UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-05002
Deutsche DWS Variable Series II
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 6/30/2022 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | |
Contents
3 | Performance Summary |
5 | Portfolio Summary |
5 | Portfolio Management Team |
6 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
16 | Information About Your Fund's Expenses |
17 | Liquidity Risk Management |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 3 |
Comparative Results | ||||||
DWS Alternative Asset Allocation VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $9,308 | $9,613 | $11,597 | $12,037 | $13,508 |
Average annual total return | –6.92% | –3.87% | 5.06% | 3.78% | 3.05% | |
MSCI World Index | Growth of $10,000 | $7,949 | $8,566 | $12,249 | $14,469 | $24,806 |
Average annual total return | –20.51% | –14.34% | 7.00% | 7.67% | 9.51% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $8,965 | $8,971 | $9,722 | $10,446 | $11,654 |
Average annual total return | –10.35% | –10.29% | –0.93% | 0.88% | 1.54% | |
Blended Index | Growth of $10,000 | $8,263 | $8,715 | $11,553 | $13,318 | $20,199 |
Average annual total return | –17.37% | –12.85% | 4.93% | 5.90% | 7.28% | |
DWS Alternative Asset Allocation VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $9,290 | $9,575 | $11,474 | $11,839 | $13,105 |
Average annual total return | –7.10% | –4.25% | 4.69% | 3.43% | 2.74% | |
MSCI World Index | Growth of $10,000 | $7,949 | $8,566 | $12,249 | $14,469 | $24,806 |
Average annual total return | –20.51% | –14.34% | 7.00% | 7.67% | 9.51% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $8,965 | $8,971 | $9,722 | $10,446 | $11,654 |
Average annual total return | –10.35% | –10.29% | –0.93% | 0.88% | 1.54% | |
Blended Index | Growth of $10,000 | $8,263 | $8,715 | $11,553 | $13,318 | $20,199 |
Average annual total return | –17.37% | –12.85% | 4.93% | 5.90% | 7.28% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Portfolio Summary(Unaudited)
Asset Allocation* (As a % of Investment Portfolio) | 6/30/22 | 12/31/21 |
Real Asset | 38% | 44% |
DWS Enhanced Commodity Strategy Fund | 15% | 16% |
DWS RREEF Global Infrastructure Fund | 13% | 12% |
DWS RREEF Real Estate Securities Fund | 8% | 11% |
iShares Global Infrastructure ETF | 2% | 4% |
DWS RREEF Global Real Estate Securities Fund | — | 1% |
Alternative Fixed Income | 19% | 20% |
DWS Floating Rate Fund | 9% | 8% |
iShares JP Morgan USD Emerging Markets Bond ETF | 4% | 5% |
DWS Emerging Markets Fixed Income Fund | 3% | 5% |
SPDR Blackstone Senior Loan ETF | 3% | 2% |
Alternative Equity | 13% | 20% |
SPDR Bloomberg Convertible Securities ETF | 10% | 14% |
iShares Preferred & Income Securities ETF | 3% | 6% |
Absolute Return | 7% | 7% |
DWS Global Macro Fund | 7% | 7% |
Cash Equivalents | 23% | 9% |
DWS ESG Liquidity Fund | 12% | 7% |
DWS Central Cash Management Government Fund | 11% | 2% |
100% | 100% |
* | During the periods indicated, asset categories and investment strategies represented in the Fund’s portfolio fell into the following categories: Real Assets, Alternative Fixed Income, Alternative Equity, and Absolute Return. Real Asset investments have a tangible or physical aspect such as real estate or commodities. Alternative Fixed Income investments seek to offer exposure to categories generally not included in investors’ allocations and to foreign investments, many of which are not denominated in US dollars. Alternative Equity investments are investments primarily in convertible and preferred instruments that offer equity exposure. Absolute Return investments seek positive returns in all market environments or seek to increase the diversification or liquidity of the Fund’s portfolio. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 5 |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Mutual Funds 55.3% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,199,995 | 14,277,970 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 6,944,096 | 66,038,351 | |
DWS Floating Rate Fund "Institutional" (a) | 5,114,205 | 37,589,410 | |
DWS Global Macro Fund "Institutional" (a) | 3,238,729 | 31,318,513 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,308,671 | 55,122,453 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 1,666,409 | 34,694,643 | |
Total Mutual Funds (Cost $234,572,705) | 239,041,340 | ||
Exchange-Traded Funds 21.9% | |||
iShares Global Infrastructure ETF | 141,313 | 6,606,383 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 210,018 | 17,918,736 | |
iShares Preferred & Income Securities ETF | 459,281 | 15,101,159 |
Shares | Value ($) | ||
SPDR Blackstone Senior Loan ETF | 280,331 | 11,672,983 | |
SPDR Bloomberg Convertible Securities ETF | 672,354 | 43,407,174 | |
Total Exchange-Traded Funds (Cost $90,764,750) | 94,706,435 | ||
Cash Equivalents 23.0% | |||
DWS Central Cash Management Government Fund, 1.36% (a) (b) | 45,983,907 | 45,983,907 | |
DWS ESG Liquidity Fund "Institutional", 1.42% (a) (b) | 53,706,098 | 53,668,504 | |
Total Cash Equivalents (Cost $99,679,231) | 99,652,411 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $425,016,686) | 100.2 | 433,400,186 | |
Other Assets and Liabilities, Net | (0.2) | (763,826) | |
Net Assets | 100.0 | 432,636,360 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Mutual Funds 55.3% | ||||||||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | ||||||||
24,615,718 | 541,580 | 4,657,800 | (1,516,194) | (4,705,334) | 541,581 | — | 2,199,995 | 14,277,970 |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | ||||||||
79,225,180 | 101,205 | 26,847,600 | (3,573,129) | 17,132,695 | 101,205 | — | 6,944,096 | 66,038,351 |
DWS Floating Rate Fund "Institutional" (a) | ||||||||
39,810,871 | 679,859 | — | — | (2,901,320) | 675,837 | — | 5,114,205 | 37,589,410 |
DWS Global Macro "Institutional" (a) | ||||||||
33,828,146 | 290,781 | — | — | (2,800,414) | 290,781 | — | 3,238,729 | 31,318,513 |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | ||||||||
61,417,258 | 1,246,983 | 3,568,400 | 187,071 | (4,160,459) | 396,347 | 854,659 | 3,308,671 | 55,122,453 |
DWS RREEF Global Real Estate Securities Fund "Institutional" (a) | ||||||||
5,306,244 | — | 4,971,737 | 659,986 | (994,493) | — | — | — | — |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | ||||||||
52,375,661 | 8,238,404 | 14,257,000 | 93,872 | (11,756,294) | 244,656 | 777,447 | 1,666,409 | 34,694,643 |
Cash Equivalents 23.0% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (a) (b) | ||||||||
11,467,666 | 90,344,963 | 55,828,722 | — | — | 62,019 | — | 45,983,907 | 45,983,907 |
6 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
DWS ESG Liquidity Fund, 1.42% (a) (b) | ||||||||
31,709,226 | 21,983,889 | — | — | (24,611) | 122,288 | — | 53,706,098 | 53,668,504 |
339,755,970 | 123,427,664 | 110,131,259 | (4,148,394) | (10,210,230) | 2,434,714 | 1,632,106 | 122,162,110 | 338,693,751 |
(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 | $ 239,041,340 | $ — | $ — | $ 239,041,340 |
Exchange-Traded Funds | 94,706,435 | — | — | 94,706,435 |
Short-Term Investments | 99,652,411 | — | — | 99,652,411 |
Total | $433,400,186 | $— | $— | $433,400,186 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 7 |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $90,764,750) | $ 94,706,435 |
Investments in affiliated Underlying Funds, at value (cost $334,251,936) | 338,693,751 |
Receivable for Fund shares sold | 37,733 |
Interest receivable | 36,216 |
Other assets | 3,409 |
Total assets | 433,477,544 |
Liabilities | |
Payable for Fund shares redeemed | 508,512 |
Accrued management fee | 37,690 |
Accrued Trustees' fees | 444 |
Other accrued expenses and payables | 294,538 |
Total liabilities | 841,184 |
Net assets, at value | $432,636,360 |
Net Assets Consist of | |
Distributable earnings (loss) | 6,559,161 |
Paid-in capital | 426,077,199 |
Net assets, at value | $432,636,360 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($44,201,497 ÷ 3,384,251 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.06 |
Class B | |
Net Asset Value, offering and redemption price per share ($388,434,863 ÷ 29,720,171 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.07 |
Investment Income | |
Income: | |
Dividends | $ 1,389,828 |
Income distributions from affiliated Underlying Funds | 2,434,714 |
Total income | 3,824,542 |
Expenses: | |
Management fee | 234,478 |
Administration fee | 227,444 |
Services to shareholders | 649 |
Record keeping fee (Class B) | 286,889 |
Distribution service fee (Class B) | 527,950 |
Custodian fee | 3,107 |
Professional fees | 38,485 |
Reports to shareholders | 14,014 |
Registration fees | 43 |
Trustees' fees and expenses | 10,758 |
Other | 5,855 |
Total expenses | 1,349,672 |
Net investment income | 2,474,870 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | (4,148,394) |
Sale of non-affiliated Underlying Funds | 4,072,806 |
Capital gain distributions from affiliated Underlying Funds | 1,632,106 |
1,556,518 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | (10,210,230) |
Non-affiliated Underlying Funds | (27,492,014) |
(37,702,244) | |
Net gain (loss) | (36,145,726) |
Net increase (decrease) in net assets resulting from operations | $(33,670,856) |
8 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 2,474,870 | $ 31,022,107 |
Net realized gain (loss) | 1,556,518 | 16,184,613 |
Change in net unrealized appreciation (depreciation) | (37,702,244) | 8,533,545 |
Net increase (decrease) in net assets resulting from operations | (33,670,856) | 55,740,265 |
Distributions to shareholders: | ||
Class A | (3,486,882) | (808,613) |
Class B | (29,085,224) | (7,405,682) |
Total distributions | (32,572,106) | (8,214,295) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 3,979,247 | 8,392,486 |
Reinvestment of distributions | 3,486,882 | 808,613 |
Payments for shares redeemed | (3,765,331) | (2,937,240) |
Net increase (decrease) in net assets from Class A share transactions | 3,700,798 | 6,263,859 |
Class B | ||
Proceeds from shares sold | 11,388,527 | 11,611,634 |
Reinvestment of distributions | 29,085,224 | 7,405,682 |
Payments for shares redeemed | (39,917,866) | (42,234,997) |
Net increase (decrease) in net assets from Class B share transactions | 555,885 | (23,217,681) |
Increase (decrease) in net assets | (61,986,279) | 30,572,148 |
Net assets at beginning of period | 494,622,639 | 464,050,491 |
Net assets at end of period | $432,636,360 | $494,622,639 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,126,054 | 2,699,800 |
Shares sold | 275,016 | 573,373 |
Shares issued to shareholders in reinvestment of distributions | 250,494 | 56,428 |
Shares redeemed | (267,313) | (203,547) |
Net increase (decrease) in Class A shares | 258,197 | 426,254 |
Shares outstanding at end of period | 3,384,251 | 3,126,054 |
Class B | ||
Shares outstanding at beginning of period | 29,598,447 | 31,208,785 |
Shares sold | 811,750 | 791,155 |
Shares issued to shareholders in reinvestment of distributions | 2,086,458 | 516,435 |
Shares redeemed | (2,776,484) | (2,917,928) |
Net increase (decrease) in Class B shares | 121,724 | (1,610,338) |
Shares outstanding at end of period | 29,720,171 | 29,598,447 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 9 |
Financial Highlights
DWS Alternative Asset Allocation VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $15.13 | $13.70 | $13.35 | $12.10 | $13.61 | $12.97 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .10 | 1.04 | .29 | .40 | .61 | .33 |
Net realized and unrealized gain (loss) | (1.08) | .69 | .40 | 1.35 | (1.84) | .62 |
Total from investment operations | (.98) | 1.73 | .69 | 1.75 | (1.23) | .95 |
Less distributions from: | ||||||
Net investment income | (1.08) | (.30) | (.34) | (.50) | (.28) | (.31) |
Net realized gains | (.01) | — | — | — | — | — |
Total distributions | (1.09) | (.30) | (.34) | (.50) | (.28) | (.31) |
Net asset value, end of period | $13.06 | $15.13 | $13.70 | $13.35 | $12.10 | $13.61 |
Total Return (%)b | (6.92)* | 12.74 | 5.71 | 14.68c | (9.14)c | 7.41c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 44 | 47 | 37 | 34 | 26 | 27 |
Ratio of expenses before expense reductions (%)d,e | .23** | .23 | .23 | .56 | .73 | .64 |
Ratio of expenses after expense reductions (%)d,e | .23** | .23 | .23 | .23 | .16 | .19 |
Ratio of net investment income (%) | 1.41** | 7.13 | 2.29 | 3.09 | 4.78 | 2.50 |
Portfolio turnover rate (%) | 3* | 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. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
DWS Alternative Asset Allocation VIP — Class B | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $15.11 | $13.68 | $13.34 | $12.09 | $13.59 | $12.96 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .07 | .93 | .24 | .37 | .62 | .31 |
Net realized and unrealized gain (loss) | (1.08) | .75 | .41 | 1.34 | (1.88) | .59 |
Total from investment operations | (1.01) | 1.68 | .65 | 1.71 | (1.26) | .90 |
Less distributions from: | ||||||
Net investment income | (1.02) | (.25) | (.31) | (.46) | (.24) | (.27) |
Net realized gains | (.01) | — | — | — | — | — |
Total distributions | (1.03) | (.25) | (.31) | (.46) | (.24) | (.27) |
Net asset value, end of period | $13.07 | $15.11 | $13.68 | $13.34 | $12.09 | $13.59 |
Total Return (%)b | (7.10)* | 12.35c | 5.32c | 14.35c | (9.35)c | 7.01c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 388 | 447 | 427 | 349 | 208 | 157 |
Ratio of expenses before expense reductions (%)d,e | .61** | .61 | .61 | .92 | 1.08 | .93 |
Ratio of expenses after expense reductions (%)d,e | .61** | .60 | .59 | .52 | .45 | .48 |
Ratio of net investment income (%) | 1.02** | 6.37 | 1.94 | 2.90 | 4.85 | 2.31 |
Portfolio turnover rate (%) | 3* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
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% |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 13 |
Class A | 1.03% | ||
Class B | 1.41% |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 111 | $ 35 |
Class B | 176 | 56 |
$ 287 | $ 91 |
14 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 15 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 930.80 | $ 929.00 |
Expenses Paid per $1,000* | $ 1.10 | $ 2.92 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,023.65 | $ 1,021.77 |
Expenses Paid per $1,000* | $ 1.15 | $ 3.06 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios** | Class A | Class B |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | .23% | .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. |
16 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 17 |
Advisory Agreement Board Considerations and Fee Evaluation
18 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Contents
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
17 | Information About Your Fund's Expenses |
18 | Liquidity Risk Management |
18 | Proxy Voting |
19 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS CROCI® U.S. VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,177 | $8,989 | $10,215 | $11,885 | $18,039 |
Average annual total return | –18.23% | –10.11% | 0.71% | 3.51% | 6.08% | |
Russell 1000® Value Index | Growth of $10,000 | $8,714 | $9,318 | $12,205 | $14,135 | $27,139 |
Average annual total return | –12.86% | –6.82% | 6.87% | 7.17% | 10.50% | |
DWS CROCI® U.S. VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $8,158 | $8,953 | $10,111 | $11,690 | $17,485 |
Average annual total return | –18.42% | –10.47% | 0.37% | 3.17% | 5.75% | |
Russell 1000® Value Index | Growth of $10,000 | $8,714 | $9,318 | $12,205 | $14,135 | $27,139 |
Average annual total return | –12.86% | –6.82% | 6.87% | 7.17% | 10.50% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Common Stocks | 99% | 100% |
Cash Equivalents | 1% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
Information Technology | 28% | 30% |
Health Care | 26% | 23% |
Financials | 12% | 12% |
Consumer Discretionary | 10% | 10% |
Communication Services | 8% | 8% |
Materials | 6% | 2% |
Consumer Staples | 4% | 9% |
Industrials | 3% | 5% |
Energy | 3% | 1% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Common Stocks 99.5% | |||
Communication Services 8.0% | |||
Interactive Media & Services 5.2% | |||
Alphabet, Inc. "A"* | 2,839 | 6,186,919 | |
Media 2.8% | |||
Fox Corp. "A" | 103,898 | 3,341,360 | |
Consumer Discretionary 10.5% | |||
Hotels, Restaurants & Leisure 1.1% | |||
Boyd Gaming Corp. | 26,046 | 1,295,788 | |
Household Durables 4.3% | |||
D.R. Horton, Inc. | 46,905 | 3,104,642 | |
Garmin Ltd. | 21,344 | 2,097,048 | |
5,201,690 | |||
Internet & Direct Marketing Retail 0.9% | |||
eBay, Inc. | 25,213 | 1,050,626 | |
Specialty Retail 3.7% | |||
AutoNation, Inc.* | 10,239 | 1,144,311 | |
Bath & Body Works, Inc. | 16,871 | 454,167 | |
Best Buy Co., Inc. | 9,653 | 629,279 | |
Lowe's Companies, Inc. | 8,577 | 1,498,145 | |
Signet Jewelers Ltd. | 13,238 | 707,703 | |
4,433,605 | |||
Textiles, Apparel & Luxury Goods 0.5% | |||
Capri Holdings Ltd.* | 13,699 | 561,796 | |
Consumer Staples 3.8% | |||
Food & Staples Retailing 1.0% | |||
Kroger Co. | 24,682 | 1,168,199 | |
Food Products 1.5% | |||
The J.M. Smucker Co. | 3,697 | 473,253 | |
Tyson Foods, Inc. "A" | 15,522 | 1,335,823 | |
1,809,076 | |||
Tobacco 1.3% | |||
Altria Group, Inc. | 36,661 | 1,531,330 | |
Energy 2.6% | |||
Oil, Gas & Consumable Fuels | |||
ConocoPhillips | 6,906 | 620,228 | |
Coterra Energy, Inc. | 11,491 | 296,353 | |
EOG Resources, Inc. | 7,674 | 847,516 | |
ONEOK, Inc. | 7,172 | 398,046 | |
Pioneer Natural Resources Co. | 4,388 | 978,875 | |
3,141,018 | |||
Financials 12.2% | |||
Banks 4.8% | |||
Bank of America Corp. | 39,264 | 1,222,288 | |
JPMorgan Chase & Co. | 24,931 | 2,807,480 | |
U.S. Bancorp. | 38,505 | 1,772,000 | |
5,801,768 |
Shares | Value ($) | ||
Capital Markets 1.5% | |||
Bank of New York Mellon Corp. | 17,891 | 746,234 | |
State Street Corp. | 18,006 | 1,110,070 | |
1,856,304 | |||
Consumer Finance 5.9% | |||
Capital One Financial Corp. | 26,986 | 2,811,671 | |
Discover Financial Services | 29,016 | 2,744,333 | |
Synchrony Financial | 52,661 | 1,454,497 | |
7,010,501 | |||
Health Care 25.8% | |||
Biotechnology 7.3% | |||
AbbVie, Inc. | 16,721 | 2,560,988 | |
Biogen, Inc.* | 3,789 | 772,729 | |
Gilead Sciences, Inc. | 18,899 | 1,168,147 | |
Regeneron Pharmaceuticals, Inc.* | 5,769 | 3,410,229 | |
Vertex Pharmaceuticals, Inc.* | 2,807 | 790,985 | |
8,703,078 | |||
Health Care Equipment & Supplies 0.6% | |||
Hologic, Inc.* | 11,235 | 778,586 | |
Health Care Providers & Services 3.5% | |||
HCA Healthcare, Inc. | 5,855 | 983,991 | |
Laboratory Corp. of America Holdings | 7,807 | 1,829,649 | |
Quest Diagnostics, Inc. | 8,128 | 1,080,861 | |
Tenet Healthcare Corp.* | 5,220 | 274,363 | |
4,168,864 | |||
Pharmaceuticals 14.4% | |||
Bristol-Myers Squibb Co. | 82,802 | 6,375,754 | |
Johnson & Johnson | 35,367 | 6,277,996 | |
Merck & Co., Inc. | 5,774 | 526,416 | |
Pfizer, Inc. | 78,154 | 4,097,614 | |
17,277,780 | |||
Industrials 3.2% | |||
Air Freight & Logistics | |||
C.H. Robinson Worldwide, Inc. | 3,851 | 390,376 | |
Expeditors International of Washington, Inc. | 34,804 | 3,391,998 | |
3,782,374 | |||
Information Technology 27.7% | |||
Communications Equipment 1.5% | |||
Cisco Systems, Inc. | 41,945 | 1,788,535 | |
Electronic Equipment, Instruments & Components 1.1% | |||
Flex Ltd.* | 21,107 | 305,418 | |
Jabil, Inc. | 18,459 | 945,286 | |
1,250,704 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 5 |
Shares | Value ($) | ||
IT Services 8.5% | |||
Amdocs Ltd. | 40,141 | 3,344,147 | |
Cognizant Technology Solutions Corp. "A" | 34,582 | 2,333,939 | |
International Business Machines Corp. | 10,776 | 1,521,463 | |
SS&C Technologies Holdings, Inc. | 50,970 | 2,959,828 | |
10,159,377 | |||
Semiconductors & Semiconductor Equipment 7.4% | |||
Applied Materials, Inc. | 16,681 | 1,517,638 | |
Broadcom, Inc. | 3,615 | 1,756,203 | |
KLA Corp. | 3,164 | 1,009,569 | |
Lam Research Corp. | 1,919 | 817,782 | |
Micron Technology, Inc. | 31,012 | 1,714,343 | |
QUALCOMM, Inc. | 13,181 | 1,683,741 | |
Teradyne, Inc. | 4,427 | 396,438 | |
8,895,714 | |||
Software 5.3% | |||
Microsoft Corp. | 16,961 | 4,356,094 | |
Oracle Corp. | 28,708 | 2,005,828 | |
6,361,922 | |||
Technology Hardware, Storage & Peripherals 3.9% | |||
Apple, Inc. | 27,930 | 3,818,589 | |
Hewlett Packard Enterprise Co. | 24,999 | 331,487 | |
HP, Inc. | 15,858 | 519,825 | |
4,669,901 |
Shares | Value ($) | ||
Materials 5.7% | |||
Chemicals 3.5% | |||
LyondellBasell Industries NV "A" | 32,494 | 2,841,925 | |
Olin Corp. | 24,016 | 1,111,461 | |
The Mosaic Co. | 5,622 | 265,527 | |
4,218,913 | |||
Containers & Packaging 0.3% | |||
Westrock Co. | 8,118 | 323,421 | |
Metals & Mining 1.9% | |||
Freeport-McMoRan, Inc. | 22,840 | 668,298 | |
Nucor Corp. | 15,575 | 1,626,186 | |
2,294,484 | |||
Total Common Stocks (Cost $125,474,658) | 119,063,633 | ||
Cash Equivalents 0.5% | |||
DWS Central Cash Management Government Fund, 1.36% (a) (Cost $614,674) | 614,674 | 614,674 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $126,089,332) | 100.0 | 119,678,307 | |
Other Assets and Liabilities, Net | 0.0 | 2,110 | |
Net Assets | 100.0 | 119,680,417 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (a) (b) | ||||||||
763,000 | — | 763,000 (c) | — | — | 97 | — | — | — |
Cash Equivalents 0.5% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (a) | ||||||||
572,173 | 4,899,595 | 4,857,094 | — | — | 1,327 | — | 614,674 | 614,674 |
1,335,173 | 4,899,595 | 5,620,094 | — | — | 1,424 | — | 614,674 | 614,674 |
* | Non-income producing security. |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(b) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(c) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2022. |
6 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 119,063,633 | $ — | $ — | $ 119,063,633 |
Short-Term Investments | 614,674 | — | — | 614,674 |
