
Tapestry, Inc. | 8,994 | 365,157 | |
Consumer Staples 8.6% | |||
Beverages 1.0% | |||
Constellation Brands, Inc. "A" | 5,923 | 1,486,495 | |
Food & Staples Retailing 1.9% | |||
Kroger Co. | 64,487 | 2,918,682 | |
Food Products 2.8% | |||
J M Smucker Co. | 20,998 | 2,851,948 | |
Tyson Foods, Inc. "A" | 15,839 | 1,380,527 | |
4,232,475 | |||
Tobacco 2.9% | |||
Altria Group, Inc. | 38,535 | 1,826,174 | |
Philip Morris International, Inc. | 27,933 | 2,653,635 | |
4,479,809 | |||
Energy 1.1% | |||
Oil, Gas & Consumable Fuels | |||
ONEOK, Inc. | 7,191 | 422,543 | |
Pioneer Natural Resources Co. | 4,415 | 803,000 | |
Williams Companies, Inc. | 15,462 | 402,631 | |
1,628,174 |
Shares | Value ($) | ||
Financials 11.7% | |||
Banks 4.8% | |||
Bank of America Corp. | 40,852 | 1,817,506 | |
Citigroup, Inc. | 9,940 | 600,277 | |
JPMorgan Chase & Co. | 15,921 | 2,521,090 | |
U.S. Bancorp. | 41,154 | 2,311,620 | |
7,250,493 | |||
Capital Markets 3.6% | |||
Bank of New York Mellon Corp. | 46,427 | 2,696,480 | |
Northern Trust Corp. | 4,231 | 506,070 | |
State Street Corp. | 24,340 | 2,263,620 | |
5,466,170 | |||
Consumer Finance 3.3% | |||
Capital One Financial Corp. | 16,486 | 2,391,954 | |
Discover Financial Services | 9,269 | 1,071,125 | |
Synchrony Financial | 33,928 | 1,573,920 | |
5,036,999 | |||
Health Care 22.6% | |||
Biotechnology 5.9% | |||
AbbVie, Inc. | 30,388 | 4,114,535 | |
Biogen, Inc.* | 2,683 | 643,705 | |
Gilead Sciences, Inc. | 5,503 | 399,573 | |
Regeneron Pharmaceuticals, Inc.* | 6,043 | 3,816,276 | |
8,974,089 | |||
Health Care Providers & Services 5.4% | |||
HCA Healthcare, Inc. | 5,979 | 1,536,125 | |
Laboratory Corp. of America Holdings* | 8,248 | 2,591,604 | |
McKesson Corp. | 5,709 | 1,419,086 | |
Quest Diagnostics, Inc. | 12,881 | 2,228,542 | |
Tenet Healthcare Corp.* | 5,124 | 418,579 | |
8,193,936 | |||
Pharmaceuticals 11.3% | |||
Bristol-Myers Squibb Co. | 96,976 | 6,046,454 | |
Johnson & Johnson | 37,643 | 6,439,588 | |
Pfizer, Inc. | 80,568 | 4,757,540 | |
17,243,582 | |||
Industrials 5.3% | |||
Air Freight & Logistics 3.0% | |||
Expeditors International of Washington, Inc. (a) | 33,824 | 4,542,225 | |
Industrial Conglomerates 1.5% | |||
3M Co. | 12,910 | 2,293,203 | |
Machinery 0.6% | |||
Stanley Black & Decker, Inc. | 4,597 | 867,086 | |
Professional Services 0.2% | |||
ManpowerGroup, Inc. | 4,015 | 390,780 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 7 |
Shares | Value ($) | ||
Information Technology 30.3% | |||
Communications Equipment 2.1% | |||
Cisco Systems, Inc. | 50,043 | 3,171,225 | |
Electronic Equipment, Instruments & Components 1.1% | |||
Flex Ltd.* | 22,165 | 406,284 | |
Jabil, Inc. | 18,934 | 1,332,007 | |
1,738,291 | |||
IT Services 6.3% | |||
Amdocs Ltd. | 41,485 | 3,104,738 | |
Cognizant Technology Solutions Corp. "A" | 35,264 | 3,128,622 | |
International Business Machines Corp. | 24,735 | 3,306,080 | |
9,539,440 | |||
Semiconductors & Semiconductor Equipment 10.4% | |||
Applied Materials, Inc. | 17,129 | 2,695,420 | |
Broadcom, Inc. | 6,213 | 4,134,192 | |
KLA Corp. | 3,245 | 1,395,707 | |
Lam Research Corp. | 1,936 | 1,392,274 | |
Micron Technology, Inc. | 18,307 | 1,705,297 | |
QUALCOMM, Inc. | 12,430 | 2,273,074 | |
Skyworks Solutions, Inc. | 9,769 | 1,515,563 | |
Teradyne, Inc. | 4,564 | 746,351 | |
15,857,878 | |||
Software 7.2% | |||
Microsoft Corp. | 2,798 | 941,023 | |
Oracle Corp. | 29,990 | 2,615,428 | |
SS&C Technologies Holdings, Inc. | 89,666 | 7,350,819 | |
10,907,270 | |||
Technology Hardware, Storage & Peripherals 3.2% | |||
Apple, Inc. | 21,453 | 3,809,409 | |
Hewlett Packard Enterprise Co. | 25,227 | 397,830 | |
HP, Inc. | 15,605 | 587,840 | |
4,795,079 |
Shares | Value ($) | ||
Materials 2.4% | |||
Chemicals 0.6% | |||
Olin Corp. | 16,421 | 944,536 | |
Containers & Packaging 0.6% | |||
Amcor PLC | 44,845 | 538,588 | |
Westrock Co. | 8,677 | 384,912 | |
923,500 | |||
Metals & Mining 1.2% | |||
Nucor Corp. | 15,138 | 1,728,003 | |
Total Common Stocks (Cost $130,981,233) | 151,577,733 | ||
Securities Lending Collateral 0.5% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) (Cost $763,000) | 763,000 | 763,000 | |
Cash Equivalents 0.4% | |||
DWS Central Cash Management Government Fund, 0.05% (b) (Cost $572,173) | 572,173 | 572,173 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $132,316,406) | 100.6 | 152,912,906 | |
Other Assets and Liabilities, Net | (0.6) | (900,307) | |
Net Assets | 100.0 | 152,012,599 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 0.5% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) | ||||||||
4,309,705 | — | 3,546,705 (d) | — | — | 1,268 | — | 763,000 | 763,000 |
Cash Equivalents 0.4% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (b) | ||||||||
621,226 | 13,463,621 | 13,512,674 | — | — | 255 | — | 572,173 | 572,173 |
4,930,931 | 13,463,621 | 17,059,379 | — | — | 1,523 | — | 1,335,173 | 1,335,173 |
* | Non-income producing security. |
8 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
(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 December 31, 2021 amounted to $752,024, which is 0.5% 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 year ended December 31, 2021. |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 151,577,733 | $ — | $ — | $ 151,577,733 |
Short-Term Investments (a) | 1,335,173 | — | — | 1,335,173 |
Total | $ 152,912,906 | $ — | $ — | $ 152,912,906 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 9 |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated securities, at value (cost $130,981,233) — including $752,024 of securities loaned | $ 151,577,733 |
Investment in DWS Government & Agency Securities Portfolio (cost $763,000)* | 763,000 |
Investment in DWS Central Cash Management Government Fund (cost $572,173) | 572,173 |
Cash | 18,543 |
Receivable for Fund shares sold | 2,959 |
Dividends receivable | 152,685 |
Interest receivable | 60 |
Other assets | 3,017 |
Total assets | 153,090,170 |
Liabilities | |
Payable upon return of securities loaned | 763,000 |
Payable for Fund shares redeemed | 158,352 |
Accrued management fee | 59,285 |
Accrued Trustees' fees | 2,145 |
Other accrued expenses and payables | 94,789 |
Total liabilities | 1,077,571 |
Net assets, at value | $ 152,012,599 |
Net Assets Consist of | |
Distributable earnings (loss) | 24,696,553 |
Paid-in capital | 127,316,046 |
Net assets, at value | $ 152,012,599 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($148,770,985 ÷ 9,269,906 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 16.05 |
Class B | |
Net Asset Value, offering and redemption price per share ($3,241,614 ÷ 201,242 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 16.11 |
* | Represents collateral on securities loaned. |
Statement of Operations |
Investment Income | |
Income: | |
Dividends | $ 3,388,418 |
Income distributions — DWS Central Cash Management Government Fund | 255 |
Securities lending income, net of borrower rebates | 1,268 |
Total income | 3,389,941 |
Expenses: | |
Management fee | 873,762 |
Administration fee | 141,258 |
Record keeping fee (Class B) | 1,994 |
Distribution service fee (Class B) | 8,229 |
Custodian fee | 4,004 |
Professional fees | 75,842 |
Reports to shareholders | 28,782 |
Trustees' fees and expenses | 5,961 |
Other | 6,428 |
Total expenses before expense reductions | 1,146,260 |
Expense reductions | (108,496) |
Total expenses after expense reductions | 1,037,764 |
Net investment income | 2,352,177 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 18,442,647 |
Change in net unrealized appreciation (depreciation) on investments | 13,221,244 |
Net gain (loss) | 31,663,891 |
Net increase (decrease) in net assets resulting from operations | $34,016,068 |
10 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 2,352,177 | $ 2,848,860 |
Net realized gain (loss) | 18,442,647 | (16,282,685) |
Change in net unrealized appreciation (depreciation) | 13,221,244 | (5,587,930) |
Net increase (decrease) in net assets resulting from operations | 34,016,068 | (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 | 2,809,896 | 6,978,119 |
Reinvestment of distributions | 2,764,720 | 9,467,191 |
Payments for shares redeemed | (16,851,304) | (11,817,632) |
Net increase (decrease) in net assets from Class A share transactions | (11,276,688) | 4,627,678 |
Class B | ||
Proceeds from shares sold | 275,751 | 784,815 |
Reinvestment of distributions | 57,047 | 221,204 |
Payments for shares redeemed | (927,960) | (873,871) |
Net increase (decrease) in net assets from Class B share transactions | (595,162) | 132,148 |
Increase (decrease) in net assets | 19,322,451 | (23,950,324) |
Net assets at beginning of period | 132,690,148 | 156,640,472 |
Net assets at end of period | $152,012,599 | $132,690,148 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 10,025,875 | 9,489,452 |
Shares sold | 195,672 | 567,975 |
Shares issued to shareholders in reinvestment of distributions | 194,562 | 895,666 |
Shares redeemed | (1,146,203) | (927,218) |
Net increase (decrease) in Class A shares | (755,969) | 536,423 |
Shares outstanding at end of period | 9,269,906 | 10,025,875 |
Class B | ||
Shares outstanding at beginning of period | 240,926 | 226,957 |
Shares sold | 19,004 | 65,344 |
Shares issued to shareholders in reinvestment of distributions | 3,989 | 20,809 |
Shares redeemed | (62,677) | (72,184) |
Net increase (decrease) in Class B shares | (39,684) | 13,969 |
Shares outstanding at end of period | 201,242 | 240,926 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 11 |
DWS CROCI® U.S. VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.92 | $16.12 | $13.46 | $16.64 | $13.75 |
Income (loss) from investment operations: | |||||
Net investment incomea | .24 | .28 | .31 | .29 | .24 |
Net realized and unrealized gain (loss) | 3.17 | (2.47) | 3.92 | (1.89) | 2.88 |
Total from investment operations | 3.41 | (2.19) | 4.23 | (1.60) | 3.12 |
Less distributions from: | |||||
Net investment income | (.28) | (.31) | (.30) | (.41) | (.23) |
Net realized gains | — | (.70) | (1.27) | (1.17) | — |
Total distributions | (.28) | (1.01) | (1.57) | (1.58) | (.23) |
Net asset value, end of period | $16.05 | $12.92 | $16.12 | $13.46 | $16.64 |
Total Return (%)b | 26.69 | (12.16) | 32.95 | (10.50) | 22.88 c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 149 | 130 | 153 | 125 | 153 |
Ratio of expenses before expense reductions (%)d | .78 | .84 | .84 | .84 | .82 |
Ratio of expenses after expense reductions (%)d | .71 | .69 | .70 | .72 | .72 |
Ratio of net investment income (%) | 1.62 | 2.28 | 2.13 | 1.89 | 1.59 |
Portfolio turnover rate (%) | 99 | 122 | 111 | 100 | 97 |
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. |
12 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
DWS CROCI® U.S. VIP — Class B | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.97 | $16.17 | $13.50 | $16.67 | $13.78 |
Income (loss) from investment operations: | |||||
Net investment incomea | .19 | .24 | .27 | .24 | .20 |
Net realized and unrealized gain (loss) | 3.19 | (2.47) | 3.92 | (1.88) | 2.87 |
Total from investment operations | 3.38 | (2.23) | 4.19 | (1.64) | 3.07 |
Less distributions from: | |||||
Net investment income | (.24) | (.27) | (.25) | (.36) | (.18) |
Net realized gains | — | (.70) | (1.27) | (1.17) | — |
Total distributions | (.24) | (.97) | (1.52) | (1.53) | (.18) |
Net asset value, end of period | $16.11 | $12.97 | $16.17 | $13.50 | $16.67 |
Total Return (%)b | 26.27 | (12.41) | 32.49 | (10.71) | 22.45 c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 3 | 3 | 4 | 3 | 4 |
Ratio of expenses before expense reductions (%)d | 1.10 | 1.16 | 1.16 | 1.16 | 1.15 |
Ratio of expenses after expense reductions (%)d | 1.02 | 1.00 | 1.02 | 1.04 | 1.03 |
Ratio of net investment income (%) | 1.33 | 1.96 | 1.82 | 1.55 | 1.31 |
Portfolio turnover rate (%) | 99 | 122 | 111 | 100 | 97 |
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. |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 13 |
A. | Organization and Significant Accounting Policies |
14 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 15 |
Undistributed ordinary income* | $ 2,815,712 |
Undistributed long-term capital gains | $ 1,418,022 |
Net unrealized appreciation (depreciation) on investments | $ 20,462,819 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 2,821,767 | $ 9,688,395 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
B. | Purchases and Sales of Securities |
C. | Related Parties |
16 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
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% |
Class A | .75% | |
Class B | 1.06% |
Class A | .65% | ||
Class B | .97% |
Class A | $ 105,833 |
Class B | 2,663 |
$ 108,496 |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 17 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 497 | $ 83 |
Class B | 300 | 50 |
$ 797 | $ 133 |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
18 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 19 |
20 | | 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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,099.30 | $ 1,097.40 |
Expenses Paid per $1,000* | $ 3.70 | $ 5.39 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,021.68 | $ 1,020.06 |
Expenses Paid per $1,000* | $ 3.57 | $ 5.19 |
* | 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 184 (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 | .70% | 1.02% |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 21 |
Tax Information | (Unaudited) |
22 | | 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 | | 23 |
24 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 25 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
26 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP | | 27 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
28 | | Deutsche DWS Variable Series II —DWS CROCI® U.S. VIP |
3 | Performance Summary |
5 | Management Summary |
7 | Portfolio Summary |
8 | Investment Portfolio |
21 | Statement of Assets and Liabilities |
22 | Statement of Operations |
23 | Statements of Changes in Net Assets |
24 | Financial Highlights |
26 | Notes to Financial Statements |
35 | Report of Independent Registered Public Accounting Firm |
36 | Information About Your Fund's Expenses |
37 | Tax Information |
37 | Proxy Voting |
38 | Advisory Agreement Board Considerations and Fee Evaluation |
41 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS Global Income Builder VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $11,095 | $14,437 | $15,535 | $22,374 | |
Average annual total return | 10.95% | 13.02% | 9.21% | 8.39% | ||
MSCI All Country World Index | Growth of $10,000 | $11,854 | $17,446 | $19,592 | $30,649 | |
Average annual total return | 18.54% | 20.38% | 14.40% | 11.85% | ||
Blended Index 60/40 | Growth of $10,000 | $11,043 | $15,022 | $16,391 | $22,856 | |
Average annual total return | 10.43% | 14.53% | 10.39% | 8.62% | ||
Bloomberg U.S. Universal Index | Growth of $10,000 | $9,890 | $11,627 | $12,072 | $13,846 | |
Average annual total return | –1.10% | 5.15% | 3.84% | 3.31% |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 3 |
Comparative Results | |||||
DWS Global Income Builder VIP | 1-Year | 3-Year | Life of Class* | ||
Class B | Growth of $10,000 | $11,056 | $14,318 | $13,464 | |
Average annual total return | 10.56% | 12.71% | 8.45% | ||
MSCI All Country World Index | Growth of $10,000 | $11,854 | $17,446 | $15,806 | |
Average annual total return | 18.54% | 20.38% | 13.30% | ||
Blended Index 60/40 | Growth of $10,000 | $11,043 | $15,022 | $14,281 | |
Average annual total return | 10.43% | 14.53% | 13.84% | ||
Bloomberg U.S. Universal Index | Growth of $10,000 | $9,890 | $11,627 | $11,842 | |
Average annual total return | –1.10% | 5.15% | 4.72% | ||
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
4 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Management Summary | December 31, 2021 (Unaudited) |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 5 |
6 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Equity | 65% | 64% |
Common Stocks | 60% | 57% |
Exchange-Traded Funds | 3% | 3% |
Preferred Stocks | 2% | 4% |
Warrants | 0% | 0% |
Fixed Income | 32% | 34% |
Corporate Bonds | 23% | 15% |
Asset-Backed | 3% | 5% |
Collateralized Mortgage Obligations | 2% | 3% |
Commercial Mortgage-Backed Securities | 2% | 4% |
Short-Term U.S. Treasury Obligations | 1% | 2% |
Government & Agency Obligations | 1% | 1% |
Mortgage-Backed Securities Pass-Throughs | 0% | 4% |
Cash Equivalents | 3% | 2% |
Cash Equivalents | 3% | 2% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Warrants and Corporate Bonds) | 12/31/21 | 12/31/20 |
Financials | 23% | 19% |
Information Technology | 20% | 20% |
Communication Services | 10% | 10% |
Health Care | 9% | 9% |
Consumer Discretionary | 8% | 9% |
Industrials | 6% | 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) | 12/31/21 | 12/31/20 |
United States | 63% | 63% |
Japan | 5% | 5% |
United Kingdom | 4% | 3% |
Canada | 4% | 3% |
Switzerland | 3% | 3% |
Germany | 2% | 2% |
France | 2% | 1% |
Netherlands | 2% | 1% |
Ireland | 1% | 2% |
Australia | 1% | 2% |
Cayman Islands | 1% | 1% |
Hong Kong | 0% | 2% |
Other | 12% | 12% |
100% | 100% |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 7 |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Common Stocks 61.1% | |||
Communication Services 5.6% | |||
Diversified Telecommunication Services 1.8% | |||
BCE, Inc. | 4,450 | 231,515 | |
Deutsche Telekom AG (Registered) | 11,803 | 218,531 | |
Koninklijke KPN NV | 52,614 | 163,542 | |
Nippon Telegraph & Telephone Corp. | 6,646 | 182,056 | |
Orange SA | 17,750 | 190,056 | |
Swisscom AG (Registered) | 425 | 239,734 | |
Telenor ASA | 11,061 | 174,032 | |
Telia Co. AB | 55,732 | 218,091 | |
Telstra Corp., Ltd. | 70,452 | 214,046 | |
TELUS Corp. | 7,778 | 183,175 | |
Verizon Communications, Inc. | 6,894 | 358,212 | |
2,372,990 | |||
Entertainment 0.8% | |||
Activision Blizzard, Inc. | 1,136 | 75,578 | |
AMC Entertainment Holdings, Inc. "A"* | 500 | 13,600 | |
Netflix, Inc.* | 400 | 240,976 | |
Nintendo Co., Ltd. | 556 | 259,336 | |
Sea Ltd. (ADR)* | 900 | 201,339 | |
Walt Disney Co.* | 1,500 | 232,335 | |
1,023,164 | |||
Interactive Media & Services 2.1% | |||
Alphabet, Inc. "A"* | 299 | 866,215 | |
Alphabet, Inc. "C"* | 288 | 833,354 | |
Match Group, Inc.* | 1,400 | 185,150 | |
Meta Platforms, Inc. "A"* | 2,400 | 807,240 | |
Zillow Group, Inc. "A"* | 900 | 55,998 | |
Zillow Group, Inc. "C"* (a) | 1,000 | 63,850 | |
2,811,807 | |||
Media 0.3% | |||
Comcast Corp. "A" | 3,738 | 188,134 | |
Interpublic Group of Companies, Inc. | 3,992 | 149,500 | |
337,634 | |||
Wireless Telecommunication Services 0.6% | |||
KDDI Corp. | 6,541 | 190,926 | |
SoftBank Corp. | 15,101 | 191,221 | |
Tele2 AB "B" | 15,678 | 223,724 | |
Vodafone Group PLC | 169,457 | 256,440 | |
862,311 | |||
Consumer Discretionary 5.3% | |||
Auto Components 0.4% | |||
Bridgestone Corp. | 4,700 | 202,272 |
Shares | Value ($) | ||
Denso Corp. | 2,852 | 236,335 | |
Magna International, Inc. | 2,000 | 161,825 | |
600,432 | |||
Automobiles 0.7% | |||
Honda Motor Co., Ltd. | 5,000 | 141,632 | |
Tesla, Inc.* | 502 | 530,503 | |
Toyota Motor Corp. | 11,090 | 203,572 | |
875,707 | |||
Hotels, Restaurants & Leisure 0.9% | |||
Booking Holdings, Inc.* | 3 | 7,198 | |
Evolution AB 144A | 1,047 | 148,413 | |
McDonald's Corp. | 1,110 | 297,558 | |
Restaurant Brands International, Inc. | 1,812 | 109,870 | |
Starbucks Corp. | 2,289 | 267,744 | |
Yum! Brands, Inc. | 2,151 | 298,688 | |
1,129,471 | |||
Household Durables 0.2% | |||
Garmin Ltd. | 1,042 | 141,889 | |
Sekisui House Ltd. | 6,626 | 142,170 | |
284,059 | |||
Internet & Direct Marketing Retail 1.2% | |||
Amazon.com, Inc.* | 487 | 1,623,824 | |
Prosus NV | 163 | 13,604 | |
1,637,428 | |||
Multiline Retail 0.4% | |||
Target Corp. | 1,041 | 240,929 | |
Wesfarmers Ltd. | 6,085 | 262,191 | |
503,120 | |||
Specialty Retail 1.2% | |||
Best Buy Co., Inc. | 1,475 | 149,860 | |
Home Depot, Inc. | 1,112 | 461,491 | |
Industria de Diseno Textil SA | 10,957 | 355,343 | |
Lowe's Companies, Inc. | 1,139 | 294,409 | |
TJX Companies, Inc. | 3,700 | 280,904 | |
1,542,007 | |||
Textiles, Apparel & Luxury Goods 0.3% | |||
LVMH Moet Hennessy Louis Vuitton SE | 209 | 172,857 | |
NIKE, Inc. "B" | 1,400 | 233,338 | |
406,195 | |||
Consumer Staples 3.8% | |||
Beverages 0.5% | |||
Coca-Cola Co. | 5,382 | 318,668 | |
Diageo PLC | 115 | 6,281 | |
PepsiCo, Inc. | 2,006 | 348,463 | |
673,412 |
8 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Shares | Value ($) | ||
Food & Staples Retailing 1.2% | |||
Costco Wholesale Corp. | 400 | 227,080 | |
J Sainsbury PLC | 41,118 | 153,384 | |
Koninklijke Ahold Delhaize NV | 5,133 | 175,928 | |
Sysco Corp. | 2,400 | 188,520 | |
Tesco PLC | 56,417 | 221,456 | |
Walgreens Boots Alliance, Inc. | 3,920 | 204,467 | |
Walmart, Inc. | 1,643 | 237,726 | |
Woolworths Group Ltd. | 5,160 | 142,693 | |
1,551,254 | |||
Food Products 0.8% | |||
General Mills, Inc. | 2,762 | 186,103 | |
Kellogg Co. | 2,270 | 146,233 | |
Kraft Heinz Co. | 5,280 | 189,552 | |
Nestle SA (Registered) | 2,278 | 318,818 | |
Wilmar International Ltd. | 45,939 | 141,602 | |
982,308 | |||
Household Products 0.5% | |||
Colgate-Palmolive Co. | 1,255 | 107,102 | |
Kimberly-Clark Corp. | 1,055 | 150,780 | |
Procter & Gamble Co. | 2,240 | 366,419 | |
624,301 | |||
Personal Products 0.2% | |||
L'Oreal SA | 39 | 18,516 | |
Unilever PLC | 5,427 | 290,528 | |
309,044 | |||
Tobacco 0.6% | |||
Japan Tobacco, Inc. | 21,200 | 428,155 | |
Philip Morris International, Inc. | 4,002 | 380,190 | |
808,345 | |||
Energy 2.5% | |||
Oil, Gas & Consumable Fuels | |||
Chevron Corp. | 3,153 | 370,005 | |
Enbridge, Inc. | 6,800 | 265,614 | |
Eni SpA | 15,612 | 216,782 | |
Exxon Mobil Corp. | 6,800 | 416,092 | |
Kinder Morgan, Inc. | 13,900 | 220,454 | |
ONEOK, Inc. | 3,200 | 188,032 | |
Pembina Pipeline Corp. | 6,200 | 188,066 | |
Reliance Industries Ltd. 144A, (GDR) | 917 | 58,642 | |
Repsol SA | 11,610 | 137,934 | |
TC Energy Corp. | 4,695 | 218,354 | |
TotalEnergies SE | 11,989 | 609,357 | |
Valero Energy Corp. | 2,500 | 187,775 | |
Williams Companies, Inc. | 8,200 | 213,528 | |
3,290,635 | |||
Financials 10.0% | |||
Banks 4.4% | |||
Bank of America Corp. | 5,900 | 262,491 |
