UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number: 811-05002
Deutsche DWS Variable Series II
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 12/31/2022 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) |
Contents
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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 SummaryDecember 31, 2022 (Unaudited)
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 3 |
Comparative Results | |||||
DWS Alternative Asset Allocation VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $9,258 | $11,034 | $11,498 | $12,730 |
Average annual total return | –7.42% | 3.33% | 2.83% | 2.44% | |
MSCI World Index | Growth of $10,000 | $8,186 | $11,558 | $13,470 | $23,358 |
Average annual total return | –18.14% | 4.94% | 6.14% | 8.85% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $8,699 | $9,208 | $10,012 | $11,108 |
Average annual total return | –13.01% | –2.71% | 0.02% | 1.06% | |
Blended Index | Growth of $10,000 | $8,372 | $10,926 | $12,526 | $19,105 |
Average annual total return | –16.28% | 3.00% | 4.61% | 6.69% | |
DWS Alternative Asset Allocation VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $9,226 | $10,917 | $11,316 | $12,359 |
Average annual total return | –7.74% | 2.97% | 2.50% | 2.14% | |
MSCI World Index | Growth of $10,000 | $8,186 | $11,558 | $13,470 | $23,358 |
Average annual total return | –18.14% | 4.94% | 6.14% | 8.85% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $8,699 | $9,208 | $10,012 | $11,108 |
Average annual total return | –13.01% | –2.71% | 0.02% | 1.06% | |
Blended Index | Growth of $10,000 | $8,372 | $10,926 | $12,526 | $19,105 |
Average annual total return | –16.28% | 3.00% | 4.61% | 6.69% | |
The growth of $10,000 is cumulative. |
4 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Management Summary December 31, 2022 (Unaudited)
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 5 |
6 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Portfolio Summary(Unaudited)
Asset Allocation* (As a % of Investment Portfolio) | 12/31/22 | 12/31/21 |
Real Asset | 38% | 44% |
DWS RREEF Global Infrastructure Fund | 14% | 12% |
DWS Enhanced Commodity Strategy Fund | 13% | 16% |
DWS RREEF Real Estate Securities Fund | 8% | 11% |
iShares Global Infrastructure ETF | 2% | 4% |
SPDR S&P Global Natural Resources ETF | 1% | — |
DWS RREEF Global Real Estate Securities Fund | — | 1% |
Alternative Fixed Income | 20% | 20% |
DWS Floating Rate Fund | 9% | 8% |
iShares JP Morgan USD Emerging Markets Bond ETF | 4% | 5% |
DWS Emerging Markets Fixed Income Fund | 4% | 5% |
SPDR Blackstone Senior Loan ETF | 3% | 2% |
Alternative Equity | 11% | 20% |
SPDR Bloomberg Convertible Securities ETF | 8% | 14% |
iShares Preferred & Income Securities ETF | 3% | 6% |
Absolute Return | 20% | 14% |
DWS Global Macro Fund | 7% | 7% |
DWS ESG Liquidity Fund | 13% | 7% |
Cash | 11% | 2% |
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 | | 7 |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Mutual Funds 54.6% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,274,550 | 15,307,718 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 9,065,681 | 54,938,029 | |
DWS Floating Rate Fund "Institutional" (a) | 5,247,230 | 39,196,806 | |
DWS Global Macro Fund "Institutional" (a) | 3,362,731 | 31,508,793 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,859,160 | 57,617,260 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 1,684,566 | 32,090,988 | |
Total Mutual Funds (Cost $254,105,315) | 230,659,594 | ||
Exchange-Traded Funds 21.0% | |||
iShares Global Infrastructure ETF | 141,313 | 6,477,788 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 210,018 | 17,765,423 | |
iShares Preferred & Income Securities ETF | 459,281 | 14,021,849 |
Shares | Value ($) | ||
SPDR Blackstone Senior Loan ETF | 280,331 | 11,465,538 | |
SPDR Bloomberg Convertible Securities ETF | 541,892 | 34,865,331 | |
SPDR S&P Global Natural Resources ETF | 73,958 | 4,217,085 | |
Total Exchange-Traded Funds (Cost $88,136,271) | 88,813,014 | ||
Cash Equivalents 24.4% | |||
DWS Central Cash Management Government Fund, 4.2% (a) (b) | 48,680,508 | 48,680,508 | |
DWS ESG Liquidity Fund "Institutional", 4.47% (a) (b) | 54,531,012 | 54,525,559 | |
Total Cash Equivalents (Cost $103,200,442) | 103,206,067 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $445,442,028) | 100.0 | 422,678,675 | |
Other Assets and Liabilities, Net | (0.0) | (155,376) | |
Net Assets | 100.0 | 422,523,299 |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Mutual Funds 54.6% | ||||||||
DWS Emerging Markets Fixed Income Fund (a) | ||||||||
24,615,718 | 1,029,311 | 4,657,800 | (1,516,194) | (4,163,317) | 1,029,311 | — | 2,274,550 | 15,307,718 |