Total | $119,678,307 | $— | $— | $119,678,307 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 7 |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $125,474,658) | $ 119,063,633 |
Investment in DWS Central Cash Management Government Fund (cost $614,674) | 614,674 |
Cash | 10,000 |
Receivable for Fund shares sold | 4,431 |
Dividends receivable | 162,508 |
Interest receivable | 598 |
Other assets | 1,556 |
Total assets | 119,857,400 |
Liabilities | |
Payable for Fund shares redeemed | 55,465 |
Accrued management fee | 44,110 |
Accrued Trustees' fees | 30 |
Other accrued expenses and payables | 77,378 |
Total liabilities | 176,983 |
Net assets, at value | $119,680,417 |
Net Assets Consist of | |
Distributable earnings (loss) | (6,748,571) |
Paid-in capital | 126,428,988 |
Net assets, at value | $119,680,417 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($117,086,266 ÷ 9,222,152 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.70 |
Class B | |
Net Asset Value, offering and redemption price per share ($2,594,151 ÷ 203,227 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.76 |
Investment Income | |
Income: | |
Dividends | $ 1,625,094 |
Income distributions — DWS Central Cash Management Government Fund | 1,327 |
Securities lending income, net of borrower rebates | 97 |
Total income | 1,626,518 |
Expenses: | |
Management fee | 408,898 |
Administration fee | 66,105 |
Services to shareholders | 590 |
Record keeping fee (Class B) | 953 |
Distribution service fee (Class B) | 3,716 |
Custodian fee | 2,110 |
Professional fees | 40,109 |
Reports to shareholders | 14,149 |
Trustees' fees and expenses | 3,287 |
Other | 3,574 |
Total expenses before expense reductions | 543,491 |
Expense reductions | (95,761) |
Total expenses after expense reductions | 447,730 |
Net investment income | 1,178,788 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | (1,320,337) |
Change in net unrealized appreciation (depreciation) on investments | (27,007,525) |
Net gain (loss) | (28,327,862) |
Net increase (decrease) in net assets resulting from operations | $(27,149,074) |
8 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 1,178,788 | $ 2,352,177 |
Net realized gain (loss) | (1,320,337) | 18,442,647 |
Change in net unrealized appreciation (depreciation) | (27,007,525) | 13,221,244 |
Net increase (decrease) in net assets resulting from operations | (27,149,074) | 34,016,068 |
Distributions to shareholders: | ||
Class A | (4,211,106) | (2,764,720) |
Class B | (84,944) | (57,047) |
Total distributions | (4,296,050) | (2,821,767) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,252,412 | 2,809,896 |
Reinvestment of distributions | 4,211,106 | 2,764,720 |
Payments for shares redeemed | (6,387,429) | (16,851,304) |
Net increase (decrease) in net assets from Class A share transactions | (923,911) | (11,276,688) |
Class B | ||
Proceeds from shares sold | 148,429 | 275,751 |
Reinvestment of distributions | 84,944 | 57,047 |
Payments for shares redeemed | (196,520) | (927,960) |
Net increase (decrease) in net assets from Class B share transactions | 36,853 | (595,162) |
Increase (decrease) in net assets | (32,332,182) | 19,322,451 |
Net assets at beginning of period | 152,012,599 | 132,690,148 |
Net assets at end of period | $119,680,417 | $152,012,599 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 9,269,906 | 10,025,875 |
Shares sold | 88,065 | 195,672 |
Shares issued to shareholders in reinvestment of distributions | 301,655 | 194,562 |
Shares redeemed | (437,474) | (1,146,203) |
Net increase (decrease) in Class A shares | (47,754) | (755,969) |
Shares outstanding at end of period | 9,222,152 | 9,269,906 |
Class B | ||
Shares outstanding at beginning of period | 201,242 | 240,926 |
Shares sold | 9,518 | 19,004 |
Shares issued to shareholders in reinvestment of distributions | 6,050 | 3,989 |
Shares redeemed | (13,583) | (62,677) |
Net increase (decrease) in Class B shares | 1,985 | (39,684) |
Shares outstanding at end of period | 203,227 | 201,242 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 9 |
Financial Highlights
DWS CROCI® U.S. VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $16.05 | $12.92 | $16.12 | $13.46 | $16.64 | $13.75 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .13 | .24 | .28 | .31 | .29 | .24 |
Net realized and unrealized gain (loss) | (3.02) | 3.17 | (2.47) | 3.92 | (1.89) | 2.88 |
Total from investment operations | (2.89) | 3.41 | (2.19) | 4.23 | (1.60) | 3.12 |
Less distributions from: | ||||||
Net investment income | (.25) | (.28) | (.31) | (.30) | (.41) | (.23) |
Net realized gains | (.21) | — | (.70) | (1.27) | (1.17) | — |
Total distributions | (.46) | (.28) | (1.01) | (1.57) | (1.58) | (.23) |
Net asset value, end of period | $12.70 | $16.05 | $12.92 | $16.12 | $13.46 | $16.64 |
Total Return (%)b | (18.23)* | 26.69 | (12.16) | 32.95 | (10.50) | 22.88c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 117 | 149 | 130 | 153 | 125 | 153 |
Ratio of expenses before expense reductions (%)d | .79** | .78 | .84 | .84 | .84 | .82 |
Ratio of expenses after expense reductions (%)d | .65** | .71 | .69 | .70 | .72 | .72 |
Ratio of net investment income (%) | 1.74** | 1.62 | 2.28 | 2.13 | 1.89 | 1.59 |
Portfolio turnover rate (%) | 29* | 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. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
DWS CROCI® U.S. VIP — Class B | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $16.11 | $12.97 | $16.17 | $13.50 | $16.67 | $13.78 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .10 | .19 | .24 | .27 | .24 | .20 |
Net realized and unrealized gain (loss) | (3.03) | 3.19 | (2.47) | 3.92 | (1.88) | 2.87 |
Total from investment operations | (2.93) | 3.38 | (2.23) | 4.19 | (1.64) | 3.07 |
Less distributions from: | ||||||
Net investment income | (.21) | (.24) | (.27) | (.25) | (.36) | (.18) |
Net realized gains | (.21) | — | (.70) | (1.27) | (1.17) | — |
Total distributions | (.42) | (.24) | (.97) | (1.52) | (1.53) | (.18) |
Net asset value, end of period | $12.76 | $16.11 | $12.97 | $16.17 | $13.50 | $16.67 |
Total Return (%)b | (18.42)* | 26.27 | (12.41) | 32.49 | (10.71) | 22.45c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 3 | 3 | 3 | 4 | 3 | 4 |
Ratio of expenses before expense reductions (%)d | 1.11** | 1.10 | 1.16 | 1.16 | 1.16 | 1.15 |
Ratio of expenses after expense reductions (%)d | .97** | 1.02 | 1.00 | 1.02 | 1.04 | 1.03 |
Ratio of net investment income (%) | 1.42** | 1.33 | 1.96 | 1.82 | 1.55 | 1.31 |
Portfolio turnover rate (%) | 29* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 13 |
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 | .65% |
Class B | .97% |
14 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Class A | $ 93,616 |
Class B | 2,145 |
$ 95,761 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 247 | $ 79 |
Class B | 151 | 48 |
$ 398 | $ 127 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 817.70 | $ 815.80 |
Expenses Paid per $1,000* | $ 2.93 | $ 4.37 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,021.57 | $ 1,019.98 |
Expenses Paid per $1,000* | $ 3.26 | $ 4.86 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | .65% | .97% |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 17 |
Liquidity Risk Management
18 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 21 |
Contents
3 | Portfolio Summary |
3 | Portfolio Management Team |
4 | Investment Portfolio |
6 | Statement of Assets and Liabilities |
6 | Statement of Operations |
7 | Statements of Changes in Net Assets |
8 | Financial Highlights |
9 | Notes to Financial Statements |
13 | Information About Your Fund's Expenses |
14 | Proxy Voting |
15 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 6/30/22 | 12/31/21 |
Repurchase Agreements | 65% | 17% |
Government & Agency Obligations | 35% | 83% |
100% | 100% |
Weighted Average Maturity | 6/30/22 | 12/31/21 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 17 days | 33 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 23 days | 35 days |
* | The Fund is compared to its respective iMoneyNet Money Fund Average category: Gov’t & Agency Retail — Category includes the most broadly based of the government retail funds. These funds may invest in U.S. Treasury securities, securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 3 |
Investment Portfolioas of June 30, 2022 (Unaudited)
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 35.1% | |||
U.S. Government Sponsored Agencies 15.1% | |||
Federal Farm Credit Bank, SOFR + 0.07%, 1.58% (a), 8/11/2022 | 500,000 | 500,003 | |
Federal Home Loan Bank: | |||
Step-Up Coupon, 1.02% to 9/30/2022, 2.01% to 3/30/2023 | 3,000,000 | 3,000,000 | |
Step-Up Coupon, 1.4% to 10/28/2022, 2.5% to 4/28/2023 | 2,500,000 | 2,500,000 | |
SOFR + 0.005%, 1.515% (a), 8/22/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 1.52% (a), 7/19/2022 | 4,500,000 | 4,500,000 | |
SOFR + 0.01%, 1.52% (a), 8/1/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 1.52% (a), 8/15/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.01%, 1.52% (a), 9/8/2022 | 1,500,000 | 1,500,000 | |
SOFR + 0.01%, 1.52% (a), 9/30/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.01%, 1.52% (a), 10/7/2022 | 2,000,000 | 2,000,000 | |
SOFR + 0.01%, 1.52% (a), 11/4/2022 | 1,000,000 | 1,000,000 | |
SOFR + 0.03%, 1.54% (a), 1/13/2023 | 2,000,000 | 2,000,000 | |
Federal Home Loan Bank Discount Notes, 1.403% (b), 8/9/2022 | 2,000,000 | 1,996,966 | |
Federal Home Loan Mortgage Corp.: | |||
SOFR + 0.005%, 1.515% (a), 8/4/2022 | 3,750,000 | 3,750,000 | |
SOFR + 0.095%, 1.605% (a), 8/19/2022 | 1,500,000 | 1,500,000 | |
29,246,969 | |||
U.S. Treasury Obligations 20.0% | |||
U.S. Treasury Bills: | |||
0.081% (b), 8/11/2022 | 1,875,000 | 1,874,829 | |
0.223% (b), 7/7/2022 | 1,000,000 | 999,963 | |
0.244% (b), 12/1/2022 | 5,000,000 | 4,994,900 | |
0.605% (b), 9/1/2022 | 3,000,000 | 2,996,926 | |
0.616% (b), 9/1/2022 | 3,000,000 | 2,996,869 | |
0.835% (b), 9/15/2022 | 2,000,000 | 1,996,536 | |
0.836% (b), 9/15/2022 | 4,000,000 | 3,993,067 | |
0.837% (b), 9/15/2022 | 2,000,000 | 1,996,529 | |
1.194% (b), 2/23/2023 | 1,000,000 | 992,311 | |
1.197% (b), 2/23/2023 | 1,000,000 | 992,291 |
Principal Amount ($) | Value ($) | ||
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield - 0.015%, 1.743% (a), 1/31/2024 | 3,000,000 | 3,003,216 | |
3-month U.S. Treasury Bill Money Market Yield + 0.034%, 1.792% (a), 4/30/2023 | 1,500,000 | 1,502,686 | |
3-month U.S. Treasury Bill Money Market Yield + 0.049%, 1.807% (a), 1/31/2023 | 7,000,000 | 7,004,766 | |
3-month U.S. Treasury Bill Money Market Yield + 0.055%, 1.813% (a), 7/31/2022 | 3,500,000 | 3,500,107 | |
38,844,996 | |||
Total Government & Agency Obligations (Cost $68,091,965) | 68,091,965 | ||
Repurchase Agreements 64.4% | |||
BNP Paribas, 1.47%, dated 6/30/2022, to be repurchased at $27,371,118 on 7/1/2022 (c) | 27,370,000 | 27,370,000 | |
Citigroup Global Markets, Inc., 1.52%, dated 6/30/2022, to be repurchased at $22,950,969 on 7/1/2022 (d) | 22,950,000 | 22,950,000 | |
Fixed Income Clearing Corp., 1.47%, dated 6/30/2022, to be repurchased at $40,001,633 on 7/1/2022 (e) | 40,000,000 | 40,000,000 | |
JPMorgan Securities, Inc., 1.48%, dated 6/30/2022, to be repurchased at $34,801,431 on 7/1/2022 (f) | 34,800,000 | 34,800,000 | |
Total Repurchase Agreements (Cost $125,120,000) | 125,120,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $193,211,965) | 99.5 | 193,211,965 | |
Other Assets and Liabilities, Net | 0.5 | 1,028,830 | |
Net Assets | 100.0 | 194,240,795 |
(a) | Floating rate security. These securities are shown at their current rate as of June 30, 2022. |
4 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
(b) | Annualized yield at time of purchase; not a coupon rate. |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
34,548,000 | U.S. Treasury Bonds | 2.25 | 8/15/2046 | 27,917,405 |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
23,306,800 | U.S. Treasury Notes | 3–3.25 | 6/30/2024–6/30/2027 | 23,408,719 |
400 | U.S. Treasury Bonds | 1.875–2 | 8/15/2051–11/15/2051 | 301 |
Total Collateral Value | 23,409,020 |
(e) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
40,800,070 | U.S. Treasury Inflation-Indexed Bonds | 0.125 | 1/15/2032 | 41,373,600 |
(f) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
86,603,236 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2025–2/15/2051 | 35,496,000 |
SOFR: Secured Overnight Financing Rate |
STRIPS: Separate Trading of Registered Interest and Principal Securities |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $ — | $ 68,091,965 | $ — | $ 68,091,965 |
Repurchase Agreements | — | 125,120,000 | — | 125,120,000 |
Total | $— | $193,211,965 | $— | $193,211,965 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 5 |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in securities, valued at amortized cost | $ 68,091,965 |
Repurchase agreements, valued at amortized cost | 125,120,000 |
Cash | 13,235 |
Receivable for Fund shares sold | 1,427,736 |
Interest receivable | 78,704 |
Other assets | 1,516 |
Total assets | 194,733,156 |
Liabilities | |
Payable for Fund shares redeemed | 264,517 |
Distributions payable | 76,121 |
Accrued management fee | 38,086 |
Accrued Trustees' fees | 1,073 |
Other accrued expenses and payables | 112,564 |
Total liabilities | 492,361 |
Net assets, at value | $194,240,795 |
Net Assets Consist of | |
Distributable earnings (loss) | 4,083 |
Paid-in capital | 194,236,712 |
Net assets, at value | $194,240,795 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($194,240,795 ÷ 194,311,928 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Investment Income | |
Income: | |
Interest | $ 406,744 |
Expenses: | |
Management fee | 228,893 |
Administration fee | 94,479 |
Services to shareholders | 1,482 |
Custodian fee | 2,353 |
Professional fees | 30,294 |
Reports to shareholders | 31,740 |
Trustees' fees and expenses | 6,168 |
Other | 4,412 |
Total expenses before expense reductions | 399,821 |
Expense reductions | (151,993) |
Total expenses after expense reductions | 247,828 |
Net investment income | 158,916 |
Net realized gain (loss) from investments | (2,400) |
Net increase (decrease) in net assets resulting from operations | $156,516 |
6 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 158,916 | $ 15,954 |
Net realized gain (loss) | (2,400) | (29) |
Net increase (decrease) in net assets resulting from operations | 156,516 | 15,925 |
Distributions to shareholders: | ||
Class A | (158,917) | (15,954) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 97,307,963 | 187,035,970 |
Reinvestment of distributions | 83,653 | 15,781 |
Payments for shares redeemed | (99,880,761) | (143,576,595) |
Net increase (decrease) in net assets from Class A share transactions | (2,489,145) | 43,475,156 |
Increase (decrease) in net assets | (2,491,546) | 43,475,127 |
Net assets at beginning of period | 196,732,341 | 153,257,214 |
Net assets at end of period | $194,240,795 | $196,732,341 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 196,801,073 | 153,325,917 |
Shares sold | 97,307,963 | 187,035,970 |
Shares issued to shareholders in reinvestment of distributions | 83,653 | 15,781 |
Shares redeemed | (99,880,761) | (143,576,595) |
Net increase (decrease) in Class A shares | (2,489,145) | 43,475,156 |
Shares outstanding at end of period | 194,311,928 | 196,801,073 |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 7 |
Financial Highlights
DWS Government Money Market VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 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 | $1.00 |
Income (loss) from investment operations: | ||||||
Net investment income | .001 | .000* | .002 | .018 | .014 | .005 |
Net realized gain (loss) | (.000)* | (.000)* | .000* | .000* | (.000)* | .000* |
Total from investment operations | .001 | .000* | .002 | .018 | .014 | .005 |
Less distributions from: | ||||||
Net investment income | (.001) | (.000)* | (.002) | (.018) | (.014) | (.005) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%) | .08a** | .01a | .24a | 1.77a | 1.39a | .45 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 194 | 197 | 153 | 122 | 107 | 111 |
Ratio of expenses before expense reductions (%)b | .41*** | .42 | .42 | .47 | .50 | .48 |
Ratio of expenses after expense reductions (%)b | .25*** | .06 | .23 | .47 | .50 | .48 |
Ratio of net investment income (%) | .16*** | .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. |
** | Not annualized |
*** | Annualized |
8 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Notes to Financial Statements (Unaudited)
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 9 |
First $500 million | .235% |
Next $500 million | .220% |
Next $1.0 billion | .205% |
Over $2.0 billion | .190% |
10 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 11 |
12 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 1/1/22 | $1,000.00 |
Ending Account Value 6/30/22 | $1,000.80 |
Expenses Paid per $1,000* | $1.24 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/22 | $1,000.00 |
Ending Account Value 6/30/22 | $1,023.55 |
Expenses Paid per $1,000* | $1.25 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | .25% |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 13 |
14 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 17 |
Contents
3 | Performance Summary |
5 | Portfolio Summary |
6 | Portfolio Management Team |
7 | Investment Portfolio |
19 | Statement of Assets and Liabilities |
20 | Statement of Operations |
21 | Statements of Changes in Net Assets |
22 | Financial Highlights |
24 | Notes to Financial Statements |
33 | Information About Your Fund's Expenses |
34 | Liquidity Risk Management |
34 | Proxy Voting |
35 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS Global Income Builder VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,464 | $8,691 | $10,763 | $12,236 | $17,884 |
Average annual total return | –15.36% | –13.09% | 2.48% | 4.12% | 5.99% | |
MSCI All Country World Index | Growth of $10,000 | $7,982 | $8,425 | $11,981 | $14,028 | $23,154 |
Average annual total return | –20.18% | –15.75% | 6.21% | 7.00% | 8.76% | |
Blended Index 60/40 | Growth of $10,000 | $8,361 | $8,645 | $11,180 | $12,702 | $18,257 |
Average annual total return | –16.39% | –13.55% | 3.79% | 4.90% | 6.20% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $8,907 | $8,911 | $9,720 | $10,476 | $11,988 |
Average annual total return | –10.93% | –10.89% | –0.94% | 0.94% | 1.83% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 3 |
Comparative Results | |||||
DWS Global Income Builder VIP | 6-Month‡ | 1-Year | 3-Year | Life of Class* | |
Class B | Growth of $10,000 | $8,455 | $8,662 | $10,672 | $11,383 |
Average annual total return | –15.45% | –13.38% | 2.19% | 3.16% | |
MSCI All Country World Index | Growth of $10,000 | $7,982 | $8,425 | $11,981 | $12,616 |
Average annual total return | –20.18% | –15.75% | 6.21% | 5.74% | |
Blended Index 60/40 | Growth of $10,000 | $8,361 | $8,645 | $11,180 | $11,940 |
Average annual total return | –16.39% | –13.55% | 3.79% | 6.66% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $8,907 | $8,911 | $9,720 | $10,547 |
Average annual total return | –10.93% | –10.89% | –0.94% | 1.29% | |
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Equity | 64% | 65% |
Common Stocks | 59% | 60% |
Exchange-Traded Funds | 3% | 3% |
Preferred Stocks | 2% | 2% |
Warrants | 0% | 0% |
Fixed Income | 34% | 32% |
Corporate Bonds | 18% | 23% |
Government & Agency Obligations | 7% | 1% |
Asset-Backed | 5% | 3% |
Commercial Mortgage-Backed Securities | 2% | 2% |
Short-Term U.S. Treasury Obligation | 1% | 1% |
Collateralized Mortgage Obligations | 1% | 2% |
Mortgage-Backed Securities Pass-Throughs | 0% | 0% |
Cash Equivalents | 2% | 3% |
Cash Equivalents | 2% | 3% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Warrants and Corporate Bonds) | 6/30/22 | 12/31/21 |
Financials | 21% | 23% |
Information Technology | 17% | 20% |
Health Care | 11% | 9% |
Energy | 9% | 6% |
Communication Services | 8% | 10% |
Industrials | 8% | 6% |
Consumer Staples | 7% | 5% |
Consumer Discretionary | 7% | 8% |
Utilities | 5% | 5% |
Materials | 4% | 4% |
Real Estate | 3% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
United States | 64% | 63% |
Canada | 5% | 4% |
Japan | 4% | 5% |
United Kingdom | 3% | 4% |
Cayman Islands | 3% | 1% |
Switzerland | 2% | 3% |
Germany | 2% | 2% |
France | 2% | 2% |
Netherlands | 1% | 2% |
Australia | 1% | 1% |
Hong Kong | 1% | 0% |
Ireland | 1% | 1% |
Other | 11% | 12% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 5 |
Portfolio Management Team
6 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Common Stocks 59.1% | |||
Communication Services 4.4% | |||
Diversified Telecommunication Services 1.4% | |||
BCE, Inc. | 4,450 | 218,732 | |
Deutsche Telekom AG (Registered) | 7,238 | 143,757 | |
Telefonica Brasil SA (ADR) | 9,700 | 87,882 | |
Telefonica Deutschland Holding AG | 70,226 | 201,449 | |
Telenor ASA | 11,090 | 147,223 | |
Telstra Corp., Ltd. | 62,904 | 166,876 | |
TELUS Corp. | 7,778 | 173,241 | |
Verizon Communications, Inc. | 6,894 | 349,870 | |
1,489,030 | |||
Entertainment 0.3% | |||
AMC Entertainment Holdings, Inc. "A"* (a) | 2,800 | 37,940 | |
Embracer Group AB* | 3,880 | 29,688 | |
iQIYI, Inc. (ADR)* | 8,600 | 36,120 | |
Koei Tecmo Holdings Co., Ltd. | 3,500 | 112,745 | |
Netflix, Inc.* | 400 | 69,948 | |
Nintendo Co., Ltd. | 156 | 67,671 | |
354,112 | |||
Interactive Media & Services 2.0% | |||
Alphabet, Inc. "A"* | 300 | 653,778 | |
Alphabet, Inc. "C"* | 289 | 632,173 | |
JOYY, Inc. (ADR) | 5,200 | 155,272 | |
Kanzhun Ltd. (ADR)* | 3,700 | 97,236 | |
Match Group, Inc.* | 1,200 | 83,628 | |
Meta Platforms, Inc. "A"* | 2,100 | 338,625 | |
Snap, Inc. "A"* | 4,800 | 63,024 | |
Twitter, Inc.* | 3,400 | 127,126 | |
Zillow Group, Inc. "C"* | 2,000 | 63,500 | |
2,214,362 | |||
Media 0.4% | |||
Comcast Corp. "A" | 7,638 | 299,715 | |