Shares | Value ($) | ||
Bank of Montreal | 2,184 | 235,139 | |
Bank of Nova Scotia | 2,415 | 170,966 | |
BOC Hong Kong Holdings Ltd. | 61,163 | 200,529 | |
Canadian Imperial Bank of Commerce | 1,820 | 212,150 | |
Citigroup, Inc. | 3,700 | 223,443 | |
Citizens Financial Group, Inc. | 3,146 | 148,649 | |
Commonwealth Bank of Australia | 3,160 | 232,125 | |
Credit Agricole SA | 13,835 | 197,659 | |
Fifth Third Bancorp. | 4,100 | 178,555 | |
Hang Seng Bank Ltd. | 8,894 | 162,640 | |
HSBC Holdings PLC | 61,019 | 370,519 | |
Huntington Bancshares, Inc. | 10,776 | 166,166 | |
ICICI Bank Ltd. (ADR) | 900 | 17,811 | |
Japan Post Bank Co., Ltd. | 17,300 | 158,531 | |
JPMorgan Chase & Co. | 2,545 | 403,001 | |
KeyCorp. | 9,214 | 213,120 | |
Mediobanca Banca di Credito Finanziario SpA | 13,646 | 156,780 | |
Mizuho Financial Group, Inc. | 11,835 | 150,508 | |
Oversea-Chinese Banking Corp., Ltd. | 17,967 | 152,063 | |
PNC Financial Services Group, Inc. | 799 | 160,215 | |
Regions Financial Corp. | 12,294 | 268,009 | |
Sumitomo Mitsui Financial Group, Inc. | 5,373 | 183,876 | |
Toronto-Dominion Bank | 4,610 | 353,435 | |
Truist Financial Corp. | 2,980 | 174,479 | |
U.S. Bancorp. | 4,120 | 231,420 | |
United Overseas Bank Ltd. | 9,882 | 197,217 | |
Wells Fargo & Co. | 2,000 | 95,960 | |
Westpac Banking Corp. | 9,824 | 152,477 | |
5,829,933 | |||
Capital Markets 2.0% | |||
Apollo Global Management, Inc. (a) | 2,856 | 206,860 | |
BlackRock, Inc. | 237 | 216,988 | |
Blackstone, Inc. | 8,933 | 1,155,841 | |
Charles Schwab Corp. | 400 | 33,640 | |
CME Group, Inc. | 1,200 | 274,152 | |
Daiwa Securities Group, Inc. | 27,400 | 154,473 | |
Franklin Resources, Inc. | 5,018 | 168,053 | |
Nomura Holdings, Inc. | 33,600 | 146,324 | |
Partners Group Holding AG | 130 | 214,425 | |
2,570,756 | |||
Consumer Finance 0.0% | |||
American Express Co. | 100 | 16,360 | |
Diversified Financial Services 0.1% | |||
ORIX Corp. | 8,439 | 171,797 | |
Insurance 3.5% | |||
Allianz SE (Registered) | 1,253 | 295,511 | |
Assicurazioni Generali SpA | 10,358 | 219,297 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
AXA SA | 8,676 | 259,063 | |
Japan Post Holdings Co., Ltd. | 15,400 | 120,125 | |
Legal & General Group PLC | 60,553 | 243,337 | |
Manulife Financial Corp. | 10,007 | 190,734 | |
MS&AD Insurance Group Holdings, Inc. | 13,598 | 418,855 | |
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | 3,333 | 985,642 | |
NN Group NV | 2,842 | 154,590 | |
Progressive Corp. | 2,800 | 287,420 | |
Prudential Financial, Inc. | 2,164 | 234,231 | |
Sampo Oyj "A" | 5,348 | 268,023 | |
Sompo Holdings, Inc. | 2,982 | 125,697 | |
Swiss Re AG | 2,694 | 266,364 | |
Tokio Marine Holdings, Inc. | 3,200 | 177,792 | |
Zurich Insurance Group AG | 674 | 295,544 | |
4,542,225 | |||
Health Care 6.4% | |||
Biotechnology 1.0% | |||
AbbVie, Inc. | 3,660 | 495,564 | |
Amgen, Inc. | 1,292 | 290,661 | |
CSL Ltd. | 65 | 13,754 | |
Gilead Sciences, Inc. | 4,126 | 299,589 | |
Seagen, Inc.* | 1,100 | 170,060 | |
1,269,628 | |||
Health Care Equipment & Supplies 0.7% | |||
Abbott Laboratories | 2,058 | 289,643 | |
Coloplast AS "B" | 1,116 | 196,208 | |
Danaher Corp. | 600 | 197,406 | |
Intuitive Surgical, Inc.* | 100 | 35,930 | |
Medtronic PLC | 1,489 | 154,037 | |
873,224 | |||
Health Care Providers & Services 0.5% | |||
Anthem, Inc. | 100 | 46,354 | |
CVS Health Corp. | 2,169 | 223,754 | |
UnitedHealth Group, Inc. | 894 | 448,913 | |
719,021 | |||
Health Care Technology 0.1% | |||
M3, Inc. | 1,914 | 96,238 | |
Life Sciences Tools & Services 0.1% | |||
Thermo Fisher Scientific, Inc. | 300 | 200,172 | |
Pharmaceuticals 4.0% | |||
Astellas Pharma, Inc. | 20,810 | 338,544 | |
AstraZeneca PLC | 2,387 | 279,551 | |
Bayer AG (Registered) | 4,474 | 239,465 | |
Bristol-Myers Squibb Co. | 4,939 | 307,947 | |
Canopy Growth Corp.* | 600 | 5,237 | |
Chugai Pharmaceutical Co., Ltd. | 5,117 | 166,260 | |
Eisai Co., Ltd. | 5,000 | 285,186 | |
Eli Lilly & Co. | 1,279 | 353,285 |
Shares | Value ($) | ||
GlaxoSmithKline PLC | 17,076 | 370,803 | |
Johnson & Johnson | 2,156 | 368,827 | |
Merck & Co., Inc. | 4,786 | 366,799 | |
Novartis AG (Registered) | 4,304 | 378,025 | |
Novo Nordisk AS "B" | 2,990 | 336,650 | |
Pfizer, Inc. | 9,167 | 541,311 | |
Roche Holding AG (Genusschein) | 945 | 392,749 | |
Sanofi | 2,520 | 253,744 | |
Takeda Pharmaceutical Co., Ltd. | 7,873 | 214,833 | |
5,199,216 | |||
Industrials 4.1% | |||
Aerospace & Defense 0.4% | |||
BAE Systems PLC | 24,883 | 184,964 | |
Boeing Co.* | 300 | 60,396 | |
Lockheed Martin Corp. | 400 | 142,164 | |
Raytheon Technologies Corp. | 2,115 | 182,017 | |
569,541 | |||
Air Freight & Logistics 0.5% | |||
Deutsche Post AG (Registered) | 3,765 | 241,556 | |
United Parcel Service, Inc. "B" | 1,602 | 343,373 | |
584,929 | |||
Building Products 0.1% | |||
Xinyi Glass Holdings Ltd. | 52,525 | 131,275 | |
Commercial Services & Supplies 0.0% | |||
Quad Graphics, Inc.* | 2 | 8 | |
Construction & Engineering 0.1% | |||
Bouygues SA | 3,936 | 141,165 | |
Electrical Equipment 0.4% | |||
ABB Ltd. (Registered) | 5,893 | 225,053 | |
Ballard Power Systems, Inc.* | 500 | 6,281 | |
Eaton Corp. PLC | 1,016 | 175,585 | |
Emerson Electric Co. | 1,626 | 151,169 | |
Plug Power, Inc.* | 300 | 8,469 | |
Sunrun, Inc.* | 100 | 3,430 | |
569,987 | |||
Industrial Conglomerates 0.4% | |||
3M Co. | 1,104 | 196,104 | |
Honeywell International, Inc. | 699 | 145,748 | |
Siemens AG (Registered) | 1,388 | 239,804 | |
581,656 | |||
Machinery 0.9% | |||
Caterpillar, Inc. | 1,300 | 268,762 | |
Cummins, Inc. | 579 | 126,303 | |
Deere & Co. | 100 | 34,289 | |
Kone Oyj "B" | 7,734 | 553,737 | |
Sandvik AB | 6,014 | 167,391 | |
1,150,482 |
10 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Shares | Value ($) | ||
Marine 0.1% | |||
SITC International Holdings Co., Ltd. | 44,000 | 159,248 | |
Professional Services 0.2% | |||
Adecco Group AG (Registered) | 2,572 | 131,075 | |
Thomson Reuters Corp. | 1,373 | 164,191 | |
295,266 | |||
Road & Rail 0.2% | |||
Union Pacific Corp. | 941 | 237,066 | |
Trading Companies & Distributors 0.8% | |||
Fastenal Co. | 4,518 | 289,423 | |
ITOCHU Corp. | 5,771 | 176,617 | |
Mitsubishi Corp. | 5,909 | 188,004 | |
Mitsui & Co., Ltd. | 7,605 | 180,098 | |
Sumitomo Corp. | 12,338 | 182,766 | |
1,016,908 | |||
Information Technology 16.5% | |||
Communications Equipment 0.5% | |||
Cisco Systems, Inc. | 7,724 | 489,470 | |
Telefonaktiebolaget LM Ericsson "B" | 12,074 | 132,452 | |
621,922 | |||
Electronic Equipment, Instruments & Components 0.4% | |||
Corning, Inc. | 5,005 | 186,336 | |
Keyence Corp. | 200 | 125,557 | |
TE Connectivity Ltd. | 1,099 | 177,313 | |
489,206 | |||
IT Services 3.0% | |||
Accenture PLC "A" | 510 | 211,420 | |
Adyen NV 144A* | 65 | 170,910 | |
Automatic Data Processing, Inc. | 841 | 207,374 | |
Block, Inc. "A"* | 1,358 | 219,331 | |
Cloudflare, Inc. "A"* | 1,200 | 157,800 | |
Fujitsu Ltd. | 839 | 143,380 | |
Infosys Ltd. (ADR) | 11,700 | 296,127 | |
International Business Machines Corp. | 2,602 | 347,783 | |
Mastercard, Inc. "A" | 676 | 242,900 | |
MongoDB, Inc.* (a) | 500 | 264,675 | |
Paychex, Inc. | 3,695 | 504,367 | |
PayPal Holdings, Inc.* | 965 | 181,980 | |
Shopify, Inc. "A"* | 272 | 374,513 | |
Snowflake, Inc. "A"* | 100 | 33,875 | |
Twilio, Inc. "A"* | 607 | 159,847 | |
Visa, Inc. "A" | 1,400 | 303,394 | |
Western Union Co. | 4,064 | 72,502 | |
3,892,178 |
Shares | Value ($) | ||
Semiconductors & Semiconductor Equipment 5.7% | |||
Advanced Micro Devices, Inc.* | 3,100 | 446,090 | |
Analog Devices, Inc. | 1,144 | 201,081 | |
Applied Materials, Inc. | 1,609 | 253,192 | |
ASE Technology Holding Co., Ltd. (ADR) | 30,800 | 240,548 | |
ASML Holding NV | 274 | 219,479 | |
Broadcom, Inc. | 949 | 631,474 | |
Enphase Energy, Inc.* | 855 | 156,414 | |
Intel Corp. | 6,271 | 322,957 | |
KLA Corp. | 479 | 206,023 | |
Lam Research Corp. | 256 | 184,102 | |
Lasertec Corp. | 600 | 182,977 | |
Marvell Technology, Inc. | 3,400 | 297,466 | |
Micron Technology, Inc. | 3,000 | 279,450 | |
Monolithic Power Systems, Inc. | 700 | 345,331 | |
NVIDIA Corp. | 2,548 | 749,392 | |
QUALCOMM, Inc. | 3,784 | 691,980 | |
Skyworks Solutions, Inc. | 712 | 110,460 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 4,700 | 565,457 | |
Texas Instruments, Inc. | 2,204 | 415,388 | |
Tokyo Electron Ltd. | 626 | 359,192 | |
United Microelectronics Corp. (ADR) (a) | 57,800 | 676,260 | |
7,534,713 | |||
Software 3.7% | |||
Adobe, Inc.* | 500 | 283,530 | |
Autodesk, Inc.* | 800 | 224,952 | |
Crowdstrike Holdings, Inc. "A"* | 961 | 196,765 | |
Intuit, Inc. | 430 | 276,585 | |
Microsoft Corp. | 7,766 | 2,611,861 | |
Oracle Corp. | 2,614 | 227,967 | |
Palantir Technologies, Inc. "A"* | 500 | 9,105 | |
salesforce.com, Inc.* | 800 | 203,304 | |
SAP SE | 1,056 | 149,167 | |
ServiceNow, Inc.* | 458 | 297,292 | |
Trade Desk, Inc. "A"* | 2,950 | 270,338 | |
Zoom Video Communications, Inc. "A"* | 733 | 134,806 | |
4,885,672 | |||
Technology Hardware, Storage & Peripherals 3.2% | |||
Apple, Inc. | 16,509 | 2,931,503 | |
Canon, Inc. | 7,300 | 177,627 | |
Hewlett Packard Enterprise Co. | 10,653 | 167,998 | |
HP, Inc. | 7,093 | 267,193 | |
NetApp, Inc. | 2,251 | 207,069 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 11 |
Shares | Value ($) | ||
Samsung Electronics Co., Ltd. (GDR) | 133 | 219,317 | |
Seagate Technology Holdings PLC | 2,212 | 249,912 | |
4,220,619 | |||
Materials 2.7% | |||
Chemicals 1.0% | |||
Air Products & Chemicals, Inc. | 488 | 148,479 | |
BASF SE | 4,629 | 326,003 | |
Dow, Inc. | 4,934 | 279,856 | |
Linde PLC | 406 | 140,651 | |
LyondellBasell Industries NV "A" | 2,200 | 202,906 | |
Nutrien Ltd. | 3,170 | 238,273 | |
1,336,168 | |||
Construction Materials 0.2% | |||
Holcim Ltd. | 3,979 | 203,361 | |
Containers & Packaging 0.2% | |||
Amcor PLC | 15,393 | 184,870 | |
International Paper Co. | 3,031 | 142,396 | |
327,266 | |||
Metals & Mining 1.1% | |||
Anglo American PLC | 25,230 | 1,031,938 | |
Antofagasta PLC | 10,011 | 181,803 | |
Freeport-McMoRan, Inc. | 300 | 12,519 | |
Newmont Corp. | 2,800 | 173,656 | |
1,399,916 | |||
Paper & Forest Products 0.2% | |||
UPM-Kymmene Oyj | 8,350 | 317,313 | |
Real Estate 1.7% | |||
Equity Real Estate Investment Trusts (REITs) 1.6% | |||
American Tower Corp. | 100 | 29,250 | |
Ascendas Real Estate Investment Trust | 39,765 | 87,109 | |
CapitaLand Integrated Commercial Trust | 97,652 | 147,863 | |
Crown Castle International Corp. | 873 | 182,230 | |
Digital Realty Trust, Inc. | 1,200 | 212,244 | |
Iron Mountain, Inc. | 4,300 | 225,019 | |
Medical Properties Trust, Inc. | 10,492 | 247,926 | |
Prologis, Inc. | 918 | 154,554 | |
Public Storage | 489 | 183,160 | |
Realty Income Corp. | 3,548 | 254,001 | |
VICI Properties, Inc. (a) | 6,562 | 197,582 | |
WP Carey, Inc. | 1,897 | 155,649 | |
2,076,587 | |||
Real Estate Management & Development 0.1% | |||
Sun Hung Kai Properties Ltd. | 12,190 | 147,821 |
Shares | Value ($) | ||
Utilities 2.5% | |||
Electric Utilities 1.5% | |||
American Electric Power Co., Inc. | 1,667 | 148,313 | |
EDP - Energias de Portugal SA | 36,418 | 200,325 | |
Enel SpA | 28,419 | 227,562 | |
Fortum Oyj | 7,199 | 220,690 | |
Iberdrola SA | 10,882 | 128,771 | |
NextEra Energy, Inc. | 1,958 | 182,799 | |
PPL Corp. | 7,335 | 220,490 | |
Red Electrica Corp. SA (a) | 8,455 | 183,326 | |
Southern Co. | 3,569 | 244,762 | |
SSE PLC | 7,511 | 167,495 | |
1,924,533 | |||
Gas Utilities 0.3% | |||
APA Group (Units) | 24,431 | 178,638 | |
Snam SpA | 34,781 | 209,631 | |
388,269 | |||
Multi-Utilities 0.7% | |||
Consolidated Edison, Inc. | 1,713 | 146,153 | |
Dominion Energy, Inc. | 2,104 | 165,290 | |
E.ON SE | 12,513 | 173,765 | |
National Grid PLC | 13,756 | 198,191 | |
Public Service Enterprise Group, Inc. | 2,469 | 164,757 | |
Sempra Energy | 959 | 126,857 | |
975,013 | |||
Total Common Stocks (Cost $59,627,173) | 80,292,282 | ||
Preferred Stocks 2.4% | |||
Consumer Discretionary 0.1% | |||
Porsche Automobil Holding SE | 1,575 | 149,248 | |
Financials 1.6% | |||
AGNC Investment Corp., 7.0% | 14,427 | 370,919 | |
Fifth Third Bancorp., Series I, 6.625% | 10,000 | 278,400 | |
KeyCorp., Series E, 6.125% | 10,000 | 302,400 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 290,900 | |
The Goldman Sachs Group, Inc., Series J, 5.5% | 17,000 | 449,650 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 384,600 | |
2,076,869 | |||
Real Estate 0.7% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 383,100 |
12 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Shares | Value ($) | ||
Prologis, Inc., Series Q, 8.54% | 164 | 10,106 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 552,080 | |
945,286 | |||
Total Preferred Stocks (Cost $3,144,188) | 3,171,403 | ||
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (b) (Cost $30,284) | 170 | 18,782 |
Principal Amount ($) (c) | Value ($) | ||
Corporate Bonds 23.4% | |||
Communication Services 3.0% | |||
America Movil SAB de CV, 4.375%, 4/22/2049 (a) | 300,000 | 362,670 | |
AT&T, Inc.: | |||
2.25%, 2/1/2032 | 95,000 | 91,800 | |
2.75%, 6/1/2031 | 60,000 | 61,215 | |
3.65%, 6/1/2051 | 100,000 | 103,564 | |
CCO Holdings LLC, 144A, 4.75%, 3/1/2030 | 100,000 | 104,000 | |
Charter Communications Operating LLC: | |||
2.25%, 1/15/2029 | 120,000 | 117,084 | |
3.5%, 3/1/2042 | 120,000 | 116,387 | |
3.7%, 4/1/2051 | 140,000 | 135,350 | |
4.4%, 12/1/2061 | 100,000 | 103,451 | |
CSC Holdings LLC: | |||
144A, 3.375%, 2/15/2031 | 200,000 | 187,250 | |
144A, 4.125%, 12/1/2030 | 200,000 | 195,250 | |
144A, 4.5%, 11/15/2031 | 200,000 | 197,500 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 42,259 | |
Grupo Televisa SAB, 5.25%, 5/24/2049 (a) | 300,000 | 376,011 | |
Match Group Holdings II LLC: | |||
144A, 3.625%, 10/1/2031 | 50,000 | 48,562 | |
144A, 4.125%, 8/1/2030 | 175,000 | 176,750 | |
Netflix, Inc.: | |||
4.375%, 11/15/2026 | 100,000 | 110,750 | |
5.875%, 11/15/2028 | 140,000 | 168,350 | |
Sirius XM Radio, Inc., 144A, 3.125%, 9/1/2026 | 100,000 | 100,029 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 (a) | 300,000 | 293,924 | |
T-Mobile U.S.A., Inc.: | |||
2.625%, 4/15/2026 | 90,000 | 90,450 | |
3.3%, 2/15/2051 | 125,000 | 122,081 | |
3.375%, 4/15/2029 | 115,000 | 117,178 | |
3.6%, 11/15/2060 | 25,000 | 24,763 |
Principal Amount ($) (c) | Value ($) | ||
4.375%, 4/15/2040 | 60,000 | 68,591 | |
Verizon Communications, Inc.: | |||
2.55%, 3/21/2031 (a) | 70,000 | 70,624 | |
2.65%, 11/20/2040 | 40,000 | 38,009 | |
3.7%, 3/22/2061 | 100,000 | 108,422 | |
ViacomCBS, Inc., 4.2%, 5/19/2032 | 163,000 | 183,858 | |
Vodafone Group PLC, 5.125%, 6/4/2081 | 80,000 | 81,800 | |
3,997,932 | |||
Consumer Discretionary 1.5% | |||
1011778 BC Unlimited Liability Co., 144A, 4.375%, 1/15/2028 | 225,000 | 229,500 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 80,000 | 80,000 | |
144A, 7.625%, 3/1/2026 | 97,000 | 101,680 | |
Dollar General Corp., 4.125%, 4/3/2050 | 20,000 | 23,085 | |
Ford Motor Co., 3.25%, 2/12/2032 | 210,000 | 215,040 | |
Ford Motor Credit Co. LLC: | |||
2.7%, 8/10/2026 | 230,000 | 232,012 | |
2.9%, 2/16/2028 | 200,000 | 200,500 | |
3.625%, 6/17/2031 | 240,000 | 252,644 | |
General Motors Co., 5.4%, 4/1/2048 | 60,000 | 76,546 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 77,873 | |
2.7%, 6/10/2031 | 90,000 | 89,679 | |
Hilton Domestic Operating Co., Inc.: | |||
144A, 3.625%, 2/15/2032 | 225,000 | 223,817 | |
144A, 4.0%, 5/1/2031 | 125,000 | 127,818 | |
Royal Caribbean Cruises Ltd.: | |||
144A, 4.25%, 7/1/2026 | 40,000 | 38,744 | |
144A, 5.5%, 4/1/2028 | 50,000 | 50,578 | |
2,019,516 | |||
Consumer Staples 0.6% | |||
Altria Group, Inc.: | |||
3.7%, 2/4/2051 | 50,000 | 46,606 | |
3.875%, 9/16/2046 | 20,000 | 19,345 | |
Anheuser-Busch InBev Worldwide, Inc.: | |||
4.439%, 10/6/2048 | 50,000 | 59,761 | |
5.55%, 1/23/2049 | 121,000 | 167,399 | |
BAT Capital Corp.: | |||
2.726%, 3/25/2031 (a) | 60,000 | 58,225 | |
3.734%, 9/25/2040 | 61,000 | 58,593 | |
JBS Finance Luxembourg Sarl, 144A, 2.5%, 1/15/2027 | 260,000 | 257,078 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (c) | Value ($) | ||
Keurig Dr Pepper, Inc., 3.8%, 5/1/2050 | 15,000 | 16,609 | |
Sysco Corp., 3.15%, 12/14/2051 | 30,000 | 29,528 | |
713,144 | |||
Energy 2.4% | |||
Cenovus Energy, Inc., 3.75%, 2/15/2052 (a) | 60,000 | 60,146 | |
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 221,660 | |
Cheniere Energy Partners LP: | |||
144A, 3.25%, 1/31/2032 | 40,000 | 40,400 | |
4.5%, 10/1/2029 | 175,000 | 185,500 | |
DCP Midstream Operating LP, 3.25%, 2/15/2032 | 70,000 | 70,525 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 334,878 | |
Energy Transfer, L.P., 5.5%, 6/1/2027 | 100,000 | 114,065 | |
Enterprise Products Operating LLC: | |||
3.3%, 2/15/2053 | 90,000 | 89,513 | |
4.2%, 1/31/2050 | 172,000 | 192,811 | |
Hess Corp., 5.8%, 4/1/2047 | 70,000 | 89,428 | |
MPLX LP, 2.65%, 8/15/2030 | 35,000 | 34,840 | |
Petroleos Mexicanos, 144A, 6.7%, 2/16/2032 | 622,000 | 628,220 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 52,212 | |
Saudi Arabian Oil Co.: | |||
144A, 2.25%, 11/24/2030 | 625,000 | 607,781 | |
REG S, 3.5%, 4/16/2029 | 300,000 | 320,625 | |
Southwestern Energy Co., 4.75%, 2/1/2032 | 50,000 | 52,655 | |
Williams Companies, Inc., 3.5%, 10/15/2051 | 50,000 | 50,512 | |
3,145,771 | |||
Financials 8.2% | |||
AerCap Ireland Capital DAC: | |||
3.0%, 10/29/2028 | 150,000 | 152,120 | |
3.15%, 2/15/2024 | 150,000 | 154,710 | |
3.4%, 10/29/2033 | 150,000 | 152,717 | |
4.625%, 10/15/2027 | 150,000 | 165,931 | |
Air Lease Corp.: | |||
3.0%, 2/1/2030 | 142,000 | 141,730 | |
4.125%, Perpetual (d) | 400,000 | 397,000 | |
Aircastle Ltd., 144A, 5.25%, Perpetual (d) | 130,000 | 132,600 | |
Ally Financial, Inc., 4.7%, Perpetual (d) | 500,000 | 518,750 | |
American Express Co., 3.55%, Perpetual (d) | 475,000 | 475,831 | |
Avolon Holdings Funding Ltd.: | |||
144A, 2.528%, 11/18/2027 | 10,000 | 9,714 |
Principal Amount ($) (c) | Value ($) | ||
144A, 4.25%, 4/15/2026 | 40,000 | 42,388 | |
Banco Nacional de Panama, 144A, 2.5%, 8/11/2030 | 200,000 | 187,502 | |
Bank of America Corp.: | |||
2.676%, 6/19/2041 | 60,000 | 57,754 | |
4.3%, Perpetual (d) | 102,000 | 103,148 | |
Bank of New York Mellon Corp., 3.75%, Perpetual (d) | 525,000 | 526,874 | |
Bank of Nova Scotia, 3.625%, 10/27/2081 | 500,000 | 483,020 | |
Blackstone Secured Lending Fund: | |||
144A, 2.85%, 9/30/2028 | 110,000 | 107,237 | |
3.625%, 1/15/2026 | 155,000 | 161,717 | |
BNP Paribas SA, 144A, 4.625%, Perpetual (d) | 200,000 | 200,600 | |
Capital One Financial Corp., 3.95%, Perpetual (d) | 350,000 | 351,750 | |
Citigroup, Inc.: | |||
2.561%, 5/1/2032 | 40,000 | 40,207 | |
4.0%, Perpetual (d) | 700,000 | 705,250 | |
HSBC Holdings PLC: | |||
4.0%, Perpetual (d) | 240,000 | 238,500 | |
4.6%, Perpetual (d) | 250,000 | 249,795 | |
Intesa Sanpaolo SpA: | |||
144A, 4.198%, 6/1/2032 | 325,000 | 327,819 | |
144A, 4.95%, 6/1/2042 | 250,000 | 256,850 | |
Jefferies Group LLC, 2.625%, 10/15/2031 | 50,000 | 49,178 | |
JPMorgan Chase & Co.: | |||
3.328%, 4/22/2052 | 27,000 | 28,891 | |
3.65%, Perpetual (d) | 320,000 | 319,200 | |
M&T Bank Corp, 3.5%, Perpetual (d) | 170,000 | 166,566 | |
Morgan Stanley: | |||
2.484%, 9/16/2036 | 141,000 | 135,776 | |
3.217%, 4/22/2042 | 30,000 | 31,430 | |
Natwest Group PLC, 4.6%, Perpetual (d) | 230,000 | 225,400 | |
OneMain Finance Corp., 3.5%, 1/15/2027 | 250,000 | 247,188 | |
PNC Financial Services Group, Inc., 3.4%, Perpetual (d) | 320,000 | 314,957 | |
REC Ltd., 144A, 4.75%, 5/19/2023 | 200,000 | 207,738 | |
Societe Generale SA, 144A, 5.375%, Perpetual (d) | 250,000 | 262,600 | |
Standard Chartered PLC, 144A, 4.75%, Perpetual (d) | 200,000 | 198,500 | |
The Charles Schwab Corp.: | |||
Series H, 4.0%, Perpetual (d) | 125,000 | 126,250 | |
Series I, 4.0%, Perpetual (a) (d) | 265,000 | 270,300 | |
The Goldman Sachs Group, Inc.: | |||
2.908%, 7/21/2042 | 80,000 | 79,536 |
14 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
3.8%, Perpetual (d) | 325,000 | 323,375 | |
Truist Financial Corp., 4.8%, Perpetual (d) | 300,000 | 312,750 | |
U.S. Bancorp., 3.7%, Perpetual (d) | 402,000 | 401,920 | |
UBS Group AG, 144A, 4.375%, Perpetual (d) | 200,000 | 197,560 | |
Wells Fargo & Co., 3.9%, Perpetual (d) | 265,000 | 272,288 | |
Westpac Banking Corp., 5.0%, Perpetual (d) | 200,000 | 208,214 | |
10,721,131 | |||
Health Care 1.7% | |||
Bausch Health Companies, Inc., 144A, 4.875%, 6/1/2028 | 90,000 | 91,800 | |
Centene Corp.: | |||
2.45%, 7/15/2028 | 60,000 | 59,100 | |
2.625%, 8/1/2031 | 130,000 | 127,400 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 300,000 | 303,000 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 228,802 | |
DaVita, Inc., 144A, 4.625%, 6/1/2030 | 140,000 | 143,325 | |
HCA, Inc., 5.25%, 6/15/2026 | 300,000 | 337,372 | |
Mozart Debt Merger Sub, Inc., 144A, 3.875%, 4/1/2029 | 110,000 | 109,612 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | 925,000 | 869,500 | |
2,269,911 | |||
Industrials 1.2% | |||
Adani Ports & Special Economic Zone Ltd., 144A, 4.2%, 8/4/2027 | 200,000 | 207,523 | |
American Airlines, Inc., 144A, 5.5%, 4/20/2026 | 105,000 | 109,187 | |
Boeing Co.: | |||
2.196%, 2/4/2026 | 237,000 | 236,943 | |
5.04%, 5/1/2027 | 60,000 | 67,560 | |
Delta Air Lines, Inc.: | |||
3.75%, 10/28/2029 (a) | 135,000 | 138,354 | |
144A, 4.5%, 10/20/2025 | 30,000 | 31,530 | |
GFL Environmental, Inc., 144A, 4.0%, 8/1/2028 (a) | 150,000 | 147,000 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 200,000 | 213,500 | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | 405,000 | 430,979 | |
1,582,576 | |||
Information Technology 1.1% | |||
Block, Inc.: | |||
144A, 2.75%, 6/1/2026 | 30,000 | 30,036 |
Principal Amount ($) (c) | Value ($) | ||
144A, 3.5%, 6/1/2031 | 70,000 | 71,750 | |
Broadcom, Inc.: | |||
144A, 2.6%, 2/15/2033 | 70,000 | 68,243 | |
144A, 3.187%, 11/15/2036 | 70,000 | 69,878 | |
Dell International LLC: | |||
144A, 3.45%, 12/15/2051 | 150,000 | 144,016 | |
8.35%, 7/15/2046 | 15,000 | 24,938 | |
Micron Technology, Inc., 3.477%, 11/1/2051 | 40,000 | 40,949 | |
MSCI, Inc.: | |||
144A, 3.25%, 8/15/2033 | 40,000 | 40,450 | |
144A, 3.625%, 9/1/2030 | 90,000 | 92,025 | |
NXP BV: | |||
144A, 3.125%, 2/15/2042 | 60,000 | 60,371 | |
144A, 3.25%, 11/30/2051 | 30,000 | 29,980 | |
Open Text Corp., 144A, 3.875%, 2/15/2028 | 250,000 | 254,812 | |
Oracle Corp.: | |||
3.6%, 4/1/2050 | 25,000 | 24,478 | |