Interpublic Group of Companies, Inc. | 3,992 | 109,900 | |
409,615 | |||
Wireless Telecommunication Services 0.3% | |||
SoftBank Corp. | 20,601 | 228,705 | |
Vodafone Group PLC | 39,347 | 60,875 | |
289,580 | |||
Consumer Discretionary 4.4% | |||
Automobiles 1.0% | |||
Ford Motor Co. | 2,600 | 28,938 | |
Tesla, Inc.* | 1,018 | 685,542 | |
Volkswagen AG | 2,704 | 389,139 | |
1,103,619 |
Shares | Value ($) | ||
Hotels, Restaurants & Leisure 0.5% | |||
Airbnb, Inc. "A"* | 1,000 | 89,080 | |
Caesars Entertainment, Inc.* | 700 | 26,810 | |
Evolution AB 144A | 339 | 30,765 | |
McDonald's Corp. | 710 | 175,285 | |
Restaurant Brands International, Inc. | 1,812 | 90,895 | |
Starbucks Corp. | 889 | 67,911 | |
480,746 | |||
Household Durables 0.2% | |||
Garmin Ltd. | 942 | 92,551 | |
Open House Group Co., Ltd. | 3,800 | 150,961 | |
243,512 | |||
Internet & Direct Marketing Retail 1.3% | |||
Amazon.com, Inc.* | 7,720 | 819,941 | |
DoorDash, Inc. "A"* | 700 | 44,919 | |
Meituan (ADR)* | 3,900 | 194,766 | |
Pinduoduo, Inc. (ADR)* | 4,400 | 271,920 | |
1,331,546 | |||
Multiline Retail 0.2% | |||
Target Corp. | 941 | 132,898 | |
Wesfarmers Ltd. | 3,780 | 109,276 | |
242,174 | |||
Specialty Retail 0.9% | |||
Hikari Tsushin, Inc. | 600 | 61,367 | |
Home Depot, Inc. | 1,112 | 304,988 | |
Lowe's Companies, Inc. | 1,139 | 198,949 | |
TJX Companies, Inc. | 3,700 | 206,645 | |
USS Co., Ltd. | 11,400 | 197,165 | |
969,114 | |||
Textiles, Apparel & Luxury Goods 0.3% | |||
Kering SA | 350 | 180,103 | |
NIKE, Inc. "B" | 500 | 51,100 | |
Pandora A/S | 1,156 | 73,407 | |
304,610 | |||
Consumer Staples 5.1% | |||
Beverages 0.6% | |||
Coca-Cola Co. | 5,382 | 338,581 | |
Kirin Holdings Co., Ltd. | 7,900 | 124,374 | |
PepsiCo, Inc. | 806 | 134,328 | |
597,283 | |||
Food & Staples Retailing 0.4% | |||
Walgreens Boots Alliance, Inc. | 3,920 | 148,568 | |
Walmart, Inc. | 1,643 | 199,756 | |
Woolworths Group Ltd. | 1,560 | 38,298 | |
386,622 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 7 |
Shares | Value ($) | ||
Food Products 0.2% | |||
Nestle SA (Registered) | 1,218 | 142,135 | |
Wilmar International Ltd. | 46,039 | 134,081 | |
276,216 | |||
Household Products 0.4% | |||
Kimberly-Clark Corp. | 855 | 115,553 | |
Procter & Gamble Co. | 2,240 | 322,090 | |
437,643 | |||
Personal Products 0.2% | |||
Unilever PLC | 5,441 | 247,855 | |
Tobacco 3.3% | |||
Altria Group, Inc. | 29,200 | 1,219,684 | |
British American Tobacco PLC | 20,209 | 864,891 | |
Japan Tobacco, Inc. | 52,700 | 910,629 | |
Philip Morris International, Inc. | 5,002 | 493,897 | |
3,489,101 | |||
Energy 4.8% | |||
Oil, Gas & Consumable Fuels | |||
Aker BP ASA | 1,603 | 55,331 | |
Chevron Corp. | 3,153 | 456,491 | |
Enbridge, Inc. | 33,400 | 1,410,522 | |
Eni SpA | 55,965 | 665,827 | |
Exxon Mobil Corp. | 7,800 | 667,992 | |
ONEOK, Inc. | 3,400 | 188,700 | |
Phillips 66 | 2,000 | 163,980 | |
Suncor Energy, Inc. | 3,500 | 122,794 | |
TC Energy Corp. | 4,795 | 248,392 | |
TotalEnergies SE | 11,353 | 597,703 | |
Valero Energy Corp. | 3,200 | 340,096 | |
Williams Companies, Inc. | 9,000 | 280,890 | |
5,198,718 | |||
Financials 9.6% | |||
Banks 3.8% | |||
Australia & New Zealand Banking Group Ltd. | 5,466 | 83,094 | |
Banco Bradesco SA (ADR) | 44,600 | 145,396 | |
Bank Leumi Le-Israel BM | 63,441 | 563,948 | |
Bank of Montreal | 2,184 | 210,018 | |
Bank of Nova Scotia | 3,515 | 208,027 | |
Canadian Imperial Bank of Commerce | 3,340 | 162,200 | |
Commonwealth Bank of Australia | 2,571 | 160,314 | |
HSBC Holdings PLC | 61,172 | 399,940 | |
Huntington Bancshares, Inc. | 65,776 | 791,285 | |
JPMorgan Chase & Co. | 545 | 61,373 | |
KB Financial Group, Inc. (ADR)* | 700 | 26,040 | |
M&T Bank Corp. | 200 | 31,878 | |
Mizrahi Tefahot Bank Ltd. | 7,401 | 244,726 | |
PNC Financial Services Group, Inc. | 799 | 126,058 |
Shares | Value ($) | ||
Signature Bank | 200 | 35,842 | |
Toronto-Dominion Bank | 6,410 | 420,345 | |
Truist Financial Corp. | 2,980 | 141,342 | |
U.S. Bancorp. | 1,620 | 74,553 | |
United Overseas Bank Ltd. | 2,582 | 48,828 | |
Westpac Banking Corp. | 9,850 | 132,360 | |
4,067,567 | |||
Capital Markets 1.7% | |||
BlackRock, Inc. | 237 | 144,342 | |
Blackstone, Inc. | 8,633 | 787,589 | |
Charles Schwab Corp. | 1,500 | 94,770 | |
CME Group, Inc. | 1,200 | 245,640 | |
Daiwa Securities Group, Inc. | 35,100 | 156,456 | |
Franklin Resources, Inc. | 5,018 | 116,970 | |
Macquarie Group Ltd. | 309 | 35,080 | |
Morgan Stanley | 1,200 | 91,272 | |
State Street Corp. | 1,700 | 104,805 | |
1,776,924 | |||
Consumer Finance 0.0% | |||
360 DigiTech, Inc. | 2,900 | 50,170 | |
Diversified Financial Services 1.6% | |||
Apollo Global Management, Inc. | 6,056 | 293,595 | |
Investor AB "B" | 63,097 | 1,038,891 | |
Mitsubishi HC Capital, Inc. | 81,200 | 374,235 | |
1,706,721 | |||
Insurance 2.5% | |||
Ageas SV | 5,739 | 252,185 | |
Assicurazioni Generali SpA | 4,041 | 64,556 | |
AXA SA | 8,698 | 198,666 | |
Erie Indemnity Co. "A" | 1,300 | 249,847 | |
Hannover Rueck SE | 2,473 | 359,769 | |
Manulife Financial Corp. | 10,007 | 173,521 | |
Muenchener Rueckversicherungs- Gesellschaft AG (Registered) | 805 | 189,429 | |
Poste Italiane SpA 144A | 30,908 | 289,269 | |
Swiss Re AG | 5,127 | 397,306 | |
Zurich Insurance Group AG | 1,088 | 472,691 | |
2,647,239 | |||
Health Care 7.3% | |||
Biotechnology 0.9% | |||
AbbVie, Inc. | 3,660 | 560,565 | |
Amgen, Inc. | 1,292 | 314,344 | |
Zai Lab Ltd. (ADR)* | 1,600 | 55,488 | |
930,397 | |||
Health Care Equipment & Supplies 0.6% | |||
Abbott Laboratories | 2,058 | 223,602 | |
Coloplast AS "B" | 311 | 35,652 | |
Intuitive Surgical, Inc.* | 200 | 40,142 |
8 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Masimo Corp.* | 1,300 | 169,871 | |
Medtronic PLC | 1,489 | 133,638 | |
602,905 | |||
Health Care Providers & Services 0.8% | |||
Cigna Corp. | 700 | 184,464 | |
CVS Health Corp. | 2,169 | 200,980 | |
Elevance Health, Inc. | 100 | 48,258 | |
UnitedHealth Group, Inc. | 894 | 459,185 | |
892,887 | |||
Life Sciences Tools & Services 0.0% | |||
Danaher Corp. | 200 | 50,704 | |
Pharmaceuticals 5.0% | |||
AstraZeneca PLC | 4,390 | 577,513 | |
Bayer AG (Registered) | 4,486 | 266,738 | |
Bristol-Myers Squibb Co. | 4,939 | 380,303 | |
Chugai Pharmaceutical Co., Ltd. | 5,117 | 130,771 | |
Eli Lilly & Co. | 579 | 187,729 | |
GlaxoSmithKline PLC | 17,120 | 368,768 | |
Hikma Pharmaceuticals PLC | 4,202 | 82,937 | |
Johnson & Johnson | 2,156 | 382,711 | |
Merck & Co., Inc. | 8,486 | 773,669 | |
Novartis AG (Registered) | 2,698 | 228,016 | |
Novo Nordisk AS "B" | 2,998 | 333,530 | |
Pfizer, Inc. | 14,467 | 758,505 | |
Roche Holding AG (Genusschein) | 703 | 234,604 | |
Sanofi | 2,526 | 253,890 | |
Takeda Pharmaceutical Co., Ltd. | 13,473 | 379,005 | |
5,338,689 | |||
Industrials 4.6% | |||
Aerospace & Defense 0.3% | |||
Lockheed Martin Corp. | 200 | 85,992 | |
Raytheon Technologies Corp. | 2,115 | 203,273 | |
289,265 | |||
Air Freight & Logistics 0.4% | |||
Deutsche Post AG (Registered) | 3,775 | 141,844 | |
United Parcel Service, Inc. "B" | 1,602 | 292,429 | |
434,273 | |||
Commercial Services & Supplies 0.1% | |||
Quad Graphics, Inc.* | 2 | 5 | |
Secom Co., Ltd. | 1,900 | 117,335 | |
117,340 | |||
Electrical Equipment 0.3% | |||
ABB Ltd. (Registered) | 2,939 | 78,052 | |
Eaton Corp. PLC | 1,016 | 128,006 | |
Emerson Electric Co. | 1,626 | 129,332 | |
Plug Power, Inc.* | 2,100 | 34,797 | |
370,187 |
Shares | Value ($) | ||
Industrial Conglomerates 0.5% | |||
3M Co. | 1,704 | 220,515 | |
Honeywell International, Inc. | 699 | 121,493 | |
Siemens AG (Registered) | 1,391 | 141,198 | |
483,206 | |||
Machinery 1.1% | |||
Caterpillar, Inc. | 1,300 | 232,388 | |
Cummins, Inc. | 1,879 | 363,643 | |
Deere & Co. | 100 | 29,947 | |
PACCAR, Inc. | 5,600 | 461,104 | |
Techtronic Industries Co., Ltd. | 7,000 | 73,093 | |
1,160,175 | |||
Professional Services 0.8% | |||
Adecco Group AG (Registered) | 11,591 | 393,436 | |
CoStar Group, Inc.* | 2,700 | 163,107 | |
Nihon M&A Center Holdings, Inc. | 23,700 | 251,551 | |
Thomson Reuters Corp. | 473 | 49,310 | |
857,404 | |||
Road & Rail 0.5% | |||
Canadian National Railway Co. | 1,000 | 112,484 | |
Lyft, Inc. "A"* | 2,100 | 27,888 | |
Nippon Express Holdings, Inc. | 3,200 | 172,903 | |
Uber Technologies, Inc.* | 3,000 | 61,380 | |
Union Pacific Corp. | 941 | 200,697 | |
575,352 | |||
Trading Companies & Distributors 0.6% | |||
Fastenal Co. | 4,618 | 230,531 | |
Mitsubishi Corp. | 5,609 | 167,239 | |
Mitsui & Co., Ltd. | 10,105 | 222,801 | |
620,571 | |||
Information Technology 12.6% | |||
Communications Equipment 0.3% | |||
Cisco Systems, Inc. | 7,724 | 329,351 | |
Electronic Equipment, Instruments & Components 0.4% | |||
CDW Corp. | 2,300 | 362,388 | |
Corning, Inc. | 2,005 | 63,178 | |
425,566 | |||
IT Services 2.1% | |||
Adyen NV 144A* | 65 | 94,581 | |
Automatic Data Processing, Inc. | 841 | 176,644 | |
Block, Inc.* | 1,358 | 83,463 | |
Cloudflare, Inc. "A"* | 1,800 | 78,750 | |
Fidelity National Information Services, Inc. | 400 | 36,668 | |
International Business Machines Corp. | 2,702 | 381,495 | |
Mastercard, Inc. "A" | 676 | 213,264 | |
MongoDB, Inc.* | 500 | 129,750 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
Paychex, Inc. | 3,595 | 409,363 | |
PayPal Holdings, Inc.* | 965 | 67,395 | |
Shopify, Inc. "A"* | 3,720 | 116,235 | |
Snowflake, Inc. "A"* | 300 | 41,718 | |
Twilio, Inc. "A"* | 1,207 | 101,159 | |
Visa, Inc. "A" | 1,400 | 275,646 | |
2,206,131 | |||
Semiconductors & Semiconductor Equipment 3.6% | |||
Advanced Micro Devices, Inc.* | 4,300 | 328,821 | |
Analog Devices, Inc. | 1,144 | 167,127 | |
Applied Materials, Inc. | 609 | 55,407 | |
ASML Holding NV | 172 | 81,863 | |
Broadcom, Inc. | 949 | 461,034 | |
Enphase Energy, Inc.* | 855 | 166,930 | |
Intel Corp. | 1,871 | 69,994 | |
KLA Corp. | 479 | 152,839 | |
Lam Research Corp. | 256 | 109,094 | |
Marvell Technology, Inc. | 3,400 | 148,002 | |
Micron Technology, Inc. | 800 | 44,224 | |
Monolithic Power Systems, Inc. | 700 | 268,828 | |
NVIDIA Corp. | 2,548 | 386,251 | |
QUALCOMM, Inc. | 5,484 | 700,526 | |
STMicroelectronics NV | 2,708 | 85,220 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 800 | 65,400 | |
Texas Instruments, Inc. | 2,204 | 338,645 | |
Tokyo Electron Ltd. | 626 | 205,898 | |
3,836,103 | |||
Software 3.5% | |||
Adobe, Inc.* | 500 | 183,030 | |
Autodesk, Inc.* | 200 | 34,392 | |
Bill.com Holdings, Inc.* | 500 | 54,970 | |
Crowdstrike Holdings, Inc. "A"* | 961 | 161,986 | |
Datadog, Inc. "A"* | 400 | 38,096 | |
DocuSign, Inc.* | 400 | 22,952 | |
HubSpot, Inc.* | 200 | 60,130 | |
Intuit, Inc. | 430 | 165,739 | |
Microsoft Corp. | 7,766 | 1,994,542 | |
Open Text Corp. | 3,800 | 143,740 | |
Oracle Corp. | 2,614 | 182,640 | |
Palantir Technologies, Inc. "A"* | 4,400 | 39,908 | |
RingCentral, Inc. "A"* | 2,300 | 120,198 | |
Salesforce, Inc.* | 800 | 132,032 | |
ServiceNow, Inc.* | 558 | 265,340 | |
Trade Desk, Inc. "A"* | 2,950 | 123,576 | |
Unity Software, Inc.* | 900 | 33,138 | |
Zscaler, Inc.* | 300 | 44,853 | |
3,801,262 |
Shares | Value ($) | ||
Technology Hardware, Storage & Peripherals 2.7% | |||
Apple, Inc. | 17,609 | 2,407,502 | |
Canon, Inc. | 1,400 | 31,743 | |
HP, Inc. | 4,493 | 147,281 | |
Samsung Electronics Co., Ltd. (GDR) REG S | 235 | 256,385 | |
2,842,911 | |||
Materials 2.5% | |||
Chemicals 1.2% | |||
Air Products & Chemicals, Inc. | 488 | 117,354 | |
BASF SE | 3,229 | 140,794 | |
Dow, Inc. | 4,934 | 254,644 | |
Linde PLC | 406 | 116,737 | |
Nutrien Ltd. | 1,970 | 156,887 | |
Yara International ASA | 11,796 | 493,288 | |
1,279,704 | |||
Construction Materials 0.2% | |||
Holcim AG | 3,989 | 170,690 | |
Containers & Packaging 0.3% | |||
Amcor PLC | 15,493 | 192,578 | |
International Paper Co. | 1,131 | 47,310 | |
Packaging Corp. of America | 600 | 82,500 | |
322,388 | |||
Metals & Mining 0.8% | |||
Anglo American PLC | 9,636 | 344,649 | |
Antofagasta PLC | 7,160 | 100,537 | |
Boliden AB | 883 | 28,051 | |
Mineral Resources Ltd. | 4,431 | 147,173 | |
Newmont Corp. | 2,900 | 173,043 | |
Nucor Corp. | 600 | 62,646 | |
Steel Dynamics, Inc. | 400 | 26,460 | |
882,559 | |||
Real Estate 1.7% | |||
Equity Real Estate Investment Trusts (REITs) 1.6% | |||
Ascendas Real Estate Investment Trust | 39,865 | 81,870 | |
Crown Castle International Corp. | 873 | 146,996 | |
Iron Mountain, Inc. | 5,900 | 287,271 | |
Klepierre SA | 3,508 | 67,400 | |
Medical Properties Trust, Inc. | 44,392 | 677,866 | |
Nomura Real Estate Master Fund, Inc. | 31 | 38,658 | |
Realty Income Corp. | 2,648 | 180,752 | |
VICI Properties, Inc. | 8,562 | 255,062 | |
1,735,875 | |||
Real Estate Management & Development 0.1% | |||
Swire Pacific Ltd. "A" | 17,000 | 101,349 |
10 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Utilities 2.1% | |||
Electric Utilities 1.9% | |||
American Electric Power Co., Inc. | 767 | 73,586 | |
Enel SpA | 28,493 | 156,139 | |
Hk Electric Investments & Hk Electric Investments Ltd. | 92,000 | 84,425 | |
Iberdrola SA | 10,910 | 113,122 | |
Power Assets Holdings Ltd. | 56,500 | 355,546 | |
PPL Corp. | 31,235 | 847,406 | |
Southern Co. | 3,569 | 254,505 | |
SSE PLC | 7,530 | 148,219 | |
Verbund AG | 459 | 44,764 | |
2,077,712 | |||
Multi-Utilities 0.2% | |||
Dominion Energy, Inc. | 2,104 | 167,920 | |
Sempra Energy | 259 | 38,920 | |
206,840 | |||
Total Common Stocks (Cost $59,449,944) | 63,255,875 | ||
Preferred Stocks 2.6% | |||
Financials 1.7% | |||
AGNC Investment Corp., Series C, 7.0% | 14,427 | 323,453 | |
Fifth Third Bancorp., Series I, 6.625% | 10,000 | 252,100 | |
KeyCorp., Series E, 6.125% | 10,000 | 251,700 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 247,300 | |
The Goldman Sachs Group, Inc., Series J, 5.5% | 17,000 | 415,480 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 356,550 | |
1,846,583 | |||
Real Estate 0.9% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 362,250 | |
Prologis, Inc., Series Q, 8.54% | 164 | 10,537 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 524,000 | |
896,787 | |||
Total Preferred Stocks (Cost $3,039,895) | 2,743,370 | ||
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (b) (Cost $30,283) | 170 | 14,335 |
Principal Amount ($) (c) | Value ($) | ||
Corporate Bonds 17.5% | |||
Communication Services 1.9% | |||
America Movil SAB de CV, 4.375%, 4/22/2049 | 300,000 | 278,322 | |
AT&T, Inc.: | |||
2.25%, 2/1/2032 | 80,000 | 65,359 | |
3.65%, 6/1/2051 | 100,000 | 78,213 | |
Charter Communications Operating LLC: | |||
2.25%, 1/15/2029 | 120,000 | 98,600 | |
3.5%, 3/1/2042 | 57,000 | 39,555 | |
3.7%, 4/1/2051 | 34,000 | 23,008 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 28,020 | |
Grupo Televisa SAB, 5.25%, 5/24/2049 | 300,000 | 294,780 | |
Netflix, Inc.: | |||
4.375%, 11/15/2026 | 100,000 | 96,351 | |
5.875%, 11/15/2028 | 140,000 | 136,879 | |
Rogers Communications, Inc., 144A, 3.8%, 3/15/2032 | 145,000 | 132,590 | |
Sirius XM Radio, Inc., 144A, 3.125%, 9/1/2026 | 100,000 | 89,223 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 | 300,000 | 251,109 | |
T-Mobile U.S.A., Inc.: | |||
2.625%, 4/15/2026 | 90,000 | 81,675 | |
3.3%, 2/15/2051 | 125,000 | 91,023 | |
3.375%, 4/15/2029 | 115,000 | 100,625 | |
3.6%, 11/15/2060 | 25,000 | 18,217 | |
4.375%, 4/15/2040 | 60,000 | 53,558 | |
Verizon Communications, Inc.: | |||
2.65%, 11/20/2040 | 40,000 | 29,343 | |
3.7%, 3/22/2061 | 100,000 | 78,542 | |
2,064,992 | |||
Consumer Discretionary 1.0% | |||
Dollar General Corp., 4.125%, 4/3/2050 | 20,000 | 16,672 | |
Ford Motor Co., 3.25%, 2/12/2032 | 210,000 | 157,059 | |
Ford Motor Credit Co. LLC: | |||
2.7%, 8/10/2026 | 230,000 | 195,994 | |
2.9%, 2/16/2028 | 200,000 | 161,152 | |
General Motors Co., 5.4%, 4/1/2048 | 60,000 | 52,194 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 62,023 | |
3.1%, 1/12/2032 | 90,000 | 72,338 | |
Hilton Domestic Operating Co., Inc.: | |||
144A, 3.625%, 2/15/2032 | 175,000 | 139,016 | |
144A, 4.0%, 5/1/2031 | 125,000 | 103,875 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 11 |
Principal Amount ($) (c) | Value ($) | ||
Magallanes, Inc.: | |||
144A, 5.05%, 3/15/2042 | 50,000 | 42,539 | |
144A, 5.141%, 3/15/2052 | 60,000 | 50,361 | |
1,053,223 | |||
Consumer Staples 0.4% | |||
Altria Group, Inc.: | |||
3.7%, 2/4/2051 | 50,000 | 31,958 | |
3.875%, 9/16/2046 | 20,000 | 13,454 | |
Anheuser-Busch Companies LLC, 4.9%, 2/1/2046 | 28,000 | 26,317 | |
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 121,000 | 123,580 | |
JBS Finance Luxembourg Sarl, 144A, 2.5%, 1/15/2027 | 260,000 | 226,164 | |
421,473 | |||
Energy 2.1% | |||
Cenovus Energy, Inc., 2.65%, 1/15/2032 | 63,000 | 52,101 | |
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 204,774 | |
Cheniere Energy Partners LP, 4.5%, 10/1/2029 | 175,000 | 156,223 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 265,200 | |
Enterprise Products Operating LLC: | |||
3.3%, 2/15/2053 | 90,000 | 65,465 | |
4.2%, 1/31/2050 | 144,000 | 120,078 | |
Hess Corp., 5.8%, 4/1/2047 | 70,000 | 69,812 | |
Petroleos Mexicanos, 6.7%, 2/16/2032 | 622,000 | 474,275 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 44,196 | |
Saudi Arabian Oil Co.: | |||
144A, 2.25%, 11/24/2030 | 625,000 | 531,900 | |
REG S, 3.5%, 4/16/2029 | 300,000 | 285,872 | |
2,269,896 | |||
Financials 5.0% | |||
AerCap Ireland Capital DAC: | |||
1.75%, 1/30/2026 | 150,000 | 131,105 | |
3.4%, 10/29/2033 | 150,000 | 118,441 | |
Air Lease Corp., 4.125%, Perpetual (d) | 200,000 | 143,500 | |
Aircastle Ltd., 144A, 5.25%, Perpetual (d) | 130,000 | 107,293 | |
Ally Financial, Inc., 4.7%, Perpetual (d) | 500,000 | 396,507 | |
Ares Capital Corp., 2.875%, 6/15/2027 | 150,000 | 125,201 | |
Avolon Holdings Funding Ltd.: | |||
144A, 2.528%, 11/18/2027 | 10,000 | 8,151 | |
144A, 4.25%, 4/15/2026 | 40,000 | 37,042 |
Principal Amount ($) (c) | Value ($) | ||
Banco Nacional de Panama, 144A, 2.5%, 8/11/2030 | 200,000 | 158,750 | |
Bank of America Corp.: | |||
2.676%, 6/19/2041 | 60,000 | 43,171 | |
2.972%, 2/4/2033 | 200,000 | 170,385 | |
4.375%, Perpetual (d) | 530,000 | 439,778 | |
Bank of New York Mellon Corp.: | |||
3.7%, Perpetual (d) | 180,000 | 159,276 | |
3.75%, Perpetual (d) | 345,000 | 281,634 | |
Blackstone Secured Lending Fund: | |||
2.85%, 9/30/2028 | 110,000 | 88,707 | |
3.625%, 1/15/2026 | 155,000 | 141,240 | |
Capital One Financial Corp., 3.95%, Perpetual (d) | 350,000 | 280,875 | |
Citigroup, Inc.: | |||
2.561%, 5/1/2032 | 40,000 | 32,934 | |
4.91%, 5/24/2033 | 70,000 | 69,071 | |
Corebridge Financial, Inc., 144A, 4.35%, 4/5/2042 | 60,000 | 51,167 | |
Enstar Finance LLC, 5.5%, 1/15/2042 | 200,000 | 163,446 | |
JPMorgan Chase & Co., 3.328%, 4/22/2052 | 27,000 | 20,525 | |
KKR Group Finance Co., XII LLC, 144A, 4.85%, 5/17/2032 | 130,000 | 128,345 | |
Liberty Mutual Group, Inc., 5.5%, 6/15/2052 | 50,000 | 47,359 | |
Morgan Stanley: | |||
2.484%, 9/16/2036 | 141,000 | 108,418 | |
3.217%, 4/22/2042 | 30,000 | 23,611 | |
PNC Financial Services Group, Inc., 3.4%, Perpetual (d) | 320,000 | 242,983 | |
REC Ltd., 144A, 4.75%, 5/19/2023 | 200,000 | 200,768 | |
Societe Generale SA: | |||
144A, 5.375%, Perpetual (d) | 250,000 | 193,750 | |
144A, 6.221%, 6/15/2033 | 225,000 | 214,753 | |
The Charles Schwab Corp., Series I, 4.0%, Perpetual (d) | 265,000 | 224,630 | |
The Goldman Sachs Group, Inc.: | |||
2.908%, 7/21/2042 | 80,000 | 58,414 | |
3.8%, Perpetual (d) | 170,000 | 132,597 | |
Truist Financial Corp., 4.8%, Perpetual (d) | 300,000 | 268,470 | |
UBS Group AG, 144A, 4.375%, Perpetual (d) | 200,000 | 146,320 | |
Westpac Banking Corp., 5.0%, Perpetual (d) | 200,000 | 174,858 | |
5,333,475 |
12 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Health Care 1.7% | |||
AstraZeneca PLC, 2.125%, 8/6/2050 | 32,000 | 21,366 | |
Bausch Health Companies, Inc., 144A, 4.875%, 6/1/2028 | 90,000 | 70,429 | |
Centene Corp.: | |||
2.45%, 7/15/2028 | 60,000 | 50,042 | |
2.625%, 8/1/2031 | 130,000 | 103,415 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 300,000 | 260,355 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 167,518 | |
DaVita, Inc., 144A, 4.625%, 6/1/2030 | 140,000 | 109,181 | |
HCA, Inc., 5.25%, 6/15/2026 | 300,000 | 298,476 | |
Pfizer, Inc., 2.55%, 5/28/2040 | 38,000 | 29,750 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | �� 925,000 | 758,500 | |
1,869,032 | |||
Industrials 1.3% | |||
Adani Ports & Special Economic Zone Ltd., 144A, 4.2%, 8/4/2027 | 200,000 | 186,212 | |
American Airlines, Inc., 144A, 5.5%, 4/20/2026 | 105,000 | 96,472 | |
Boeing Co.: | |||
2.196%, 2/4/2026 | 237,000 | 213,624 | |
5.04%, 5/1/2027 | 60,000 | 59,266 | |
Delta Air Lines, Inc.: | |||
3.75%, 10/28/2029 (a) | 135,000 | 106,984 | |
144A, 4.5%, 10/20/2025 | 30,000 | 29,150 | |
JBS USA, 5.75%, 4/1/2033 | 180,000 | 171,412 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 200,000 | 196,560 | |
O Reilly Automotive, Inc., 4.7%, 6/15/2032 | 90,000 | 89,632 | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | 250,000 | 244,375 | |
1,393,687 | |||
Information Technology 1.1% | |||
Block, Inc., 144A, 2.75%, 6/1/2026 | 30,000 | 26,617 | |
Broadcom, Inc., 144A, 2.6%, 2/15/2033 | 70,000 | 53,823 | |
Dell International LLC: | |||
144A, 3.45%, 12/15/2051 | 51,000 | 34,506 | |
5.3%, 10/1/2029 | 85,000 | 83,795 | |
HP, Inc.: | |||
4.2%, 4/15/2032 | 110,000 | 98,190 | |
5.5%, 1/15/2033 | 200,000 | 195,088 | |
KLA Corp., 4.65%, 7/15/2032 | 70,000 | 71,410 |
Principal Amount ($) (c) | Value ($) | ||
MSCI, Inc.: | |||
144A, 3.25%, 8/15/2033 | 40,000 | 31,884 | |
144A, 3.625%, 9/1/2030 | 90,000 | 75,031 | |
NXP BV: | |||
2.65%, 2/15/2032 | 58,000 | 47,644 | |
3.125%, 2/15/2042 | 60,000 | 43,636 | |
Open Text Corp., 144A, 3.875%, 2/15/2028 | 175,000 | 155,650 | |
Oracle Corp.: | |||
3.6%, 4/1/2050 | 7,000 | 4,863 | |
3.65%, 3/25/2041 | 118,000 | 87,936 | |
SK Hynix, Inc., 144A, 1.5%, 1/19/2026 | 200,000 | 179,754 | |
1,189,827 | |||
Materials 0.7% | |||
AngloGold Ashanti Holdings PLC, 3.75%, 10/1/2030 | 200,000 | 164,654 | |
Berry Global, Inc., 1.65%, 1/15/2027 | 300,000 | 262,587 | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 258,234 | |
Suzano Austria GmbH, 2.5%, 9/15/2028 | 80,000 | 65,000 | |
750,475 | |||
Real Estate 0.1% | |||
Boston Properties LP, (REIT), 2.55%, 4/1/2032 | 75,000 | 59,688 | |
MPT Operating Partnership LP, (REIT), 3.5%, 3/15/2031 | 80,000 | 63,053 | |
122,741 | |||
Utilities 2.2% | |||
CMS Energy Corp., 3.75%, 12/1/2050 | 400,000 | 305,772 | |
Duke Energy Corp., 3.25%, 1/15/2082 | 250,000 | 195,406 | |
Enel Finance International NV, 144A, 5.0%, 6/15/2032 | 210,000 | 202,741 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 179,000 | |
Nextera Energy Capital Holdings, Inc., 5.0%, 7/15/2032 | 70,000 | 71,715 | |
NextEra Energy Operating Partners LP: | |||
144A, 3.875%, 10/15/2026 | 190,000 | 173,850 | |
144A, 4.25%, 7/15/2024 | 275,000 | 263,065 | |
Pacific Gas and Electric Co.: | |||
2.5%, 2/1/2031 | 20,000 | 15,299 | |
3.25%, 6/1/2031 | 80,000 | 64,613 | |
3.3%, 8/1/2040 | 70,000 | 48,262 | |
5.45%, 6/15/2027 | 90,000 | 87,096 | |
Perusahaan Listrik Negara PT, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 264,974 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (c) | Value ($) | ||
Sempra Energy, 4.125%, 4/1/2052 | 310,000 | 248,549 | |
Southern Co., 3.75%, 9/15/2051 | 215,000 | 182,679 | |
2,303,021 | |||
Total Corporate Bonds (Cost $22,262,544) | 18,771,842 | ||
Asset-Backed 4.6% | |||
Automobile Receivables 0.3% | |||
JPMorgan Chase Bank NA, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 289,445 | 281,269 | |
Miscellaneous 4.3% | |||
CF Hippolyta Issuer LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 532,407 | 459,543 | |
DB Master Finance LLC, “A23”, Series 2021-1A, 144A, 2.791%, 11/20/2051 | 1,119,375 | 922,212 | |
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 325,550 | 311,074 | |
Madison Park Funding XXVI Ltd., “AR”, Series 2007-4A, 144A, 3-month USD- LIBOR + 1.2%, 2.439% (e), 7/29/2030 | 1,100,000 | 1,086,601 | |
Octagon Investment Partners XX, “A1R”, Series 2019-4A, 144A, 3-month USD-LIBOR + 1.15%, 2.55% (e), 5/12/2031 | 750,000 | 731,171 | |
Venture 37 CLO Ltd., “A1R”, Series 2019-37A, 144A, 3-month USD-LIBOR + 1.15%, 2.194% (e), 7/15/2032 | 800,000 | 774,564 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 417,780 | 348,278 | |
4,633,443 | |||
Total Asset-Backed (Cost $5,330,737) | 4,914,712 | ||
Mortgage-Backed Securities Pass- Throughs 0.0% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 1,687 | 1,780 | |
Federal National Mortgage Association: | |||
4.5%, 9/1/2035 | 2,888 | 2,997 |
Principal Amount ($) (c) | Value ($) | ||
6.0%, 1/1/2024 | 1,411 | 1,423 | |
Total Mortgage-Backed Securities Pass- Throughs (Cost $5,872) | 6,200 | ||
Commercial Mortgage-Backed Securities 2.2% | |||
Citigroup Commercial Mortgage Trust, “D”, Series 2019-PRM, 144A, 4.35%, 5/10/2036 | 500,000 | 499,297 | |
Credit Suisse Commercial Mortgage Trust, “B”, Series 2020-TMIC, 144A, 1-month USD-LIBOR + 5.0%, 6.324% (e), 12/15/2035 | 700,000 | 691,646 | |
Credit Suisse Mortgage Trust, “A”, Series 2020- TMIC, 144A, 1-month USD-LIBOR + 3.0%, 4.324% (e), 12/15/2035 | 700,000 | 691,513 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 4.676% (e), 1/25/2051 | 194,000 | 167,957 | |
GMAC Commercial Mortgage Securities, Inc., “G”, Series 2004-C1, 144A, 5.455%, 3/10/2038 | 394,448 | 236,669 | |
Multifamily Connecticut Avenue Securities Trust, “M7”, Series 2019-01, 144A, 1-month USD- LIBOR + 1.7%, 3.324% (e), 10/15/2049 | 25,552 | 25,015 | |
Total Commercial Mortgage-Backed Securities (Cost $2,533,434) | 2,312,097 | ||
Collateralized Mortgage Obligations 1.3% | |||
Connecticut Avenue Securities Trust: | |||
“1M2”, Series 2019-R03, 144A, 1-month USD- LIBOR + 2.15%, 3.774% (e), 9/25/2031 | 13,605 | 13,581 | |
“1M2”, Series 2019-R02, 144A, 1-month USD- LIBOR + 2.3%, 3.924% (e), 8/25/2031 | 18,993 | 18,993 | |
Fannie Mae Connecticut Avenue Securities: | |||
“1M2”, Series 2018-C06, 1-month USD-LIBOR + 2.0%, 3.624% (e), 3/25/2031 | 90,946 | 89,941 |
14 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
“1M2”, Series 2018-C01, 1-month USD-LIBOR + 2.25%, 3.874% (e), 7/25/2030 | 94,391 | 94,391 | |
Federal National Mortgage Association, “I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 61,417 | 10,917 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M2”, Series 2020-DNA2, 144A, 1-month USD- LIBOR + 1.85%, 3.474% (e), 2/25/2050 | 506,925 | 501,935 | |
“M2”, Series 2019-DNA3, 144A, 1-month USD- LIBOR + 2.05%, 3.674% (e), 7/25/2049 | 184,348 | 183,315 | |
“M2”, Series 2019-DNA2, 144A, 1-month USD- LIBOR + 2.45%, 4.074% (e), 3/25/2049 | 302,247 | 301,093 | |
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.242%, 10/25/2046 | 149,551 | 139,461 | |
Total Collateralized Mortgage Obligations (Cost $1,364,494) | 1,353,627 | ||
Government & Agency Obligations 6.8% | |||
Sovereign Bonds 1.1% | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 (a) | 200,000 | 167,506 | |
Indonesia Government International Bond: | |||
2.85%, 2/14/2030 | 625,000 | 557,798 | |
3.85%, 10/15/2030 (a) | 300,000 | 285,433 | |
Perusahaan Penerbit SBSN Indonesia III, 144A, 2.8%, 6/23/2030 | 200,000 | 175,300 | |
1,186,037 | |||
U.S. Treasury Obligations 5.7% | |||
U.S. Treasury Bonds: | |||
1.875%, 11/15/2051 | 131,500 | 98,666 | |
2.0%, 11/15/2041 | 117,700 | 93,480 | |
U.S. Treasury Notes: | |||
1.25%, 12/31/2026 | 218,200 | 201,682 |
Principal Amount ($) (c) | Value ($) | ||
1.875%, 2/15/2032 | 81,700 | 74,015 | |
2.625%, 5/31/2027 | 1,253,500 | 1,229,801 | |
2.75%, 5/31/2029 | 2,818,000 | 2,762,521 | |
2.875%, 5/15/2032 | 1,654,000 | 1,635,392 | |
6,095,557 | |||
Total Government & Agency Obligations (Cost $7,496,381) | 7,281,594 | ||
Short-Term U.S. Treasury Obligation 1.4% | |||
U.S. Treasury Bills, 1.998% (f), 4/20/2023 (g) (h) (Cost $1,475,608) | 1,500,000 | 1,469,036 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.6% | |||
SPDR Bloomberg Convertible Securities ETF (Cost $2,340,555) | 43,880 | 2,832,893 | |
Securities Lending Collateral 0.6% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (i) (j) (Cost $611,916) | 611,916 | 611,916 | |
Cash Equivalents 2.0% | |||
DWS Central Cash Management Government Fund, 1.36% (i) (Cost $2,199,714) | 2,199,714 | 2,199,714 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $108,141,377) | 100.7 | 107,767,211 | |
Other Assets and Liabilities, Net | (0.7) | (771,776) | |
Net Assets | 100.0 | 106,995,435 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 15 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 0.6% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (i) (j) | ||||||||
4,062,127 | — | 3,450,211 (k) | — | — | 14,062 | — | 611,916 | 611,916 |
Cash Equivalents 2.0% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (i) | ||||||||
1,914,561 | 25,805,841 | 25,520,688 | — | — | 7,724 | — | 2,199,714 | 2,199,714 |
5,976,688 | 25,805,841 | 28,970,899 | — | — | 21,786 | — | 2,811,630 | 2,811,630 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2022 amounted to $596,249, which is 0.6% 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 June 30, 2022. 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 June 30, 2022, this security has been pledged, in whole or in part, to cover initial margin requirements for open centrally cleared swap contracts. |
(h) | At June 30, 2022, 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 period ended June 30, 2022. |
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 |
CLO: Collateralized Loan Obligation |
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 |
16 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
10 Year U.S. Treasury Note | USD | 9/21/2022 | 11 | 1,296,758 | 1,303,844 | 7,086 |
MSCI E-Mini Emerging Market Index | USD | 9/16/2022 | 75 | 3,763,256 | 3,760,125 | (3,131) |
Ultra 10 Year U.S. Treasury Note | USD | 9/21/2022 | 10 | 1,276,182 | 1,273,750 | (2,432) |
Ultra Long U.S. Treasury Bond | USD | 9/21/2022 | 36 | 5,709,873 | 5,556,375 | (153,498) |
Total net unrealized depreciation | (151,975) |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
5 Year U.S. Treasury Note | USD | 9/30/2022 | 20 | 2,265,419 | 2,245,000 | 20,419 |
Euro Stoxx 50 Index | EUR | 9/16/2022 | 66 | 2,389,179 | 2,379,957 | 9,222 |
Euro-Schatz | EUR | 9/8/2022 | 34 | 3,891,232 | 3,888,869 | 2,363 |
S&P 500 E-Mini Index | USD | 9/16/2022 | 39 | 7,318,036 | 7,389,525 | (71,489) |
TOPIX Index | JPY | 9/8/2022 | 1 | 142,983 | 137,861 | 5,122 |
Total net unrealized depreciation | (34,363) |
Centrally Cleared Swaps | |||||||
Cash Flows Paid by the Fund/ Frequency | Cash Flows Received by the Fund/ Frequency | Effective/ Expiration Date | Notional Amount ($) | Currency | Value ($) | Upfront Payments Paid/ (Received) ($) | Unrealized Appreciation ($) |
Fixed — 0.25% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2023 | 3,200,000 | USD | 62,513 | 108 | 62,405 |
Fixed — 0.45% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2024 | 2,100,000 | USD | 96,781 | (28) | 96,809 |
Fixed — 1.3% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2028 | 400,000 | USD | 35,022 | 77 | 34,945 |
Fixed — 1.63% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2031 | 300,000 | USD | 31,028 | 311 | 30,717 |
Total unrealized appreciation | 224,876 |
β | 3-month LIBOR rate as of June 30, 2022 is 2.935%. |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 274,000 | USD | 289,785 | 8/4/2022 | 2,081 | State Street Bank and Trust |
EUR | Euro |
JPY | Japanese Yen |
USD | United States Dollar |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 17 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Communication Services | $ 3,597,710 | $ 1,158,989 | $ — | $ 4,756,699 |
Consumer Discretionary | 3,483,138 | 1,192,183 | — | 4,675,321 |
Consumer Staples | 2,972,457 | 2,462,263 | — | 5,434,720 |
Energy | 3,879,857 | 1,318,861 | — | 5,198,718 |
Financials | 4,786,878 | 5,461,743 | — | 10,248,621 |
Health Care | 4,924,158 | 2,891,424 | — | 7,815,582 |
Industrials | 3,148,321 | 1,759,452 | — | 4,907,773 |
Information Technology | 12,942,019 | 499,305 | — | 13,441,324 |
Materials | 1,230,159 | 1,425,182 | — | 2,655,341 |
Real Estate | 1,547,947 | 289,277 | — | 1,837,224 |
Utilities | 1,382,337 | 902,215 | — | 2,284,552 |
Preferred Stocks (a) | 2,743,370 | — | — | 2,743,370 |
Warrants | — | — | 14,335 | 14,335 |
Corporate Bonds (a) | — | 18,771,842 | — | 18,771,842 |
Asset-Backed (a) | — | 4,914,712 | — | 4,914,712 |
Mortgage-Backed Securities Pass-Throughs | — | 6,200 | — | 6,200 |
Commercial Mortgage-Backed Securities | — | 2,312,097 | — | 2,312,097 |
Collateralized Mortgage Obligations | — | 1,353,627 | — | 1,353,627 |
Government & Agency Obligations (a) | — | 7,281,594 | — | 7,281,594 |
Short-Term U.S. Treasury Obligation | — | 1,469,036 | — | 1,469,036 |
Exchange-Traded Funds | 2,832,893 | — | — | 2,832,893 |
Short-Term Investments (a) | 2,811,630 | — | — | 2,811,630 |
Derivatives (b) | ||||
Futures Contracts | 44,212 | — | — | 44,212 |
Interest Rate Swap Contracts | — | 224,876 | — | 224,876 |
Forward Foreign Currency Contracts | — | 2,081 | — | 2,081 |
Total | $52,327,086 | $55,696,959 | $14,335 | $108,038,380 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $ (230,550) | $ — | $ — | $ (230,550) |
Total | $(230,550) | $— | $— | $(230,550) |
(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. |
18 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $105,329,747) — including $596,249 of securities loaned | $ 104,955,581 |
Investment in DWS Government & Agency Securities Portfolio (cost $611,916)* | 611,916 |
Investment in DWS Central Cash Management Government Fund (cost $2,199,714) | 2,199,714 |
Cash | 20,000 |
Foreign currency, at value (cost $97,912) | 96,815 |
Receivable for Fund shares sold | 8,382 |
Dividends receivable | 176,794 |
Interest receivable | 263,306 |
Receivable for variation margin on futures contracts | 157,571 |
Unrealized appreciation on forward foreign currency contracts | 2,081 |
Foreign taxes recoverable | 114,763 |
Other assets | 1,385 |
Total assets | 108,608,308 |
Liabilities | |
Payable upon return of securities loaned | 611,916 |
Payable for investments purchased | 758,649 |
Payable for Fund shares redeemed | 79,900 |
Payable for variation margin on centrally cleared swaps | 11,833 |
Accrued management fee | 33,469 |
Accrued Trustees' fees | 987 |
Other accrued expenses and payables | 116,119 |
Total liabilities | 1,612,873 |
Net assets, at value | $106,995,435 |
Net Assets Consist of | |
Distributable earnings (loss) | 1,872,794 |
Paid-in capital | 105,122,641 |
Net assets, at value | $106,995,435 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($106,984,053 ÷ 5,313,219 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 20.14 |
Class B | |
Net Asset Value, offering and redemption price per share ($11,382 ÷ 566 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $ 20.12 |
* | 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 | | 19 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $106,062) | $ 1,423,524 |
Interest | 638,709 |
Income distributions — DWS Central Cash Management Government Fund | 7,724 |
Securities lending income, net of borrower rebates | 14,062 |
Total income | 2,084,019 |
Expenses: | |
Management fee | 219,464 |
Administration fee | 57,535 |
Services to shareholders | 450 |
Distribution service fee (Class B) | 16 |
Custodian fee | 10,106 |
Audit fee | 37,176 |
Legal fees | 11,745 |
Tax fees | 4,846 |
Reports to shareholders | 23,676 |
Trustees' fees and expenses | 4,696 |
Other | 11,224 |
Total expenses before expense reductions | 380,934 |
Expense reductions | (8) |
Total expenses after expense reductions | 380,926 |
Net investment income | 1,703,093 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 474,092 |
Swap contracts | 39,073 |
Futures | 407,502 |
Forward foreign currency contracts | 26,205 |
Foreign currency | (17,647) |
929,225 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (22,399,251) |
Swap contracts | 193,863 |
Futures | (200,422) |
Forward foreign currency contracts | (1,029) |
Foreign currency | 76,793 |
(22,330,046) | |
Net gain (loss) | (21,400,821) |
Net increase (decrease) in net assets resulting from operations | $(19,697,728) |
20 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 1,703,093 | $ 3,073,408 |
Net realized gain (loss) | 929,225 | 9,810,558 |
Change in net unrealized appreciation (depreciation) | (22,330,046) | 554,839 |
Net increase (decrease) in net assets resulting from operations | (19,697,728) | 13,438,805 |
Distributions to shareholders: | ||
Class A | (12,945,935) | (4,841,632) |
Class B | (1,320) | (443) |
Total distributions | (12,947,255) | (4,842,075) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,777,445 | 7,428,971 |
Reinvestment of distributions | 12,945,935 | 4,841,632 |
Payments for shares redeemed | (7,476,309) | (16,230,213) |
Net increase (decrease) in net assets from Class A share transactions | 8,247,071 | (3,959,610) |
Class B | ||
Reinvestment of distributions | 1,320 | 443 |
Net increase (decrease) in net assets from Class B share transactions | 1,320 | 443 |
Increase (decrease) in net assets | (24,396,592) | 4,637,563 |
Net assets at beginning of period | 131,392,027 | 126,754,464 |
Net assets at end of period | $106,995,435 | $131,392,027 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,905,426 | 5,056,269 |
Shares sold | 121,222 | 282,829 |
Shares issued to shareholders in reinvestment of distributions | 602,697 | 189,422 |
Shares redeemed | (316,126) | (623,094) |
Net increase (decrease) in Class A shares | 407,793 | (150,843) |
Shares outstanding at end of period | 5,313,219 | 4,905,426 |
Class B | ||
Shares outstanding at beginning of period | 504 | 487 |
Shares issued to shareholders in reinvestment of distributions | 62 | 17 |
Net increase (decrease) in Class B shares | 62 | 17 |
Shares outstanding at end of period | 566 | 504 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 21 |
Financial Highlights
DWS Global Income Builder VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $26.78 | $25.07 | $24.63 | $21.33 | $26.56 | $23.50 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .34 | .62 | .57 | .69 | .80 | .71 |
Net realized and unrealized gain (loss) | (4.28) | 2.08 | 1.16 | 3.54 | (2.67) | 3.10 |
Total from investment operations | (3.94) | 2.70 | 1.73 | 4.23 | (1.87) | 3.81 |
Less distributions from: | ||||||
Net investment income | (.69) | (.62) | (.74) | (.90) | (.98) | (.75) |
Net realized gains | (2.01) | (.37) | (.55) | (.03) | (2.38) | — |
Total distributions | (2.70) | (.99) | (1.29) | (.93) | (3.36) | (.75) |
Net asset value, end of period | $20.14 | $26.78 | $25.07 | $24.63 | $21.33 | $26.56 |
Total Return (%) | (15.36)* | 10.95 | 8.28 | 20.16 | (7.66)b | 16.54 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 107 | 131 | 127 | 130 | 120 | 147 |
Ratio of expenses before expense reductions (%)c | .64** | .61 | .64 | .68 | .69 | .63 |
Ratio of expenses after expense reductions (%)c | .64** | .61 | .64 | .68 | .68 | .63 |
Ratio of net investment income (%) | 2.87** | 2.36 | 2.51 | 2.96 | 3.34 | 2.85 |
Portfolio turnover rate (%) | 51* | 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. |
* | Not annualized |
** | Annualized |
22 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
DWS Global Income Builder VIP — Class B | |||||
Six Months Ended 6/30/22 | Years Ended December 31, | Period Ended | |||
(Unaudited) | 2021 | 2020 | 2019 | 12/31/18a | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $26.70 | $25.01 | $24.61 | $21.30 | $22.65 |
Income (loss) from investment operations: | |||||
Net investment incomeb | .30 | .52 | .50 | .65 | .50 |
Net realized and unrealized gain (loss) | (4.26) | 2.08 | 1.15 | 3.55 | (1.85) |
Total from investment operations | (3.96) | 2.60 | 1.65 | 4.20 | (1.35) |
Less distributions from: | |||||
Net investment income | (.61) | (.54) | (.70) | (.86) | — |
Net realized gains | (2.01) | (.37) | (.55) | (.03) | — |
Total distributions | (2.62) | (.91) | (1.25) | (.89) | — |
Net asset value, end of period | $20.12 | $26.70 | $25.01 | $24.61 | $21.30 |
Total Return (%)c | (15.45)* | 10.56 | 7.90 | 20.01 | (5.96)* |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ thousands) | 11 | 13 | 12 | 11 | 9 |
Ratio of expenses before expense reductions (%)d | 1.09** | 1.05 | 1.10 | 1.10 | 1.15** |
Ratio of expenses after expense reductions (%)d | .96** | .96 | .93 | .86 | .86** |
Ratio of net investment income (%) | 2.57** | 1.99 | 2.20 | 2.77 | 3.30** |
Portfolio turnover rate (%) | 51* | 104 | 137 | 182 | 70e |
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 | | 23 |
Notes to Financial Statements (Unaudited)
24 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 25 |
Overnight and Continuous | ˂30 days | Between 30 & 90 days | ˃90 days | Total | |
Securities Lending Transactions | |||||
Common Stocks | $ 39,186 | $ — | $ — | $ — | $ 39,186 |
Corporate Bonds | 107,730 | — | — | — | 107,730 |
Government & Agency Obligations | 465,000 | — | — | — | 465,000 |
Total Borrowings | $ 611,916 | $ — | $ — | $ — | $ 611,916 |
Gross amount of recognized liabilities for securities lending transactions: | $611,916 |
26 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 27 |
28 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Assets Derivative | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 14,344 | $ 14,344 |
Interest Rate Contracts (a) | — | 224,876 | 29,868 | 254,744 |
Foreign Exchange Contracts (b) | 2,081 | — | — | 2,081 |
$ 2,081 | $ 224,876 | $ 44,212 | $ 271,169 | |
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 | Futures Contracts |
Equity Contracts (a) | $ (74,620) |
Interest Rate Contracts (a) | (155,930) |
$ (230,550) | |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Includes cumulative depreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Realized Gain (Loss) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 1,134,188 | $ 1,134,188 |
Interest Rate Contracts (a) | — | (157) | (726,686) | (726,843) |
Credit Contracts (a) | — | 39,230 | — | 39,230 |
Foreign Exchange Contracts (a) | 26,205 | — | — | 26,205 |
$26,205 | $39,073 | $407,502 | $472,780 | |
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) | $ — | $ — | $ 31,654 | $ 31,654 |
Interest Rate Contracts (a) | — | 193,863 | (232,076) | (38,213) |
Foreign Exchange Contracts (a) | (1,029) | — | — | (1,029) |
$(1,029) | $193,863 | $(200,422) | $(7,588) | |
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 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 29 |
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 | $ 2,081 | $ — | $ — | $ 2,081 |
Purchases | Sales | |
Non-U.S. Treasury Obligations | $50,583,126 | $58,523,999 |
U.S. Treasury Obligations | $7,494,567 | $1,369,181 |
First $250 million | .370% |
Next $750 million | .345% |
Over $1 billion | .310% |
Class A | .71% |
Class B | .96% |
30 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Distribution Fee | Total Aggregated | Unpaid at June 30, 2022 |
Class B | $ 16 | $ 2 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 291 | $ 91 |
Class B | 13 | 4 |
$ 304 | $ 95 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 31 |
32 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 846.40 | $ 845.50 |
Expenses Paid per $1,000* | $ 2.93 | $ 4.39 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,021.62 | $ 1,020.03 |
Expenses Paid per $1,000* | $ 3.21 | $ 4.81 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | .64% | .96% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 33 |
34 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 35 |
36 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 37 |
Contents
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
13 | Statement of Assets and Liabilities |
13 | Statement of Operations |
14 | Statements of Changes in Net Assets |
15 | Financial Highlights |
17 | Notes to Financial Statements |