3.65%, 3/25/2041 | 150,000 | 151,670 | |
SK Hynix, Inc., 144A, 1.5%, 1/19/2026 | 200,000 | 195,618 | |
Twilio, Inc., 3.625%, 3/15/2029 | 160,000 | 161,413 | |
1,460,627 | |||
Materials 1.0% | |||
AngloGold Ashanti Holdings PLC, 3.75%, 10/1/2030 | 200,000 | 201,396 | |
Berry Global, Inc., 1.65%, 1/15/2027 | 300,000 | 293,069 | |
Glencore Funding LLC, 144A, 3.875%, 4/27/2051 (a) | 70,000 | 73,123 | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 279,158 | |
Newmont Corp., 2.6%, 7/15/2032 | 130,000 | 130,278 | |
Novelis Corp., 144A, 4.75%, 1/30/2030 | 250,000 | 262,813 | |
Suzano Austria GmbH, 2.5%, 9/15/2028 | 80,000 | 77,200 | |
1,317,037 | |||
Real Estate 0.6% | |||
American Tower Corp., (REIT), 2.95%, 1/15/2051 | 35,000 | 33,153 | |
Boston Properties LP, (REIT), 2.55%, 4/1/2032 | 75,000 | 74,439 | |
Crown Castle International Corp., (REIT), 2.9%, 4/1/2041 | 120,000 | 116,703 | |
Equinix, Inc., (REIT), 2.15%, 7/15/2030 | 34,000 | 33,051 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 15 |
Principal Amount ($) (c) | Value ($) | ||
MPT Operating Partnership LP, (REIT), 3.5%, 3/15/2031 | 195,000 | 197,194 | |
SBA Communications Corp., 144A, (REIT), 3.125%, 2/1/2029 | 400,000 | 384,000 | |
838,540 | |||
Utilities 2.1% | |||
CMS Energy Corp., 3.75%, 12/1/2050 | 400,000 | 393,000 | |
Duke Energy Corp., 3.25%, 1/15/2082 | 250,000 | 243,675 | |
Edison International, 5.0%, Perpetual (d) | 340,000 | 347,412 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 215,500 | |
NextEra Energy Operating Partners LP: | |||
144A, 3.875%, 10/15/2026 | 190,000 | 201,210 | |
144A, 4.25%, 7/15/2024 | 275,000 | 285,656 | |
Pacific Gas and Electric Co.: | |||
2.5%, 2/1/2031 | 20,000 | 19,051 | |
3.25%, 6/1/2031 | 80,000 | 80,264 | |
3.3%, 8/1/2040 | 70,000 | 64,891 | |
3.5%, 8/1/2050 | 25,000 | 23,159 | |
Perusahaan Listrik Negara PT, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 314,689 |
Sempra Energy, 4.125%, 4/1/2052 | 310,000 | 313,933 | |
Southern Co., 3.75%, 9/15/2051 | 215,000 | 215,000 | |
2,717,440 | |||
Total Corporate Bonds (Cost $30,588,348) | 30,783,625 | ||
Asset-Backed 2.8% | |||
Automobile Receivables 0.4% | |||
Avis Budget Rental Car Funding AESOP LLC, “C”, Series 2019-1A, 144A, 4.53%, 3/20/2023 | 50,000 | 50,235 | |
JPMorgan Chase Bank NA, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 405,451 | 403,892 | |
454,127 | |||
Credit Card Receivables 0.6% | |||
Fair Square Issuance Trust, “A”, Series 2020-AA, 144A, 2.9%, 9/20/2024 | 800,000 | 801,062 | |
Miscellaneous 1.8% | |||
CF Hippolyta LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 532,407 | 524,470 | |
DB Master Finance LLC, “A23”, Series 2021-1A, 144A, 2.791%, 11/20/2051 | 1,125,000 | 1,122,156 |
Principal Amount ($) (c) | Value ($) | ||
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 327,250 | 342,455 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 419,890 | 418,869 | |
2,407,950 | |||
Total Asset-Backed (Cost $3,659,962) | 3,663,139 | ||
Mortgage-Backed Securities Pass-Throughs 0.0% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 1,721 | 1,992 | |
Federal National Mortgage Association: | |||
4.5%, 9/1/2035 | 2,976 | 3,288 | |
6.0%, 1/1/2024 | 2,118 | 2,183 | |
Total Mortgage-Backed Securities Pass-Throughs (Cost $6,723) | 7,463 | ||
Commercial Mortgage-Backed Securities 1.6% | |||
Citigroup Commercial Mortgage Trust, “D”, Series 2019-PRM, 144A, 4.35%, 5/10/2036 | 500,000 | 516,331 | |
Credit Suisse Commercial Mortgage Trust, “B”, Series 2020-TMIC, 144A, 1-month USD-LIBOR + 5.0%, 5.25% (e), 12/15/2035 | 700,000 | 713,165 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 3.8% (e), 1/25/2051 | 194,000 | 199,054 | |
GMAC Commercial Mortgage Securities, Inc., “G”, Series 2004-C1, 144A, 5.455%, 3/10/2038 | 394,448 | 241,982 |
16 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
MTRO Commercial Mortgage Trust, “C”, Series 2019-TECH, 144A, 1-month USD-LIBOR + 1.3%, 1.41% (e), 12/15/2033 | 250,000 | 244,463 | |
Multifamily Connecticut Avenue Securities Trust, “M7”, Series 2019-01, 144A, 1-month USD-LIBOR + 1.7%, 1.802% (e), 10/15/2049 | 185,374 | 184,653 | |
Total Commercial Mortgage-Backed Securities (Cost $2,241,287) | 2,099,648 | ||
Collateralized Mortgage Obligations 1.7% | |||
Connecticut Avenue Securities Trust: | |||
“1M2”, Series 2019-R03, 144A, 1-month USD-LIBOR + 2.15%, 2.253% (e), 9/25/2031 | 28,143 | 28,251 | |
“1M2”, Series 2019-R02, 144A, 1-month USD-LIBOR + 2.3%, 2.403% (e), 8/25/2031 | 40,861 | 41,030 | |
Fannie Mae Connecticut Avenue Securities: | |||
“1M2”, Series 2018-C06, 1-month USD-LIBOR + 2.0%, 2.103% (e), 3/25/2031 | 102,459 | 103,247 | |
“1M2”, Series 2018-C01, 1-month USD-LIBOR + 2.25%, 2.353% (e), 7/25/2030 | 121,134 | 122,502 | |
Federal National Mortgage Association, “I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 64,162 | 12,262 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M2”, Series 2020-DNA2, 144A, 1-month USD-LIBOR + 1.85%, 1.953% (e), 2/25/2050 | 698,641 | 701,052 | |
“M2”, Series 2019-DNA3, 144A, 1-month USD-LIBOR + 2.05%, 2.153% (e), 7/25/2049 | 260,254 | 262,023 | |
“M2”, Series 2019-DNA2, 144A, 1-month USD-LIBOR + 2.45%, 2.553% (e), 3/25/2049 | 367,855 | 371,601 | |
“M2”, Series 2019-DNA1, 144A, 1-month USD-LIBOR + 2.65%, 2.753% (e), 1/25/2049 | 53,202 | 53,836 |
Principal Amount ($) (c) | Value ($) | ||
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.249% (e), 10/25/2046 | 188,054 | 186,966 | |
STACR Trust, “M2”, Series 2018-DNA3, 144A, 1-month USD-LIBOR + 2.1%, 2.203% (e), 9/25/2048 | 324,324 | 327,905 | |
Total Collateralized Mortgage Obligations (Cost $2,189,382) | 2,210,675 | ||
Government & Agency Obligations 1.0% | |||
Sovereign Bonds | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 | 200,000 | 194,000 | |
Indonesia Government International Bond: | |||
2.85%, 2/14/2030 | 625,000 | 651,140 | |
3.85%, 10/15/2030 (a) | 300,000 | 337,231 | |
Perusahaan Penerbit SBSN Indonesia III, 144A, 2.8%, 6/23/2030 (a) | 200,000 | 206,170 | |
Total Government & Agency Obligations (Cost $1,422,570) | 1,388,541 | ||
Short-Term U.S. Treasury Obligation 1.3% | |||
U.S. Treasury Bills, 0.058% (f), 5/19/2022 (g) (h) (Cost $1,699,658) | 1,700,000 | 1,699,372 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.8% | |||
SPDR Bloomberg Convertible Securities ETF (Cost $2,340,555) | 43,880 | 3,640,285 | |
Securities Lending Collateral 3.1% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (i) (j) (Cost $4,062,127) | 4,062,127 | 4,062,127 | |
Cash Equivalents 1.5% | |||
DWS Central Cash Management Government Fund, 0.05% (i) (Cost $1,914,561) | 1,914,561 | 1,914,561 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 17 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $112,926,818) | 102.7 | 134,951,903 | |
Other Assets and Liabilities, Net | (2.7) | (3,559,876) | |
Net Assets | 100.0 | 131,392,027 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 3.1% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (i) (j) | ||||||||
693,562 | 3,368,565 (k) | — | — | — | 6,563 | — | 4,062,127 | 4,062,127 |
Cash Equivalents 1.5% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (i) | ||||||||
2,394,743 | 43,735,759 | 44,215,941 | — | — | 949 | — | 1,914,561 | 1,914,561 |
3,088,305 | 47,104,324 | 44,215,941 | — | — | 7,512 | — | 5,976,688 | 5,976,688 |
* | 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 December 31, 2021 amounted to $3,951,544, which is 3.0% 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) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 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. |
(f) | Annualized yield at time of purchase; not a coupon rate. |
(g) | At December 31, 2021, this security has been pledged, in whole or in part, to cover initial margin requirements for open centrally cleared swap contracts. |
(h) | At December 31, 2021, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
(i) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(j) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(k) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 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. |
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) |
SOC: State Owned Company |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
18 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation ($) |
MSCI E-Mini Emerging Market Index | USD | 3/18/2022 | 79 | 4,800,279 | 4,843,885 | 43,606 |
Ultra Long U.S. Treasury Bond | USD | 3/22/2022 | 24 | 4,655,854 | 4,731,000 | 75,146 |
Total unrealized appreciation | 118,752 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
5 Year U.S. Treasury Note | USD | 3/31/2022 | 29 | 3,519,303 | 3,508,320 | 10,983 |
Euro Stoxx 50 Index | EUR | 3/18/2022 | 24 | 1,137,179 | 1,171,516 | (34,337) |
Euro-Schatz | EUR | 3/8/2022 | 45 | 5,747,699 | 5,739,576 | 8,123 |
S&P 500 E-Mini Index | USD | 3/18/2022 | 18 | 4,193,962 | 4,282,650 | (88,688) |
TOPIX Index | JPY | 3/10/2022 | 4 | 680,178 | 692,689 | (12,511) |
Ultra 10 Year U.S. Treasury Note | USD | 3/22/2022 | 17 | 2,501,199 | 2,489,437 | 11,762 |
Total net unrealized depreciation | (104,668) |
Centrally Cleared Swaps | |||||||
Cash Flows Paid by the Fund/ Frequency | Cash Flows Received by the Fund/ Frequency | Effective/ Expiration Date | Notional Amount ($) | Currency | Value ($) | Upfront Payments Paid/ (Received) ($) | Unrealized Appreciation/ (Depreciation) ($) |
Fixed — 0.25% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2023 | 3,200,000 | USD | 12,049 | 183 | 11,866 |
Fixed — 0.45% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2024 | 2,100,000 | USD | 22,242 | (37) | 22,279 |
Fixed — 1.3% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2028 | 400,000 | USD | 1,291 | 84 | 1,207 |
Fixed — 1.63% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/3/16/2031 | 300,000 | USD | (4,010) | 329 | (4,339) |
Total net unrealized appreciation | 31,013 |
β | 3-month LIBOR rate as of December 31, 2021 is 0.209%. |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 170,000 | USD | 196,775 | 2/4/2022 | 3,110 | State Street Bank and Trust |
EUR | Euro |
JPY | Japanese Yen |
USD | United States Dollar |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 19 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Communication Services | $ 4,686,171 | $ 2,721,735 | $ — | $ 7,407,906 |
Consumer Discretionary | 5,100,030 | 1,878,389 | — | 6,978,419 |
Consumer Staples | 3,051,303 | 1,897,361 | — | 4,948,664 |
Energy | 2,326,562 | 964,073 | — | 3,290,635 |
Financials | 6,299,288 | 6,831,783 | — | 13,131,071 |
Health Care | 4,795,489 | 3,562,010 | — | 8,357,499 |
Industrials | 2,534,778 | 2,902,753 | — | 5,437,531 |
Information Technology | 19,983,569 | 1,660,741 | — | 21,644,310 |
Materials | 1,523,606 | 2,060,418 | — | 3,584,024 |
Real Estate | 1,841,615 | 382,793 | — | 2,224,408 |
Utilities | 1,399,421 | 1,888,394 | — | 3,287,815 |
Preferred Stocks (a) | 3,022,155 | 149,248 | — | 3,171,403 |
Warrants | — | — | 18,782 | 18,782 |
Corporate Bonds (a) | — | 30,783,625 | — | 30,783,625 |
Asset-Backed (a) | — | 3,663,139 | — | 3,663,139 |
Mortgage-Backed Securities Pass-Throughs | — | 7,463 | — | 7,463 |
Commercial Mortgage-Backed Securities | — | 2,099,648 | — | 2,099,648 |
Collateralized Mortgage Obligations | — | 2,210,675 | — | 2,210,675 |
Government & Agency Obligations | — | 1,388,541 | — | 1,388,541 |
Short-Term U.S. Treasury Obligation | — | 1,699,372 | — | 1,699,372 |
Exchange-Traded Funds | 3,640,285 | — | — | 3,640,285 |
Short-Term Investments (a) | 5,976,688 | — | — | 5,976,688 |
Derivatives (b) | ||||
Futures Contracts | 149,620 | — | — | 149,620 |
Interest Rate Swap Contracts | — | 35,352 | — | 35,352 |
Forward Foreign Currency Contracts | — | 3,110 | — | 3,110 |
Total | $66,330,580 | $68,790,623 | $18,782 | $135,139,985 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $ (135,536) | $ — | $ — | $ (135,536) |
Interest Rate Swap Contracts | — | (4,339) | — | (4,339) |
Total | $ (135,536) | $ (4,339) | $ — | $ (139,875) |
(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. |
20 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Assets | |
Investments in non-affiliated securities, at value (cost $106,950,130) — including $3,951,544 of securities loaned | $ 128,975,215 |
Investment in DWS Government & Agency Securities Portfolio (cost $4,062,127)* | 4,062,127 |
Investment in DWS Central Cash Management Government Fund (cost $1,914,561) | 1,914,561 |
Cash | 23,884 |
Foreign currency, at value (cost $122,405) | 124,348 |
Receivable for Fund shares sold | 126,608 |
Dividends receivable | 125,704 |
Interest receivable | 269,089 |
Receivable for variation margin on futures contracts | 14,806 |
Unrealized appreciation on forward foreign currency contracts | 3,110 |
Foreign taxes recoverable | 81,484 |
Other assets | 2,668 |
Total assets | 135,723,604 |
Liabilities | |
Payable upon return of securities loaned | 4,062,127 |
Payable for Fund shares redeemed | 85,454 |
Payable for variation margin on centrally cleared swaps | 1,198 |
Accrued management fee | 40,887 |
Accrued Trustees' fees | 1,218 |
Other accrued expenses and payables | 140,693 |
Total liabilities | 4,331,577 |
Net assets, at value | $ 131,392,027 |
Net Assets Consist of | |
Distributable earnings (loss) | 34,517,777 |
Paid-in capital | 96,874,250 |
Net assets, at value | $ 131,392,027 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($131,378,561 ÷ 4,905,426 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 26.78 |
Class B | |
Net Asset Value, offering and redemption price per share ($13,466 ÷ 504 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $ 26.70 |
* | 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. |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 21 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $123,326) | $ 2,510,635 |
Interest | 1,347,557 |
Income distributions — DWS Central Cash Management Government Fund | 949 |
Securities lending income, net of borrower rebates | 6,563 |
Total income | 3,865,704 |
Expenses: | |
Management fee | 481,375 |
Administration fee | 126,198 |
Services to shareholders | 840 |
Distribution service fee (Class B) | 32 |
Custodian fee | 18,377 |
Audit fee | 75,140 |
Legal fees | 13,752 |
Tax fees | 9,692 |
Reports to shareholders | 42,308 |
Trustees' fees and expenses | 4,836 |
Other | 19,758 |
Total expenses before expense reductions | 792,308 |
Expense reductions | (12) |
Total expenses after expense reductions | 792,296 |
Net investment income | 3,073,408 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 10,546,423 |
Swap contracts | (152,156) |
Futures | (572,514) |
Forward foreign currency contracts | (15,476) |
Foreign currency | 4,202 |
Payments by affiliates (see Note G) | 79 |
9,810,558 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 156,503 |
Swap contracts | 191,137 |
Futures | 96,242 |
Forward foreign currency contracts | 41,747 |
Foreign currency | 69,210 |
554,839 | |
Net gain (loss) | 10,365,397 |
Net increase (decrease) in net assets resulting from operations | $13,438,805 |
22 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 3,073,408 | $ 2,995,370 |
Net realized gain (loss) | 9,810,558 | 1,789,241 |
Change in net unrealized appreciation (depreciation) | 554,839 | 4,431,654 |
Net increase (decrease) in net assets resulting from operations | 13,438,805 | 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 | 7,428,971 | 2,458,485 |
Reinvestment of distributions | 4,841,632 | 6,579,884 |
Payments for shares redeemed | (16,230,213) | (14,768,561) |
Net increase (decrease) in net assets from Class A share transactions | (3,959,610) | (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 | 4,637,563 | (3,093,811) |
Net assets at beginning of period | 126,754,464 | 129,848,275 |
Net assets at end of period | $131,392,027 | $126,754,464 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,056,269 | 5,271,275 |
Shares sold | 282,829 | 106,312 |
Shares issued to shareholders in reinvestment of distributions | 189,422 | 324,451 |
Shares redeemed | (623,094) | (645,769) |
Net increase (decrease) in Class A shares | (150,843) | (215,006) |
Shares outstanding at end of period | 4,905,426 | 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 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 23 |
DWS Global Income Builder VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $25.07 | $24.63 | $21.33 | $26.56 | $23.50 |
Income (loss) from investment operations: | |||||
Net investment incomea | .62 | .57 | .69 | .80 | .71 |
Net realized and unrealized gain (loss) | 2.08 | 1.16 | 3.54 | (2.67) | 3.10 |
Total from investment operations | 2.70 | 1.73 | 4.23 | (1.87) | 3.81 |
Less distributions from: | |||||
Net investment income | (.62) | (.74) | (.90) | (.98) | (.75) |
Net realized gains | (.37) | (.55) | (.03) | (2.38) | — |
Total distributions | (.99) | (1.29) | (.93) | (3.36) | (.75) |
Net asset value, end of period | $26.78 | $25.07 | $24.63 | $21.33 | $26.56 |
Total Return (%) | 10.95 | 8.28 | 20.16 | (7.66) b | 16.54 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 131 | 127 | 130 | 120 | 147 |
Ratio of expenses before expense reductions (%)c | .61 | .64 | .68 | .69 | .63 |
Ratio of expenses after expense reductions (%)c | .61 | .64 | .68 | .68 | .63 |
Ratio of net investment income (%) | 2.36 | 2.51 | 2.96 | 3.34 | 2.85 |
Portfolio turnover rate (%) | 104 | 137 | 182 | 70 | 122 |
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. |
24 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
DWS Global Income Builder VIP — Class B | ||||
Years Ended December 31, | Period Ended | |||
2021 | 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 | .52 | .50 | .65 | .50 |
Net realized and unrealized gain (loss) | 2.08 | 1.15 | 3.55 | (1.85) |
Total from investment operations | 2.60 | 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 | $26.70 | $25.01 | $24.61 | $21.30 |
Total Return (%)c | 10.56 | 7.90 | 20.01 | (5.96) * |
Ratios to Average Net Assets and Supplemental Data | ||||
Net assets, end of period ($ thousands) | 13 | 12 | 11 | 9 |
Ratio of expenses before expense reductions (%)d | 1.05 | 1.10 | 1.10 | 1.15 ** |
Ratio of expenses after expense reductions (%)d | .96 | .93 | .86 | .86 ** |
Ratio of net investment income (%) | 1.99 | 2.20 | 2.77 | 3.30 ** |
Portfolio turnover rate (%) | 104 | 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 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 25 |
A. | Organization and Significant Accounting Policies |
26 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 27 |
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |
Securities Lending Transactions | |||||
Common Stocks | $ 1,623,905 | $ — | $ — | $ — | $ 1,623,905 |
Corporate Bonds | 1,881,827 | — | — | — | 1,881,827 |
Government & Agency Obligations | 556,395 | — | — | — | 556,395 |
Total Borrowings | $ 4,062,127 | $ — | $ — | $ — | $ 4,062,127 |
Gross amount of recognized liabilities for securities lending transactions: | $ 4,062,127 |
28 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Undistributed ordinary income* | $ 6,484,939 |
Undistributed long-term capital gains | $ 6,388,303 |
Net unrealized appreciation (depreciation) on investments | $ 21,572,287 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 3,017,227 | $ 4,875,936 |
Distributions from long-term capital gains | $ 1,824,848 | $ 1,704,523 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
B. | Derivative Instruments |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 29 |
30 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Assets Derivative | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 43,606 | $ 43,606 |
Interest Rate Contracts (a) | — | 35,352 | 106,014 | 141,366 |
Foreign Exchange Contracts (b) | 3,110 | — | — | 3,110 |
$ 3,110 | $ 35,352 | $ 149,620 | $ 188,082 | |
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts: |
(a) | Includes cumulative appreciation 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 appreciation on forward foreign currency contracts |
Liability Derivative | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ (135,536) | $ (135,536) |
Interest Rate Contracts (a) | (4,339) | — | (4,339) |
$ (4,339) | $ (135,536) | $ (139,875) | |
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. |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 31 |
Realized Gain (Loss) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ (622,052) | $ (622,052) |
Interest Rate Contracts (a) | — | (151,833) | 49,538 | (102,295) |
Credit Contracts (a) | — | (323) | — | (323) |
Foreign Exchange Contracts (a) | (15,476) | — | — | (15,476) |
$(15,476) | $(152,156) | $ (572,514) | $ (740,146) | |
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) | $ — | $ — | $ (43,857) | $ (43,857) |
Interest Rate Contracts (a) | — | 191,137 | 140,099 | 331,236 |
Foreign Exchange Contracts (a) | 41,747 | — | — | 41,747 |
$ 41,747 | $ 191,137 | $ 96,242 | $ 329,126 | |
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 |
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 | $ 3,110 | $ — | $ — | $ 3,110 |
C. | Purchases and Sales of Securities |
D. | Related Parties |
32 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
First $250 million | .370% |
Next $750 million | .345% |
Over $1 billion | .310% |
Class A | .71% |
Class B | .96% |
Distribution Fee | Total Aggregated | Unpaid at December 31, 2021 |
Class B | $ 32 | $ 3 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 573 | $ 97 |
Class B | 26 | 4 |
$ 599 | $ 101 |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 33 |
E. | Ownership of the Fund |
F. | Line of Credit |
G. | Payments by Affiliates |
H. | Other — COVID-19 Pandemic |
34 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 35 |
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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,026.80 | $ 1,024.60 |
Expenses Paid per $1,000* | $ 3.01 | $ 4.90 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,022.23 | $ 1,020.37 |
Expenses Paid per $1,000* | $ 3.01 | $ 4.89 |
* | 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 184 (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 | .59% | .96% |
36 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 37 |
— | 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. |
38 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 39 |
40 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 41 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
42 | | Deutsche DWS Variable Series II —DWS Global Income Builder VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS Global Income Builder VIP | | 43 |
3 | Management Summary |
5 | Portfolio Summary |
6 | 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 |
15 | Report of Independent Registered Public Accounting Firm |
16 | Information About Your Fund's Expenses |
17 | Tax Information |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
21 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Management Summary | December 31, 2021 (Unaudited) |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 3 |
7-Day Current Yield | |
DWS Government Money Market VIP — Class A | 0.01%* |
* | The 7-Day Current Yield would have been -.32% had certain expenses not been reduced. |
4 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio ) | 12/31/21 | 12/31/20 |
Government & Agency Obligations | 83% | 77% |
Repurchase Agreements | 17% | 23% |
100% | 100% |
Weighted Average Maturity | 12/31/21 | 12/31/20 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 33 days | 26 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 35 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 | | 5 |
Investment Portfolio | as of December 31, 2021 |
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 82.6% | |||
U.S. Government Sponsored Agencies 20.0% | |||
Federal Farm Credit Bank, SOFR + 0.07%, 0.12% (a), 8/11/2022 | 500,000 | 500,015 | |
Federal Home Loan Bank: | |||
0.044% (b), 1/5/2022 | 5,000,000 | 4,999,976 | |
0.046% (b), 1/14/2022 | 10,000,000 | 9,999,838 | |
0.051% (b), 2/18/2022 | 1,000,000 | 999,933 | |
SOFR + 0.005%, 0.055% (a), 3/11/2022 | 2,500,000 | 2,500,000 | |
SOFR + 0.005%, 0.055% (a), 3/14/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 0.06% (a), 8/1/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 0.06% (a), 8/15/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.01%, 0.06% (a), 9/8/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 0.06% (a), 9/30/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.01%, 0.06% (a), 10/7/2022 | 2,000,000 | 2,000,000 | |
SOFR + 0.01%, 0.06% (a), 11/4/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.03%, 0.08% (a), 1/13/2023 | 2,000,000 | 2,000,000 | |
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 + 0.095%, 0.145% (a), 8/19/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.15%, 0.2% (a), 3/4/2022 | 1,750,000 | 1,749,592 | |
Federal National Mortgage Association, SOFR + 0.30%, 0.35% (a), 1/7/2022 | 1,500,000 | 1,500,000 | |
39,249,354 | |||
U.S. Treasury Obligations 62.6% | |||
U.S. Treasury Bills: | |||
0.001% (b), 1/11/2022 | 40,000,000 | 39,999,989 | |
0.041% (b), 1/6/2022 | 5,000,000 | 4,999,972 | |
0.051% (b), 1/13/2022 | 12,500,000 | 12,499,792 |
Principal Amount ($) | Value ($) | ||
0.051% (b), 2/17/2022 | 6,000,000 | 5,999,608 | |
0.051% (b), 3/17/2022 | 1,000,000 | 999,896 | |
0.051% (b), 3/31/2022 | 1,000,000 | 999,876 | |
0.056% (b), 1/4/2022 | 12,000,000 | 11,999,945 | |
0.056% (b), 1/20/2022 | 5,000,000 | 4,999,855 | |
0.056% (b), 3/3/2022 | 5,000,000 | 4,999,534 | |
0.056% (b), 3/10/2022 | 5,000,000 | 4,999,481 | |
0.081% (b), 8/11/2022 | 3,750,000 | 3,748,150 | |
0.107% (b), 6/9/2022 | 10,000,000 | 9,995,362 | |
0.243% (b), 12/1/2022 | 5,000,000 | 4,988,867 | |
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield + 0.055%, 0.14% (a), 7/31/2022 | 3,500,000 | 3,500,750 | |
3-month U.S. Treasury Bill Money Market Yield + 0.114%, 0.199% (a), 4/30/2022 | 7,250,000 | 7,251,981 | |
3-month U.S. Treasury Bill Money Market Yield + 0.154%, 0.239% (a), 1/31/2022 | 1,250,000 | 1,250,152 | |
123,233,210 | |||
Total Government & Agency Obligations (Cost $162,482,564) | 162,482,564 | ||
Repurchase Agreements 17.4% | |||
Citigroup Global Markets, Inc., 0.05%, dated 12/31/2021, to be repurchased at $34,200,143 on 1/3/2022 (c) (Cost $34,200,000) | 34,200,000 | 34,200,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $196,682,564) | 100.0 | 196,682,564 | |
Other Assets and Liabilities, Net | 0.0 | 49,777 | |
Net Assets | 100.0 | 196,732,341 |
(a) | Floating rate security. These securities are shown at their current rate as of December 31, 2021. |
(b) | Annualized yield at time of purchase; not a coupon rate. |
6 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
34,876,600 | U.S. Treasury Bills | Zero Coupon | 1/6/2022–3/3/2022 | 34,875,573 |
8,500 | U.S. Treasury Bonds | 1.85–2.0 | 8/15/2051–11/15/2051 | 8,431 |
Total Collateral Value | 34,884,004 |
SOFR: Secured Overnight Financing Rate |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $ — | $ 162,482,564 | $ — | $ 162,482,564 |
Repurchase Agreements | — | 34,200,000 | — | 34,200,000 |
Total | $ — | $ 196,682,564 | $ — | $ 196,682,564 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 7 |
Statement of Assets and Liabilities |
Assets | |
Investments in securities, valued at amortized cost | $ 162,482,564 |
Repurchase agreements, valued at amortized cost | 34,200,000 |
Cash | 56,044 |
Receivable for Fund shares sold | 133,223 |
Interest receivable | 6,519 |
Other assets | 2,971 |
Total assets | 196,881,321 |
Liabilities | |
Payable for Fund shares redeemed | 47,920 |
Distributions payable | 857 |
Accrued Trustees' fees | 1,716 |
Other accrued expenses and payables | 98,487 |
Total liabilities | 148,980 |
Net assets, at value | $ 196,732,341 |
Net Assets Consist of | |
Distributable earnings (loss) | 6,484 |
Paid-in capital | 196,725,857 |
Net assets, at value | $ 196,732,341 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($196,732,341 ÷ 196,801,073 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Statement of Operations |
Investment Income | |
Income: | |
Interest | $ 105,429 |
Expenses: | |
Management fee | 375,169 |
Administration fee | 154,857 |
Services to shareholders | 2,928 |
Custodian fee | 4,932 |
Professional fees | 50,942 |
Reports to shareholders | 66,927 |
Trustees' fees and expenses | 7,986 |
Other | 9,763 |
Total expenses before expense reductions | 673,504 |
Expense reductions | (584,029) |
Total expenses after expense reductions | 89,475 |
Net investment income | 15,954 |
Net realized gain (loss) from investments | (29) |
Net increase (decrease) in net assets resulting from operations | $ 15,925 |
8 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 15,954 | $ 308,578 |
Net realized gain (loss) | (29) | 144 |
Net increase (decrease) in net assets resulting from operations | 15,925 | 308,722 |
Distributions to shareholders: | ||
Class A | (15,954) | (308,575) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 187,035,970 | 180,940,347 |
Reinvestment of distributions | 15,781 | 366,986 |
Payments for shares redeemed | (143,576,595) | (150,319,848) |
Net increase (decrease) in net assets from Class A share transactions | 43,475,156 | 30,987,485 |
Increase (decrease) in net assets | 43,475,127 | 30,987,632 |
Net assets at beginning of period | 153,257,214 | 122,269,582 |
Net assets at end of period | $ 196,732,341 | $ 153,257,214 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 153,325,917 | 122,338,432 |
Shares sold | 187,035,970 | 180,940,347 |
Shares issued to shareholders in reinvestment of distributions | 15,781 | 366,986 |
Shares redeemed | (143,576,595) | (150,319,848) |
Net increase (decrease) in Class A shares | 43,475,156 | 30,987,485 |
Shares outstanding at end of period | 196,801,073 | 153,325,917 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 9 |
DWS Government Money Market VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations: | |||||
Net investment income | .000 * | .002 | .018 | .014 | .005 |
Net realized gain (loss) | (.000) * | .000 * | .000 * | (.000) * | .000 * |
Total from investment operations | .000 * | .002 | .018 | .014 | .005 |
Less distributions from: | |||||
Net investment income | (.000) | (.002) | (.018) | (.014) | (.005) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%) | .01 a | .24 a | 1.77 a | 1.39 a | .45 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 197 | 153 | 122 | 107 | 111 |
Ratio of expenses before expense reductions (%)b | .42 | .42 | .47 | .50 | .48 |
Ratio of expenses after expense reductions (%)b | .06 | .23 | .47 | .50 | .48 |
Ratio of net investment income (%) | .01 | .20 | 1.74 | 1.37 | .45 |
a | Total return would have been lower had certain expenses not been reduced. |
b | 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. |
10 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 11 |
Undistributed ordinary income | $ 6,513 |
Capital loss carryforwards | $ (29) |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income | $ 15,954 | $ 308,575 |
B. | Related Parties |
First $500 million | .235% |
Next $500 million | .220% |
Next $1.0 billion | .205% |
Over $2.0 billion | .190% |
12 | | 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 | | 13 |
14 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Deutsche DWS Variable Series II —DWS Government Money Market 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 7/1/21 | $1,000.00 |
Ending Account Value 12/31/21 | $1,000.05 |
Expenses Paid per $1,000* | $ .25 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/21 | $1,000.00 |
Ending Account Value 12/31/21 | $1,024.95 |
Expenses Paid per $1,000* | $ .26 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (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 | .05% |
16 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS Government Money Market 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 Government Money Market VIP |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 19 |
20 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 21 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
22 | | Deutsche DWS Variable Series II —DWS Government Money Market VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | | 23 |
3 | Performance Summary |
4 | Management Summary |
6 | Portfolio Summary |
7 | Investment Portfolio |
16 | Statement of Assets and Liabilities |
16 | Statement of Operations |
17 | Statements of Changes in Net Assets |
18 | Financial Highlights |
20 | Notes to Financial Statements |
27 | Report of Independent Registered Public Accounting Firm |
28 | Information About Your Fund's Expenses |
29 | Tax Information |
29 | Proxy Voting |
30 | Advisory Agreement Board Considerations and Fee Evaluation |
33 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,400 | $12,783 | $13,397 | $18,182 | |
Average annual total return | 4.00% | 8.53% | 6.02% | 6.16% | ||
ICE BofA US High Yield Index | Growth of $10,000 | $10,535 | $12,785 | $13,430 | $19,149 | |
Average annual total return | 5.35% | 8.53% | 6.08% | 6.71% | ||
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $10,379 | $12,661 | $13,200 | $17,634 | |
Average annual total return | 3.79% | 8.18% | 5.71% | 5.84% | ||
ICE BofA US High Yield Index | Growth of $10,000 | $10,535 | $12,785 | $13,430 | $19,149 | |
Average annual total return | 5.35% | 8.53% | 6.08% | 6.71% | ||
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 3 |
Management Summary | December 31, 2021 (Unaudited) |
4 | | Deutsche DWS Variable Series II —DWS High Income VIP |
* | Not held at December 31, 2021. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 5 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Corporate Bonds | 93% | 98% |
Cash Equivalents | 6% | 1% |
Loan Participations and Assignments | 1% | 1% |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
Consumer Discretionary | 20% | 22% |
Energy | 19% | 13% |
Industrials | 14% | 10% |
Communication Services | 14% | 19% |
Health Care | 10% | 8% |
Materials | 9% | 11% |
Real Estate | 5% | 5% |
Utilities | 4% | 4% |
Consumer Staples | 2% | 4% |
Financials | 2% | 2% |
Information Technology | 1% | 2% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
AA | 0% | — |
BBB | 7% | 4% |
BB | 56% | 61% |
B | 30% | 30% |
CCC | 7% | 5% |
C | 0% | — |
Not Rated | 0% | 0% |
100% | 100% |
6 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Investment Portfolio | as of December 31, 2021 |
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 92.6% | |||
Communication Services 12.7% | |||
Altice France Holding SA: | |||
144A, 6.0%, 2/15/2028 | 200,000 | 191,000 | |
144A, 10.5%, 5/15/2027 | 200,000 | 215,000 | |
Altice France SA: | |||
144A, 5.5%, 1/15/2028 | 200,000 | 198,482 | |
144A, 8.125%, 2/1/2027 | 200,000 | 213,750 | |
Audacy Capital Corp.: | |||
144A, 6.5%, 5/1/2027 | 75,000 | 74,190 | |
144A, 6.75%, 3/31/2029 (b) | 55,000 | 53,733 | |
CCO Holdings LLC: | |||
144A, 4.25%, 1/15/2034 | 20,000 | 19,677 | |
144A, 4.5%, 8/15/2030 | 125,000 | 127,899 | |
144A, 4.75%, 3/1/2030 | 140,000 | 145,600 | |
144A, 5.0%, 2/1/2028 | 150,000 | 156,000 | |
144A, 5.125%, 5/1/2027 | 275,000 | 283,250 | |
Clear Channel Outdoor Holdings, Inc., 144A, 7.5%, 6/1/2029 | 80,000 | 85,400 | |
Clear Channel Worldwide Holdings, Inc., 144A, 5.125%, 8/15/2027 | 320,000 | 331,123 | |
CommScope Technologies LLC: | |||
144A, 5.0%, 3/15/2027 (b) | 75,000 | 70,125 | |
144A, 6.0%, 6/15/2025 | 55,000 | 55,000 | |
CommScope, Inc., 144A, 8.25%, 3/1/2027 | 130,000 | 133,600 | |
Consolidated Communications, Inc., 144A, 6.5%, 10/1/2028 | 155,000 | 164,300 | |
CSC Holdings LLC: | |||
144A, 5.75%, 1/15/2030 | 200,000 | 199,250 | |
144A, 6.5%, 2/1/2029 | 200,000 | 214,000 | |
Directv Financing LLC, 144A, 5.875%, 8/15/2027 | 125,000 | 127,964 | |
DISH DBS Corp.: | |||
5.875%, 11/15/2024 | 96,000 | 98,617 | |
7.375%, 7/1/2028 (b) | 50,000 | 50,625 | |
7.75%, 7/1/2026 | 90,000 | 94,950 | |
Frontier Communications Holdings LLC: | |||
144A, 5.0%, 5/1/2028 | 165,000 | 169,950 | |
144A, 5.875%, 10/15/2027 | 75,000 | 79,312 | |
144A, 6.0%, 1/15/2030 (b) | 50,000 | 50,250 | |
iHeartCommunications, Inc.: | |||
144A, 5.25%, 8/15/2027 | 125,000 | 130,012 | |
8.375%, 5/1/2027 | 75,000 | 79,076 | |
Iliad Holding SASU, 144A, 6.5%, 10/15/2026 | 200,000 | 210,146 | |
Lamar Media Corp., 4.875%, 1/15/2029 | 80,000 | 83,500 |
Principal Amount ($)(a) | Value ($) | ||
LCPR Senior Secured Financing DAC, 144A, 6.75%, 10/15/2027 | 189,000 | 198,450 | |
Outfront Media Capital LLC: | |||
144A, 4.25%, 1/15/2029 | 70,000 | 70,127 | |
144A, 5.0%, 8/15/2027 | 140,000 | 143,259 | |
Radiate Holdco LLC: | |||
144A, 4.5%, 9/15/2026 | 55,000 | 55,550 | |
144A, 6.5%, 9/15/2028 | 100,000 | 100,453 | |
Sirius XM Radio, Inc., 144A, 3.125%, 9/1/2026 | 110,000 | 110,032 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 155,000 | 166,905 | |
Uber Technologies, Inc.: | |||
144A, 4.5%, 8/15/2029 | 20,000 | 20,367 | |
144A, 6.25%, 1/15/2028 | 25,000 | 26,838 | |
144A, 7.5%, 5/15/2025 | 120,000 | 126,106 | |
144A, 7.5%, 9/15/2027 | 50,000 | 54,415 | |
Viasat, Inc., 144A, 5.625%, 4/15/2027 | 120,000 | 123,684 | |
Virgin Media Secured Finance PLC, 144A, 5.5%, 5/15/2029 | 345,000 | 364,282 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 185,000 | 223,753 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 370,000 | 410,208 |
Ziggo BV, 144A, 4.875%, 1/15/2030 | 290,000 | 297,424 | |
6,597,634 | |||
Consumer Discretionary 18.5% | |||
Affinity Gaming, 144A, 6.875%, 12/15/2027 | 160,000 | 166,400 | |
American Axle & Manufacturing, Inc., 6.875%, 7/1/2028 | 75,000 | 80,879 | |
Arko Corp., 144A, 5.125%, 11/15/2029 | 60,000 | 57,975 | |
Bath & Body Works, Inc.: | |||
144A, 6.625%, 10/1/2030 | 70,000 | 79,275 | |
6.875%, 11/1/2035 | 200,000 | 248,500 | |
144A, 9.375%, 7/1/2025 | 35,000 | 42,700 | |
Beacon Roofing Supply, Inc., 144A, 4.125%, 5/15/2029 (b) | 30,000 | 29,984 | |
Beazer Homes U.S.A., Inc., 5.875%, 10/15/2027 | 35,000 | 36,619 | |
Boyd Gaming Corp.: | |||
4.75%, 12/1/2027 | 130,000 | 132,600 | |
144A, 4.75%, 6/15/2031 | 90,000 | 91,800 | |
144A, 8.625%, 6/1/2025 | 60,000 | 64,291 | |
Caesars Entertainment, Inc.: | |||
144A, 4.625%, 10/15/2029 | 210,000 | 210,000 | |
144A, 6.25%, 7/1/2025 | 270,000 | 283,399 | |
144A, 8.125%, 7/1/2027 | 410,000 | 454,050 | |
Caesars Resort Collection LLC, 144A, 5.75%, 7/1/2025 | 20,000 | 20,886 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 170,000 | 170,000 | |
144A, 6.0%, 5/1/2029 | 30,000 | 29,850 | |
144A, 7.625%, 3/1/2026 | 98,000 | 102,728 | |
144A, 9.875%, 8/1/2027 | 130,000 | 148,553 | |
REG S, 10.125%, 2/1/2026 | EUR | 100,000 | 128,599 |
144A, 10.5%, 2/1/2026 | 80,000 | 91,320 | |
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 116,647 |
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 233,295 |
144A, 8.5%, 5/15/2027 | 55,000 | 58,300 | |
Dana, Inc.: | |||
5.375%, 11/15/2027 | 55,000 | 57,678 | |
5.625%, 6/15/2028 | 25,000 | 26,563 | |
Empire Communities Corp., 144A, 7.0%, 12/15/2025 | 80,000 | 82,800 | |
Ford Motor Co.: | |||
4.346%, 12/8/2026 | 160,000 | 174,520 | |
4.75%, 1/15/2043 | 22,000 | 24,283 | |
5.291%, 12/8/2046 | 68,000 | 79,917 | |
Ford Motor Credit Co. LLC: | |||
3.375%, 11/13/2025 | 209,000 | 217,134 | |
3.625%, 6/17/2031 | 240,000 | 252,644 | |
5.113%, 5/3/2029 | 200,000 | 227,250 | |
5.125%, 6/16/2025 | 230,000 | 250,125 | |
Forestar Group, Inc., 144A, 3.85%, 5/15/2026 | 90,000 | 90,225 | |
Foundation Building Materials, Inc., 144A, 6.0%, 3/1/2029 | 110,000 | 108,075 | |
Hilton Grand Vacations Borrower Escrow LLC: | |||
144A, 4.875%, 7/1/2031 | 30,000 | 30,000 | |
144A, 5.0%, 6/1/2029 | 90,000 | 92,250 | |
Jaguar Land Rover Automotive PLC, 144A, 5.875%, 1/15/2028 (b) | 200,000 | 203,500 | |
M/I Homes, Inc., 4.95%, 2/1/2028 | 130,000 | 135,200 | |
Macy's Retail Holdings LLC, 144A, 5.875%, 4/1/2029 | 145,000 | 154,606 | |
MajorDrive Holdings IV LLC, 144A, 6.375%, 6/1/2029 | 95,000 | 91,912 | |
Marriott Ownership Resorts, Inc.: | |||
144A, 4.5%, 6/15/2029 | 50,000 | 50,326 | |
144A, 6.125%, 9/15/2025 | 75,000 | 78,188 | |
Mattel, Inc.: | |||
144A, 3.375%, 4/1/2026 | 75,000 | 76,914 | |
144A, 3.75%, 4/1/2029 (b) | 50,000 | 51,813 | |
Meritage Homes Corp., 144A, 3.875%, 4/15/2029 | 105,000 | 110,250 | |
Michaels Companies, Inc., 144A, 7.875%, 5/1/2029 (b) | 25,000 | 24,625 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 100,500 |
Principal Amount ($)(a) | Value ($) | ||
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 | 100,000 | 94,375 | |
144A, 5.875%, 3/15/2026 | 250,000 | 248,892 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 59,100 | |
Newell Brands, Inc.: | |||
4.7%, 4/1/2026 | 440,000 | 479,712 | |
6.0%, 4/1/2046 | 60,000 | 76,982 | |
Peninsula Pacific Entertainment LLC, 144A, 8.5%, 11/15/2027 | 60,000 | 64,800 | |
Picasso Finance Sub, Inc., 144A, 6.125%, 6/15/2025 | 97,000 | 101,365 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 170,000 | 171,700 | |
Real Hero Merger Sub 2, Inc., 144A, 6.25%, 2/1/2029 | 80,000 | 79,875 | |
Ritchie Bros Holdings, Inc., 144A, 4.75%, 12/15/2031 | 10,000 | 10,438 | |
Royal Caribbean Cruises Ltd.: | |||
3.7%, 3/15/2028 | 55,000 | 51,556 | |
144A, 4.25%, 7/1/2026 | 10,000 | 9,686 | |
144A, 5.5%, 8/31/2026 | 30,000 | 30,504 | |
144A, 5.5%, 4/1/2028 | 110,000 | 111,272 | |
144A, 9.125%, 6/15/2023 | 210,000 | 222,075 | |
144A, 10.875%, 6/1/2023 | 110,000 | 120,176 | |
144A, 11.5%, 6/1/2025 | 30,000 | 33,600 | |
Scientific Games International, Inc., 144A, 7.0%, 5/15/2028 | 235,000 | 250,275 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 110,000 | 113,025 | |
Taylor Morrison Communities, Inc.: | |||
144A, 5.125%, 8/1/2030 | 75,000 | 82,500 | |
144A, 5.75%, 1/15/2028 | 170,000 | 189,975 | |
Thor Industries, Inc., 144A, 4.0%, 10/15/2029 | 80,000 | 79,200 | |
Travel & Leisure Co., 144A, 6.625%, 7/31/2026 | 120,000 | 133,061 | |
Tri Pointe Homes, Inc.: | |||
5.25%, 6/1/2027 | 55,000 | 59,056 | |
5.7%, 6/15/2028 | 80,000 | 88,000 | |
Univar Solutions U.S.A., Inc., 144A, 5.125%, 12/1/2027 | 160,000 | 166,955 | |
Vail Resorts, Inc., 144A, 6.25%, 5/15/2025 | 100,000 | 104,000 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 99,981 | |
144A, 7.0%, 2/15/2029 | 90,000 | 90,260 | |
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 15,000 | 14,981 | |
White Cap Parent LLC, 144A, 8.25%, 3/15/2026 | 75,000 | 76,688 | |
Williams Scotsman International, Inc., 144A, 4.625%, 8/15/2028 | 60,000 | 61,950 |
8 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Wyndham Hotels & Resorts, Inc., 144A, 4.375%, 8/15/2028 | 50,000 | 51,500 | |
Wynn Las Vegas LLC, 144A, 5.5%, 3/1/2025 | 50,000 | 51,500 | |
Wynn Resorts Finance LLC, 144A, 5.125%, 10/1/2029 | 60,000 | 60,900 | |
9,609,863 | |||
Consumer Staples 2.0% | |||
Albertsons Companies, Inc.: | |||
144A, 4.625%, 1/15/2027 | 98,000 | 102,845 | |
144A, 5.875%, 2/15/2028 | 60,000 | 63,600 | |
Chobani LLC, 144A, 4.625%, 11/15/2028 | 30,000 | 30,824 | |
Edgewell Personal Care Co., 144A, 5.5%, 6/1/2028 | 70,000 | 74,301 | |
JBS U.S.A. LUX SA, 144A, 6.75%, 2/15/2028 | 235,000 | 253,509 | |
Pilgrim's Pride Corp.: | |||
144A, 4.25%, 4/15/2031 | 245,000 | 257,250 | |
144A, 5.875%, 9/30/2027 | 230,000 | 242,866 | |
Post Holdings, Inc., 144A, 5.5%, 12/15/2029 | 20,000 | 21,013 | |
1,046,208 | |||
Energy 17.9% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 70,000 | 73,851 | |
144A, 5.75%, 3/1/2027 | 130,000 | 134,712 | |
144A, 5.75%, 1/15/2028 | 90,000 | 94,377 | |
Antero Resources Corp.: | |||
144A, 5.375%, 3/1/2030 | 50,000 | 53,450 | |
144A, 7.625%, 2/1/2029 | 138,000 | 153,180 | |
144A, 8.375%, 7/15/2026 | 42,000 | 47,820 | |
Apache Corp.: | |||
4.875%, 11/15/2027 | 55,000 | 59,950 | |
5.1%, 9/1/2040 (b) | 57,000 | 64,410 | |
Archrock Partners LP: | |||
144A, 6.25%, 4/1/2028 | 220,000 | 229,398 | |
144A, 6.875%, 4/1/2027 | 110,000 | 115,500 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 30,000 | 28,866 | |
144A, 8.25%, 12/31/2028 | 65,000 | 67,762 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 80,600 | |
Cheniere Energy Partners LP: | |||
144A, 3.25%, 1/31/2032 | 30,000 | 30,300 | |
4.5%, 10/1/2029 | 272,000 | 288,320 | |
Cheniere Energy, Inc., 4.625%, 10/15/2028 | 100,000 | 106,372 | |
Chesapeake Energy Corp., 144A, 5.875%, 2/1/2029 | 75,000 | 80,231 | |
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 140,400 | |
144A, 7.25%, 3/14/2027 | 100,000 | 106,073 |
Principal Amount ($)(a) | Value ($) | ||
Colgate Energy Partners III LLC, 144A, 5.875%, 7/1/2029 | 170,000 | 175,100 | |