24 | Information About Your Fund's Expenses |
25 | Liquidity Risk Management |
25 | Proxy Voting |
26 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS High Income VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,736 | $8,851 | $10,074 | $11,204 | $14,875 |
Average annual total return | –12.64% | –11.49% | 0.24% | 2.30% | 4.05% | |
ICE BofA US High Yield Index | Growth of $10,000 | $8,599 | $8,736 | $9,981 | $11,010 | $15,378 |
Average annual total return | –14.01% | –12.64% | –0.06% | 1.94% | 4.40% | |
DWS High Income VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $8,724 | $8,823 | $9,976 | $11,052 | $14,426 |
Average annual total return | –12.76% | –11.77% | –0.08% | 2.02% | 3.73% | |
ICE BofA US High Yield Index | Growth of $10,000 | $8,599 | $8,736 | $9,981 | $11,010 | $15,378 |
Average annual total return | –14.01% | –12.64% | –0.06% | 1.94% | 4.40% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Corporate Bonds | 87% | 93% |
Cash Equivalents | 6% | 6% |
Exchange-Traded Funds | 4% | — |
Loan Participations and Assignments | 3% | 1% |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
Energy | 21% | 19% |
Consumer Discretionary | 19% | 20% |
Communication Services | 17% | 14% |
Industrials | 12% | 14% |
Health Care | 9% | 10% |
Materials | 8% | 9% |
Utilities | 5% | 4% |
Financials | 3% | 2% |
Real Estate | 2% | 5% |
Consumer Staples | 2% | 2% |
Information Technology | 2% | 1% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
AA | — | 0% |
A | 0% | — |
BBB | 10% | 7% |
BB | 61% | 56% |
B | 21% | 30% |
CCC | 5% | 7% |
C | — | 0% |
Not Rated | 3% | 0% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 86.4% | |||
Communication Services 13.9% | |||
Altice France Holding SA: | |||
144A, 6.0%, 2/15/2028 | 200,000 | 141,958 | |
144A, 10.5%, 5/15/2027 | 200,000 | 167,828 | |
Altice France SA: | |||
144A, 5.5%, 1/15/2028 | 200,000 | 161,172 | |
144A, 8.125%, 2/1/2027 | 200,000 | 184,078 | |
Audacy Capital Corp., 144A, 6.75%, 3/31/2029 | 55,000 | 29,288 | |
CCO Holdings LLC: | |||
144A, 4.75%, 3/1/2030 | 140,000 | 119,735 | |
144A, 5.0%, 2/1/2028 | 250,000 | 230,675 | |
144A, 5.125%, 5/1/2027 | 375,000 | 353,906 | |
144A, 5.375%, 6/1/2029 | 350,000 | 312,844 | |
Clear Channel Outdoor Holdings, Inc., 144A, 5.125%, 8/15/2027 | 320,000 | 270,186 | |
CommScope Technologies LLC: | |||
144A, 5.0%, 3/15/2027 | 65,000 | 48,054 | |
144A, 6.0%, 6/15/2025 | 75,000 | 64,875 | |
CSC Holdings LLC: | |||
144A, 5.75%, 1/15/2030 | 200,000 | 145,506 | |
144A, 6.5%, 2/1/2029 | 200,000 | 180,626 | |
Directv Financing LLC, 144A, 5.875%, 8/15/2027 | 125,000 | 106,634 | |
DISH DBS Corp.: | |||
144A, 5.25%, 12/1/2026 | 140,000 | 109,738 | |
144A, 5.75%, 12/1/2028 | 125,000 | 92,551 | |
5.875%, 11/15/2024 | 96,000 | 80,880 | |
Frontier Communications Holdings LLC: | |||
144A, 5.0%, 5/1/2028 | 165,000 | 140,250 | |
144A, 6.0%, 1/15/2030 | 50,000 | 38,473 | |
iHeartCommunications, Inc., 144A, 5.25%, 8/15/2027 | 125,000 | 106,979 | |
Iliad Holding SASU, 144A, 6.5%, 10/15/2026 | 200,000 | 179,994 | |
Lamar Media Corp., 4.875%, 1/15/2029 | 80,000 | 72,009 | |
LCPR Senior Secured Financing DAC, 144A, 6.75%, 10/15/2027 | 189,000 | 176,305 | |
Lumen Technologies, Inc., 144A, 5.125%, 12/15/2026 | 400,000 | 336,728 | |
Outfront Media Capital LLC, 144A, 4.25%, 1/15/2029 | 70,000 | 55,763 | |
Radiate Holdco LLC, 144A, 6.5%, 9/15/2028 | 100,000 | 77,287 | |
Sirius XM Radio, Inc., 144A, 3.125%, 9/1/2026 | 110,000 | 98,145 | |
Sprint Corp., 7.625%, 3/1/2026 | 445,000 | 468,864 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 155,000 | 119,691 |
Principal Amount ($)(a) | Value ($) | ||
Uber Technologies, Inc.: | |||
144A, 4.5%, 8/15/2029 | 20,000 | 16,450 | |
144A, 6.25%, 1/15/2028 (b) | 25,000 | 23,121 | |
144A, 7.5%, 5/15/2025 | 120,000 | 118,856 | |
144A, 7.5%, 9/15/2027 | 50,000 | 48,439 | |
Virgin Media Secured Finance PLC, 144A, 5.5%, 5/15/2029 | 345,000 | 308,447 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 185,000 | 181,476 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 370,000 | 271,109 |
Ziggo BV, 144A, 4.875%, 1/15/2030 | 290,000 | 245,903 | |
5,884,823 | |||
Consumer Discretionary 16.7% | |||
Affinity Gaming, 144A, 6.875%, 12/15/2027 | 160,000 | 134,406 | |
Arko Corp., 144A, 5.125%, 11/15/2029 | 60,000 | 45,452 | |
Bath & Body Works, Inc.: | |||
144A, 6.625%, 10/1/2030 | 70,000 | 60,462 | |
6.875%, 11/1/2035 (b) | 100,000 | 81,250 | |
144A, 9.375%, 7/1/2025 | 35,000 | 35,506 | |
Beacon Roofing Supply, Inc., 144A, 4.125%, 5/15/2029 | 100,000 | 81,322 | |
Boyd Gaming Corp., 4.75%, 12/1/2027 | 130,000 | 117,650 | |
Caesars Entertainment, Inc.: | |||
144A, 4.625%, 10/15/2029 (b) | 210,000 | 163,275 | |
144A, 6.25%, 7/1/2025 | 270,000 | 260,207 | |
144A, 8.125%, 7/1/2027 (b) | 410,000 | 396,162 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 170,000 | 122,788 | |
144A, 6.0%, 5/1/2029 | 30,000 | 21,078 | |
144A, 9.875%, 8/1/2027 | 130,000 | 126,750 | |
REG S, 10.125%, 2/1/2026 | EUR | 100,000 | 103,511 |
144A, 10.5%, 2/1/2026 | 80,000 | 79,638 | |
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 91,242 |
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 182,483 |
144A, 8.5%, 5/15/2027 (b) | 55,000 | 53,156 | |
Dana, Inc., 5.375%, 11/15/2027 | 55,000 | 47,657 | |
Ford Motor Co., 4.346%, 12/8/2026 (b) | 160,000 | 148,292 | |
Ford Motor Credit Co. LLC: | |||
3.375%, 11/13/2025 | 209,000 | 188,198 | |
3.625%, 6/17/2031 | 240,000 | 186,000 | |
4.95%, 5/28/2027 | 200,000 | 185,750 | |
5.113%, 5/3/2029 (b) | 200,000 | 179,295 | |
5.125%, 6/16/2025 | 230,000 | 219,632 | |
5.584%, 3/18/2024 | 200,000 | 199,000 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 5 |
Principal Amount ($)(a) | Value ($) | ||
Hilton Grand Vacations Borrower Escrow LLC: | |||
144A, 4.875%, 7/1/2031 | 30,000 | 22,899 | |
144A, 5.0%, 6/1/2029 | 90,000 | 72,900 | |
Jaguar Land Rover Automotive PLC, 144A, 5.875%, 1/15/2028 | 200,000 | 152,776 | |
M/I Homes, Inc., 4.95%, 2/1/2028 | 130,000 | 110,506 | |
Macy's Retail Holdings LLC: | |||
144A, 5.875%, 3/15/2030 (b) | 10,000 | 8,390 | |
144A, 6.125%, 3/15/2032 | 10,000 | 8,350 | |
Marriott Ownership Resorts, Inc.: | |||
144A, 4.5%, 6/15/2029 | 50,000 | 41,584 | |
144A, 6.125%, 9/15/2025 | 75,000 | 74,220 | |
Mattel, Inc., 144A, 3.375%, 4/1/2026 | 75,000 | 68,807 | |
Meritage Homes Corp.: | |||
144A, 3.875%, 4/15/2029 | 105,000 | 87,035 | |
6.0%, 6/1/2025 | 90,000 | 87,773 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 81,500 | |
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 (b) | 100,000 | 83,175 | |
144A, 5.875%, 3/15/2026 | 130,000 | 102,036 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 43,650 | |
Newell Brands, Inc.: | |||
4.45%, 4/1/2026 | 440,000 | 419,105 | |
5.75%, 4/1/2046 | 60,000 | 48,900 | |
Peninsula Pacific Entertainment LLC, 144A, 8.5%, 11/15/2027 | 60,000 | 62,976 | |
Picasso Finance Sub, Inc., 144A, 6.125%, 6/15/2025 | 122,000 | 118,950 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 170,000 | 148,750 | |
Royal Caribbean Cruises Ltd.: | |||
3.7%, 3/15/2028 | 55,000 | 34,925 | |
144A, 5.375%, 7/15/2027 | 30,000 | 21,806 | |
144A, 5.5%, 8/31/2026 | 30,000 | 22,275 | |
144A, 9.125%, 6/15/2023 | 210,000 | 207,682 | |
144A, 10.875%, 6/1/2023 | 110,000 | 110,367 | |
144A, 11.5%, 6/1/2025 | 30,000 | 30,825 | |
Scientific Games International, Inc., 144A, 7.0%, 5/15/2028 | 235,000 | 220,531 | |
SRS Distribution, Inc.: | |||
144A, 4.625%, 7/1/2028 | 50,000 | 43,750 | |
144A, 6.0%, 12/1/2029 | 60,000 | 47,114 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 110,000 | 91,176 | |
Travel & Leisure Co.: | |||
144A, 4.5%, 12/1/2029 | 100,000 | 77,359 | |
144A, 6.625%, 7/31/2026 | 120,000 | 113,776 |
Principal Amount ($)(a) | Value ($) | ||
United Rentals North America, Inc., 4.875%, 1/15/2028 | 140,000 | 132,367 | |
Univar Solutions U.S.A., Inc., 144A, 5.125%, 12/1/2027 | 160,000 | 148,910 | |
Vail Resorts, Inc., 144A, 6.25%, 5/15/2025 | 100,000 | 99,877 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 78,443 | |
144A, 7.0%, 2/15/2029 (b) | 90,000 | 67,394 | |
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 15,000 | 11,828 | |
Wynn Resorts Finance LLC, 144A, 5.125%, 10/1/2029 | 90,000 | 70,884 | |
Yum Brands, Inc., 5.375%, 4/1/2032 | 100,000 | 92,260 | |
7,077,993 | |||
Consumer Staples 1.5% | |||
Avis Budget Car Rental LLC, 144A, 5.375%, 3/1/2029 (b) | 100,000 | 83,181 | |
Coty, Inc., 144A, 6.5%, 4/15/2026 | 150,000 | 138,291 | |
Pilgrim's Pride Corp.: | |||
144A, 4.25%, 4/15/2031 | 245,000 | 204,448 | |
144A, 5.875%, 9/30/2027 | 230,000 | 220,225 | |
646,145 | |||
Energy 19.0% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 70,000 | 62,689 | |
144A, 5.75%, 3/1/2027 | 130,000 | 120,900 | |
144A, 5.75%, 1/15/2028 | 90,000 | 81,938 | |
144A, 7.875%, 5/15/2026 | 56,000 | 55,938 | |
Antero Resources Corp.: | |||
144A, 5.375%, 3/1/2030 | 50,000 | 45,591 | |
144A, 7.625%, 2/1/2029 | 138,000 | 140,383 | |
144A, 8.375%, 7/15/2026 | 42,000 | 44,415 | |
Apache Corp., 5.1%, 9/1/2040 | 57,000 | 48,130 | |
Archrock Partners LP: | |||
144A, 6.25%, 4/1/2028 | 220,000 | 194,766 | |
144A, 6.875%, 4/1/2027 | 110,000 | 100,306 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 30,000 | 26,400 | |
144A, 8.25%, 12/31/2028 | 65,000 | 61,904 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 67,370 | |
Cheniere Energy Partners LP: | |||
144A, 3.25%, 1/31/2032 | 30,000 | 23,625 | |
4.5%, 10/1/2029 | 272,000 | 242,814 | |
Cheniere Energy, Inc., 4.625%, 10/15/2028 | 100,000 | 90,057 | |
Chesapeake Energy Corp.: | |||
144A, 5.875%, 2/1/2029 | 75,000 | 70,725 | |
144A, 6.75%, 4/15/2029 | 330,000 | 319,120 | |
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 126,117 |
6 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
144A, 7.25%, 3/14/2027 | 100,000 | 97,970 | |
Colgate Energy Partners III LLC, 144A, 5.875%, 7/1/2029 | 170,000 | 148,962 | |
Comstock Resources, Inc.: | |||
144A, 5.875%, 1/15/2030 | 30,000 | 25,800 | |
144A, 6.75%, 3/1/2029 | 155,000 | 138,792 | |
DCP Midstream Operating LP: | |||
3.25%, 2/15/2032 | 50,000 | 39,219 | |
5.125%, 5/15/2029 | 80,000 | 72,000 | |
5.375%, 7/15/2025 | 527,000 | 512,507 | |
5.625%, 7/15/2027 | 50,000 | 47,700 | |
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 155,000 | 131,362 | |
144A, 4.375%, 6/15/2031 | 30,000 | 25,125 | |
Endeavor Energy Resources LP: | |||
144A, 5.75%, 1/30/2028 | 245,000 | 233,399 | |
144A, 6.625%, 7/15/2025 | 35,000 | 35,172 | |
EQM Midstream Partners LP: | |||
4.125%, 12/1/2026 | 100,000 | 86,375 | |
144A, 4.5%, 1/15/2029 | 50,000 | 40,594 | |
5.5%, 7/15/2028 | 55,000 | 47,485 | |
144A, 6.0%, 7/1/2025 | 52,000 | 49,851 | |
144A, 6.5%, 7/1/2027 | 80,000 | 74,384 | |
7.5%, 6/1/2027 | 45,000 | 43,405 | |
EQT Corp., 6.625%, 2/1/2025 | 105,000 | 108,017 | |
Genesis Energy LP: | |||
5.625%, 6/15/2024 | 10,000 | 9,367 | |
7.75%, 2/1/2028 | 75,000 | 64,879 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 145,581 | |
Hess Midstream Operations LP: | |||
144A, 4.25%, 2/15/2030 | 110,000 | 92,121 | |
144A, 5.125%, 6/15/2028 | 75,000 | 67,313 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 136,112 | |
144A, 6.0%, 2/1/2031 | 110,000 | 94,600 | |
144A, 6.25%, 11/1/2028 | 35,000 | 32,988 | |
Howard Midstream Energy Partners LLC, 144A, 6.75%, 1/15/2027 | 40,000 | 34,460 | |
MEG Energy Corp., 144A, 7.125%, 2/1/2027 | 109,000 | 109,772 | |
Murphy Oil U.S.A., Inc.: | |||
4.75%, 9/15/2029 | 55,000 | 49,503 | |
5.625%, 5/1/2027 | 65,000 | 63,700 | |
Nabors Industries, Inc.: | |||
5.75%, 2/1/2025 | 105,000 | 92,597 | |
144A, 7.375%, 5/15/2027 | 105,000 | 99,750 | |
NuStar Logistics LP, 5.75%, 10/1/2025 | 80,000 | 74,800 | |
Oasis Petroleum, Inc., 144A, 6.375%, 6/1/2026 | 40,000 | 37,000 |
Principal Amount ($)(a) | Value ($) | ||
Occidental Petroleum Corp.: | |||
5.5%, 12/1/2025 | 135,000 | 132,975 | |
5.55%, 3/15/2026 | 105,000 | 104,268 | |
6.125%, 1/1/2031 | 255,000 | 258,423 | |
6.45%, 9/15/2036 | 105,000 | 107,625 | |
6.625%, 9/1/2030 | 225,000 | 231,750 | |
8.0%, 7/15/2025 | 175,000 | 184,187 | |
8.5%, 7/15/2027 | 100,000 | 110,042 | |
Parkland Corp., 144A, 5.875%, 7/15/2027 | 80,000 | 72,600 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 26,850 | |
Range Resources Corp.: | |||
144A, 4.75%, 2/15/2030 (b) | 10,000 | 8,968 | |
8.25%, 1/15/2029 | 280,000 | 285,463 | |
Rattler Midstream LP, 144A, 5.625%, 7/15/2025 | 75,000 | 74,968 | |
Rockcliff Energy II LLC, 144A, 5.5%, 10/15/2029 | 30,000 | 27,299 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 73,576 | |
Southwestern Energy Co.: | |||
4.75%, 2/1/2032 | 70,000 | 59,817 | |
5.375%, 2/1/2029 | 155,000 | 143,778 | |
5.95%, 1/23/2025 | 36,000 | 35,564 | |
7.75%, 10/1/2027 | 200,000 | 204,000 | |
8.375%, 9/15/2028 | 50,000 | 52,688 | |
Sunnova Energy Corp., 144A, 5.875%, 9/1/2026 (b) | 115,000 | 100,051 | |
Sunoco LP: | |||
4.5%, 5/15/2029 | 56,000 | 46,160 | |
5.875%, 3/15/2028 | 35,000 | 31,912 | |
6.0%, 4/15/2027 | 52,000 | 49,576 | |
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 192,188 | 169,125 | |
USA Compression Partners LP: | |||
6.875%, 4/1/2026 | 142,000 | 129,177 | |
6.875%, 9/1/2027 | 100,000 | 88,750 | |
Venture Global Calcasieu Pass LLC, 144A, 4.125%, 8/15/2031 | 30,000 | 25,636 | |
Weatherford International Ltd., 144A, 8.625%, 4/30/2030 | 100,000 | 82,979 | |
Western Midstream Operating LP, 4.65%, 7/1/2026 | 40,000 | 37,700 | |
8,041,757 | |||
Financials 2.3% | |||
Navient Corp., 6.125%, 3/25/2024 | 393,000 | 372,619 | |
VICI Properties LP: | |||
144A, (REIT), 3.875%, 2/15/2029 | 90,000 | 77,407 | |
144A, (REIT), 4.625%, 6/15/2025 | 233,000 | 221,641 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
144A, (REIT), 5.75%, 2/1/2027 | 310,000 | 294,159 | |
965,826 | |||
Health Care 7.7% | |||
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 250,000 | 224,434 | |
AdaptHealth LLC: | |||
144A, 4.625%, 8/1/2029 | 55,000 | 45,238 | |
144A, 6.125%, 8/1/2028 | 80,000 | 70,762 | |
Bausch Health Americas, Inc.: | |||
144A, 8.5%, 1/31/2027 (b) | 195,000 | 136,744 | |
144A, 9.25%, 4/1/2026 | 135,000 | 96,525 | |
Catalent Pharma Solutions, Inc., 144A, 5.0%, 7/15/2027 | 125,000 | 117,666 | |
Centene Corp., 4.625%, 12/15/2029 | 275,000 | 256,438 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 56,410 | |
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 84,197 | |
144A, 5.25%, 5/15/2030 | 90,000 | 68,391 | |
144A, 5.625%, 3/15/2027 | 95,000 | 80,405 | |
144A, 6.0%, 1/15/2029 | 65,000 | 53,847 | |
144A, 6.125%, 4/1/2030 | 50,000 | 30,500 | |
144A, 6.875%, 4/15/2029 (b) | 140,000 | 90,300 | |
Encompass Health Corp.: | |||
4.5%, 2/1/2028 | 45,000 | 38,524 | |
4.75%, 2/1/2030 | 137,000 | 114,811 | |
IQVIA, Inc., 144A, 5.0%, 5/15/2027 | 220,000 | 208,142 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 64,261 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 (b) | 225,000 | 165,375 | |
Organon & Co, 144A, 4.125%, 4/30/2028 | 200,000 | 177,000 | |
Owens & Minor, Inc.: | |||
144A, 4.5%, 3/31/2029 | 55,000 | 44,908 | |
144A, 6.625%, 4/1/2030 | 50,000 | 45,674 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 116,683 | |
Tenet Healthcare Corp.: | |||
4.625%, 7/15/2024 | 21,000 | 20,154 | |
144A, 4.875%, 1/1/2026 | 250,000 | 230,000 | |
144A, 5.125%, 11/1/2027 | 150,000 | 135,000 | |
144A, 6.125%, 6/15/2030 | 140,000 | 129,161 | |
144A, 6.25%, 2/1/2027 | 75,000 | 69,031 | |
Teva Pharmaceutical Finance Netherlands II BV, 4.5%, 3/1/2025 | EUR | 100,000 | 97,722 |
Teva Pharmaceutical Finance Netherlands III BV, 6.0%, 4/15/2024 | 200,000 | 196,934 | |
3,265,237 |
Principal Amount ($)(a) | Value ($) | ||
Industrials 10.9% | |||
ADT Security Corp., 144A, 4.875%, 7/15/2032 | �� 50,000 | 39,801 | |
Advanced Drainage Systems, Inc., 6.375%, 6/15/2030 | 90,000 | 87,891 | |
American Airlines, Inc.: | |||
144A, 5.5%, 4/20/2026 | 275,000 | 252,666 | |
144A, 5.75%, 4/20/2029 | 135,000 | 115,258 | |
144A, 11.75%, 7/15/2025 | 120,000 | 124,188 | |
ATS Automation Tooling Systems, Inc., 144A, 4.125%, 12/15/2028 | 30,000 | 25,050 | |
Bombardier, Inc.: | |||
144A, 6.0%, 2/15/2028 | 200,000 | 149,880 | |
144A, 7.5%, 3/15/2025 | 82,000 | 74,108 | |
Builders FirstSource, Inc., 144A, 4.25%, 2/1/2032 | 80,000 | 60,894 | |
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 100,000 | 91,194 | |
Clean Harbors, Inc., 144A, 5.125%, 7/15/2029 | 90,000 | 81,675 | |
Covanta Holding Corp., 144A, 4.875%, 12/1/2029 | 40,000 | 32,549 | |
Delta Air Lines, Inc.: | |||
3.75%, 10/28/2029 (b) | 51,000 | 40,416 | |
144A, 7.0%, 5/1/2025 | 71,000 | 71,865 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 80,000 | 74,200 | |
144A, 4.25%, 6/1/2025 | 40,000 | 37,749 | |
144A, 5.125%, 12/15/2026 | 50,000 | 47,815 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 200,000 | 179,240 | |
Hertz Corp., 144A, 4.625%, 12/1/2026 | 140,000 | 117,051 | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | 140,000 | 143,822 | |
Imola Merger Corp., 144A, 4.75%, 5/15/2029 | 365,000 | 305,381 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 74,000 | 66,970 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 130,000 | 127,764 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 138,638 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 79,563 | |
Nielsen Finance LLC, 144A, 5.625%, 10/1/2028 | 265,000 | 246,105 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 65,000 | 53,544 | |
144A, 5.75%, 4/15/2026 | 135,000 | 125,887 | |
144A, 6.25%, 1/15/2028 | 135,000 | 112,940 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 151,280 |
8 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 189,000 | 193,965 | |
Sprint Capital Corp., 6.875%, 11/15/2028 | 100,000 | 105,152 | |
Summit Materials LLC, 144A, 5.25%, 1/15/2029 | 54,000 | 47,115 | |
TK Elevator U.S. Newco, Inc., 144A, 5.25%, 7/15/2027 | 200,000 | 178,313 | |
TransDigm, Inc.: | |||
4.625%, 1/15/2029 | 85,000 | 68,427 | |
5.5%, 11/15/2027 | 115,000 | 97,564 | |
144A, 6.25%, 3/15/2026 | 335,000 | 322,856 | |
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 140,987 | |
United Rentals North America, Inc., 5.25%, 1/15/2030 | 80,000 | 74,200 | |
WESCO Distribution, Inc.: | |||
144A, 7.125%, 6/15/2025 | 40,000 | 39,913 | |
144A, 7.25%, 6/15/2028 | 105,000 | 103,845 | |
4,627,721 | |||
Information Technology 1.3% | |||
Boxer Parent Co., Inc., 144A, 7.125%, 10/2/2025 | 60,000 | 57,454 | |
Clarivate Science Holdings Corp.: | |||
144A, 3.875%, 7/1/2028 | 90,000 | 75,196 | |
144A, 4.875%, 7/1/2029 (b) | 60,000 | 49,260 | |
Minerva Merger Sub, Inc., 144A, 6.5%, 2/15/2030 | 60,000 | 49,895 | |
NCR Corp.: | |||
144A, 5.0%, 10/1/2028 | 100,000 | 84,790 | |
144A, 5.125%, 4/15/2029 | 190,000 | 160,690 | |
Playtika Holding Corp., 144A, 4.25%, 3/15/2029 | 110,000 | 90,750 | |
568,035 | |||
Materials 7.0% | |||
Arconic Corp., 144A, 6.125%, 2/15/2028 | 245,000 | 228,776 | |
Chemours Co.: | |||
4.0%, 5/15/2026 | EUR | 100,000 | 92,744 |
144A, 4.625%, 11/15/2029 | 100,000 | 78,648 | |
5.375%, 5/15/2027 | 95,000 | 83,586 | |
144A, 5.75%, 11/15/2028 | 290,000 | 247,147 | |
Clearwater Paper Corp.: | |||
144A, 4.75%, 8/15/2028 | 155,000 | 133,662 | |
144A, 5.375%, 2/1/2025 | 110,000 | 106,975 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.625%, 3/1/2029 (b) | 31,000 | 27,358 | |
144A, 4.875%, 3/1/2031 (b) | 101,000 | 89,049 | |
144A, 6.75%, 3/15/2026 | 175,000 | 173,687 | |
Clydesdale Acquisition Holdings, Inc., 144A, 6.625%, 4/15/2029 | 20,000 | 18,793 | |
Constellium SE, 144A, 3.75%, 4/15/2029 | 250,000 | 198,268 |
Principal Amount ($)(a) | Value ($) | ||
EverArc Escrow Sarl, 144A, 5.0%, 10/30/2029 | 90,000 | 75,754 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 184,200 | |
144A, 6.875%, 10/15/2027 | 300,000 | 268,218 | |
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 60,000 | 50,207 | |
144A, 6.125%, 4/1/2029 | 100,000 | 81,105 | |
Mauser Packaging Solutions Holding Co., 144A, 7.25%, 4/15/2025 | 105,000 | 91,613 | |
Novelis Corp.: | |||
144A, 3.25%, 11/15/2026 | 100,000 | 84,527 | |
144A, 4.75%, 1/30/2030 | 375,000 | 311,692 | |
Roller Bearing Co. of America, Inc., 144A, 4.375%, 10/15/2029 | 80,000 | 68,073 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 106,389 | |
Tronox, Inc., 144A, 4.625%, 3/15/2029 | 205,000 | 164,840 | |
2,965,311 | |||
Real Estate 2.4% | |||
Cushman & Wakefield U.S. Borrower LLC, 144A, 6.75%, 5/15/2028 | 110,000 | 102,162 | |
Iron Mountain Information Management Services, Inc., 144A, (REIT), 5.0%, 7/15/2032 | 40,000 | 32,285 | |
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 50,996 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 66,427 | |
144A, (REIT), 5.25%, 3/15/2028 | 145,000 | 130,165 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 86,939 | |
iStar, Inc.: | |||
(REIT), 4.25%, 8/1/2025 | 100,000 | 92,356 | |
(REIT), 4.75%, 10/1/2024 | 170,000 | 160,029 | |
MPT Operating Partnership LP: | |||
(REIT), 3.5%, 3/15/2031 | 105,000 | 82,757 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 122,850 | |
SBA Communications Corp., (REIT), 3.125%, 2/1/2029 | 60,000 | 49,110 | |
Uniti Group LP, 144A, (REIT), 6.0%, 1/15/2030 | 40,000 | 27,672 | |
1,003,748 | |||
Utilities 3.7% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 192,941 | |
5.75%, 5/20/2027 | 110,000 | 100,650 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 181,575 | |
144A, 4.625%, 2/1/2029 | 30,000 | 24,968 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 103,463 | |
FirstEnergy Corp., 4.4%, 7/15/2027 | 90,000 | 84,891 | |
NextEra Energy Operating Partners LP, 144A, 4.25%, 7/15/2024 | 210,000 | 200,886 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 113,679 | |
144A, 5.25%, 6/15/2029 | 157,000 | 140,123 | |
5.75%, 1/15/2028 | 200,000 | 181,786 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 78,300 | |
PG&E Corp., 5.25%, 7/1/2030 | 75,000 | 61,701 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 135,000 | 112,945 | |
1,577,908 | |||