Comstock Resources, Inc.: | |||
144A, 5.875%, 1/15/2030 | 30,000 | 30,750 | |
144A, 6.75%, 3/1/2029 | 155,000 | 168,113 | |
144A, 7.5%, 5/15/2025 | 18,000 | 18,563 | |
DCP Midstream Operating LP: | |||
3.25%, 2/15/2032 | 50,000 | 50,375 | |
5.125%, 5/15/2029 | 80,000 | 90,400 | |
5.375%, 7/15/2025 | 367,000 | 400,947 | |
5.625%, 7/15/2027 | 50,000 | 56,500 | |
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 155,000 | 158,681 | |
144A, 4.375%, 6/15/2031 | 30,000 | 31,200 | |
Endeavor Energy Resources LP: | |||
144A, 5.75%, 1/30/2028 | 70,000 | 74,612 | |
144A, 6.625%, 7/15/2025 | 35,000 | 37,031 | |
EQM Midstream Partners LP: | |||
144A, 4.5%, 1/15/2029 | 50,000 | 52,000 | |
144A, 4.75%, 1/15/2031 | 75,000 | 79,312 | |
5.5%, 7/15/2028 | 55,000 | 60,088 | |
144A, 6.0%, 7/1/2025 | 140,000 | 152,250 | |
144A, 6.5%, 7/1/2027 | 80,000 | 89,600 | |
EQT Corp.: | |||
144A, 3.625%, 5/15/2031 (b) | 100,000 | 103,750 | |
5.0%, 1/15/2029 | 85,000 | 94,137 | |
6.625%, 2/1/2025 | 105,000 | 118,388 | |
7.5%, 2/1/2030 | 80,000 | 102,800 | |
Genesis Energy LP, 7.75%, 2/1/2028 | 75,000 | 75,562 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 165,850 | |
Hess Midstream Operations LP, 144A, 4.25%, 2/15/2030 | 110,000 | 109,175 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 159,762 | |
144A, 6.0%, 2/1/2031 | 110,000 | 113,575 | |
144A, 6.25%, 11/1/2028 | 35,000 | 36,794 | |
Howard Midstream Energy Partners LLC, 144A, 6.75%, 1/15/2027 | 40,000 | 40,988 | |
Murphy Oil U.S.A., Inc.: | |||
4.75%, 9/15/2029 | 55,000 | 57,888 | |
5.625%, 5/1/2027 | 65,000 | 67,600 | |
Nabors Industries, Inc., 144A, 7.375%, 5/15/2027 | 105,000 | 108,695 | |
NuStar Logistics LP: | |||
5.75%, 10/1/2025 | 80,000 | 86,090 | |
6.375%, 10/1/2030 | 30,000 | 33,300 | |
Oasis Petroleum, Inc., 144A, 6.375%, 6/1/2026 | 40,000 | 41,900 | |
Occidental Petroleum Corp.: | |||
5.5%, 12/1/2025 | 135,000 | 149,765 | |
5.55%, 3/15/2026 | 105,000 | 116,896 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
6.125%, 1/1/2031 | 255,000 | 309,825 | |
6.45%, 9/15/2036 | 105,000 | 133,876 | |
6.625%, 9/1/2030 (b) | 225,000 | 278,437 | |
8.0%, 7/15/2025 | 175,000 | 204,312 | |
8.5%, 7/15/2027 | 100,000 | 124,750 | |
Parkland Corp., 144A, 5.875%, 7/15/2027 | 80,000 | 84,400 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 30,577 | |
Range Resources Corp.: | |||
8.25%, 1/15/2029 | 280,000 | 312,200 | |
9.25%, 2/1/2026 | 50,000 | 53,890 | |
Rattler Midstream LP, 144A, 5.625%, 7/15/2025 | 75,000 | 78,000 | |
Renewable Energy Group, Inc., 144A, 5.875%, 6/1/2028 | 60,000 | 61,650 | |
Rockcliff Energy II LLC, 144A, 5.5%, 10/15/2029 | 30,000 | 30,900 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 82,800 | |
Southwestern Energy Co.: | |||
4.75%, 2/1/2032 | 70,000 | 73,717 | |
5.375%, 2/1/2029 | 120,000 | 126,900 | |
6.45%, 1/23/2025 | 36,000 | 39,564 | |
7.75%, 10/1/2027 (b) | 100,000 | 107,875 | |
8.375%, 9/15/2028 | 50,000 | 55,813 | |
Suburban Propane Partners LP, 144A, 5.0%, 6/1/2031 | 60,000 | 60,675 | |
Sunnova Energy Corp., 144A, 5.875%, 9/1/2026 | 115,000 | 117,300 | |
Sunoco LP: | |||
4.5%, 5/15/2029 | 56,000 | 56,869 | |
5.875%, 3/15/2028 | 35,000 | 37,013 | |
6.0%, 4/15/2027 | 52,000 | 54,231 | |
Superior Plus LP, 144A, 4.5%, 3/15/2029 | 30,000 | 30,835 | |
Targa Resources Partners LP: | |||
4.875%, 2/1/2031 | 30,000 | 32,579 | |
5.0%, 1/15/2028 | 265,000 | 279,230 | |
5.5%, 3/1/2030 | 90,000 | 98,325 | |
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 175,000 | 169,094 | |
USA Compression Partners LP: | |||
6.875%, 4/1/2026 | 142,000 | 147,680 | |
6.875%, 9/1/2027 | 100,000 | 105,625 | |
Venture Global Calcasieu Pass LLC: | |||
144A, 3.875%, 11/1/2033 | 50,000 | 52,529 | |
144A, 4.125%, 8/15/2031 | 30,000 | 31,800 | |
Vine Energy Holdings LLC, 144A, 6.75%, 4/15/2029 | 330,000 | 358,050 | |
Western Midstream Operating LP, 5.3%, 3/1/2048 | 25,000 | 30,125 | |
9,315,455 |
Principal Amount ($)(a) | Value ($) | ||
Financials 1.4% | |||
Navient Corp., 6.125%, 3/25/2024 | 393,000 | 419,036 | |
OneMain Finance Corp.: | |||
5.375%, 11/15/2029 | 80,000 | 86,984 | |
8.875%, 6/1/2025 | 50,000 | 53,500 | |
Rocket Mortgage LLC, 144A, 3.625%, 3/1/2029 | 120,000 | 120,450 | |
Sabre GLBL, Inc., 144A, 7.375%, 9/1/2025 | 30,000 | 31,350 | |
711,320 | |||
Health Care 9.7% | |||
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 250,000 | 256,875 | |
AdaptHealth LLC: | |||
144A, 4.625%, 8/1/2029 | 55,000 | 55,000 | |
144A, 6.125%, 8/1/2028 | 80,000 | 84,800 | |
AHP Health Partners, Inc., 144A, 5.75%, 7/15/2029 | 145,000 | 143,550 | |
Bausch Health Americas, Inc.: | |||
144A, 8.5%, 1/31/2027 | 195,000 | 204,750 | |
144A, 9.25%, 4/1/2026 | 135,000 | 142,594 | |
Bausch Health Companies, Inc., 144A, 6.125%, 4/15/2025 | 122,000 | 124,264 | |
Catalent Pharma Solutions, Inc.: | |||
144A, 3.5%, 4/1/2030 | 50,000 | 49,858 | |
144A, 5.0%, 7/15/2027 | 125,000 | 129,875 | |
Centene Corp., 4.625%, 12/15/2029 | 275,000 | 296,576 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 65,650 | |
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 116,006 | |
144A, 5.625%, 3/15/2027 | 60,000 | 63,500 | |
144A, 6.0%, 1/15/2029 | 65,000 | 69,306 | |
144A, 6.125%, 4/1/2030 | 50,000 | 49,466 | |
144A, 6.875%, 4/15/2029 | 140,000 | 142,625 | |
Encompass Health Corp.: | |||
4.5%, 2/1/2028 | 45,000 | 46,294 | |
4.75%, 2/1/2030 | 137,000 | 141,110 | |
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 | 350,547 | |
IQVIA, Inc., 144A, 5.0%, 5/15/2027 | 220,000 | 227,766 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 75,563 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 | 225,000 | 223,875 | |
Molina Healthcare, Inc.: | |||
144A, 3.875%, 11/15/2030 | 75,000 | 77,812 | |
144A, 4.375%, 6/15/2028 | 100,000 | 103,000 |
10 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(as) | Value ($) | ||
Mozart Debt Merger Sub, Inc.: | |||
144A, 3.875%, 4/1/2029 | 40,000 | 39,859 | |
144A, 5.25%, 10/1/2029 (b) | 130,000 | 131,773 | |
Option Care Health, Inc., 144A, 4.375%, 10/31/2029 | 130,000 | 130,325 | |
Organon & Co, 144A, 4.125%, 4/30/2028 | 200,000 | 203,250 | |
Owens & Minor, Inc., 144A, 4.5%, 3/31/2029 (b) | 55,000 | 56,375 | |
Prestige Brands, Inc., 144A, 5.125%, 1/15/2028 | 90,000 | 93,712 | |
Prime Healthcare Services, Inc., 144A, 7.25%, 11/1/2025 | 70,000 | 74,200 | |
RegionalCare Hospital Partners Holdings, Inc., 144A, 9.75%, 12/1/2026 | 60,000 | 63,402 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 132,406 | |
Syneos Health, Inc., 144A, 3.625%, 1/15/2029 | 100,000 | 98,750 | |
Tenet Healthcare Corp.: | |||
144A, 4.25%, 6/1/2029 | 90,000 | 91,394 | |
4.625%, 7/15/2024 | 21,000 | 21,263 | |
144A, 4.875%, 1/1/2026 | 190,000 | 195,155 | |
144A, 5.125%, 11/1/2027 | 150,000 | 156,187 | |
144A, 6.125%, 10/1/2028 | 85,000 | 89,778 | |
144A, 6.25%, 2/1/2027 | 75,000 | 77,625 | |
144A, 7.5%, 4/1/2025 | 50,000 | 52,623 | |
5,017,339 | |||
Industrials 12.5% | |||
ADT Security Corp., 144A, 4.875%, 7/15/2032 | 50,000 | 51,050 | |
Allied Universal Holdco LLC, 144A, 6.0%, 6/1/2029 (b) | 200,000 | 194,500 | |
American Airlines, Inc.: | |||
144A, 5.5%, 4/20/2026 | 275,000 | 285,966 | |
144A, 5.75%, 4/20/2029 | 135,000 | 144,277 | |
144A, 11.75%, 7/15/2025 | 120,000 | 148,050 | |
ATS Automation Tooling Systems, Inc., 144A, 4.125%, 12/15/2028 | 30,000 | 30,225 | |
Bombardier, Inc.: | |||
144A, 6.0%, 2/15/2028 (b) | 200,000 | 200,606 | |
144A, 7.5%, 3/15/2025 | 95,000 | 96,781 | |
Brundage-Bone Concrete Pumping Holdings, Inc., 144A, 6.0%, 2/1/2026 | 55,000 | 57,200 | |
Builders FirstSource, Inc., 144A, 4.25%, 2/1/2032 | 80,000 | 82,816 | |
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 100,000 | 101,772 | |
Cimpress PLC, 144A, 7.0%, 6/15/2026 | 150,000 | 155,812 | |
Clark Equipment Co., 144A, 5.875%, 6/1/2025 | 55,000 | 57,131 | |
Covanta Holding Corp., 5.0%, 9/1/2030 | 100,000 | 102,000 |
Principal Amount ($)(a) | Value ($) | ||
Covert Mergeco, Inc., 144A, 4.875%, 12/1/2029 | 20,000 | 20,300 | |
CP Atlas Buyer, Inc., 144A, 7.0%, 12/1/2028 | 28,000 | 27,860 | |
Delta Air Lines, Inc.: | |||
3.75%, 10/28/2029 (b) | 51,000 | 52,267 | |
144A, 7.0%, 5/1/2025 | 71,000 | 81,182 | |
EnerSys, 144A, 4.375%, 12/15/2027 | 90,000 | 93,375 | |
First Student Bidco, Inc., 144A, 4.0%, 7/31/2029 | 90,000 | 87,480 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 80,000 | 80,800 | |
144A, 4.25%, 6/1/2025 | 40,000 | 41,158 | |
144A, 5.125%, 12/15/2026 | 50,000 | 52,000 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 125,000 | 130,781 | |
Hertz Corp., 144A, 4.625%, 12/1/2026 | 140,000 | 140,875 | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | 140,000 | 160,959 | |
II-VI, Inc., 144A, 5.0%, 12/15/2029 | 40,000 | 40,849 | |
Imola Merger Corp., 144A, 4.75%, 5/15/2029 | 365,000 | 374,508 | |
JELD-WEN, Inc., 144A, 4.625%, 12/15/2025 | 80,000 | 80,600 | |
LSB Industries, Inc., 144A, 6.25%, 10/15/2028 | 100,000 | 104,000 | |
Madison IAQ LLC: | |||
144A, 4.125%, 6/30/2028 | 90,000 | 90,225 | |
144A, 5.875%, 6/30/2029 | 60,000 | 60,000 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 74,000 | 77,608 | |
Metis Merger Sub LLC, 144A, 6.5%, 5/15/2029 | 60,000 | 58,931 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 130,000 | 138,775 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 161,200 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 98,088 | |
Nielsen Finance LLC, 144A, 5.625%, 10/1/2028 | 265,000 | 273,612 | |
Patrick Industries, Inc., 144A, 4.75%, 5/1/2029 | 135,000 | 134,325 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 180,000 | 173,770 | |
144A, 5.75%, 4/15/2026 | 135,000 | 144,945 | |
144A, 6.25%, 1/15/2028 | 135,000 | 140,738 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 153,977 | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 189,000 | 208,672 | |
Summit Materials LLC, 144A, 5.25%, 1/15/2029 | 54,000 | 56,560 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 11 |
Principal Amount ($)(a) | Value ($) | ||
TK Elevator U.S. Newco, Inc., 144A, 5.25%, 7/15/2027 | 200,000 | 210,250 | |
TransDigm, Inc.: | |||
4.625%, 1/15/2029 | 85,000 | 84,718 | |
5.5%, 11/15/2027 | 115,000 | 118,450 | |
144A, 6.25%, 3/15/2026 | 335,000 | 348,191 | |
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 166,838 | |
United Rentals North America, Inc., 5.25%, 1/15/2030 | 80,000 | 86,600 | |
Vertiv Group Corp., 144A, 4.125%, 11/15/2028 | 90,000 | 90,900 | |
WESCO Distribution, Inc.: | |||
144A, 7.125%, 6/15/2025 | 40,000 | 42,400 | |
144A, 7.25%, 6/15/2028 | 105,000 | 115,106 | |
6,512,059 | |||
Information Technology 1.3% | |||
Boxer Parent Co., Inc., 144A, 7.125%, 10/2/2025 | 60,000 | 62,925 | |
Clarivate Science Holdings Corp.: | |||
144A, 3.875%, 7/1/2028 | 90,000 | 90,450 | |
144A, 4.875%, 7/1/2029 | 60,000 | 60,847 | |
Dun & Bradstreet Corp., 144A, 5.0%, 12/15/2029 | 20,000 | 20,461 | |
Microchip Technology, Inc., 4.25%, 9/1/2025 | 140,000 | 145,400 | |
NCR Corp., 144A, 5.125%, 4/15/2029 | 190,000 | 196,688 | |
Presidio Holdings, Inc.: | |||
144A, 4.875%, 2/1/2027 | 50,000 | 51,500 | |
144A, 8.25%, 2/1/2028 | 30,000 | 31,950 | |
660,221 | |||
Materials 8.7% | |||
Arconic Corp., 144A, 6.125%, 2/15/2028 | 245,000 | 260,729 | |
Cascades, Inc., 144A, 5.125%, 1/15/2026 | 10,000 | 10,400 | |
Chemours Co.: | |||
5.375%, 5/15/2027 | 95,000 | 101,650 | |
144A, 5.75%, 11/15/2028 | 290,000 | 303,447 | |
Clearwater Paper Corp.: | |||
144A, 4.75%, 8/15/2028 | 80,000 | 81,400 | |
144A, 5.375%, 2/1/2025 | 110,000 | 118,800 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.625%, 3/1/2029 | 31,000 | 31,620 | |
144A, 4.875%, 3/1/2031 (b) | 101,000 | 104,926 | |
144A, 6.75%, 3/15/2026 | 175,000 | 185,281 | |
EverArc Escrow Sarl, 144A, 5.0%, 10/30/2029 | 90,000 | 90,067 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 207,750 | |
144A, 6.875%, 10/15/2027 | 300,000 | 322,875 | |
Freeport-McMoRan, Inc.: | |||
4.125%, 3/1/2028 | 270,000 | 280,125 | |
4.375%, 8/1/2028 | 90,000 | 94,388 |
Principal Amount ($)(a) | Value ($) | ||
4.625%, 8/1/2030 | 90,000 | 96,525 | |
5.0%, 9/1/2027 | 105,000 | 109,200 | |
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 60,000 | 60,000 | |
144A, 6.125%, 4/1/2029 | 100,000 | 106,038 | |
Kaiser Aluminum Corp., 144A, 4.625%, 3/1/2028 | 70,000 | 70,700 | |
Kraton Polymers LLC, 144A, 4.25%, 12/15/2025 | 125,000 | 129,389 | |
LABL, Inc.: | |||
144A, 5.875%, 11/1/2028 | 30,000 | 30,919 | |
144A, 6.75%, 7/15/2026 | 100,000 | 103,060 | |
LSF11 A5 Holdco LLC, 144A, 6.625%, 10/15/2029 | 160,000 | 157,600 | |
Mauser Packaging Solutions Holding Co., 144A, 7.25%, 4/15/2025 | 105,000 | 105,266 | |
Methanex Corp.: | |||
5.125%, 10/15/2027 | 180,000 | 189,000 | |
5.25%, 12/15/2029 (b) | 50,000 | 52,726 | |
Novelis Corp., 144A, 4.75%, 1/30/2030 | 375,000 | 394,219 | |
Resolute Forest Products, Inc., 144A, 4.875%, 3/1/2026 | 55,000 | 55,825 | |
Roller Bearing Co. of America, Inc., 144A, 4.375%, 10/15/2029 | 80,000 | 81,600 | |
SCIL IV LLC, 144A, 5.375%, 11/1/2026 | 200,000 | 205,250 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 130,000 | |
Tronox, Inc.: | |||
144A, 4.625%, 3/15/2029 | 205,000 | 204,744 | |
144A, 6.5%, 5/1/2025 | 30,000 | 31,707 | |
4,507,226 | |||
Real Estate 4.7% | |||
Cushman & Wakefield U.S. Borrower LLC, 144A, 6.75%, 5/15/2028 | 120,000 | 128,400 | |
Iron Mountain Information Management Services, Inc., 144A, (REIT), 5.0%, 7/15/2032 | 40,000 | 40,939 | |
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 62,099 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 77,062 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 105,382 | |
iStar, Inc.: | |||
(REIT), 4.25%, 8/1/2025 | 100,000 | 102,250 | |
(REIT), 4.75%, 10/1/2024 | 170,000 | 176,375 | |
MGM Growth Properties Operating Partnership LP: | |||
144A, (REIT), 3.875%, 2/15/2029 | 90,000 | 94,500 |
12 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
144A, (REIT), 4.625%, 6/15/2025 | 233,000 | 248,399 | |
(REIT), 5.75%, 2/1/2027 | 310,000 | 350,300 | |
MPT Operating Partnership LP: | |||
(REIT), 3.5%, 3/15/2031 | 105,000 | 106,181 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 147,700 | |
Realogy Group LLC: | |||
144A, 5.75%, 1/15/2029 | 240,000 | 246,000 | |
144A, 7.625%, 6/15/2025 | 185,000 | 196,100 | |
Service Properties Trust, (REIT), 7.5%, 9/15/2025 | 160,000 | 173,350 | |
Uniti Group LP, 144A, (REIT), 6.0%, 1/15/2030 | 105,000 | 101,046 | |
VICI Properties LP, 144A, (REIT), 3.5%, 2/15/2025 | 10,000 | 10,150 | |
WeWork Companies, Inc., 144A, 7.875%, 5/1/2025 | 65,000 | 62,133 | |
XHR LP, 144A, (REIT), 4.875%, 6/1/2029 | 40,000 | 40,700 | |
2,469,066 | |||
Utilities 3.2% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 219,606 | |
5.75%, 5/20/2027 | 110,000 | 121,687 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 207,500 | |
144A, 4.625%, 2/1/2029 | 30,000 | 29,588 | |
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 120,894 | |
NextEra Energy Operating Partners LP, 144A, 4.25%, 7/15/2024 | 210,000 | 218,137 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 141,375 | |
144A, 5.25%, 6/15/2029 | 157,000 | 168,207 | |
5.75%, 1/15/2028 | 200,000 | 211,422 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 93,375 | |
PG&E Corp., 5.25%, 7/1/2030 | 75,000 | 78,653 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 60,000 | 60,098 | |
1,670,542 | |||
Total Corporate Bonds (Cost $46,494,212) | 48,116,933 | ||
Loan Participations and Assignments 1.0% | |||
Senior Loans (c) | |||
Brand Energy & Infrastructure Services, Inc., Term Loan, 3-month USD-LIBOR + 4.25%, 5.25%, 6/21/2024 | 167,803 | 164,541 |
Principal Amount ($)(a) | Value ($) | ||
Directv Financing LLC, Term Loan, 8/2/2027 (d) | 195,500 | 195,932 | |
Flex Acquisition Co., Inc., Term Loan, 3-month USD-LIBOR + 3.5%, 4.0%, 3/2/2028 | 80,224 | 80,162 | |
Penn National Gaming, Inc., Term Loan A, 10/19/2023 (d) | 97,778 | 97,533 | |
Total Loan Participations and Assignments (Cost $539,449) | 538,168 |
Shares | Value ($) | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (b) (Cost $0) | 287 | 1,148 | |
Warrants 0.2% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (e) (Cost $244,286) | 1,100 | 121,530 | |
Securities Lending Collateral 3.6% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (f) (g) (Cost $1,857,630) | 1,857,630 | 1,857,630 | |
Cash Equivalents 5.4% | |||
DWS Central Cash Management Government Fund, 0.05% (f) (Cost $2,785,992) | 2,785,992 | 2,785,992 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $51,921,569) | 102.8 | 53,421,401 | |
Other Assets and Liabilities, Net | (2.8) | (1,437,607) | |
Net Assets | 100.0 | 51,983,794 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 13 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 3.6% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (f) (g) | ||||||||
633,205 | 1,224,425 (h) | — | — | — | 782 | — | 1,857,630 | 1,857,630 |
Cash Equivalents 5.4% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (f) | ||||||||
843,071 | 21,096,475 | 19,153,554 | — | — | 552 | — | 2,785,992 | 2,785,992 |
1,476,276 | 22,320,900 | 19,153,554 | — | — | 1,334 | — | 4,643,622 | 4,643,622 |
* | Non-income producing security. |
(a) | Principal amount stated in U.S. dollars unless otherwise noted. |
(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 December 31, 2021 amounted to $1,793,969, which is 3.5% of net assets. |
(c) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 2021. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(d) | All or a portion of the security represents unsettled loan commitments at December 31, 2021 where the rate will be determined at the time of settlement. |
(e) | Investment was valued using significant unobservable inputs. |
(f) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(g) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(h) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2021. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Depreciation ($) | Counterparty | ||
EUR | 805,247 | USD | 912,263 | 1/31/2022 | (5,080) | State Street Bank and Trust |
EUR | Euro |
USD | United States Dollar |
14 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $ — | $ 48,116,933 | $ — | $ 48,116,933 |
Loan Participations and Assignments | — | 538,168 | — | 538,168 |
Common Stocks | 1,148 | — | — | 1,148 |
Warrants | — | — | 121,530 | 121,530 |
Short-Term Investments (a) | 4,643,622 | — | — | 4,643,622 |
Total | $4,644,770 | $ 48,655,101 | $121,530 | $ 53,421,401 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | $ — | $ (5,080) | $ — | $ (5,080) |
Total | $ — | $ (5,080) | $ — | $ (5,080) |
(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 | | 15 |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated securities, at value (cost $47,277,947) — including $1,793,969 of securities loaned | $ 48,777,779 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,857,630)* | 1,857,630 |
Investment in DWS Central Cash Management Government Fund (cost $2,785,992) | 2,785,992 |
Cash | 117,864 |
Foreign currency, at value (cost $17,301) | 17,311 |
Receivable for investments sold | 439 |
Receivable for Fund shares sold | 10,425 |
Interest receivable | 740,556 |
Other assets | 1,070 |
Total assets | 54,309,066 |
Liabilities | |
Payable upon return of securities loaned | 1,857,630 |
Payable for investments purchased | 293,767 |
Payable for Fund shares redeemed | 41,915 |
Unrealized depreciation on forward foreign currency contracts | 5,080 |
Accrued management fee | 18,769 |
Accrued Trustees' fees | 817 |
Other accrued expenses and payables | 107,294 |
Total liabilities | 2,325,272 |
Net assets, at value | $ 51,983,794 |
Net Assets Consist of | |
Distributable earnings (loss) | (2,437,458) |
Paid-in capital | 54,421,252 |
Net assets, at value | $ 51,983,794 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($51,363,873 ÷ 8,311,044 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 6.18 |
Class B | |
Net Asset Value, offering and redemption price per share ($619,921 ÷ 100,035 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 6.20 |
* | Represents collateral on securities loaned. |
Statement of Operations |
Investment Income | |
Income: | |
Interest (net of foreign taxes withheld of $91) | $ 2,659,798 |
Income distributions — DWS Central Cash Management Government Fund | 552 |
Securities lending income, net of borrower rebates | 782 |
Total income | 2,661,132 |
Expenses: | |
Management fee | 264,304 |
Administration fee | 51,275 |
Services to shareholders | 861 |
Record keeping fee (Class B) | 481 |
Distribution service fee (Class B) | 799 |
Custodian fee | 3,825 |
Audit fee | 70,236 |
Legal fees | 12,302 |
Tax fees | 7,206 |
Reports to shareholders | 30,607 |
Trustees' fees and expenses | 3,037 |
Other | 2,889 |
Total expenses before expense reductions | 447,822 |
Expense reductions | (71,226) |
Total expenses after expense reductions | 376,596 |
Net investment income | 2,284,536 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 1,295,181 |
Forward foreign currency contracts | 80,161 |
Foreign currency | (4,968) |
1,370,374 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (1,541,699) |
Forward foreign currency contracts | (5,303) |
Foreign currency | (403) |
(1,547,405) | |
Net gain (loss) | (177,031) |
Net increase (decrease) in net assets resulting from operations | $ 2,107,505 |
16 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 2,284,536 | $ 2,533,908 |
Net realized gain (loss) | 1,370,374 | (892,054) |
Change in net unrealized appreciation (depreciation) | (1,547,405) | 1,341,265 |
Net increase (decrease) in net assets resulting from operations | 2,107,505 | 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 | 6,500,206 | 6,977,525 |
Reinvestment of distributions | 2,455,814 | 2,873,076 |
Payments for shares redeemed | (11,190,770) | (11,869,783) |
Net increase (decrease) in net assets from Class A share transactions | (2,234,750) | (2,019,182) |
Class B | ||
Proceeds from shares sold | 481,262 | 9,694 |
Reinvestment of distributions | 6,327 | 8,104 |
Payments for shares redeemed | (21,374) | (29,136) |
Net increase (decrease) in net assets from Class B share transactions | 466,215 | (11,338) |
Increase (decrease) in net assets | (2,123,171) | (1,928,581) |
Net assets at beginning of period | 54,106,965 | 56,035,546 |