Total Corporate Bonds (Cost $41,468,504) | 36,624,504 | ||
Loan Participations and Assignments 3.3% | |||
Senior Loans (c) | |||
Athenahealth, Inc.: | |||
Delayed Draw Term Loan, 2/15/2029 (d) | 10,870 | 10,041 | |
Term Loan B, 2/15/2029 (d) | 64,130 | 59,241 | |
Clear Channel Outdoor Holdings, Inc., Term Loan B, 8/21/2026 (d) | 198,467 | 171,525 | |
DirecTV Financing LLC, Term Loan, 1-month USD-LIBOR + 5.0%, 6.666%, 8/2/2027 | 284,144 | 262,420 | |
Frontier Communications Corp., Term Loan B, 3-month USD-LIBOR + 3.75%, 6.063%, 5/1/2028 | 149,244 | 140,345 | |
Gray Television, Inc., Term Loan B, 1-month USD-LIBOR + 2.5%, 3.562%, 2/7/2024 | 114,496 | 112,502 | |
McAfee LLC, Term Loan B, 1-month USD-LIBOR + 4.0%, 5.145%, 3/1/2029 | 125,000 | 114,167 | |
Naked Juice LLC, Term Loan, 1-month USD-LIBOR + 3.25%, 3-month USD-LIBOR + 3.25%, 4.875% - 5.404%, 1/24/2029 | 23,000 | 21,486 | |
Option Care Health, Inc., Term Loan B, 1-month USD- LIBOR + 2.75%, 4.416%, 10/27/2028 | 129,350 | 124,068 |
Principal Amount ($)(a) | Value ($) | ||
Pacific Gas & Electric Co., Term Loan, 1-month USD- LIBOR + 3.0%, 4.688%, 6/23/2025 | 198,985 | 188,264 | |
Tronox Finance LLC, Term Loan B, 1-month USD-LIBOR + 2.25%, 3-month USD-LIBOR + 2.25%, 3.916% - 4.50%, 3/10/2028 | 200,000 | 191,000 | |
Total Loan Participations and Assignments (Cost $1,493,774) | 1,395,059 |
Shares | Value ($) | ||
Exchange-Traded Funds 3.3% | |||
iShares iBoxx High Yield Corporate Bond ETF | 2,800 | 206,108 | |
SPDR Bloomberg High Yield Bond ETF | 13,200 | 1,197,372 | |
Total Exchange-Traded Funds (Cost $1,600,701) | 1,403,480 | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (Cost $0) | 287 | 789 | |
Warrants 0.2% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (e) (Cost $244,286) | 1,100 | 92,754 | |
Securities Lending Collateral 3.4% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (f) (g) (Cost $1,417,933) | 1,417,933 | 1,417,933 | |
Cash Equivalents 5.7% | |||
DWS Central Cash Management Government Fund, 1.36% (f) (Cost $2,420,371) | 2,420,371 | 2,420,371 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $48,645,569) | 102.3 | 43,354,890 | |
Other Assets and Liabilities, Net | (2.3) | (975,887) | |
Net Assets | 100.0 | 42,379,003 |
10 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 3.4% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (f) (g) | ||||||||
1,857,630 | — | 439,697 (h) | — | — | 10,558 | — | 1,417,933 | 1,417,933 |
Cash Equivalents 5.7% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (f) | ||||||||
2,785,992 | 8,877,066 | 9,242,687 | — | — | 4,390 | — | 2,420,371 | 2,420,371 |
4,643,622 | 8,877,066 | 9,682,384 | — | — | 14,948 | — | 3,838,304 | 3,838,304 |
* | 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 June 30, 2022 amounted to $1,351,726, which is 3.2% of net assets. |
(c) | Variable or floating rate security. These securities are shown at their current rate as of June 30, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(d) | All or a portion of the security represents unsettled loan commitments at June 30, 2022 where the rate will be determined at the time of settlement. |
(e) | Investment was valued using significant unobservable inputs. |
(f) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(g) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(h) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2022. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
SPDR: Standard & Poor's Depositary Receipt |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 840,723 | USD | 891,409 | 7/29/2022 | 8,639 | State Street Bank and Trust |
EUR | Euro |
USD | United States Dollar |
Deutsche DWS Variable Series II — DWS High Income VIP | | 11 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $ — | $ 36,624,504 | $ — | $ 36,624,504 |
Loan Participations and Assignments | — | 1,395,059 | — | 1,395,059 |
Exchange-Traded Funds | 1,403,480 | — | — | 1,403,480 |
Common Stocks | 789 | — | — | 789 |
Warrants | — | — | 92,754 | 92,754 |
Short-Term Investments (a) | 3,838,304 | — | — | 3,838,304 |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | — | 8,639 | — | 8,639 |
Total | $5,242,573 | $38,028,202 | $92,754 | $43,363,529 |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open forward foreign currency contracts. |
12 | | Deutsche DWS Variable Series II — DWS High Income VIP |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $44,807,265) — including $1,351,726 of securities loaned | $ 39,516,586 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,417,933)* | 1,417,933 |
Investment in DWS Central Cash Management Government Fund (cost $2,420,371) | 2,420,371 |
Cash | 48,327 |
Foreign currency, at value (cost $9,944) | 9,954 |
Receivable for investments sold | 108,258 |
Receivable for Fund shares sold | 701 |
Interest receivable | 679,059 |
Unrealized appreciation on forward foreign currency contracts | 8,639 |
Other assets | 530 |
Total assets | 44,210,358 |
Liabilities | |
Payable upon return of securities loaned | 1,417,933 |
Payable for investments purchased | 307,675 |
Payable for Fund shares redeemed | 13,273 |
Accrued management fee | 7,845 |
Accrued Trustees' fees | 70 |
Other accrued expenses and payables | 84,559 |
Total liabilities | 1,831,355 |
Net assets, at value | $42,379,003 |
Net Assets Consist of | |
Distributable earnings (loss) | (11,121,087) |
Paid-in capital | 53,500,090 |
Net assets, at value | $42,379,003 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($41,727,494 ÷ 8,143,248 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 5.12 |
Class B | |
Net Asset Value, offering and redemption price per share ($651,509 ÷ 126,516 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 5.15 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Interest | $ 1,202,380 |
Dividends | 18,991 |
Income distributions — DWS Central Cash Management Government Fund | 4,390 |
Securities lending income, net of borrower rebates | 10,558 |
Total income | 1,236,319 |
Expenses: | |
Management fee | 117,860 |
Administration fee | 22,865 |
Services to shareholders | 428 |
Record keeping fee (Class B) | 452 |
Distribution service fee (Class B) | 762 |
Custodian fee | 2,516 |
Audit fee | 34,769 |
Legal fees | 9,875 |
Tax fees | 3,603 |
Reports to shareholders | 15,748 |
Trustees' fees and expenses | 2,100 |
Other | 1,401 |
Total expenses before expense reductions | 212,379 |
Expense reductions | (43,812) |
Total expenses after expense reductions | 168,567 |
Net investment income | 1,067,752 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (632,539) |
Forward foreign currency contracts | 65,992 |
Foreign currency | (4,547) |
(571,094) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (6,790,511) |
Forward foreign currency contracts | 13,719 |
Foreign currency | (306) |
(6,777,098) | |
Net gain (loss) | (7,348,192) |
Net increase (decrease) in net assets resulting from operations | $(6,280,440) |
Deutsche DWS Variable Series II — DWS High Income VIP | | 13 |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 1,067,752 | $ 2,284,536 |
Net realized gain (loss) | (571,094) | 1,370,374 |
Change in net unrealized appreciation (depreciation) | (6,777,098) | (1,547,405) |
Net increase (decrease) in net assets resulting from operations | (6,280,440) | 2,107,505 |
Distributions to shareholders: | ||
Class A | (2,374,887) | (2,455,814) |
Class B | (28,302) | (6,327) |
Total distributions | (2,403,189) | (2,462,141) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,354,477 | 6,500,206 |
Reinvestment of distributions | 2,374,887 | 2,455,814 |
Payments for shares redeemed | (4,796,110) | (11,190,770) |
Net increase (decrease) in net assets from Class A share transactions | (1,066,746) | (2,234,750) |
Class B | ||
Proceeds from shares sold | 255,669 | 481,262 |
Reinvestment of distributions | 28,302 | 6,327 |
Payments for shares redeemed | (138,387) | (21,374) |
Net increase (decrease) in net assets from Class B share transactions | 145,584 | 466,215 |
Increase (decrease) in net assets | (9,604,791) | (2,123,171) |
Net assets at beginning of period | 51,983,794 | 54,106,965 |
Net assets at end of period | $42,379,003 | $51,983,794 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,311,044 | 8,668,128 |
Shares sold | 237,567 | 1,055,087 |
Shares issued to shareholders in reinvestment of distributions | 431,798 | 408,621 |
Shares redeemed | (837,161) | (1,820,792) |
Net increase (decrease) in Class A shares | (167,796) | (357,084) |
Shares outstanding at end of period | 8,143,248 | 8,311,044 |
Class B | ||
Shares outstanding at beginning of period | 100,035 | 23,669 |
Shares sold | 45,517 | 78,794 |
Shares issued to shareholders in reinvestment of distributions | 5,118 | 1,048 |
Shares redeemed | (24,154) | (3,476) |
Net increase (decrease) in Class B shares | 26,481 | 76,366 |
Shares outstanding at end of period | 126,516 | 100,035 |
14 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Financial Highlights
DWS High Income VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $6.18 | $6.23 | $6.23 | $5.71 | $6.36 | $6.28 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .13 | .27 | .29 | .31 | .33 | .31 |
Net realized and unrealized gain (loss) | (.89) | (.03) | .04 | .56 | (.48) | .15 |
Total from investment operations | (.76) | .24 | .33 | .87 | (.15) | .46 |
Less distributions from: | ||||||
Net investment income | (.30) | (.29) | (.33) | (.35) | (.50) | (.38) |
Net asset value, end of period | $5.12 | $6.18 | $6.23 | $6.23 | $5.71 | $6.36 |
Total Return (%)b | (12.64)* | 4.00 | 6.24 | 15.69 | (2.52) | 7.51 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 42 | 51 | 54 | 56 | 52 | 61 |
Ratio of expenses before expense reductions (%)c | .90** | .84 | .87 | .96 | .94 | .78 |
Ratio of expenses after expense reductions (%)c | .71** | .71 | .70 | .68 | .69 | .72 |
Ratio of net investment income (%) | 4.53** | 4.32 | 4.86 | 5.09 | 5.41 | 4.98 |
Portfolio turnover rate (%) | 24* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS High Income VIP | | 15 |
DWS High Income VIP — Class B | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $6.20 | $6.24 | $6.25 | $5.73 | $6.38 | $6.30 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .12 | .24 | .27 | .29 | .31 | .31 |
Net realized and unrealized gain (loss) | (.89) | (.01) | .04 | .57 | (.48) | .13 |
Total from investment operations | (.77) | .23 | .31 | .86 | (.17) | .44 |
Less distributions from: | ||||||
Net investment income | (.28) | (.27) | (.32) | (.34) | (.48) | (.36) |
Net asset value, end of period | $5.15 | $6.20 | $6.24 | $6.25 | $5.73 | $6.38 |
Total Return (%)b | (12.76)* | 3.79 | 5.77 | 15.33 | (2.76) | 7.21 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .7 | .6 | .1 | .2 | .1 | .1 |
Ratio of expenses before expense reductions (%)c | 1.31** | 1.27 | 1.30 | 1.40 | 1.34 | 1.15 |
Ratio of expenses after expense reductions (%)c | 1.10** | 1.10 | 1.05 | .94 | .96 | .98 |
Ratio of net investment income (%) | 4.16** | 3.86 | 4.52 | 4.82 | 5.14 | 4.88 |
Portfolio turnover rate (%) | 24* | 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. |
* | Not annualized |
** | Annualized |
16 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Notes to Financial Statements (Unaudited)
Deutsche DWS Variable Series II — DWS High Income VIP | | 17 |
18 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 19 |
Assets Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $ 8,639 |
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) | $ 65,992 |
The above derivative is located in the following Statement of Operations account: |
(a) | Net realized gain (loss) from forward foreign currency contracts |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts |
Foreign Exchange Contracts (a) | $ 13,719 |
The above derivative is located in the following Statement of Operations account: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
State Street Bank and Trust | $ 8,639 | $ — | $ — | $ 8,639 |
20 | | Deutsche DWS Variable Series II — DWS High Income VIP |
First $250 million | .500% |
Next $750 million | .470% |
Next $1.5 billion | .450% |
Next $2.5 billion | .430% |
Next $2.5 billion | .400% |
Next $2.5 billion | .380% |
Next $2.5 billion | .360% |
Over $12.5 billion | .340% |
Class A | .71% |
Class B | 1.10% |
Class A | $ 43,176 |
Class B | 636 |
$ 43,812 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 21 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 170 | $ 44 |
Class B | 47 | 15 |
$ 217 | $ 59 |
22 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 23 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 873.60 | $ 872.40 |
Expenses Paid per $1,000* | $ 3.30 | $ 5.11 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,021.27 | $ 1,019.34 |
Expenses Paid per $1,000* | $ 3.56 | $ 5.51 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS High Income VIP | .71% | 1.10% |
24 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS High Income VIP | | 25 |
Advisory Agreement Board Considerations and Fee Evaluation
26 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 27 |
28 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Contents
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Manager |
5 | Investment Portfolio |
8 | Statement of Assets and Liabilities |
8 | Statement of Operations |
9 | Statements of Changes in Net Assets |
10 | Financial Highlights |
12 | Notes to Financial Statements |
17 | Information About Your Fund's Expenses |
18 | Liquidity Risk Management |
18 | Proxy Voting |
19 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS International Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $6,991 | $7,143 | $9,931 | $11,000 | $17,966 |
Average annual total return | –30.09% | –28.57% | –0.23% | 1.92% | 6.03% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $8,158 | $8,058 | $10,411 | $11,313 | $16,031 |
Average annual total return | –18.42% | –19.42% | 1.35% | 2.50% | 4.83% | |
DWS International Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $6,983 | $7,127 | $9,850 | $10,847 | $17,451 |
Average annual total return | –30.17% | –28.73% | –0.50% | 1.64% | 5.73% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $8,158 | $8,058 | $10,411 | $11,313 | $16,031 |
Average annual total return | –18.42% | –19.42% | 1.35% | 2.50% | 4.83% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Common Stocks | 95% | 98% |
Cash Equivalents | 4% | 1% |
Preferred Stocks | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
Information Technology | 22% | 25% |
Industrials | 21% | 22% |
Financials | 18% | 14% |
Health Care | 13% | 14% |
Consumer Discretionary | 7% | 8% |
Consumer Staples | 7% | 6% |
Materials | 5% | 5% |
Communication Services | 4% | 4% |
Energy | 3% | 2% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
Germany | 14% | 13% |
France | 12% | 12% |
Canada | 10% | 8% |
Switzerland | 10% | 8% |
Netherlands | 9% | 10% |
United States | 9% | 8% |
Japan | 9% | 9% |
China | 6% | 4% |
Ireland | 4% | 5% |
United Kingdom | 4% | 4% |
Singapore | 3% | 2% |
Argentina | 3% | 4% |
Taiwan | 2% | 2% |
Sweden | 2% | 4% |
Korea | 1% | 2% |
Other | 2% | 5% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Common Stocks 93.1% | |||
Argentina 2.7% | |||
Globant SA* | 2,901 | 504,774 | |
MercadoLibre, Inc.* | 106 | 67,508 | |
(Cost $519,904) | 572,282 | ||
Brazil 0.4% | |||
Pagseguro Digital Ltd. "A"* (Cost $261,752) | 8,599 | 88,054 | |
Canada 9.1% | |||
Agnico Eagle Mines Ltd. | 5,466 | 250,199 | |
Alimentation Couche-Tard, Inc. "B" | 7,354 | 286,859 | |
Brookfield Asset Management, Inc. "A" | 20,056 | 892,174 | |
Canadian National Railway Co. | 3,801 | 427,553 | |
Nuvei Corp. 144A* | 1,023 | 36,972 | |
(Cost $1,345,434) | 1,893,757 | ||
China 5.4% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,932 | 219,630 | |
ANTA Sports Products Ltd. | 6,800 | 83,621 | |
Dada Nexus Ltd. (ADR)* | 635 | 5,150 | |
JD.com, Inc. "A" | 295 | 9,434 | |
Minth Group Ltd. | 22,870 | 62,438 | |
Ping An Insurance (Group) Co. of China Ltd. "H" | 55,000 | 373,177 | |
Tencent Holdings Ltd. | 8,300 | 372,428 | |
(Cost $1,181,486) | 1,125,878 | ||
France 11.5% | |||
Capgemini SE | 1,744 | 298,358 | |
Cie de Saint-Gobain | 3,081 | 132,602 | |
LVMH Moet Hennessy Louis Vuitton SE | 690 | 420,729 | |
Orpea SA (a) | 1,669 | 40,709 | |
Schneider Electric SE | 1,385 | 163,632 | |
Teleperformance | 1,445 | 445,826 | |
TotalEnergies SE | 10,041 | 528,630 | |
Vinci SA | 4,168 | 371,671 | |
(Cost $2,258,338) | 2,402,157 | ||
Germany 12.0% | |||
adidas AG | 580 | 102,594 | |
Allianz SE (Registered) | 2,062 | 394,268 | |
Auto1 Group SE 144A* | 3,181 | 23,324 | |
BASF SE | 1,310 | 57,120 | |
Brenntag SE | 2,428 | 158,372 | |
Deutsche Boerse AG | 3,478 | 582,497 | |
Deutsche Post AG (Registered) | 4,962 | 186,445 | |
Evonik Industries AG | 9,898 | 211,502 | |
Evotec SE* | 6,090 | 147,556 | |
KION Group AG | 515 | 21,515 | |
SAP SE | 2,643 | 240,044 |
Shares | Value ($) | ||
Siemens Healthineers AG 144A | 2,160 | 109,822 | |
TeamViewer AG 144A* | 10,437 | 103,511 | |
Wacker Chemie AG | 865 | 125,093 | |
Zalando SE 144A* | 1,700 | 44,558 | |
(Cost $3,435,893) | 2,508,221 | ||
Hong Kong 1.3% | |||
Techtronic Industries Co., Ltd. (Cost $216,384) | 26,097 | 272,500 | |
Ireland 4.2% | |||
Experian PLC | 12,717 | 371,983 | |
ICON PLC* (b) | 993 | 215,183 | |
Kerry Group PLC "A" | 3,086 | 295,759 | |
(Cost $839,538) | 882,925 | ||
Israel 0.3% | |||
Kornit Digital Ltd.* (b) (Cost $239,759) | 2,234 | 70,818 | |
Japan 7.9% | |||
Daikin Industries Ltd. | 2,500 | 399,904 | |
Fast Retailing Co., Ltd. | 330 | 172,669 | |
Hoya Corp. | 2,800 | 240,893 | |
Keyence Corp. | 900 | 305,552 | |
Lasertec Corp. | 600 | 71,635 | |
MISUMI Group, Inc. | 6,011 | 128,005 | |
Shimadzu Corp. | 6,600 | 209,208 | |
Shiseido Co., Ltd. | 3,100 | 124,575 | |
(Cost $1,589,622) | 1,652,441 | ||
Korea 1.3% | |||
Samsung Electronics Co., Ltd. (Cost $262,946) | 5,942 | 261,170 | |
Luxembourg 1.0% | |||
Eurofins Scientific SE (Cost $189,508) | 2,554 | 201,241 | |
Netherlands 8.3% | |||
Adyen NV 144A* | 90 | 130,958 | |
Airbus SE | 1,760 | 171,321 | |
ASML Holding NV | 801 | 381,233 | |
ING Groep NV | 28,950 | 287,090 | |
Koninklijke DSM NV | 1,842 | 265,362 | |
NXP Semiconductors NV (b) | 1,330 | 196,880 | |
Prosus NV | 2,066 | 134,741 | |
Universal Music Group NV | 7,981 | 160,328 | |
(Cost $1,958,990) | 1,727,913 | ||
Singapore 2.9% | |||
DBS Group Holdings Ltd. (Cost $547,652) | 28,500 | 609,859 | |
Sweden 1.9% | |||
Assa Abloy AB "B" | 6,090 | 129,740 | |
Hexagon AB "B" | 13,100 | 136,198 | |
Spotify Technology SA* (c) | 1,352 | 126,858 | |
(Cost $525,637) | 392,796 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 5 |
Shares | Value ($) | ||
Switzerland 9.0% | |||
Alcon, Inc. | 2,160 | 150,394 | |
Lonza Group AG (Registered) | 1,143 | 608,788 | |
Nestle SA (Registered) | 5,419 | 632,373 | |
Roche Holding AG (Genusschein) | 1,187 | 396,124 | |
Sportradar Holding AG "A"* (a) (b) | 6,100 | 48,190 | |
Zur Rose Group AG* | 628 | 47,067 | |
(Cost $1,628,498) | 1,882,936 | ||
Taiwan 2.1% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $274,548) | 27,000 | 431,931 | |
United Kingdom 3.7% | |||
Clarivate PLC* (c) | 10,909 | 151,199 | |
Farfetch Ltd. "A"* (c) | 4,164 | 29,814 | |
Halma PLC | 6,001 | 146,562 | |
Rentokil Initial PLC | 76,200 | 440,626 | |
VTEX "A"* (a) (c) | 3,204 | 9,868 | |
(Cost $1,074,404) | 778,069 | ||
United States 8.1% | |||
Activision Blizzard, Inc. | 1,560 | 121,462 | |
EPAM Systems, Inc.* | 1,050 | 309,519 | |
Marsh & McLennan Companies, Inc. | 2,434 | 377,879 | |
Mastercard, Inc. "A" | 826 | 260,586 | |
NVIDIA Corp. | 1,504 | 227,991 | |
Schlumberger NV | 4,015 | 143,576 | |
Thermo Fisher Scientific, Inc. | 460 | 249,909 | |
(Cost $1,045,622) | 1,690,922 | ||
Total Common Stocks (Cost $19,395,915) | 19,445,870 |
Shares | Value ($) | ||
Preferred Stocks 1.0% | |||
Germany | |||
Sartorius AG (Cost $214,661) | 600 | 210,110 | |
Securities Lending Collateral 0.5% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (d) (e) (Cost $103,386) | 103,386 | 103,386 | |
Cash Equivalents 3.9% | |||
DWS Central Cash Management Government Fund, 1.36% (d) (Cost $821,695) | 821,695 | 821,695 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $20,535,657) | 98.5 | 20,581,061 | |
Other Assets and Liabilities, Net | 1.5 | 321,310 | |
Net Assets | 100.0 | 20,902,371 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 0.5% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (d) (e) | ||||||||
631,412 | — | 528,026 (f) | — | — | 886 | — | 103,386 | 103,386 |
Cash Equivalents 3.9% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (d) | ||||||||
236,102 | 9,330,547 | 8,744,954 | — | — | 1,248 | — | 821,695 | 821,695 |
867,514 | 9,330,547 | 9,272,980 | — | — | 2,134 | — | 925,081 | 925,081 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2022 amounted to $97,243, which is 0.5% of net assets. |
(b) | Listed on the NASDAQ Stock Market, Inc. |
(c) | Listed on the New York Stock Exchange. |
(d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
6 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
(f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2022. |
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 | $ 572,282 | $ — | $ — | $ 572,282 |
Brazil | 88,054 | — | — | 88,054 |
Canada | 1,893,757 | — | — | 1,893,757 |
China | 224,780 | 901,098 | — | 1,125,878 |
France | — | 2,402,157 | — | 2,402,157 |
Germany | — | 2,508,221 | — | 2,508,221 |
Hong Kong | — | 272,500 | — | 272,500 |
Ireland | 215,183 | 667,742 | — | 882,925 |
Israel | 70,818 | — | — | 70,818 |
Japan | — | 1,652,441 | — | 1,652,441 |
Korea | — | 261,170 | — | 261,170 |
Luxembourg | — | 201,241 | — | 201,241 |
Netherlands | 196,880 | 1,531,033 | — | 1,727,913 |
Singapore | — | 609,859 | — | 609,859 |
Sweden | 126,858 | 265,938 | — | 392,796 |
Switzerland | 48,190 | 1,834,746 | — | 1,882,936 |
Taiwan | — | 431,931 | — | 431,931 |
United Kingdom | 190,881 | 587,188 | — | 778,069 |
United States | 1,690,922 | — | — | 1,690,922 |
Preferred Stocks | — | 210,110 | — | 210,110 |
Short-Term Investments (a) | 925,081 | — | — | 925,081 |
Total | $6,243,686 | $14,337,375 | $— | $20,581,061 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 7 |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $19,610,576) — including $97,243 of securities loaned | $ 19,655,980 |
Investment in DWS Government & Agency Securities Portfolio (cost $103,386)* | 103,386 |
Investment in DWS Central Cash Management Government Fund (cost $821,695) | 821,695 |
Foreign currency, at value (cost $232,789) | 224,587 |
Receivable for investments sold | 327,908 |
Receivable for Fund shares sold | 2,765 |
Dividends receivable | 13,811 |
Interest receivable | 764 |
Foreign taxes recoverable | 32,588 |
Other assets | 240 |
Total assets | 21,183,724 |
Liabilities | |
Payable upon return of securities loaned | 103,386 |
Payable for investments purchased | 106,568 |
Payable for Fund shares redeemed | 8,639 |
Accrued Trustees' fees | 416 |
Other accrued expenses and payables | 62,344 |
Total liabilities | 281,353 |
Net assets, at value | $20,902,371 |
Net Assets Consist of | |
Distributable earnings (loss) | (330,929) |
Paid-in capital | 21,233,300 |
Net assets, at value | $20,902,371 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($20,823,168 ÷ 1,622,578 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.83 |
Class B | |
Net Asset Value, offering and redemption price per share ($79,203 ÷ 6,150 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.88 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $38,924) | $ 272,397 |
Income distributions — DWS Central Cash Management Government Fund | 1,248 |
Securities lending income, net of borrower rebates | 886 |
Total income | 274,531 |
Expenses: | |
Management fee | 74,748 |
Administration fee | 11,695 |
Services to shareholders | 353 |
Record keeping fee (Class B) | 9 |
Distribution service fee (Class B) | 108 |
Custodian fee | 7,060 |
Audit fee | 29,309 |
Legal fees | 9,664 |
Tax fees | 3,603 |
Reports to shareholders | 12,127 |
Trustees' fees and expenses | 2,077 |
Other | 6,517 |
Total expenses before expense reductions | 157,270 |
Expense reductions | (45,873) |
Total expenses after expense reductions | 111,397 |
Net investment income | 163,134 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (474,616) |
Foreign currency | (5,760) |
(480,376) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (8,344,915) |
Foreign currency | (7,880) |
(8,352,795) | |
Net gain (loss) | (8,833,171) |
Net increase (decrease) in net assets resulting from operations | $(8,670,037) |
8 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 163,134 | $ 85,743 |
Net realized gain (loss) | (480,376) | 453,819 |
Change in net unrealized appreciation (depreciation) | (8,352,795) | 987,523 |
Net increase (decrease) in net assets resulting from operations | (8,670,037) | 1,527,085 |
Distributions to shareholders: | ||
Class A | (549,151) | (300,260) |
Class B | (1,661) | (1,284) |
Total distributions | (550,812) | (301,544) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 8,555,337 | 3,858,747 |
Reinvestment of distributions | 549,151 | 300,260 |
Payments for shares redeemed | (1,540,794) | (2,223,148) |
Net increase (decrease) in net assets from Class A share transactions | 7,563,694 | 1,935,859 |
Class B | ||
Proceeds from shares sold | 9,362 | 69,880 |
Reinvestment of distributions | 1,661 | 1,284 |
Payments for shares redeemed | (3,264) | (79,732) |
Net increase (decrease) in net assets from Class B share transactions | 7,759 | (8,568) |
Increase (decrease) in net assets | (1,649,396) | 3,152,832 |
Net assets at beginning of period | 22,551,767 | 19,398,935 |
Net assets at end of period | $20,902,371 | $22,551,767 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,193,724 | 1,093,246 |
Shares sold | 493,388 | 205,692 |
Shares issued to shareholders in reinvestment of distributions | 38,864 | 16,498 |
Shares redeemed | (103,398) | (121,712) |
Net increase (decrease) in Class A shares | 428,854 | 100,478 |
Shares outstanding at end of period | 1,622,578 | 1,193,724 |
Class B | ||
Shares outstanding at beginning of period | 5,576 | 6,025 |
Shares sold | 672 | 3,808 |
Shares issued to shareholders in reinvestment of distributions | 117 | 70 |
Shares redeemed | (215) | (4,327) |
Net increase (decrease) in Class B shares | 574 | (449) |
Shares outstanding at end of period | 6,150 | 5,576 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 9 |
Financial Highlights
DWS International Growth VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $18.80 | $17.65 | $14.64 | $11.47 | $13.90 | $11.12 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .10 | .08 | .06 | .22 | .16 | .08 |
Net realized and unrealized gain (loss) | (5.73) | 1.34 | 3.17 | 3.32 | (2.46) | 2.75 |
Total from investment operations | (5.63) | 1.42 | 3.23 | 3.54 | (2.30) | 2.83 |
Less distributions from: | ||||||
Net investment income | (.15) | (.06) | (.22) | (.17) | (.13) | (.05) |
Net realized gains | (.19) | (.21) | — | (.20) | — | — |
Total distributions | (.34) | (.27) | (.22) | (.37) | (.13) | (.05) |
Net asset value, end of period | $12.83 | $18.80 | $17.65 | $14.64 | $11.47 | $13.90 |
Total Return (%)b | (30.09)* | 8.11 | 22.69 | 31.22 | (16.69) | 25.47 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 21 | 22 | 19 | 18 | 14 | 19 |
Ratio of expenses before expense reductions (%)c | 1.30** | 1.33 | 1.50 | 1.64 | 1.72 | 1.56 |
Ratio of expenses after expense reductions (%)c | .92** | .90 | .87 | .86 | .81 | .92 |
Ratio of net investment income (%) | 1.35** | .41 | .42 | 1.63 | 1.21 | .61 |
Portfolio turnover rate (%) | 6* | 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. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
DWS International Growth VIP — Class B | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $18.84 | $17.67 | $14.66 | $11.49 | $13.93 | $11.13 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .08 | .03 | .01 | .18 | .12 | .02 |
Net realized and unrealized gain (loss) | (5.74) | 1.36 | 3.18 | 3.33 | (2.46) | 2.79 |
Total from investment operations | (5.66) | 1.39 | 3.19 | 3.51 | (2.34) | 2.81 |
Less distributions from: | ||||||
Net investment income | (.11) | (.01) | (.18) | (.14) | (.10) | (.01) |
Net realized gains | (.19) | (.21) | — | (.20) | — | — |
Total distributions | (.30) | (.22) | (.18) | (.34) | (.10) | (.01) |
Net asset value, end of period | $12.88 | $18.84 | $17.67 | $14.66 | $11.49 | $13.93 |
Total Return (%)b | (30.17)* | 7.88 | 22.29 | 30.84 | (16.92) | 25.26 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .1 | .1 | .1 | .2 | .2 | .2 |
Ratio of expenses before expense reductions (%)c | 1.63** | 1.62 | 1.81 | 1.95 | 2.07 | 1.90 |
Ratio of expenses after expense reductions (%)c | 1.18** | 1.17 | 1.18 | 1.16 | 1.06 | 1.15 |
Ratio of net investment income (%) | 1.04** | .18 | .07 | 1.31 | .92 | .12 |
Portfolio turnover rate (%) | 6* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 13 |
Class A | .92% |
Class B | 1.17% |
14 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Class A | .93% | |
Class B | 1.20% |
Class A | $ 45,680 |
Class B | 193 |
$ 45,873 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 136 | $ 39 |
Class B | 22 | 7 |
$ 158 | $ 46 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 699.10 | $ 698.30 |
Expenses Paid per $1,000* | $ 3.88 | $ 4.97 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,020.23 | $ 1,018.94 |
Expenses Paid per $1,000* | $ 4.61 | $ 5.91 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS International Growth VIP | .92% | 1.18% |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 17 |
Liquidity Risk Management
18 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS International Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 21 |
Contents
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
9 | Statement of Assets and Liabilities |
9 | Statement of Operations |
10 | Statements of Changes in Net Assets |
11 | Financial Highlights |
12 | Notes to Financial Statements |
16 | Information About Your Fund's Expenses |
17 | Liquidity Risk Management |
17 | Proxy Voting |
18 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS Small Mid Cap Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $7,108 | $7,378 | $11,146 | $12,242 | $23,802 |
Average annual total return | –28.92% | –26.22% | 3.68% | 4.13% | 9.06% | |
Russell 2500 Growth Index | Growth of $10,000 | $7,055 | $6,819 | $11,144 | $14,375 | $28,085 |
Average annual total return | –29.45% | –31.81% | 3.68% | 7.53% | 10.88% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Common Stocks | 95% | 99% |
Cash Equivalents | 5% | 1% |
Exchange-Traded Funds | — | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Cash Equivalents and Securities Lending) | 6/30/22 | 12/31/21 |
Information Technology | 27% | 28% |
Health Care | 23% | 26% |
Industrials | 17% | 16% |
Consumer Discretionary | 12% | 14% |
Financials | 7% | 5% |
Energy | 4% | 1% |
Real Estate | 3% | 3% |
Materials | 3% | 4% |
Consumer Staples | 3% | 2% |
Communication Services | 1% | 1% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Common Stocks 94.9% | |||
Communication Services 1.0% | |||
Entertainment 0.5% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 266,380 | |
Interactive Media & Services 0.5% | |||
Cargurus, Inc.* | 11,963 | 257,085 | |
Consumer Discretionary 11.3% | |||
Auto Components 0.9% | |||
Gentherm, Inc.* | 7,364 | 459,587 | |
Diversified Consumer Services 0.6% | |||
Bright Horizons Family Solutions, Inc.* | 3,398 | 287,199 | |
Hotels, Restaurants & Leisure 2.1% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 446,303 | |
Jack in the Box, Inc. | 7,892 | 442,426 | |
Light & Wonder, Inc. "A"* | 3,937 | 185,000 | |
1,073,729 | |||
Household Durables 3.8% | |||
Helen of Troy Ltd.* | 2,963 | 481,221 | |
iRobot Corp.* | 6,273 | 230,533 | |
LGI Homes, Inc.* | 3,489 | 303,194 | |
TopBuild Corp.* | 5,673 | 948,298 | |
1,963,246 | |||
Leisure Products 1.3% | |||
YETI Holdings, Inc.* | 15,522 | 671,637 | |
Specialty Retail 2.6% | |||
Burlington Stores, Inc.* | 2,883 | 392,751 | |
Camping World Holdings, Inc. "A" (a) | 22,907 | 494,562 | |
Leslie's, Inc.* | 2,799 | 42,489 | |
National Vision Holdings, Inc.* | 7,865 | 216,288 | |
The Children's Place, Inc.* | 4,788 | 186,349 | |
1,332,439 | |||
Consumer Staples 2.7% | |||
Food & Staples Retailing 1.6% | |||
Casey's General Stores, Inc. | 4,371 | 808,547 | |
Household Products 1.1% | |||
Spectrum Brands Holdings, Inc. | 6,982 | 572,664 | |
Energy 4.0% | |||
Oil, Gas & Consumable Fuels | |||
Crescent Energy Co. "A" (a) | 6,384 | 79,673 | |
Denbury, Inc.* | 7,100 | 425,929 | |
Kosmos Energy Ltd.* | 48,000 | 297,120 | |
Matador Resources Co. | 8,300 | 386,697 | |
Ovintiv, Inc. | 9,711 | 429,129 | |
Southwestern Energy Co.* | 67,176 | 419,850 | |
2,038,398 |
Shares | Value ($) | ||
Financials 6.3% | |||
Banks 2.9% | |||
Pinnacle Financial Partners, Inc. | 5,944 | 429,811 | |
South State Corp. | 4,704 | 362,913 | |
SVB Financial Group* | 742 | 293,082 | |
Synovus Financial Corp. | 11,493 | 414,323 | |
1,500,129 | |||
Capital Markets 3.1% | |||
FactSet Research Systems, Inc. | 1,036 | 398,414 | |
Lazard Ltd. "A" (a) | 13,717 | 444,568 | |
LPL Financial Holdings, Inc. | 2,100 | 387,408 | |
Moelis & Co. "A" | 9,136 | 359,502 | |
1,589,892 | |||
Consumer Finance 0.3% | |||
Green Dot Corp. "A"* | 6,162 | 154,728 | |
Health Care 21.7% | |||
Biotechnology 6.4% | |||
Apellis Pharmaceuticals, Inc.* | 4,251 | 192,230 | |
Beam Therapeutics, Inc.* (a) | 1,093 | 42,310 | |
Biohaven Pharmaceutical Holding Co., Ltd.* | 4,687 | 682,943 | |
Blueprint Medicines Corp.* | 4,684 | 236,589 | |
Fate Therapeutics, Inc.* | 3,846 | 95,304 | |
Global Blood Therapeutics, Inc.* | 4,524 | 144,542 | |
Insmed, Inc.* | 6,610 | 130,349 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 84,971 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 238,396 | |
Neurocrine Biosciences, Inc.* | 7,085 | 690,646 | |
Travere Therapeutics, Inc.* | 23,478 | 568,872 | |
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 182,381 | |
3,289,533 | |||
Health Care Equipment & Supplies 3.4% | |||
Axonics, Inc.* | 5,613 | 318,089 | |
BioLife Solutions, Inc.* | 8,451 | 116,708 | |
Globus Medical, Inc. "A"* | 4,024 | 225,907 | |
Haemonetics Corp.* | 1,353 | 88,188 | |
Masimo Corp.* | 1,627 | 212,600 | |
Nevro Corp.* | 1,428 | 62,589 | |
Omnicell, Inc.* | 2,300 | 261,625 | |
Outset Medical, Inc.* | 8,674 | 128,896 | |
STAAR Surgical Co.* | 975 | 69,157 | |
Tandem Diabetes Care, Inc.* | 4,219 | 249,723 | |
1,733,482 | |||
Health Care Providers & Services 8.9% | |||
AMN Healthcare Services, Inc.* | 13,141 | 1,441,699 | |
HealthEquity, Inc.* | 3,029 | 185,950 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 5 |
Shares | Value ($) | ||
ModivCare, Inc.* | 7,168 | 605,696 | |
Molina Healthcare, Inc.* | 3,519 | 983,948 | |
Option Care Health, Inc.* | 21,064 | 585,369 | |
RadNet, Inc.* | 44,177 | 763,378 | |
4,566,040 | |||
Life Sciences Tools & Services 0.4% | |||
Avantor, Inc.* | 7,242 | 225,226 | |
Pharmaceuticals 2.6% | |||
Aclaris Therapeutics, Inc.* | 12,953 | 180,824 | |
ANI Pharmaceuticals, Inc.* | 5,965 | 176,982 | |
Arvinas, Inc.* | 2,000 | 84,180 | |
Intra-Cellular Therapies, Inc.* | 3,500 | 199,780 | |
Pacira BioSciences, Inc.* | 11,807 | 688,348 | |
1,330,114 | |||
Industrials 16.4% | |||
Aerospace & Defense 1.2% | |||
HEICO Corp. | 4,476 | 586,893 | |
Building Products 4.8% | |||
Advanced Drainage Systems, Inc. | 3,260 | 293,628 | |
Allegion PLC | 7,499 | 734,152 | |
Builders FirstSource, Inc.* | 17,596 | 944,906 | |
Masonite International Corp.* | 6,705 | 515,145 | |
2,487,831 | |||
Commercial Services & Supplies 3.0% | |||
MSA Safety, Inc. | 2,392 | 289,599 | |
Tetra Tech, Inc. | 4,419 | 603,414 | |
The Brink's Co. | 11,036 | 669,996 | |
1,563,009 | |||
Construction & Engineering 0.4% | |||
MasTec, Inc.* | 3,160 | 226,446 | |
Electrical Equipment 1.0% | |||
Generac Holdings, Inc.* | 1,478 | 311,237 | |
Plug Power, Inc.* | 4,018 | 66,578 | |
Thermon Group Holdings, Inc.* | 9,149 | 128,544 | |
506,359 | |||
Machinery 0.8% | |||
IDEX Corp. | 2,202 | 399,949 | |
Professional Services 2.2% | |||
Kforce, Inc. | 18,625 | 1,142,458 | |
Trading Companies & Distributors 3.0% | |||
H&E Equipment Services, Inc. | 16,406 | 475,282 | |
Rush Enterprises, Inc. "A" | 16,590 | 799,638 | |
Titan Machinery, Inc.* | 11,743 | 263,160 | |
1,538,080 | |||
Information Technology 25.4% | |||
Communications Equipment 1.3% | |||
Calix, Inc.* | 8,844 | 301,934 | |
Lumentum Holdings, Inc.* | 4,772 | 378,992 | |
680,926 |
Shares | Value ($) | ||
Electronic Equipment, Instruments & Components 2.4% | |||
Advanced Energy Industries, Inc. | 12,629 | 921,664 | |
Cognex Corp. | 7,873 | 334,760 | |
1,256,424 | |||
IT Services 3.5% | |||
Broadridge Financial Solutions, Inc. | 5,482 | 781,459 | |
Maximus, Inc. | 8,556 | 534,836 | |
WEX, Inc.* | 2,932 | 456,102 | |
1,772,397 | |||
Semiconductors & Semiconductor Equipment 6.2% | |||
CMC Materials, Inc. | 1,631 | 284,593 | |
Entegris, Inc. | 6,342 | 584,288 | |
FormFactor, Inc.* | 7,627 | 295,394 | |
Monolithic Power Systems, Inc. | 1,547 | 594,110 | |
Semtech Corp.* | 7,632 | 419,531 | |
SiTime Corp.* | 4,087 | 666,304 | |
Ultra Clean Holdings, Inc.* | 10,873 | 323,689 | |
3,167,909 | |||
Software 12.0% | |||
Aspen Technology, Inc.* | 3,737 | 686,412 | |
Dynatrace, Inc.* | 7,679 | 302,860 | |
Envestnet, Inc.* | 9,852 | 519,890 | |
Five9, Inc.* | 12,047 | 1,097,964 | |
LivePerson, Inc.* | 7,263 | 102,699 | |
Rapid7, Inc.* | 6,849 | 457,513 | |
Tenable Holdings, Inc.* | 12,141 | 551,323 | |
Tyler Technologies, Inc.* | 3,276 | 1,089,204 | |
Varonis Systems, Inc.* | 35,677 | 1,046,050 | |
Workiva, Inc.* | 4,958 | 327,178 | |
6,181,093 | |||
Materials 3.0% | |||
Construction Materials 1.3% | |||
Eagle Materials, Inc. | 5,901 | 648,756 | |
Containers & Packaging 0.7% | |||
Berry Global Group, Inc.* | 6,828 | 373,082 | |
Metals & Mining 1.0% | |||
Cleveland-Cliffs, Inc.* | 34,787 | 534,676 | |
Real Estate 3.1% | |||
Equity Real Estate Investment Trusts (REITs) 2.8% | |||
Americold Realty Trust, Inc. | 5,999 | 180,210 | |
EastGroup Properties, Inc. | 2,708 | 417,926 | |
Essential Properties Realty Trust, Inc. | 21,678 | 465,860 | |
Four Corners Property Trust, Inc. | 13,954 | 371,037 | |
1,435,033 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
Real Estate Management & Development 0.3% | |||
Newmark Group, Inc. "A" | 17,392 | 168,180 | |
Total Common Stocks (Cost $35,851,134) | 48,789,556 | ||
Securities Lending Collateral 1.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (b) (c) (Cost $661,666) | 661,666 | 661,666 | |
Cash Equivalents 5.2% | |||
DWS Central Cash Management Government Fund, 1.36% (b) (Cost $2,710,607) | 2,710,607 | 2,710,607 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $39,223,407) | 101.4 | 52,161,829 | |
Other Assets and Liabilities, Net | (1.4) | (744,644) | |
Net Assets | 100.0 | 51,417,185 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 1.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (b) (c) | ||||||||
2,874,385 | — | 2,212,719 (d) | — | — | 16,900 | — | 661,666 | 661,666 |
Cash Equivalents 5.2% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (b) | ||||||||
950,292 | 5,386,709 | 3,626,394 | — | — | 5,430 | — | 2,710,607 | 2,710,607 |
3,824,677 | 5,386,709 | 5,839,113 | — | — | 22,330 | — | 3,372,273 | 3,372,273 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2022 amounted to $633,609, which is 1.2% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2022. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 7 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 48,789,556 | $ — | $ — | $ 48,789,556 |
Short-Term Investments (a) | 3,372,273 | — | — | 3,372,273 |
Total | $52,161,829 | $— | $— | $52,161,829 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $35,851,134) — including $633,609 of securities loaned | $ 48,789,556 |
Investment in DWS Government & Agency Securities Portfolio (cost $661,666)* | 661,666 |
Investment in DWS Central Cash Management Government Fund (cost $2,710,607) | 2,710,607 |
Cash | 3,075 |
Receivable for investments sold | 384,274 |
Receivable for Fund shares sold | 610 |
Dividends receivable | 25,996 |
Interest receivable | 8,814 |
Other assets | 589 |
Total assets | 52,585,187 |
Liabilities | |
Payable upon return of securities loaned | 661,666 |
Payable for investments purchased | 393,735 |
Payable for Fund shares redeemed | 28,074 |
Accrued management fee | 22,174 |
Accrued Trustees' fees | 319 |
Other accrued expenses and payables | 62,034 |
Total liabilities | 1,168,002 |
Net assets, at value | $51,417,185 |
Net Assets Consist of | |
Distributable earnings (loss) | 14,934,569 |
Paid-in capital | 36,482,616 |
Net assets, at value | $51,417,185 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($51,417,185 ÷ 4,351,548 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 11.82 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends | $ 156,174 |
Income distributions — DWS Central Cash Management Government Fund | 5,430 |
Securities lending income, net of borrower rebates | 16,900 |
Total income | 178,504 |
Expenses: | |
Management fee | 169,103 |
Administration fee | 29,824 |
Services to shareholders | 362 |
Custodian fee | 1,508 |
Audit fee | 19,010 |
Legal fees | 7,654 |
Tax fees | 4,158 |
Reports to shareholders | 14,541 |
Trustees' fees and expenses | 2,503 |
Other | 1,962 |
Total expenses before expense reductions | 250,625 |
Expense reductions | (2,543) |
Total expenses after expense reductions | 248,082 |
Net investment income (loss) | (69,578) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 2,198,514 |
Foreign currency | (3,943) |
2,194,571 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (23,579,364) |
Foreign currency | (8) |
(23,579,372) | |
Net gain (loss) | (21,384,801) |
Net increase (decrease) in net assets resulting from operations | $(21,454,379) |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 9 |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income (loss) | $ (69,578) | $ (246,837) |
Net realized gain (loss) | 2,194,571 | 7,087,492 |
Change in net unrealized appreciation (depreciation) | (23,579,372) | 2,870,407 |
Net increase (decrease) in net assets resulting from operations | (21,454,379) | 9,711,062 |
Distributions to shareholders: | ||
Class A | (7,059,397) | (3,804,844) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 909,460 | 2,680,334 |
Reinvestment of distributions | 7,059,397 | 3,804,844 |
Payments for shares redeemed | (3,348,519) | (10,049,938) |
Net increase (decrease) in net assets from Class A share transactions | 4,620,338 | (3,564,760) |
Increase (decrease) in net assets | (23,893,438) | 2,341,458 |
Net assets at beginning of period | 75,310,623 | 72,969,165 |
Net assets at end of period | $51,417,185 | $75,310,623 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,990,886 | 4,186,167 |
Shares sold | 56,601 | 144,423 |
Shares issued to shareholders in reinvestment of distributions | 527,214 | 211,028 |
Shares redeemed | (223,153) | (550,732) |
Net increase (decrease) in Class A shares | 360,662 | (195,281) |
Shares outstanding at end of period | 4,351,548 | 3,990,886 |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Financial Highlights
DWS Small Mid Cap Growth VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $18.87 | $17.43 | $13.66 | $12.68 | $21.94 | $18.96 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.02) | (.06) | (.01) | .01 | (.01) | (.02) |
Net realized and unrealized gain (loss) | (5.23) | 2.43 | 4.00 | 2.73 | (1.92) | 4.08 |
Total from investment operations | (5.25) | 2.37 | 3.99 | 2.74 | (1.93) | 4.06 |
Less distributions from: | ||||||
Net investment income | — | (.01) | (.01) | — | — | (.02) |