Net assets at end of period | $ 51,983,794 | $ 54,106,965 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,668,128 | 8,976,023 |
Shares sold | 1,055,087 | 1,182,798 |
Shares issued to shareholders in reinvestment of distributions | 408,621 | 536,022 |
Shares redeemed | (1,820,792) | (2,026,715) |
Net increase (decrease) in Class A shares | (357,084) | (307,895) |
Shares outstanding at end of period | 8,311,044 | 8,668,128 |
Class B | ||
Shares outstanding at beginning of period | 23,669 | 25,470 |
Shares sold | 78,794 | 1,573 |
Shares issued to shareholders in reinvestment of distributions | 1,048 | 1,501 |
Shares redeemed | (3,476) | (4,875) |
Net increase (decrease) in Class B shares | 76,366 | (1,801) |
Shares outstanding at end of period | 100,035 | 23,669 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 17 |
DWS High Income VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $6.23 | $6.23 | $5.71 | $6.36 | $6.28 |
Income (loss) from investment operations: | |||||
Net investment incomea | .27 | .29 | .31 | .33 | .31 |
Net realized and unrealized gain (loss) | (.03) | .04 | .56 | (.48) | .15 |
Total from investment operations | .24 | .33 | .87 | (.15) | .46 |
Less distributions from: | |||||
Net investment income | (.29) | (.33) | (.35) | (.50) | (.38) |
Net asset value, end of period | $6.18 | $6.23 | $6.23 | $5.71 | $6.36 |
Total Return (%)b | 4.00 | 6.24 | 15.69 | (2.52) | 7.51 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 51 | 54 | 56 | 52 | 61 |
Ratio of expenses before expense reductions (%)c | .84 | .87 | .96 | .94 | .78 |
Ratio of expenses after expense reductions (%)c | .71 | .70 | .68 | .69 | .72 |
Ratio of net investment income (%) | 4.32 | 4.86 | 5.09 | 5.41 | 4.98 |
Portfolio turnover rate (%) | 56 | 94 | 82 | 62 | 71 |
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. |
18 | | Deutsche DWS Variable Series II —DWS High Income VIP |
DWS High Income VIP — Class B | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $6.24 | $6.25 | $5.73 | $6.38 | $6.30 |
Income (loss) from investment operations: | |||||
Net investment incomea | .24 | .27 | .29 | .31 | .31 |
Net realized and unrealized gain (loss) | (.01) | .04 | .57 | (.48) | .13 |
Total from investment operations | .23 | .31 | .86 | (.17) | .44 |
Less distributions from: | |||||
Net investment income | (.27) | (.32) | (.34) | (.48) | (.36) |
Net asset value, end of period | $6.20 | $6.24 | $6.25 | $5.73 | $6.38 |
Total Return (%)b | 3.79 | 5.77 | 15.33 | (2.76) | 7.21 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .6 | .1 | .2 | .1 | .1 |
Ratio of expenses before expense reductions (%)c | 1.27 | 1.30 | 1.40 | 1.34 | 1.15 |
Ratio of expenses after expense reductions (%)c | 1.10 | 1.05 | .94 | .96 | .98 |
Ratio of net investment income (%) | 3.86 | 4.52 | 4.82 | 5.14 | 4.88 |
Portfolio turnover rate (%) | 56 | 94 | 82 | 62 | 71 |
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. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 19 |
A. | Organization and Significant Accounting Policies |
20 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Overnight and Continuous | <30 days | Between 30 & 90 days | >90 days | Total | |
Securities Lending Transactions | |||||
Corporate Bonds | $ 1,856,580 | $ — | $ — | $ — | $ 1,856,580 |
Common Stocks | 1,050 | — | — | — | 1,050 |
Total Borrowings | $ 1,857,630 | $ — | $ — | $ — | $ 1,857,630 |
Gross amount of recognized liabilities for securities lending transactions: | $ 1,857,630 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 21 |
Undistributed ordinary income* | $ 2,371,758 |
Capital loss carryforwards | $ (6,270,000) |
Net unrealized appreciation (depreciation) on investments | $ 1,460,494 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 2,462,141 | $ 2,881,180 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
22 | | Deutsche DWS Variable Series II —DWS High Income VIP |
B. | Derivative Instruments |
Liability Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $ (5,080) |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized depreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts |
Foreign Exchange Contracts (a) | $ 80,161 |
The above derivative is located in the following Statement of Operations account: |
(a) | Net realized gain (loss) from forward foreign currency contracts |
Deutsche DWS Variable Series II —DWS High Income VIP | | 23 |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts |
Foreign Exchange Contracts (a) | $ (5,303) |
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 Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Pledged | Net Amount of Derivative Liabilities |
State Street Bank and Trust | $ 5,080 | $ — | $ — | $ 5,080 |
C. | Purchases and Sales of Securities |
D. | Related Parties |
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% |
24 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Class A | $ 70,704 |
Class B | 522 |
$ 71,226 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 332 | $ 55 |
Class B | 80 | 16 |
$ 412 | $ 71 |
Deutsche DWS Variable Series II —DWS High Income VIP | | 25 |
E. | Investing in High-Yield Debt Securities |
F. | Ownership of the Fund |
G. | Line of Credit |
H. | Other — COVID-19 Pandemic |
26 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Deutsche DWS Variable Series II —DWS High Income VIP | | 27 |
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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,013.10 | $ 1,011.40 |
Expenses Paid per $1,000* | $ 3.60 | $ 5.58 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,021.63 | $ 1,019.66 |
Expenses Paid per $1,000* | $ 3.62 | $ 5.60 |
* | 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 184 (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% | 1.10% |
28 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS High Income VIP | | 29 |
— | 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. |
30 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Deutsche DWS Variable Series II —DWS High Income VIP | | 31 |
32 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS High Income VIP | | 33 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
34 | | Deutsche DWS Variable Series II —DWS High Income VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS High Income VIP | | 35 |
3 | Performance Summary |
4 | Management Summary |
6 | Portfolio Summary |
7 | Investment Portfolio |
10 | Statement of Assets and Liabilities |
10 | Statement of Operations |
11 | Statements of Changes in Net Assets |
12 | Financial Highlights |
14 | Notes to Financial Statements |
19 | Report of Independent Registered Public Accounting Firm |
20 | Information About Your Fund's Expenses |
21 | Tax Information |
21 | Proxy Voting |
22 | Advisory Agreement Board Considerations and Fee Evaluation |
25 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $10,811 | $17,406 | $18,194 | $27,015 | |
Average annual total return | 8.11% | 20.29% | 12.72% | 10.45% | ||
MSCI All Country World ex-USA Index | Growth of $10,000 | $10,782 | $14,497 | $15,822 | $20,196 | |
Average annual total return | 7.82% | 13.18% | 9.61% | 7.28% | ||
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $10,788 | $17,260 | $17,962 | $26,208 | |
Average annual total return | 7.88% | 19.95% | 12.43% | 10.11% | ||
MSCI All Country World ex-USA Index | Growth of $10,000 | $10,782 | $14,497 | $15,822 | $20,196 | |
Average annual total return | 7.82% | 13.18% | 9.61% | 7.28% | ||
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 3 |
Management Summary | December 31, 2021 (Unaudited) |
4 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
* | Not held at December 31, 2021. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 5 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Common Stocks | 98% | 96% |
Preferred Stocks | 1% | 1% |
Cash Equivalents | 1% | 2% |
Exchange-Traded Funds | — | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
Information Technology | 25% | 24% |
Industrials | 22% | 15% |
Financials | 14% | 13% |
Health Care | 14% | 16% |
Consumer Discretionary | 8% | 13% |
Consumer Staples | 6% | 7% |
Materials | 5% | 5% |
Communication Services | 4% | 6% |
Energy | 2% | 1% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
Germany | 13% | 15% |
France | 12% | 12% |
Netherlands | 10% | 6% |
Japan | 9% | 10% |
Switzerland | 8% | 9% |
United States | 8% | 8% |
Canada | 8% | 7% |
Ireland | 5% | 4% |
China | 4% | 8% |
Sweden | 4% | 3% |
Argentina | 4% | 2% |
United Kingdom | 4% | 4% |
Singapore | 2% | 2% |
Taiwan | 2% | 2% |
Korea | 2% | 2% |
Brazil | 1% | 2% |
Other | 4% | 4% |
100% | 100% |
6 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Common Stocks 97.5% | |||
Argentina 3.5% | |||
Globant SA* | 2,170 | 681,575 | |
MercadoLibre, Inc.* | 79 | 106,524 | |
(Cost $315,297) | 788,099 | ||
Brazil 1.0% | |||
Magazine Luiza SA | 37,790 | 48,846 | |
Pagseguro Digital Ltd. "A"* (a) (b) | 6,431 | 168,621 | |
(Cost $334,413) | 217,467 | ||
Canada 7.8% | |||
Agnico Eagle Mines Ltd. | 4,088 | 217,141 | |
Alimentation Couche-Tard, Inc. "B" | 5,500 | 230,444 | |
Brookfield Asset Management, Inc. "A" | 15,000 | 905,847 | |
Canadian National Railway Co. | 2,843 | 349,220 | |
Nuvei Corp. 144A* | 765 | 49,591 | |
(Cost $786,151) | 1,752,243 | ||
China 4.4% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,445 | 171,651 | |
ANTA Sports Products Ltd. (b) | 4,800 | 71,974 | |
Dada Nexus Ltd. (ADR)* | 635 | 8,357 | |
Minth Group Ltd. | 16,870 | 74,126 | |
Ping An Insurance (Group) Co. of China Ltd. "H" | 41,000 | 295,414 | |
Tencent Holdings Ltd. | 6,200 | 360,332 | |
(Cost $819,928) | 981,854 | ||
France 11.5% | |||
Capgemini SE | 1,387 | 340,186 | |
Cie de Saint-Gobain | 2,491 | 175,503 | |
LVMH Moet Hennessy Louis Vuitton SE | 729 | 602,932 | |
Orpea SA | 1,248 | 125,133 | |
Schneider Electric SE | 1,036 | 203,342 | |
Teleperformance | 1,081 | 481,419 | |
TotalEnergies SE | 6,560 | 333,421 | |
Vinci SA | 3,117 | 329,303 | |
(Cost $1,599,268) | 2,591,239 | ||
Germany 11.9% | |||
adidas AG | 380 | 109,360 | |
Allianz SE (Registered) | 1,542 | 363,669 | |
Auto1 Group SE 144A* | 3,181 | 70,403 | |
BASF SE | 2,214 | 155,924 | |
Brenntag SE | 1,816 | 164,298 | |
Deutsche Boerse AG | 2,601 | 434,906 | |
Deutsche Post AG (Registered) | 3,711 | 238,092 | |
Evonik Industries AG | 7,403 | 239,860 | |
Evotec SE* | 4,555 | 219,393 | |
KION Group AG | 1,230 | 135,037 | |
SAP SE | 1,685 | 238,018 |
Shares | Value ($) | ||
TeamViewer AG 144A* | 7,806 | 104,796 | |
Wacker Chemie AG | 541 | 80,908 | |
Zalando SE 144A* | 1,518 | 122,712 | |
(Cost $2,629,656) | 2,677,376 | ||
Hong Kong 1.6% | |||
Techtronic Industries Co., Ltd. (Cost $87,760) | 18,597 | 370,394 | |
Ireland 4.7% | |||
Experian PLC | 10,820 | 531,936 | |
ICON PLC* (c) | 743 | 230,107 | |
Kerry Group PLC "A" | 2,308 | 297,324 | |
(Cost $595,908) | 1,059,367 | ||
Israel 1.1% | |||
Kornit Digital Ltd.* (c) (Cost $181,370) | 1,671 | 254,410 | |
Japan 9.2% | |||
Daikin Industries Ltd. | 1,900 | 429,845 | |
Fast Retailing Co., Ltd. | 230 | 130,314 | |
Hoya Corp. | 2,700 | 400,530 | |
Keyence Corp. | 700 | 439,452 | |
Lasertec Corp. | 500 | 152,481 | |
MISUMI Group, Inc. | 4,511 | 185,288 | |
Shimadzu Corp. | 4,900 | 206,604 | |
Shiseido Co., Ltd. (b) | 2,300 | 128,261 | |
(Cost $1,110,944) | 2,072,775 | ||
Korea 2.0% | |||
LG Chem Ltd. | 92 | 47,632 | |
Samsung Electronics Co., Ltd. | 6,104 | 401,249 | |
(Cost $349,120) | 448,881 | ||
Luxembourg 1.0% | |||
Eurofins Scientific SE (Cost $122,199) | 1,910 | 236,639 | |
Netherlands 9.5% | |||
Adyen NV 144A* | 73 | 191,945 | |
Airbus SE* | 1,316 | 168,565 | |
ASML Holding NV | 599 | 479,810 | |
ING Groep NV | 18,949 | 264,864 | |
Koninklijke DSM NV | 1,378 | 310,460 | |
Koninklijke Philips NV | 5,631 | 209,860 | |
NXP Semiconductors NV (c) | 995 | 226,641 | |
Prosus NV | 1,545 | 128,946 | |
Universal Music Group NV | 5,969 | 167,925 | |
(Cost $1,567,148) | 2,149,016 | ||
Singapore 2.3% | |||
DBS Group Holdings Ltd. (Cost $356,967) | 21,300 | 516,047 | |
Sweden 3.5% | |||
Assa Abloy AB "B" | 4,555 | 139,082 | |
Hexagon AB "B" | 8,735 | 138,335 |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 7 |
Shares | Value ($) | ||
Nobina AB 144A | 24,041 | 284,592 | |
Spotify Technology SA* (a) | 1,011 | 236,604 | |
(Cost $480,434) | 798,613 | ||
Switzerland 8.4% | |||
Alcon, Inc. | 739 | 65,181 | |
Lonza Group AG (Registered) | 855 | 713,179 | |
Nestle SA (Registered) | 4,053 | 567,238 | |
Roche Holding AG (Genusschein) | 888 | 369,059 | |
Sportradar Holding AG "A"* (b) (c) | 3,517 | 61,794 | |
Zur Rose Group AG* | 470 | 121,173 | |
(Cost $956,519) | 1,897,624 | ||
Taiwan 2.3% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $180,425) | 23,000 | 511,256 | |
United Kingdom 3.5% | |||
Clarivate PLC* (a) (b) | 8,159 | 191,900 | |
Farfetch Ltd. "A"* (a) | 3,114 | 104,101 | |
Halma PLC | 4,488 | 194,184 | |
Rentokil Initial PLC | 33,998 | 269,070 | |
VTEX "A"* (a) (b) | 2,396 | 25,685 | |
(Cost $654,846) | 784,940 | ||
United States 8.3% | |||
Activision Blizzard, Inc. | 1,667 | 110,905 | |
EPAM Systems, Inc.* | 833 | 556,819 | |
Marsh & McLennan Companies, Inc. | 1,958 | 340,339 | |
Mastercard, Inc. "A" | 618 | 222,060 | |
NVIDIA Corp. | 1,125 | 330,874 | |
Schlumberger NV | 3,003 | 89,940 | |
Thermo Fisher Scientific, Inc. | 344 | 229,531 | |
(Cost $634,151) | 1,880,468 | ||
Total Common Stocks (Cost $13,762,504) | 21,988,708 |
Shares | Value ($) | ||
Preferred Stocks 1.3% | |||
Germany | |||
Sartorius AG (Cost $131,681) | 437 | 295,796 | |
Securities Lending Collateral 2.8% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (d) (e) (Cost $631,412) | 631,412 | 631,412 | |
Cash Equivalents 1.1% | |||
DWS Central Cash Management Government Fund, 0.05% (d) (Cost $236,102) | 236,102 | 236,102 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $14,761,699) | 102.7 | 23,152,018 | |
Other Assets and Liabilities, Net | (2.7) | (600,251) | |
Net Assets | 100.0 | 22,551,767 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 2.8% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (d) (e) | ||||||||
— | 631,412 (f) | — | — | — | 16,403 | — | 631,412 | 631,412 |
Cash Equivalents 1.1% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (d) | ||||||||
458,187 | 5,645,365 | 5,867,450 | — | — | 129 | — | 236,102 | 236,102 |
458,187 | 6,276,777 | 5,867,450 | — | — | 16,532 | — | 867,514 | 867,514 |
* | 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 December 31, 2021 amounted to $602,326, which is 2.7% of net assets. |
(c) | Listed on the NASDAQ Stock Market, Inc. |
(d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
8 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
(e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 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 | $ 788,099 | $ — | $ — | $ 788,099 |
Brazil | 168,621 | 48,846 | — | 217,467 |
Canada | 1,752,243 | — | — | 1,752,243 |
China | 180,008 | 801,846 | — | 981,854 |
France | — | 2,591,239 | — | 2,591,239 |
Germany | — | 2,677,376 | — | 2,677,376 |
Hong Kong | — | 370,394 | — | 370,394 |
Ireland | 230,107 | 829,260 | — | 1,059,367 |
Israel | 254,410 | — | — | 254,410 |
Japan | — | 2,072,775 | — | 2,072,775 |
Korea | — | 448,881 | — | 448,881 |
Luxembourg | — | 236,639 | — | 236,639 |
Netherlands | 226,641 | 1,922,375 | — | 2,149,016 |
Singapore | — | 516,047 | — | 516,047 |
Sweden | 236,604 | 562,009 | — | 798,613 |
Switzerland | 61,794 | 1,835,830 | — | 1,897,624 |
Taiwan | — | 511,256 | — | 511,256 |
United Kingdom | 321,686 | 463,254 | — | 784,940 |
United States | 1,880,468 | — | — | 1,880,468 |
Preferred Stocks | — | 295,796 | — | 295,796 |
Short-Term Investments (a) | 867,514 | — | — | 867,514 |
Total | $6,968,195 | $16,183,823 | $ — | $23,152,018 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 9 |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated securities, at value (cost $13,894,185) — including $602,326 of securities loaned | $ 22,284,504 |
Investment in DWS Government & Agency Securities Portfolio (cost $631,412)* | 631,412 |
Investment in DWS Central Cash Management Government Fund (cost $236,102) | 236,102 |
Foreign currency, at value (cost $73,550) | 71,127 |
Receivable for investments sold | 29,632 |
Receivable for Fund shares sold | 1,322 |
Dividends receivable | 4,040 |
Interest receivable | 101 |
Foreign taxes recoverable | 24,036 |
Other assets | 430 |
Total assets | 23,282,706 |
Liabilities | |
Payable upon return of securities loaned | 631,412 |
Payable for Fund shares redeemed | 11,988 |
Accrued management fee | 4,625 |
Accrued Trustees' fees | 509 |
Other accrued expenses and payables | 82,405 |
Total liabilities | 730,939 |
Net assets, at value | $ 22,551,767 |
Net Assets Consist of | |
Distributable earnings (loss) | 8,889,920 |
Paid-in capital | 13,661,847 |
Net assets, at value | $ 22,551,767 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($22,446,716 ÷ 1,193,724 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.80 |
Class B | |
Net Asset Value, offering and redemption price per share ($105,051 ÷ 5,576 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.84 |
* | Represents collateral on securities loaned. |
Statement of Operations |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $40,585) | $ 257,228 |
Income distributions — DWS Central Cash Management Government Fund | 129 |
Securities lending income, net of borrower rebates | 16,403 |
Total income | 273,760 |
Expenses: | |
Management fee | 128,631 |
Administration fee | 20,124 |
Services to shareholders | 732 |
Record keeping fee (Class B) | 6 |
Distribution service fee (Class B) | 365 |
Custodian fee | 13,629 |
Audit fee | 59,103 |
Legal fees | 11,717 |
Tax fees | 7,206 |
Reports to shareholders | 23,703 |
Trustees' fees and expenses | 2,194 |
Other | 9,914 |
Total expenses before expense reductions | 277,324 |
Expense reductions | (89,307) |
Total expenses after expense reductions | 188,017 |
Net investment income | 85,743 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 451,935 |
Foreign currency | 1,884 |
453,819 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 993,705 |
Foreign currency | (6,182) |
987,523 | |
Net gain (loss) | 1,441,342 |
Net increase (decrease) in net assets resulting from operations | $1,527,085 |
10 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 85,743 | $ 68,931 |
Net realized gain (loss) | 453,819 | 266,287 |
Change in net unrealized appreciation (depreciation) | 987,523 | 3,136,891 |
Net increase (decrease) in net assets resulting from operations | 1,527,085 | 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 | 3,858,747 | 1,646,537 |
Reinvestment of distributions | 300,260 | 248,933 |
Payments for shares redeemed | (2,223,148) | (3,319,251) |
Net increase (decrease) in net assets from Class A share transactions | 1,935,859 | (1,423,781) |
Class B | ||
Proceeds from shares sold | 69,880 | 1,708 |
Reinvestment of distributions | 1,284 | 1,082 |
Payments for shares redeemed | (79,732) | (73,265) |
Net increase (decrease) in net assets from Class B share transactions | (8,568) | (70,475) |
Increase (decrease) in net assets | 3,152,832 | 1,727,838 |
Net assets at beginning of period | 19,398,935 | 17,671,097 |
Net assets at end of period | $22,551,767 | $19,398,935 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,093,246 | 1,196,084 |
Shares sold | 205,692 | 111,439 |
Shares issued to shareholders in reinvestment of distributions | 16,498 | 20,388 |
Shares redeemed | (121,712) | (234,665) |
Net increase (decrease) in Class A shares | 100,478 | (102,838) |
Shares outstanding at end of period | 1,193,724 | 1,093,246 |
Class B | ||
Shares outstanding at beginning of period | 6,025 | 10,737 |
Shares sold | 3,808 | 134 |
Shares issued to shareholders in reinvestment of distributions | 70 | 88 |
Shares redeemed | (4,327) | (4,934) |
Net increase (decrease) in Class B shares | (449) | (4,712) |
Shares outstanding at end of period | 5,576 | 6,025 |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 11 |
DWS International Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $17.65 | $14.64 | $11.47 | $13.90 | $11.12 |
Income (loss) from investment operations: | |||||
Net investment incomea | .08 | .06 | .22 | .16 | .08 |
Net realized and unrealized gain (loss) | 1.34 | 3.17 | 3.32 | (2.46) | 2.75 |
Total from investment operations | 1.42 | 3.23 | 3.54 | (2.30) | 2.83 |
Less distributions from: | |||||
Net investment income | (.06) | (.22) | (.17) | (.13) | (.05) |
Net realized gains | (.21) | — | (.20) | — | — |
Total distributions | (.27) | (.22) | (.37) | (.13) | (.05) |
Net asset value, end of period | $18.80 | $17.65 | $14.64 | $11.47 | $13.90 |
Total Return (%)b | 8.11 | 22.69 | 31.22 | (16.69) | 25.47 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 22 | 19 | 18 | 14 | 19 |
Ratio of expenses before expense reductions (%)c | 1.33 | 1.50 | 1.64 | 1.72 | 1.56 |
Ratio of expenses after expense reductions (%)c | .90 | .87 | .86 | .81 | .92 |
Ratio of net investment income (%) | .41 | .42 | 1.63 | 1.21 | .61 |
Portfolio turnover rate (%) | 20 | 10 | 16 | 38 | 62 |
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. |
12 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
DWS International Growth VIP — Class B | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $17.67 | $14.66 | $11.49 | $13.93 | $11.13 |
Income (loss) from investment operations: | |||||
Net investment incomea | .03 | .01 | .18 | .12 | .02 |
Net realized and unrealized gain (loss) | 1.36 | 3.18 | 3.33 | (2.46) | 2.79 |
Total from investment operations | 1.39 | 3.19 | 3.51 | (2.34) | 2.81 |
Less distributions from: | |||||
Net investment income | (.01) | (.18) | (.14) | (.10) | (.01) |
Net realized gains | (.21) | — | (.20) | — | — |
Total distributions | (.22) | (.18) | (.34) | (.10) | (.01) |
Net asset value, end of period | $18.84 | $17.67 | $14.66 | $11.49 | $13.93 |
Total Return (%)b | 7.88 | 22.29 | 30.84 | (16.92) | 25.26 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .1 | .1 | .2 | .2 | .2 |
Ratio of expenses before expense reductions (%)c | 1.62 | 1.81 | 1.95 | 2.07 | 1.90 |
Ratio of expenses after expense reductions (%)c | 1.17 | 1.18 | 1.16 | 1.06 | 1.15 |
Ratio of net investment income (%) | .18 | .07 | 1.31 | .92 | .12 |
Portfolio turnover rate (%) | 20 | 10 | 16 | 38 | 62 |
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. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 13 |
A. | Organization and Significant Accounting Policies |
14 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 15 |
Undistributed ordinary income* | $ 233,674 |
Undistributed long-term capital gains | $ 300,447 |
Net unrealized appreciation (depreciation) on investments | $ 8,358,482 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 69,290 | $ 250,015 |
Distributions from long-term capital gains | $ 232,254 | $ — |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
B. | Purchases and Sales of Securities |
C. | Related Parties |
16 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Class A | .87% |
Class B | 1.17% |
Class A | $ 88,655 |
Class B | 652 |
$ 89,307 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 265 | $ 44 |
Class B | 44 | 7 |
$ 309 | $ 51 |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 17 |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
18 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 19 |
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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,021.70 | $ 1,020.60 |
Expenses Paid per $1,000* | $ 4.69 | $ 5.96 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,020.57 | $ 1,019.31 |
Expenses Paid per $1,000* | $ 4.69 | $ 5.96 |
* | 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 184 (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 | .92% | 1.17% |
20 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 21 |
— | 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. |
22 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 23 |
24 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 25 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
26 | | Deutsche DWS Variable Series II —DWS International Growth VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS International Growth VIP | | 27 |
3 | Performance Summary |
4 | Management Summary |
5 | Portfolio Summary |
6 | Investment Portfolio |
10 | Statement of Assets and Liabilities |
10 | Statement of Operations |
11 | Statements of Changes in Net Assets |
12 | Financial Highlights |
13 | Notes to Financial Statements |
17 | Report of Independent Registered Public Accounting Firm |
18 | Information About Your Fund's Expenses |
19 | Tax Information |
19 | Proxy Voting |
20 | Advisory Agreement Board Considerations and Fee Evaluation |
23 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS Small Mid Cap Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $11,384 | $18,141 | $19,143 | $35,712 | |
Average annual total return | 13.84% | 21.96% | 13.87% | 13.57% | ||
Russell 2500 Growth Index | Growth of $10,000 | $10,504 | $19,574 | $22,542 | $43,169 | |
Average annual total return | 5.04% | 25.09% | 17.65% | 15.75% | ||
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 3 |
Management Summary | December 31, 2021 (Unaudited) |
* | Not held as of December 31, 2021. |
4 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Common Stocks | 99% | 97% |
Cash Equivalents | 1% | 2% |
Exchange-Traded Funds | 0% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Cash Equivalents and Securities Lending) | 12/31/21 | 12/31/20 |
Information Technology | 28% | 29% |
Health Care | 26% | 29% |
Industrials | 16% | 14% |
Consumer Discretionary | 14% | 13% |
Financials | 5% | 5% |
Materials | 4% | 4% |
Real Estate | 3% | 3% |
Consumer Staples | 2% | 2% |
Communication Services | 1% | 1% |
Energy | 1% | 0% |
100% | 100% |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 5 |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Common Stocks 98.5% | |||
Communication Services 1.0% | |||
Entertainment 0.5% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 386,363 | |
Interactive Media & Services 0.5% | |||
Cargurus, Inc.* | 10,463 | 351,976 | |
Consumer Discretionary 13.8% | |||
Auto Components 0.9% | |||
Gentherm, Inc.* | 7,364 | 639,932 | |
Diversified Consumer Services 1.1% | |||
Bright Horizons Family Solutions, Inc.* | 5,598 | 704,676 | |
Terminix Global Holdings, Inc.* | 3,418 | 154,596 | |
859,272 | |||
Hotels, Restaurants & Leisure 2.1% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 650,906 | |
Jack in the Box, Inc. | 7,892 | 690,392 | |
Scientific Games Corp. "A"* | 3,937 | 263,110 | |
1,604,408 | |||
Household Durables 4.3% | |||
Helen of Troy Ltd.* | 2,963 | 724,365 | |
iRobot Corp.* (a) | 6,273 | 413,265 | |
LGI Homes, Inc.* | 3,489 | 538,981 | |
TopBuild Corp.* | 5,673 | 1,565,237 | |
3,241,848 | |||
Internet & Direct Marketing Retail 0.2% | |||
Just Eat Takeaway.com NV (ADR)* (a) | 12,289 | 132,230 | |
Leisure Products 1.7% | |||
YETI Holdings, Inc.* | 15,522 | 1,285,687 | |
Specialty Retail 3.5% | |||
Burlington Stores, Inc.* | 2,883 | 840,423 | |
Camping World Holdings, Inc. "A" (a) | 24,907 | 1,006,243 | |
Leslie's, Inc.* | 2,799 | 66,224 | |
National Vision Holdings, Inc.* | 7,865 | 377,441 | |
The Children's Place, Inc.* | 4,788 | 379,641 | |
2,669,972 | |||
Consumer Staples 2.1% | |||
Food & Staples Retailing 1.2% | |||
Casey's General Stores, Inc. | 4,371 | 862,617 | |
Household Products 0.9% | |||
Spectrum Brands Holdings, Inc. | 6,982 | 710,209 | |
Energy 0.7% | |||
Oil, Gas & Consumable Fuels | |||
Crescent Energy, Inc. "A"* (a) | 6,384 | 80,949 |
Shares | Value ($) | ||
Denbury, Inc.* | 2,500 | 191,475 | |
Ovintiv, Inc. | 6,811 | 229,531 | |
501,955 | |||
Financials 4.7% | |||
Banks 2.7% | |||
Pinnacle Financial Partners, Inc. | ��5,944 | 567,652 | |
South State Corp. | 4,704 | 376,837 | |
SVB Financial Group* | 742 | 503,254 | |
Synovus Financial Corp. | 11,493 | 550,170 | |
1,997,913 | |||
Capital Markets 1.7% | |||
FactSet Research Systems, Inc. | 296 | 143,859 | |
Lazard Ltd. "A" | 13,717 | 598,473 | |
Moelis & Co. "A" | 9,136 | 571,091 | |
1,313,423 | |||
Consumer Finance 0.3% | |||
Green Dot Corp. "A"* | 6,162 | 223,311 | |
Health Care 25.2% | |||
Biotechnology 8.7% | |||
Amicus Therapeutics, Inc.* | 7,094 | 81,936 | |
Apellis Pharmaceuticals, Inc.* | 4,251 | 200,987 | |
Arena Pharmaceuticals, Inc.* | 5,976 | 555,409 | |
Beam Therapeutics, Inc.* | 1,093 | 87,101 | |
Biohaven Pharmaceutical Holding Co., Ltd.* | 7,287 | 1,004,222 | |
Blueprint Medicines Corp.* | 4,684 | 501,703 | |
Fate Therapeutics, Inc.* | 3,846 | 225,030 | |
Global Blood Therapeutics, Inc.* | 4,524 | 132,418 | |
Insmed, Inc.* | 6,610 | 180,056 | |
Intellia Therapeutics, Inc.* | 1,898 | 224,420 | |
Invitae Corp.* | 5,038 | 76,930 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 103,211 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 412,717 | |
Mirati Therapeutics, Inc.* | 2,178 | 319,491 | |
Natera, Inc.* | 4,935 | 460,880 | |
Neurocrine Biosciences, Inc.* | 7,085 | 603,429 | |
TG Therapeutics, Inc.* | 4,142 | 78,698 | |
Travere Therapeutics, Inc.* | 23,478 | 728,757 | |
Turning Point Therapeutics, Inc.* | 2,679 | 127,788 | |
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 257,063 | |
Veracyte, Inc.* | 5,225 | 215,270 | |
6,577,516 | |||
Health Care Equipment & Supplies 3.7% | |||
Axonics, Inc.* | 4,613 | 258,328 | |
BioLife Solutions, Inc.* | 8,451 | 314,969 | |
Globus Medical, Inc. "A"* | 4,024 | 290,533 |
6 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
Haemonetics Corp.* | 1,353 | 71,763 | |
Masimo Corp.* | 2,727 | 798,411 | |
Nevro Corp.* | 1,428 | 115,768 | |
Outset Medical, Inc.* | 4,898 | 225,749 | |
STAAR Surgical Co.* | 975 | 89,017 | |
Tandem Diabetes Care, Inc.* | 4,219 | 635,044 | |
2,799,582 | |||
Health Care Providers & Services 9.1% | |||
AMN Healthcare Services, Inc.* | 13,141 | 1,607,539 | |
Clover Health Investments Corp.* | 15,307 | 56,942 | |
HealthEquity, Inc.* | 1,929 | 85,339 | |
ModivCare, Inc.* | 9,473 | 1,404,751 | |
Molina Healthcare, Inc.* | 4,119 | 1,310,172 | |
Option Care Health, Inc.* | 26,064 | 741,260 | |
RadNet, Inc.* | 55,477 | 1,670,412 | |
6,876,415 | |||
Health Care Technology 1.0% | |||
Vocera Communications, Inc.* | 11,330 | 734,637 | |
Life Sciences Tools & Services 0.6% | |||
Avantor, Inc.* | 7,242 | 305,178 | |
NeoGenomics, Inc.* | 3,100 | 105,772 | |
410,950 | |||
Pharmaceuticals 2.1% | |||
Aclaris Therapeutics, Inc.* | 12,953 | 188,337 | |
ANI Pharmaceuticals, Inc.* | 8,521 | 392,648 | |
Arvinas, Inc.* | 2,000 | 164,280 | |
Avadel Pharmaceuticals PLC (ADR)* (a) | 18,916 | 152,841 | |
Pacira BioSciences, Inc.* | 11,807 | 710,427 | |
1,608,533 | |||
Industrials 15.7% | |||
Aerospace & Defense 1.0% | |||
HEICO Corp. | 5,006 | 721,965 | |
Building Products 5.2% | |||
Advanced Drainage Systems, Inc. | 3,825 | 520,697 | |
Allegion PLC | 7,499 | 993,168 | |
Builders FirstSource, Inc.* | 18,923 | 1,621,890 | |
Masonite International Corp.* | 6,705 | 790,855 | |
3,926,610 | |||
Commercial Services & Supplies 2.4% | |||
MSA Safety, Inc. | 2,392 | 361,096 | |
Tetra Tech, Inc. | 4,419 | 750,346 | |
The Brink's Co. | 11,036 | 723,631 | |
1,835,073 | |||
Construction & Engineering 0.6% | |||
MasTec, Inc.* | 4,674 | 431,317 | |
Electrical Equipment 1.0% | |||
Generac Holdings, Inc.* | 1,478 | 520,138 |
Shares | Value ($) | ||
Plug Power, Inc.* | 4,018 | 113,428 | |
Thermon Group Holdings, Inc.* | 9,149 | 154,892 | |
788,458 | |||
Machinery 0.8% | |||
IDEX Corp. | 2,502 | 591,273 | |
Professional Services 2.0% | |||
Kforce, Inc. | 20,225 | 1,521,324 | |
Trading Companies & Distributors 2.7% | |||
H&E Equipment Services, Inc. | 16,406 | 726,294 | |
Rush Enterprises, Inc. "A" | 16,590 | 923,067 | |
Titan Machinery, Inc.* | 11,743 | 395,622 | |
2,044,983 | |||
Information Technology 28.1% | |||
Communications Equipment 1.8% | |||
Calix, Inc.* | 8,844 | 707,255 | |
Lumentum Holdings, Inc.* | 6,080 | 643,081 | |
1,350,336 | |||
Electronic Equipment, Instruments & Components 2.8% | |||
Advanced Energy Industries, Inc. | 12,629 | 1,149,997 | |
Cognex Corp. | 7,873 | 612,204 | |
IPG Photonics Corp.* | 1,883 | 324,140 | |
2,086,341 | |||
IT Services 2.8% | |||
Broadridge Financial Solutions, Inc. | 5,482 | 1,002,219 | |
Maximus, Inc. | 8,556 | 681,657 | |
WEX, Inc.* | 2,932 | 411,623 | |
2,095,499 | |||
Semiconductors & Semiconductor Equipment 6.8% | |||
CMC Materials, Inc. | 2,531 | 485,168 | |
Entegris, Inc. | 6,342 | 878,874 | |
Monolithic Power Systems, Inc. | 2,547 | 1,256,512 | |
Semtech Corp.* | 7,632 | 678,714 | |
SiTime Corp.* | 4,087 | 1,195,611 | |
Ultra Clean Holdings, Inc.* | 10,873 | 623,675 | |
5,118,554 | |||
Software 13.9% | |||
Aspen Technology, Inc.* | 9,339 | 1,421,396 | |
DocuSign, Inc.* | 1,013 | 154,290 | |
Dynatrace, Inc.* | 7,679 | 463,428 | |
Envestnet, Inc.* | 9,852 | 781,658 | |
Five9, Inc.* | 12,047 | 1,654,294 | |
LivePerson, Inc.* | 7,263 | 259,434 | |
Rapid7, Inc.* | 6,849 | 806,059 | |
Tenable Holdings, Inc.* | 9,841 | 541,944 | |
Tyler Technologies, Inc.* | 4,051 | 2,179,235 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 7 |
Shares | Value ($) | ||
Varonis Systems, Inc.* | 35,677 | 1,740,324 | |
Workiva, Inc.* | 3,858 | 503,430 | |
10,505,492 | |||
Materials 4.1% | |||
Construction Materials 1.3% | |||
Eagle Materials, Inc. | 5,901 | 982,280 | |
Containers & Packaging 0.7% | |||
Berry Global Group, Inc.* | 6,828 | 503,770 | |
Metals & Mining 2.1% | |||
Cleveland-Cliffs, Inc.* (a) | 53,487 | 1,164,412 | |
First Quantum Minerals Ltd. | 17,207 | 411,760 | |
1,576,172 | |||
Real Estate 3.1% | |||
Equity Real Estate Investment Trusts (REITs) 2.7% | |||
Americold Realty Trust | 10,299 | 337,704 | |
EastGroup Properties, Inc. | 2,708 | 617,018 | |
Essential Properties Realty Trust, Inc. | 21,678 | 624,977 | |
Four Corners Property Trust, Inc. | 13,954 | 410,387 | |
1,990,086 | |||
Real Estate Management & Development 0.4% | |||
Newmark Group, Inc. "A" | 17,392 | 325,230 | |
Total Common Stocks (Cost $37,722,906) | 74,183,512 |
Shares | Value ($) | ||
Exchange-Traded Funds 0.4% | |||
SPDR S&P Biotech ETF (Cost $247,239) | 2,719 | 304,419 | |
Securities Lending Collateral 3.8% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) (Cost $2,874,385) | 2,874,385 | 2,874,385 | |
Cash Equivalents 1.3% | |||
DWS Central Cash Management Government Fund, 0.05% (b) (Cost $950,292) | 950,292 | 950,292 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $41,794,822) | 104.0 | 78,312,608 | |
Other Assets and Liabilities, Net | (4.0) | (3,001,985) | |
Net Assets | 100.0 | 75,310,623 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 3.8% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) | ||||||||
5,457,727 | — | 2,583,342 (d) | — | — | 10,294 | — | 2,874,385 | 2,874,385 |
Cash Equivalents 1.3% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (b) | ||||||||
1,738,142 | 10,071,908 | 10,859,758 | — | — | 408 | — | 950,292 | 950,292 |
7,195,869 | 10,071,908 | 13,443,100 | — | — | 10,702 | — | 3,824,677 | 3,824,677 |
* | 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 December 31, 2021 amounted to $2,798,221, which is 3.7% 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 year ended December 31, 2021. |
ADR: American Depositary Receipt |
S&P: Standard & Poor's |
SPDR: Standard & Poor's Depositary Receipt |
8 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 74,183,512 | $ — | $ — | $ 74,183,512 |
Exchange-Traded Funds | 304,419 | — | — | 304,419 |
Short-Term Investments (a) | 3,824,677 | — | — | 3,824,677 |
Total | $ 78,312,608 | $ — | $ — | $ 78,312,608 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 9 |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated securities, at value (cost $37,970,145) — including $2,798,221 of securities loaned | $ 74,487,931 |
Investment in DWS Government & Agency Securities Portfolio (cost $2,874,385)* | 2,874,385 |
Investment in DWS Central Cash Management Government Fund (cost $950,292) | 950,292 |
Foreign currency, at value (cost $224) | 232 |
Dividends receivable | 26,990 |
Interest receivable | 470 |
Other assets | 1,283 |
Total assets | 78,341,583 |
Liabilities | |
Payable upon return of securities loaned | 2,874,385 |
Payable for Fund shares redeemed | 47,824 |
Accrued management fee | 34,317 |
Accrued Trustees' fees | 1,143 |
Other accrued expenses and payables | 73,291 |
Total liabilities | 3,030,960 |
Net assets, at value | $ 75,310,623 |
Net Assets Consist of | |
Distributable earnings (loss) | 43,448,345 |
Paid-in capital | 31,862,278 |
Net assets, at value | $ 75,310,623 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($75,310,623 ÷ 3,990,886 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 18.87 |
* | Represents collateral on securities loaned. |
Statement of Operations |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $21) | $ 336,500 |
Income distributions — DWS Central Cash Management Government Fund | 408 |
Securities lending income, net of borrower rebates | 10,294 |
Total income | 347,202 |
Expenses: | |
Management fee | 416,498 |
Administration fee | 73,455 |
Services to shareholders | 664 |
Custodian fee | 3,403 |
Audit fee | 38,433 |
Legal fees | 13,830 |
Tax fees | 8,316 |
Reports to shareholders | 30,882 |
Trustees' fees and expenses | 4,688 |
Other | 3,870 |
Total expenses | 594,039 |
Net investment income (loss) | (246,837) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 7,087,492 |
Change in net unrealized appreciation (depreciation) on investments | 2,870,407 |
Net gain (loss) | 9,957,899 |
Net increase (decrease) in net assets resulting from operations | $9,711,062 |
10 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income (loss) | $ (246,837) | $ (28,369) |
Net realized gain (loss) | 7,087,492 | 3,757,624 |
Change in net unrealized appreciation (depreciation) | 2,870,407 | 12,517,964 |
Net increase (decrease) in net assets resulting from operations | 9,711,062 | 16,247,219 |
Distributions to shareholders: | ||
Class A | (3,804,844) | (959,731) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,680,334 | 3,372,258 |
Reinvestment of distributions | 3,804,844 | 959,731 |
Payments for shares redeemed | (10,049,938) | (10,851,170) |
Net increase (decrease) in net assets from Class A share transactions | (3,564,760) | (6,519,181) |
Increase (decrease) in net assets | 2,341,458 | 8,768,307 |
Net assets at beginning of period | 72,969,165 | 64,200,858 |
Net assets at end of period | $ 75,310,623 | $ 72,969,165 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,186,167 | 4,698,629 |
Shares sold | 144,423 | 244,143 |
Shares issued to shareholders in reinvestment of distributions | 211,028 | 90,115 |
Shares redeemed | (550,732) | (846,720) |
Net increase (decrease) in Class A shares | (195,281) | (512,462) |
Shares outstanding at end of period | 3,990,886 | 4,186,167 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 11 |
DWS Small Mid Cap Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $17.43 | $13.66 | $12.68 | $21.94 | $18.96 |
Income (loss) from investment operations: | |||||
Net investment income (loss)a | (.06) | (.01) | .01 | (.01) | (.02) |
Net realized and unrealized gain (loss) | 2.43 | 4.00 | 2.73 | (1.92) | 4.08 |
Total from investment operations | 2.37 | 3.99 | 2.74 | (1.93) | 4.06 |
Less distributions from: | |||||
Net investment income | (.01) | (.01) | — | — | (.02) |
Net realized gains | (.92) | (.21) | (1.76) | (7.33) | (1.06) |
Total distributions | (.93) | (.22) | (1.76) | (7.33) | (1.08) |
Net asset value, end of period | $18.87 | $17.43 | $13.66 | $12.68 | $21.94 |
Total Return (%) | 13.84 | 30.18 b | 22.41 b | (13.59) b | 22.12 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 75 | 73 | 64 | 64 | 77 |
Ratio of expenses before expense reductions (%)c | .78 | .82 | .82 | .81 | .75 |
Ratio of expenses after expense reductions (%)c | .78 | .81 | .81 | .80 | .75 |
Ratio of net investment income (loss) (%) | (.33) | (.05) | .11 | (.06) | (.08) |
Portfolio turnover rate (%) | 16 | 12 | 10 | 32 | 32 |
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. |
12 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 13 |
Undistributed long-term capital gains | $ 7,035,573 |
Net unrealized appreciation (depreciation) on investments | $ 36,405,590 |
14 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 753,322 | $ 27,637 |
Distributions from long-term capital gains | $ 3,051,522 | $ 932,094 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
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% |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 15 |
D. | Ownership of the Fund |
E. | Line of Credit |
F. | Other — COVID-19 Pandemic |
16 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth 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 |
Beginning Account Value 7/1/21 | $1,000.00 |
Ending Account Value 12/31/21 | $1,038.00 |
Expenses Paid per $1,000* | $ 4.01 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/21 | $1,000.00 |
Ending Account Value 12/31/21 | $1,021.27 |
Expenses Paid per $1,000* | $ 3.97 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (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 | .78% |
18 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth 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 distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
20 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 21 |
22 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 23 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
24 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Growth VIP | | 25 |
3 | Performance Summary |
4 | Management Summary |
6 | Portfolio Summary |
7 | Investment Portfolio |
11 | Statement of Assets and Liabilities |
11 | Statement of Operations |
12 | Statements of Changes in Net Assets |
13 | Financial Highlights |
15 | Notes to Financial Statements |
21 | Report of Independent Registered Public Accounting Firm |
22 | Information About Your Fund's Expenses |
23 | Tax Information |
23 | Proxy Voting |
24 | Advisory Agreement Board Considerations and Fee Evaluation |
27 | Board Members and Officers |
2 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Performance Summary | December 31, 2021 (Unaudited) |
Comparative Results | ||||||
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class A | Growth of $10,000 | $13,050 | $15,731 | $14,602 | $27,181 | |
Average annual total return | 30.50% | 16.30% | 7.87% | 10.52% | ||
Russell 2500 Value Index | Growth of $10,000 | $12,778 | $16,559 | $16,016 | $32,265 | |
Average annual total return | 27.78% | 18.31% | 9.88% | 12.43% | ||
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | ||
Class B | Growth of $10,000 | $13,004 | $15,560 | $14,339 | $26,211 | |
Average annual total return | 30.04% | 15.88% | 7.47% | 10.12% | ||
Russell 2500 Value Index | Growth of $10,000 | $12,778 | $16,559 | $16,016 | $32,265 | |
Average annual total return | 27.78% | 18.31% | 9.88% | 12.43% | ||
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 3 |
Management Summary | December 31, 2021 (Unaudited) |
4 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
* | Not held at December 31, 2021. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 5 |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/21 | 12/31/20 |
Common Stocks | 99% | 100% |
Cash Equivalents | 1% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/21 | 12/31/20 |
Financials | 22% | 20% |
Industrials | 16% | 17% |
Real Estate | 13% | 12% |
Consumer Discretionary | 10% | 14% |
Information Technology | 10% | 9% |
Health Care | 8% | 7% |
Materials | 6% | 7% |
Energy | 5% | 4% |
Utilities | 4% | 4% |
Communication Services | 3% | 3% |
Consumer Staples | 3% | 3% |
100% | 100% |
6 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Investment Portfolio | as of December 31, 2021 |
Shares | Value ($) | ||
Common Stocks 99.5% | |||
Communication Services 3.3% | |||
Entertainment 1.1% | |||
Lions Gate Entertainment Corp. "A"* (a) | 51,187 | 851,752 | |
Madison Square Garden Sports Corp.* | 1,859 | 322,964 | |
1,174,716 | |||
Media 1.8% | |||
Interpublic Group of Companies, Inc. | 49,706 | 1,861,490 | |
Wireless Telecommunication Services 0.4% | |||
Telephone & Data Systems, Inc. | 20,294 | 408,924 | |
Consumer Discretionary 10.0% | |||
Auto Components 1.7% | |||
Goodyear Tire & Rubber Co.* | 47,305 | 1,008,543 | |
Lear Corp. | 4,259 | 779,184 | |
1,787,727 | |||
Automobiles 0.5% | |||
Winnebago Industries, Inc. | 6,930 | 519,195 | |
Diversified Consumer Services 0.3% | |||