Net realized gains | (1.80) | (.92) | (.21) | (1.76) | (7.33) | (1.06) |
Total distributions | (1.80) | (.93) | (.22) | (1.76) | (7.33) | (1.08) |
Net asset value, end of period | $11.82 | $18.87 | $17.43 | $13.66 | $12.68 | $21.94 |
Total Return (%) | (28.92)b* | 13.84 | 30.18b | 22.41b | (13.59)b | 22.12 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 51 | 75 | 73 | 64 | 64 | 77 |
Ratio of expenses before expense reductions (%)c | .82** | .78 | .82 | .82 | .81 | .75 |
Ratio of expenses after expense reductions (%)c | .81** | .78 | .81 | .81 | .80 | .75 |
Ratio of net investment income (loss) (%) | (.23)** | (.33) | (.05) | .11 | (.06) | (.08) |
Portfolio turnover rate (%) | 6* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 13 |
First $250 million of the Fund's average daily net assets | .550% |
Next $750 million | .525% |
Over $1 billion | .500% |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 15 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 1/1/22 | $1,000.00 |
Ending Account Value 6/30/22 | $710.80 |
Expenses Paid per $1,000* | $3.44 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/22 | $1,000.00 |
Ending Account Value 6/30/22 | $1,020.78 |
Expenses Paid per $1,000* | $4.06 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | .81% |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 17 |
Advisory Agreement Board Considerations and Fee Evaluation
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Contents
3 | Performance Summary |
4 | Portfolio Summary |
4 | Portfolio Management Team |
5 | Investment Portfolio |
9 | Statement of Assets and Liabilities |
9 | Statement of Operations |
10 | Statements of Changes in Net Assets |
11 | Financial Highlights |
13 | Notes to Financial Statements |
18 | Information About Your Fund's Expenses |
19 | Liquidity Risk Management |
19 | Proxy Voting |
20 | Advisory Agreement Board Considerations and Fee Evaluation |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Performance SummaryJune 30, 2022 (Unaudited)
Comparative Results | ||||||
DWS Small Mid Cap Value VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,096 | $8,485 | $11,183 | $11,576 | $21,002 |
Average annual total return | –19.04% | –15.15% | 3.80% | 2.97% | 7.70% | |
Russell 2500 Value Index | Growth of $10,000 | $8,334 | $8,681 | $11,973 | $13,092 | $24,863 |
Average annual total return | –16.66% | –13.19% | 6.19% | 5.54% | 9.54% | |
DWS Small Mid Cap Value VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $8,083 | $8,455 | $11,067 | $11,370 | $20,254 |
Average annual total return | –19.17% | –15.45% | 3.44% | 2.60% | 7.31% | |
Russell 2500 Value Index | Growth of $10,000 | $8,334 | $8,681 | $11,973 | $13,092 | $24,863 |
Average annual total return | –16.66% | –13.19% | 6.19% | 5.54% | 9.54% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/22 | 12/31/21 |
Common Stocks | 99% | 99% |
Cash Equivalents | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/22 | 12/31/21 |
Financials | 21% | 22% |
Industrials | 17% | 16% |
Real Estate | 11% | 13% |
Information Technology | 9% | 10% |
Health Care | 8% | 8% |
Energy | 8% | 5% |
Consumer Discretionary | 8% | 10% |
Materials | 7% | 6% |
Utilities | 5% | 4% |
Consumer Staples | 4% | 3% |
Communication Services | 2% | 3% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Investment Portfolioas of June 30, 2022 (Unaudited)
Shares | Value ($) | ||
Common Stocks 99.2% | |||
Communication Services 2.4% | |||
Diversified Telecommunication Services 0.3% | |||
Liberty Latin America Ltd. "A"* | 31,373 | 244,710 | |
Entertainment 0.3% | |||
Madison Square Garden Sports Corp.* | 1,859 | 280,709 | |
Media 1.4% | |||
Interpublic Group of Companies, Inc. | 39,760 | 1,094,593 | |
Wireless Telecommunication Services 0.4% | |||
Telephone & Data Systems, Inc. | 20,294 | 320,442 | |
Consumer Discretionary 7.6% | |||
Auto Components 0.9% | |||
Lear Corp. | 5,381 | 677,414 | |
Automobiles 0.4% | |||
Winnebago Industries, Inc. | 6,930 | 336,521 | |
Diversified Consumer Services 0.4% | |||
Vivint Smart Home, Inc.* | 96,627 | 336,262 | |
Hotels, Restaurants & Leisure 1.5% | |||
Boyd Gaming Corp. | 10,704 | 532,524 | |
International Game Technology PLC | 19,871 | 368,806 | |
Red Rock Resorts, Inc. "A" | 8,611 | 287,263 | |
1,188,593 | |||
Household Durables 2.2% | |||
Beazer Homes U.S.A., Inc.* | 25,089 | 302,824 | |
Mohawk Industries, Inc.* | 2,643 | 327,970 | |
PulteGroup, Inc. | 29,095 | 1,153,035 | |
1,783,829 | |||
Specialty Retail 0.7% | |||
Foot Locker, Inc. | 10,718 | 270,629 | |
TravelCenters of America, Inc.* | 7,157 | 246,702 | |
517,331 | |||
Textiles, Apparel & Luxury Goods 1.5% | |||
Columbia Sportswear Co. | 16,694 | 1,194,956 | |
Consumer Staples 4.0% | |||
Food & Staples Retailing 0.4% | |||
Performance Food Group Co.* | 6,533 | 300,387 | |
Food Products 1.8% | |||
Darling Ingredients, Inc.* | 10,608 | 634,358 | |
Hostess Brands, Inc.* | 16,616 | 352,425 | |
Sanderson Farms, Inc. | 2,335 | 503,263 | |
1,490,046 | |||
Household Products 1.0% | |||
Central Garden & Pet Co.* | 18,763 | 795,927 |
Shares | Value ($) | ||
Personal Products 0.8% | |||
Herbalife Nutrition Ltd.* | 13,836 | 282,946 | |
Revlon, Inc. "A"* (a) | 64,470 | 349,428 | |
632,374 | |||
Energy 7.9% | |||
Energy Equipment & Services 1.3% | |||
NexTier Oilfield Solutions, Inc.* | 107,725 | 1,024,465 | |
Oil, Gas & Consumable Fuels 6.6% | |||
Devon Energy Corp. | 38,714 | 2,133,529 | |
HF Sinclair Corp. | 12,253 | 553,345 | |
Kinetik Holdings, Inc. (a) | 7,128 | 243,350 | |
PDC Energy, Inc. | 7,559 | 465,710 | |
Targa Resources Corp. | 30,802 | 1,837,955 | |
5,233,889 | |||
Financials 20.3% | |||
Banks 10.4% | |||
Associated Banc-Corp. | 30,045 | 548,622 | |
BankUnited, Inc. | 40,550 | 1,442,363 | |
Eagle Bancorp., Inc. | 28,111 | 1,332,743 | |
First Financial Corp. | 6,410 | 285,245 | |
First Horizon Corp. | 29,685 | 648,914 | |
Fulton Financial Corp. | 21,539 | 311,239 | |
Hancock Whitney Corp. | 26,974 | 1,195,757 | |
Hilltop Holdings, Inc. | 25,784 | 687,401 | |
Simmons First National Corp. "A" | 30,569 | 649,897 | |
UMB Financial Corp. | 14,217 | 1,224,084 | |
8,326,265 | |||
Capital Markets 0.4% | |||
Evercore, Inc. "A" | 3,114 | 291,502 | |
Consumer Finance 1.2% | |||
Credit Acceptance Corp.* (a) | 1,410 | 667,508 | |
Navient Corp. | 24,093 | 337,061 | |
1,004,569 | |||
Diversified Financial Services 2.3% | |||
A-Mark Precious Metals, Inc. | 11,136 | 359,136 | |
Apollo Global Management, Inc. | 5,624 | 272,652 | |
Cannae Holdings, Inc.* | 12,504 | 241,827 | |
Voya Financial, Inc. | 15,823 | 941,943 | |
1,815,558 | |||
Insurance 5.7% | |||
AMERISAFE, Inc. | 9,923 | 516,095 | |
Assurant, Inc. | 9,089 | 1,571,034 | |
Brown & Brown, Inc. | 23,705 | 1,382,950 | |
Everest Re Group Ltd. | 3,840 | 1,076,275 | |
4,546,354 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 5 |
Shares | Value ($) | ||
Mortgage Real Estate Investment Trusts (REITs) 0.3% | |||
New Residential Investment Corp. | 23,054 | 214,863 | |
Health Care 8.0% | |||
Biotechnology 3.1% | |||
Athenex, Inc.* | 837,899 | 343,036 | |
Gritstone bio, Inc.* (a) | 119,645 | 289,541 | |
Jounce Therapeutics, Inc.* | 62,968 | 190,793 | |
Myriad Genetics, Inc.* | 28,066 | 509,959 | |
Sage Therapeutics, Inc.* | 24,674 | 796,970 | |
Sana Biotechnology, Inc.* | 49,776 | 320,060 | |
2,450,359 | |||
Health Care Equipment & Supplies 0.4% | |||
ICU Medical, Inc.* | 1,845 | 303,300 | |
Health Care Providers & Services 1.7% | |||
Chemed Corp. | 1,231 | 577,819 | |
Molina Healthcare, Inc.* | 2,804 | 784,026 | |
1,361,845 | |||
Life Sciences Tools & Services 1.6% | |||
PerkinElmer, Inc. | 6,269 | 891,577 | |
Syneos Health, Inc.* | 5,302 | 380,047 | |
1,271,624 | |||
Pharmaceuticals 1.2% | |||
Atea Pharmaceuticals, Inc.* | 48,482 | 344,222 | |
NGM Biopharmaceuticals, Inc.* | 19,262 | 246,939 | |
Reata Pharmaceuticals, Inc. "A"* | 11,894 | 361,459 | |
952,620 | |||
Industrials 16.7% | |||
Aerospace & Defense 0.4% | |||
Maxar Technologies, Inc. | 12,779 | 333,404 | |
Air Freight & Logistics 1.1% | |||
Atlas Air Worldwide Holdings, Inc.* | 10,887 | 671,837 | |
GXO Logistics, Inc.* | 5,515 | 238,634 | |
910,471 | |||
Building Products 3.1% | |||
Carlisle Companies, Inc. | 9,343 | 2,229,333 | |
Resideo Technologies, Inc.* | 13,293 | 258,150 | |
2,487,483 | |||
Electrical Equipment 2.3% | |||
Encore Wire Corp. | 6,753 | 701,772 | |
EnerSys | 19,390 | 1,143,234 | |
1,845,006 | |||
Machinery 3.6% | |||
Hillenbrand, Inc. | 51,641 | 2,115,216 | |
Pentair PLC | 6,786 | 310,595 | |
The Manitowoc Co., Inc.* | 42,427 | 446,756 | |
2,872,567 |
Shares | Value ($) | ||
Professional Services 3.2% | |||
Jacobs Engineering Group, Inc. | 13,094 | 1,664,640 | |
ManpowerGroup, Inc. | 3,398 | 259,641 | |
Science Applications International Corp. | 6,673 | 621,257 | |
2,545,538 | |||
Road & Rail 1.0% | |||
Knight-Swift Transportation Holdings, Inc. | 10,885 | 503,867 | |
XPO Logistics, Inc.* | 5,515 | 265,602 | |
769,469 | |||
Trading Companies & Distributors 2.0% | |||
MRC Global, Inc.* | 67,641 | 673,704 | |
NOW, Inc.* | 92,675 | 906,362 | |
1,580,066 | |||
Information Technology 8.8% | |||
Communications Equipment 0.9% | |||
Ciena Corp.* | 7,945 | 363,087 | |
CommScope Holding Co., Inc.* | 54,708 | 334,813 | |
697,900 | |||
Electronic Equipment, Instruments & Components 3.2% | |||
Arlo Technologies, Inc.* | 49,915 | 312,967 | |
Avnet, Inc. | 33,437 | 1,433,778 | |
Itron, Inc.* | 9,376 | 463,456 | |
TD SYNNEX Corp. | 3,829 | 348,822 | |
2,559,023 | |||
IT Services 0.6% | |||
Bread Financial Holdings, Inc. | 12,940 | 479,556 | |
Semiconductors & Semiconductor Equipment 1.7% | |||
Cirrus Logic, Inc.* | 11,969 | 868,231 | |
Ichor Holdings Ltd.* | 8,469 | 220,025 | |
Photronics, Inc.* | 14,421 | 280,921 | |
1,369,177 | |||
Software 2.4% | |||
NCR Corp.* | 12,880 | 400,697 | |
Verint Systems, Inc.* | 26,229 | 1,110,798 | |
Xperi Holding Corp. | 26,208 | 378,181 | |
1,889,676 | |||
Materials 7.1% | |||
Chemicals 3.6% | |||
Amyris, Inc.* (a) | 165,272 | 305,753 | |
Avient Corp. | 7,871 | 315,470 | |
Chemours Co. | 20,651 | 661,245 | |
H.B. Fuller Co. | 6,184 | 372,339 | |
Huntsman Corp. | 12,248 | 347,231 | |
The Mosaic Co. | 17,746 | 838,143 | |
2,840,181 | |||
Containers & Packaging 0.9% | |||
Graphic Packaging Holding Co. | 33,885 | 694,642 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
Metals & Mining 2.6% | |||
Cleveland-Cliffs, Inc.* | 13,281 | 204,129 | |
Steel Dynamics, Inc. | 28,779 | 1,903,731 | |
2,107,860 | |||
Real Estate 11.4% | |||
Equity Real Estate Investment Trusts (REITs) 10.7% | |||
BRT Apartments Corp. | 18,932 | 406,849 | |
Duke Realty Corp. | 16,051 | 882,002 | |
Gaming and Leisure Properties, Inc. | 32,113 | 1,472,702 | |
Highwoods Properties, Inc. | 27,146 | 928,122 | |
Iron Mountain, Inc. | 8,026 | 390,786 | |
LXP Industrial Trust | 155,012 | 1,664,829 | |
NexPoint Residential Trust, Inc. | 10,300 | 643,853 | |
SITE Centers Corp. | 38,592 | 519,834 | |
STAG Industrial, Inc. | 52,479 | 1,620,552 | |
8,529,529 | |||
Real Estate Management & Development 0.7% | |||
Kennedy-Wilson Holdings, Inc. | 11,176 | 211,673 | |
Opendoor Technologies Inc.* (a) | 64,435 | 303,489 | |
515,162 | |||
Utilities 5.0% | |||
Electric Utilities 3.4% | |||
IDACORP, Inc. | 15,434 | 1,634,769 | |
Otter Tail Corp. | 12,371 | 830,465 | |
PG&E Corp.* | 28,319 | 282,624 | |
2,747,858 |
Shares | Value ($) | ||
Gas Utilities 1.6% | |||
Northwest Natural Holding Co. | 9,452 | 501,901 | |
UGI Corp. | 20,014 | 772,741 | |
1,274,642 | |||
Total Common Stocks (Cost $72,251,596) | 79,040,517 | ||
Securities Lending Collateral 2.4% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (b) (c) (Cost $1,898,965) | 1,898,965 | 1,898,965 | |
Cash Equivalents 0.8% | |||
DWS Central Cash Management Government Fund, 1.36% (b) (Cost $651,112) | 651,112 | 651,112 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $74,801,673) | 102.4 | 81,590,594 | |
Other Assets and Liabilities, Net | (2.4) | (1,930,229) | |
Net Assets | 100.0 | 79,660,365 |
Value ($) at 12/31/2021 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2022 | Value ($) at 6/30/2022 |
Securities Lending Collateral 2.4% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 1.28% (b) (c) | ||||||||
6,453,827 | — | 4,554,862 (d) | — | — | 11,126 | — | 1,898,965 | 1,898,965 |
Cash Equivalents 0.8% | ||||||||
DWS Central Cash Management Government Fund, 1.36% (b) | ||||||||
663,321 | 4,772,952 | 4,785,161 | — | — | 2,209 | — | 651,112 | 651,112 |
7,117,148 | 4,772,952 | 9,340,023 | — | — | 13,335 | — | 2,550,077 | 2,550,077 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2022 amounted to $1,893,386, which is 2.4% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2022. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 7 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 79,040,517 | $ — | $ — | $ 79,040,517 |
Short-Term Investments (a) | 2,550,077 | — | — | 2,550,077 |
Total | $81,590,594 | $— | $— | $81,590,594 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
as of June 30, 2022 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $72,251,596) — including $1,893,386 of securities loaned | $ 79,040,517 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,898,965)* | 1,898,965 |
Investment in DWS Central Cash Management Government Fund (cost $651,112) | 651,112 |
Cash | 10,000 |
Receivable for Fund shares sold | 3,789 |
Dividends receivable | 98,028 |
Interest receivable | 10,128 |
Other assets | 966 |
Total assets | 81,713,505 |
Liabilities | |
Payable upon return of securities loaned | 1,898,965 |
Payable for Fund shares redeemed | 39,327 |
Accrued management fee | 38,054 |
Accrued Trustees' fees | 774 |
Other accrued expenses and payables | 76,020 |
Total liabilities | 2,053,140 |
Net assets, at value | $79,660,365 |
Net Assets Consist of | |
Distributable earnings (loss) | 9,676,942 |
Paid-in capital | 69,983,423 |
Net assets, at value | $79,660,365 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($63,886,462 ÷ 5,217,896 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.24 |
Class B | |
Net Asset Value, offering and redemption price per share ($15,773,903 ÷ 1,286,643 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.26 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends | $ 885,304 |
Income distributions — DWS Central Cash Management Government Fund | 2,209 |
Securities lending income, net of borrower rebates | 11,126 |
Total income | 898,639 |
Expenses: | |
Management fee | 300,537 |
Administration fee | 44,849 |
Services to shareholders | 1,165 |
Record keeping fee (Class B) | 11,197 |
Distribution service fee (Class B) | 23,806 |
Custodian fee | 1,358 |
Professional fees | 30,027 |
Reports to shareholders | 16,683 |
Trustees' fees and expenses | 3,733 |
Other | 2,512 |
Total expenses before expense reductions | 435,867 |
Expense reductions | (16,872) |
Total expenses after expense reductions | 418,995 |
Net investment income | 479,644 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 2,613,566 |
Change in net unrealized appreciation (depreciation) on investments | (22,286,318) |
Net gain (loss) | (19,672,752) |
Net increase (decrease) in net assets resulting from operations | $(19,193,108) |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 9 |
Six Months Ended June 30, 2022 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2021 |
Operations: | ||
Net investment income | $ 479,644 | $ 679,104 |
Net realized gain (loss) | 2,613,566 | 9,995,060 |
Change in net unrealized appreciation (depreciation) | (22,286,318) | 14,423,979 |
Net increase (decrease) in net assets resulting from operations | (19,193,108) | 25,098,143 |
Distributions to shareholders: | ||
Class A | (1,631,110) | (986,559) |
Class B | (353,137) | (171,519) |
Total distributions | (1,984,247) | (1,158,078) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,026,818 | 10,833,180 |
Reinvestment of distributions | 1,631,110 | 986,559 |
Payments for shares redeemed | (4,677,026) | (19,477,705) |
Net increase (decrease) in net assets from Class A share transactions | (1,019,098) | (7,657,966) |
Class B | ||
Proceeds from shares sold | 628,966 | 3,370,266 |
Reinvestment of distributions | 353,137 | 171,519 |
Payments for shares redeemed | (2,095,804) | (4,132,281) |
Net increase (decrease) in net assets from Class B share transactions | (1,113,701) | (590,496) |
Increase (decrease) in net assets | (23,310,154) | 15,691,603 |
Net assets at beginning of period | 102,970,519 | 87,278,916 |
Net assets at end of period | $79,660,365 | $102,970,519 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,282,801 | 5,853,631 |
Shares sold | 142,503 | 758,092 |
Shares issued to shareholders in reinvestment of distributions | 119,671 | 67,758 |
Shares redeemed | (327,079) | (1,396,680) |
Net increase (decrease) in Class A shares | (64,905) | (570,830) |
Shares outstanding at end of period | 5,217,896 | 5,282,801 |
Class B | ||
Shares outstanding at beginning of period | 1,372,395 | 1,418,467 |
Shares sold | 42,856 | 230,525 |
Shares issued to shareholders in reinvestment of distributions | 25,852 | 11,756 |
Shares redeemed | (154,460) | (288,353) |
Net increase (decrease) in Class B shares | (85,752) | (46,072) |
Shares outstanding at end of period | 1,286,643 | 1,372,395 |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Financial Highlights
DWS Small Mid Cap Value VIP — Class A | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $15.47 | $12.00 | $13.83 | $12.21 | $17.88 | $16.65 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .08 | .11 | .16 | .18 | .10 | .17 |
Net realized and unrealized gain (loss) | (2.99) | 3.54 | (.90) | 2.53b | (2.47) | 1.55 |
Total from investment operations | (2.91) | 3.65 | (.74) | 2.71 | (2.37) | 1.72 |
Less distributions from: | ||||||
Net investment income | (.12) | (.18) | (.16) | (.10) | (.24) | (.12) |
Net realized gains | (.20) | — | (.93) | (.99) | (3.06) | (.37) |
Total distributions | (.32) | (.18) | (1.09) | (1.09) | (3.30) | (.49) |
Net asset value, end of period | $12.24 | $15.47 | $12.00 | $13.83 | $12.21 | $17.88 |
Total Return (%)c | (19.04)* | 30.50 | (1.80) | 22.76b | (16.01) | 10.52 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 64 | 82 | 70 | 78 | 70 | 96 |
Ratio of expenses before expense reductions (%)d | .87** | .85 | .88 | .88 | .87 | .83 |
Ratio of expenses after expense reductions (%)d | .83** | .83 | .82 | .83 | .81 | .83 |
Ratio of net investment income (%) | 1.12** | .76 | 1.57 | 1.35 | .65 | .98 |
Portfolio turnover rate (%) | 17* | 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. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 11 |
DWS Small Mid Cap Value VIP — Class B | ||||||
Six Months Ended 6/30/22 | Years Ended December 31, | |||||
(Unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $15.46 | $11.99 | $13.82 | $12.20 | $17.86 | $16.63 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .05 | .06 | .13 | .13 | .05 | .11 |
Net realized and unrealized gain (loss) | (2.99) | 3.53 | (.90) | 2.53b | (2.48) | 1.55 |
Total from investment operations | (2.94) | 3.59 | (.77) | 2.66 | (2.43) | 1.66 |
Less distributions from: | ||||||
Net investment income | (.06) | (.12) | (.13) | (.05) | (.17) | (.06) |
Net realized gains | (.20) | — | (.93) | (.99) | (3.06) | (.37) |
Total distributions | (.26) | (.12) | (1.06) | (1.04) | (3.23) | (.43) |
Net asset value, end of period | $12.26 | $15.46 | $11.99 | $13.82 | $12.20 | $17.86 |
Total Return (%)c | (19.17)* | 30.04 | (2.18) | 22.32b | (16.32) | 10.13 |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 16 | 21 | 17 | 17 | 15 | 19 |
Ratio of expenses before expense reductions (%)d | 1.24** | 1.22 | 1.25 | 1.25 | 1.24 | 1.19 |
Ratio of expenses after expense reductions (%)d | 1.20** | 1.20 | 1.19 | 1.19 | 1.16 | 1.19 |
Ratio of net investment income (%) | .74** | .40 | 1.21 | .99 | .30 | .65 |
Portfolio turnover rate (%) | 17* | 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. |
* | Not annualized |
** | Annualized |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Notes to Financial Statements (Unaudited)
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 13 |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
First $250 million | .650% |
Next $750 million | .620% |
Next $1.5 billion | .600% |
Next $2.5 billion | .580% |
Next $2.5 billion | .550% |
Next $2.5 billion | .540% |
Next $2.5 billion | .530% |
Over $12.5 billion | .520% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 15 |
Class A | .83% | |
Class B | 1.20% |
Class A | $ 13,406 |
Class B | 3,466 |
$ 16,872 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2022 |
Class A | $ 432 | $ 138 |
Class B | 341 | 104 |
$ 773 | $ 242 |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 17 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 809.60 | $ 808.30 |
Expenses Paid per $1,000* | $ 3.72 | $ 5.38 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 6/30/22 | $ 1,020.68 | $ 1,018.84 |
Expenses Paid per $1,000* | $ 4.16 | $ 6.01 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | .83% | 1.20% |
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 19 |
Advisory Agreement Board Considerations and Fee Evaluation
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
(b) Not applicable | ||
ITEM 2. | CODE OF ETHICS | |
Not applicable. | ||
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT | |
Not applicable | ||
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | |
Not applicable | ||
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | SCHEDULE OF INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Not applicable | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Deutsche DWS Variable Series II |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/15/2022 |
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: | 8/15/2022 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 8/15/2022 |