Vivint Smart Home, Inc.* | 35,073 | 343,014 | |
Hotels, Restaurants & Leisure 1.7% | |||
Boyd Gaming Corp.* | 10,704 | 701,861 | |
International Game Technology PLC (a) | 19,871 | 574,471 | |
Red Rock Resorts, Inc. "A" (a) | 8,611 | 473,691 | |
1,750,023 | |||
Household Durables 2.2% | |||
Beazer Homes U.S.A., Inc.* | 25,089 | 582,567 | |
PulteGroup, Inc. | 29,095 | 1,663,070 | |
2,245,637 | |||
Internet & Direct Marketing Retail 0.7% | |||
Overstock.com, Inc.* (a) | 6,410 | 378,254 | |
Qurate Retail, Inc. "A" | 49,172 | 373,707 | |
751,961 | |||
Leisure Products 0.2% | |||
Nautilus, Inc.* (a) | 36,693 | 224,928 | |
Specialty Retail 0.2% | |||
CarLotz, Inc.* (a) | 74,380 | 168,843 | |
Textiles, Apparel & Luxury Goods 2.5% | |||
Columbia Sportswear Co. | 16,694 | 1,626,663 | |
Under Armour, Inc. "A"* (a) | 42,221 | 894,663 | |
2,521,326 |
Shares | Value ($) | ||
Consumer Staples 3.2% | |||
Food & Staples Retailing 0.3% | |||
Performance Food Group Co.* | 6,533 | 299,800 | |
Food Products 1.0% | |||
Darling Ingredients, Inc.* | 10,608 | 735,028 | |
Hostess Brands, Inc.* | 16,616 | 339,299 | |
1,074,327 | |||
Household Products 1.9% | |||
Central Garden & Pet Co.* | 18,763 | 987,497 | |
Spectrum Brands Holdings, Inc. | 9,298 | 945,792 | |
1,933,289 | |||
Energy 4.9% | |||
Energy Equipment & Services 0.4% | |||
NexTier Oilfield Solutions, Inc.* | 107,725 | 382,424 | |
Oil, Gas & Consumable Fuels 4.5% | |||
Civitas Resources, Inc. | 9,392 | 459,926 | |
Devon Energy Corp. | 38,714 | 1,705,352 | |
Targa Resources Corp. | 47,289 | 2,470,377 | |
4,635,655 | |||
Financials 21.9% | |||
Banks 8.9% | |||
BankUnited, Inc. | 40,550 | 1,715,670 | |
Commerce Bancshares, Inc. | 5,630 | 387,006 | |
ConnectOne Bancorp., Inc. | 10,908 | 356,801 | |
Eagle Bancorp., Inc. | 28,111 | 1,639,996 | |
Hancock Whitney Corp. | 26,974 | 1,349,239 | |
Hilltop Holdings, Inc. | 25,784 | 906,050 | |
Primis Financial Corp. | 24,193 | 363,863 | |
Simmons First National Corp. "A" | 30,569 | 904,231 | |
UMB Financial Corp. | 14,217 | 1,508,566 | |
9,131,422 | |||
Capital Markets 1.8% | |||
Donnelley Financial Solutions, Inc.* | 38,439 | 1,812,014 | |
Consumer Finance 1.8% | |||
Credit Acceptance Corp.* (a) | 1,907 | 1,311,406 | |
Navient Corp. | 24,093 | 511,253 | |
1,822,659 | |||
Diversified Financial Services 1.4% | |||
Cannae Holdings, Inc.* | 12,504 | 439,516 | |
Voya Financial, Inc. | 15,823 | 1,049,223 | |
1,488,739 | |||
Insurance 6.2% | |||
AMERISAFE, Inc. | 9,923 | 534,155 | |
Assurant, Inc. | 10,579 | 1,648,843 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 7 |
Shares | Value ($) | ||
Athene Holding Ltd. "A"* | 4,895 | 407,900 | |
Brown & Brown, Inc. | 38,887 | 2,732,979 | |
Everest Re Group Ltd. | 3,840 | 1,051,853 | |
6,375,730 | |||
Mortgage Real Estate Investment Trusts (REITs) 1.4% | |||
Blackstone Mortgage Trust, Inc. "A" | 8,173 | 250,257 | |
Ellington Financial, Inc. | 38,132 | 651,676 | |
New Residential Investment Corp. | 23,054 | 246,909 | |
Redwood Trust, Inc. | 25,738 | 339,484 | |
1,488,326 | |||
Thrifts & Mortgage Finance 0.4% | |||
Walker & Dunlop, Inc. | 3,055 | 460,938 | |
Health Care 8.4% | |||
Biotechnology 3.0% | |||
Agios Pharmaceuticals, Inc.* | 7,142 | 234,757 | |
Athenex, Inc.* (a) | 176,355 | 239,843 | |
Gritstone bio, Inc.* (a) | 23,967 | 308,216 | |
Jounce Therapeutics, Inc.* (a) | 30,583 | 255,368 | |
Myriad Genetics, Inc.* | 28,066 | 774,621 | |
Sage Therapeutics, Inc.* | 24,674 | 1,049,632 | |
Sana Biotechnology, Inc.* (a) | 16,472 | 254,986 | |
3,117,423 | |||
Health Care Equipment & Supplies 1.0% | |||
ICU Medical, Inc.* | 3,236 | 768,032 | |
Pulmonx Corp.* (a) | 7,082 | 227,120 | |
995,152 | |||
Health Care Providers & Services 1.3% | |||
Apria, Inc.* (a) | 13,199 | 430,288 | |
Molina Healthcare, Inc.* | 2,804 | 891,896 | |
1,322,184 | |||
Life Sciences Tools & Services 2.4% | |||
Bruker Corp. | 7,938 | 666,078 | |
PerkinElmer, Inc. | 6,269 | 1,260,445 | |
Syneos Health, Inc.* | 5,302 | 544,409 | |
2,470,932 | |||
Pharmaceuticals 0.7% | |||
Atea Pharmaceuticals, Inc.* | 31,135 | 278,347 | |
NGM Biopharmaceuticals, Inc.* (a) | 19,262 | 341,130 | |
Reata Pharmaceuticals, Inc. "A"* (a) | 2,689 | 70,909 | |
690,386 | |||
Industrials 15.4% | |||
Aerospace & Defense 0.3% | |||
Virgin Galactic Holdings Inc.* (a) | 24,193 | 323,702 |
Shares | Value ($) | ||
Air Freight & Logistics 1.5% | |||
Atlas Air Worldwide Holdings, Inc.* | 10,887 | 1,024,684 | |
GXO Logistics, Inc.* | 5,515 | 500,928 | |
1,525,612 | |||
Airlines 0.2% | |||
Mesa Air Group, Inc.* | 46,861 | 262,422 | |
Building Products 2.6% | |||
Carlisle Companies, Inc. | 9,343 | 2,318,185 | |
Resideo Technologies, Inc.* | 13,293 | 346,017 | |
2,664,202 | |||
Electrical Equipment 2.2% | |||
Encore Wire Corp. | 5,483 | 784,617 | |
EnerSys | 19,390 | 1,532,974 | |
2,317,591 | |||
Machinery 4.1% | |||
Hillenbrand, Inc. | 51,641 | 2,684,816 | |
Pentair PLC | 6,786 | 495,581 | |
The Manitowoc Co., Inc.* (a) | 56,618 | 1,052,529 | |
4,232,926 | |||
Professional Services 2.0% | |||
Jacobs Engineering Group, Inc. | 13,094 | 1,823,078 | |
Science Applications International Corp. | 2,940 | 245,754 | |
2,068,832 | |||
Road & Rail 1.1% | |||
Knight-Swift Transportation Holdings, Inc. | 10,885 | 663,332 | |
XPO Logistics, Inc.* | 5,515 | 427,026 | |
1,090,358 | |||
Trading Companies & Distributors 1.4% | |||
MRC Global, Inc.* | 67,641 | 465,370 | |
NOW, Inc.* | 109,928 | 938,785 | |
1,404,155 | |||
Information Technology 9.7% | |||
Communications Equipment 1.2% | |||
Ciena Corp.* | 7,945 | 611,527 | |
CommScope Holding Co., Inc.* | 54,708 | 603,976 | |
1,215,503 | |||
Electronic Equipment, Instruments & Components 3.5% | |||
Arlo Technologies, Inc.* | 102,322 | 1,073,358 | |
Avnet, Inc. | 33,437 | 1,378,608 | |
SYNNEX Corp. | 3,829 | 437,884 | |
Teledyne Technologies, Inc.* | 1,727 | 754,509 | |
3,644,359 |
8 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
IT Services 1.4% | |||
Alliance Data Systems Corp. | 12,940 | 861,416 | |
Concentrix Corp. | 3,437 | 613,917 | |
1,475,333 | |||
Semiconductors & Semiconductor Equipment 1.5% | |||
Cirrus Logic, Inc.* | 11,969 | 1,101,387 | |
Ichor Holdings Ltd.* | 8,469 | 389,828 | |
1,491,215 | |||
Software 2.1% | |||
Cognyte Software Ltd.* | 24,739 | 387,660 | |
NCR Corp.* | 8,756 | 351,991 | |
Verint Systems, Inc.* | 26,229 | 1,377,285 | |
2,116,936 | |||
Materials 6.2% | |||
Chemicals 3.8% | |||
Albemarle Corp. | 1,209 | 282,628 | |
Avient Corp. | 10,901 | 609,911 | |
Chemours Co. | 7,973 | 267,574 | |
H.B. Fuller Co. | 6,184 | 500,904 | |
Kraton Corp.* | 40,274 | 1,865,492 | |
The Mosaic Co. | 9,339 | 366,929 | |
3,893,438 | |||
Containers & Packaging 0.7% | |||
Graphic Packaging Holding Co. | 33,885 | 660,757 | |
Metals & Mining 1.7% | |||
Steel Dynamics, Inc. | 28,779 | 1,786,313 | |
Real Estate 12.9% | |||
Equity Real Estate Investment Trusts (REITs) 12.4% | |||
Agree Realty Corp. | 12,759 | 910,482 | |
Duke Realty Corp. | 16,051 | 1,053,588 | |
Gaming and Leisure Properties, Inc. | 32,113 | 1,562,619 | |
Highwoods Properties, Inc. | 27,146 | 1,210,440 | |
Iron Mountain, Inc. (a) | 8,026 | 420,001 | |
LXP Industrial Trust (a) | 155,012 | 2,421,287 | |
NexPoint Residential Trust, Inc. | 10,300 | 863,449 | |
Safehold, Inc. | 3,694 | 294,966 | |
SITE Centers Corp. | 38,592 | 610,911 |
Shares | Value ($) | ||
STAG Industrial, Inc. | 52,479 | 2,516,893 | |
Urban Edge Properties | 46,898 | 891,062 | |
12,755,698 | |||
Real Estate Management & Development 0.5% | |||
Kennedy-Wilson Holdings, Inc. | 11,176 | 266,883 | |
Opendoor Technologies Inc.* (a) | 18,958 | 276,976 | |
543,859 | |||
Utilities 3.6% | |||
Electric Utilities 2.7% | |||
IDACORP, Inc. | 15,434 | 1,748,827 | |
Otter Tail Corp. | 5,034 | 359,528 | |
PG&E Corp.* | 32,722 | 397,245 | |
Pinnacle West Capital Corp. | 3,738 | 263,865 | |
2,769,465 | |||
Gas Utilities 0.9% | |||
UGI Corp. | 20,014 | 918,843 | |
Total Common Stocks (Cost $73,345,464) | 102,420,703 | ||
Securities Lending Collateral 6.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) (Cost $6,453,827) | 6,453,827 | 6,453,827 | |
Cash Equivalents 0.6% | |||
DWS Central Cash Management Government Fund, 0.05% (b) (Cost $663,321) | 663,321 | 663,321 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $80,462,612) | 106.4 | 109,537,851 | |
Other Assets and Liabilities, Net | (6.4) | (6,567,332) | |
Net Assets | 100.0 | 102,970,519 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 9 |
Value ($) 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 12/31/2021 | Value ($) at 12/31/2021 |
Securities Lending Collateral 6.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 0.01% (b) (c) | ||||||||
2,438,401 | 4,015,426 (d) | — | — | — | 9,929 | — | 6,453,827 | 6,453,827 |
Cash Equivalents 0.6% | ||||||||
DWS Central Cash Management Government Fund, 0.05% (b) | ||||||||
259,282 | 14,377,338 | 13,973,299 | — | — | 287 | — | 663,321 | 663,321 |
2,697,683 | 18,392,764 | 13,973,299 | — | — | 10,216 | — | 7,117,148 | 7,117,148 |
* | 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 December 31, 2021 amounted to $6,304,202, which is 6.1% 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. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2021. |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 102,420,703 | $ — | $ — | $ 102,420,703 |
Short-Term Investments (a) | 7,117,148 | — | — | 7,117,148 |
Total | $ 109,537,851 | $ — | $ — | $ 109,537,851 |
(a) | See Investment Portfolio for additional detailed categorizations. |
10 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Statement of Assets and Liabilities |
Assets | |
Investments in non-affiliated securities, at value (cost $73,345,464) — including $6,304,202 of securities loaned | $ 102,420,703 |
Investment in DWS Government & Agency Securities Portfolio (cost $6,453,827)* | 6,453,827 |
Investment in DWS Central Cash Management Government Fund (cost $663,321) | 663,321 |
Receivable for Fund shares sold | 13,428 |
Dividends receivable | 100,557 |
Interest receivable | 503 |
Other assets | 2,030 |
Total assets | 109,654,369 |
Liabilities | |
Payable upon return of securities loaned | 6,453,827 |
Payable for Fund shares redeemed | 91,046 |
Accrued management fee | 55,482 |
Accrued Trustees' fees | 1,187 |
Other accrued expenses and payables | 82,308 |
Total liabilities | 6,683,850 |
Net assets, at value | $ 102,970,519 |
Net Assets Consist of | |
Distributable earnings (loss) | 30,854,297 |
Paid-in capital | 72,116,222 |
Net assets, at value | $ 102,970,519 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($81,748,634 ÷ 5,282,801 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 15.47 |
Class B | |
Net Asset Value, offering and redemption price per share ($21,221,885 ÷ 1,372,395 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 15.46 |
* | Represents collateral on securities loaned. |
Statement of Operations |
Investment Income | |
Income: | |
Dividends | $ 1,563,385 |
Income distributions — DWS Central Cash Management Government Fund | 287 |
Securities lending income, net of borrower rebates | 9,929 |
Total income | 1,573,601 |
Expenses: | |
Management fee | 642,036 |
Administration fee | 95,812 |
Services to shareholders | 2,276 |
Record keeping fee (Class B) | 23,667 |
Distribution service fee (Class B) | 49,662 |
Custodian fee | 2,682 |
Professional fees | 52,914 |
Reports to shareholders | 32,646 |
Trustees' fees and expenses | 4,282 |
Other | 4,329 |
Total expenses before expense reductions | 910,306 |
Expense reductions | (15,809) |
Total expenses after expense reductions | 894,497 |
Net investment income | 679,104 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 9,986,122 |
Payments by affiliates (see Note F) | 8,938 |
9,995,060 | |
Change in net unrealized appreciation (depreciation) on investments | 14,423,979 |
Net gain (loss) | 24,419,039 |
Net increase (decrease) in net assets resulting from operations | $25,098,143 |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 11 |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2021 | 2020 |
Operations: | ||
Net investment income | $ 679,104 | $ 1,151,659 |
Net realized gain (loss) | 9,995,060 | (8,657,454) |
Change in net unrealized appreciation (depreciation) | 14,423,979 | 5,071,194 |
Net increase (decrease) in net assets resulting from operations | 25,098,143 | (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 | 10,833,180 | 5,262,531 |
Reinvestment of distributions | 986,559 | 6,015,690 |
Payments for shares redeemed | (19,477,705) | (11,188,291) |
Net increase (decrease) in net assets from Class A share transactions | (7,657,966) | 89,930 |
Class B | ||
Proceeds from shares sold | 3,370,266 | 3,507,387 |
Reinvestment of distributions | 171,519 | 1,399,898 |
Payments for shares redeemed | (4,132,281) | (3,035,924) |
Net increase (decrease) in net assets from Class B share transactions | (590,496) | 1,871,361 |
Increase (decrease) in net assets | 15,691,603 | (7,888,898) |
Net assets at beginning of period | 87,278,916 | 95,167,814 |
Net assets at end of period | $102,970,519 | $ 87,278,916 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,853,631 | 5,666,170 |
Shares sold | 758,092 | 527,815 |
Shares issued to shareholders in reinvestment of distributions | 67,758 | 725,656 |
Shares redeemed | (1,396,680) | (1,066,010) |
Net increase (decrease) in Class A shares | (570,830) | 187,461 |
Shares outstanding at end of period | 5,282,801 | 5,853,631 |
Class B | ||
Shares outstanding at beginning of period | 1,418,467 | 1,216,620 |
Shares sold | 230,525 | 321,995 |
Shares issued to shareholders in reinvestment of distributions | 11,756 | 168,662 |
Shares redeemed | (288,353) | (288,810) |
Net increase (decrease) in Class B shares | (46,072) | 201,847 |
Shares outstanding at end of period | 1,372,395 | 1,418,467 |
12 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
DWS Small Mid Cap Value VIP — Class A | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.00 | $13.83 | $12.21 | $17.88 | $16.65 |
Income (loss) from investment operations: | |||||
Net investment incomea | .11 | .16 | .18 | .10 | .17 |
Net realized and unrealized gain (loss) | 3.54 | (.90) | 2.53 b | (2.47) | 1.55 |
Total from investment operations | 3.65 | (.74) | 2.71 | (2.37) | 1.72 |
Less distributions from: | |||||
Net investment income | (.18) | (.16) | (.10) | (.24) | (.12) |
Net realized gains | — | (.93) | (.99) | (3.06) | (.37) |
Total distributions | (.18) | (1.09) | (1.09) | (3.30) | (.49) |
Net asset value, end of period | $15.47 | $12.00 | $13.83 | $12.21 | $17.88 |
Total Return (%)c | 30.50 | (1.80) | 22.76 b | (16.01) | 10.52 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 82 | 70 | 78 | 70 | 96 |
Ratio of expenses before expense reductions (%)d | .85 | .88 | .88 | .87 | .83 |
Ratio of expenses after expense reductions (%)d | .83 | .82 | .83 | .81 | .83 |
Ratio of net investment income (%) | .76 | 1.57 | 1.35 | .65 | .98 |
Portfolio turnover rate (%) | 32 | 43 | 55 | 64 | 35 |
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. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 13 |
DWS Small Mid Cap Value VIP — Class B | |||||
Years Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.99 | $13.82 | $12.20 | $17.86 | $16.63 |
Income (loss) from investment operations: | |||||
Net investment incomea | .06 | .13 | .13 | .05 | .11 |
Net realized and unrealized gain (loss) | 3.53 | (.90) | 2.53 b | (2.48) | 1.55 |
Total from investment operations | 3.59 | (.77) | 2.66 | (2.43) | 1.66 |
Less distributions from: | |||||
Net investment income | (.12) | (.13) | (.05) | (.17) | (.06) |
Net realized gains | — | (.93) | (.99) | (3.06) | (.37) |
Total distributions | (.12) | (1.06) | (1.04) | (3.23) | (.43) |
Net asset value, end of period | $15.46 | $11.99 | $13.82 | $12.20 | $17.86 |
Total Return (%)c | 30.04 | (2.18) | 22.32 b | (16.32) | 10.13 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 21 | 17 | 17 | 15 | 19 |
Ratio of expenses before expense reductions (%)d | 1.22 | 1.25 | 1.25 | 1.24 | 1.19 |
Ratio of expenses after expense reductions (%)d | 1.20 | 1.19 | 1.19 | 1.16 | 1.19 |
Ratio of net investment income (%) | .40 | 1.21 | .99 | .30 | .65 |
Portfolio turnover rate (%) | 32 | 43 | 55 | 64 | 35 |
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. |
14 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
A. | Organization and Significant Accounting Policies |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 15 |
16 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Undistributed ordinary income* | $ 626,692 |
Undistributed long-term capital gains | $ 1,305,637 |
Net unrealized appreciation (depreciation) on investments | $ 28,881,993 |
Years Ended December 31, | ||
2021 | 2020 | |
Distributions from ordinary income* | $ 1,158,078 | $ 1,300,909 |
Distributions from long-term capital gains | $ — | $ 6,114,679 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
B. | Purchases and Sales of Securities |
C. | Related Parties |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 17 |
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% |
Class A | .82% |
Class B | 1.19% |
Class A | .84% | |
Class B | 1.21% |
Class A | .83% | ||
Class B | 1.20% |
Class A | $ 12,423 |
Class B | 3,386 |
$ 15,809 |
18 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2021 |
Class A | $ 862 | $ 143 |
Class B | 657 | 109 |
$ 1,519 | $ 252 |
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 | | 19 |
20 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 21 |
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 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,048.10 | $ 1,046.00 |
Expenses Paid per $1,000* | $ 4.28 | $ 6.19 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/21 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/21 | $ 1,021.02 | $ 1,019.16 |
Expenses Paid per $1,000* | $ 4.23 | $ 6.11 |
* | 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 184 (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% |
22 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Tax Information | (Unaudited) |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 23 |
— | 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. |
24 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 25 |
26 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954)Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods importer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 70 | — |
John W. Ballantine (1946)Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Palm Beach Civic Assn.; Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International | 70 | — |
Dawn-Marie Driscoll (1946)Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 70 | — |
Richard J. Herring (1946)Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 70 | Director, Aberdeen Japan Fund (since 2007) |
William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 70 | — |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 27 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972)Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 21 4 | — |
Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 70 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
Catherine Schrand (1964)Board Member or Advisory Board Member since 20213 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 21 4 | — |
William N. Searcy, Jr. (1946)Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 70 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962)Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
Diane Kenneally8 (1966)Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966)Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970)Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
28 | | Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980)Anti-Money Laundering Compliance Officer, since October 6, 2021 | DWS Americas Head of Anti-Financial Crime and AML Officer, DWS; AML Officer, DWS Trust Company (since October 6, 2021); AML Officer, DBX ETF Trust (since October 6, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since October 6, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Schrand are Advisory Board Members of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry and Ms. Schrand are Board Members of each other Trust. |
4 | Mr. Perry and Ms. Schrand oversee 21 funds in the DWS Fund Complex as Board Members of various Trusts. Mr. Perry and Ms. Schrand are Advisory Board Members of various Trusts/Corporations comprised of 49 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II —DWS Small Mid Cap Value VIP | | 29 |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Mr. William McClayton, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Deutsche DWS Variable Series II
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year Ended December 31, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
2021 | $408,222 | $0 | $67,461 | $0 |
2020 | $462,762 | $0 | $68,453 | $0 |
The above “Tax Fees” were billed for professional services rendered for tax preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year Ended December 31, | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
2021 | $0 | $461,717 | $0 |
2020 | $0 | $650,763 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year Ended December 31, | Total Non-Audit Fees Billed to Fund (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) and (C) |
2021 | $67,461 | $461,717 | $0 | $529,178 |
2020 | $68,453 | $650,763 | $0 | $719,216 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
In connection with the audit of the 2020 and 2021 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue to act as the Independent Registered Public Accounting Firm for the Fund.
· | EY advised the Fund’s Audit Committee that various covered persons within EY and EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any professionals who were part of the audit engagement team for the Fund or in the position to influence the audit engagement team for the Fund. |
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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
(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: | 2/15/2022 |
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: | 2/15/2022 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 2/15/2022 |