DWS Enhanced Commodity Strategy Fund (a) | ||||||||
79,225,180 | 18,594,775 | 35,421,600 | (5,136,669) | (2,323,657) | 18,594,775 | — | 9,065,681 | 54,938,029 |
DWS Floating Rate Fund (a) | ||||||||
39,810,871 | 1,672,248 | — | — | (2,286,313) | 1,668,225 | — | 5,247,230 | 39,196,806 |
DWS Global Macro (a) | ||||||||
33,828,146 | 1,449,615 | — | — | (3,768,968) | 1,100,659 | 348,956 | 3,362,731 | 31,508,793 |
DWS RREEF Global Infrastructure Fund (a) | ||||||||
61,417,258 | 9,438,730 | 3,568,400 | 187,071 | (9,857,399) | 839,609 | 4,431,245 | 3,859,160 | 57,617,260 |
DWS RREEF Global Real Estate Securities Fund (a) | ||||||||
5,306,244 | — | 4,971,737 | 659,986 | (994,493) | — | — | — | — |
DWS RREEF Real Estate Securities Fund (a) | ||||||||
52,375,661 | 8,584,283 | 14,257,000 | 93,872 | (14,705,828) | 590,535 | 777,447 | 1,684,566 | 32,090,988 |
Cash Equivalents 24.4% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (a) (b) | ||||||||
11,467,666 | 113,479,903 | 76,267,061 | — | — | 781,141 | — | 48,680,508 | 48,680,508 |
8 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
DWS ESG Liquidity Fund, 4.47% (a) (b) | ||||||||
31,709,226 | 22,808,499 | — | — | 7,834 | 926,222 | — | 54,531,012 | 54,525,559 |
339,755,970 | 177,057,364 | 139,143,598 | (5,711,934) | (38,092,141) | 25,530,477 | 5,557,648 | 128,705,438 | 333,865,661 |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. |
(b) | The rate shown is the annualized seven-day yield at period end. |
S&P: Standard & Poor's |
SPDR: Standard & Poor's Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Mutual Funds | $ 230,659,594 | $ — | $ — | $ 230,659,594 |
Exchange-Traded Funds | 88,813,014 | — | — | 88,813,014 |
Short-Term Investments | 103,206,067 | — | — | 103,206,067 |
Total | $422,678,675 | $— | $— | $422,678,675 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 9 |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $88,136,271) | $ 88,813,014 |
Investments in affiliated Underlying Funds, at value (cost $357,305,757) | 333,865,661 |
Receivable for Fund shares sold | 30,409 |
Interest receivable | 159,894 |
Other assets | 7,171 |
Total assets | 422,876,149 |
Liabilities | |
Payable for Fund shares redeemed | 21,258 |
Accrued management fee | 36,672 |
Accrued Trustees' fees | 7,135 |
Other accrued expenses and payables | 287,785 |
Total liabilities | 352,850 |
Net assets, at value | $422,523,299 |
Net Assets Consist of | |
Distributable earnings (loss) | 3,353,956 |
Paid-in capital | 419,169,343 |
Net assets, at value | $422,523,299 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($46,226,514 ÷ 3,557,543 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.99 |
Class B | |
Net Asset Value, offering and redemption price per share ($376,296,785 ÷ 28,995,732 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.98 |
Investment Income | |
Income: | |
Dividends | $ 3,501,768 |
Income distributions from affiliated Underlying Funds | 25,530,477 |
Total income | 29,032,245 |
Expenses: | |
Management fee | 450,095 |
Administration fee | 436,592 |
Services to shareholders | 1,336 |
Record keeping fee (Class B) | 541,391 |
Distribution service fee (Class B) | 1,009,762 |
Custodian fee | 6,357 |
Professional fees | 79,667 |
Reports to shareholders | 12,383 |
Registration fees | 43 |
Trustees' fees and expenses | 22,986 |
Other | 11,990 |
Total expenses | 2,572,602 |
Net investment income | 26,459,643 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | (5,711,934) |
Sale of non-affiliated Underlying Funds | 5,667,678 |
Capital gain distributions from affiliated Underlying Funds | 5,557,648 |
5,513,392 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | (38,092,141) |
Non-affiliated Underlying Funds | (30,756,956) |
(68,849,097) | |
Net gain (loss) | (63,335,705) |
Net increase (decrease) in net assets resulting from operations | $(36,876,062) |
10 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 26,459,643 | $ 31,022,107 |
Net realized gain (loss) | 5,513,392 | 16,184,613 |
Change in net unrealized appreciation (depreciation) | (68,849,097) | 8,533,545 |
Net increase (decrease) in net assets resulting from operations | (36,876,062) | 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 | 8,154,196 | 8,392,486 |
Reinvestment of distributions | 3,486,882 | 808,613 |
Payments for shares redeemed | (5,596,341) | (2,937,240) |
Net increase (decrease) in net assets from Class A share transactions | 6,044,737 | 6,263,859 |
Class B | ||
Proceeds from shares sold | 17,581,298 | 11,611,634 |
Reinvestment of distributions | 29,085,224 | 7,405,682 |
Payments for shares redeemed | (55,362,431) | (42,234,997) |
Net increase (decrease) in net assets from Class B share transactions | (8,695,909) | (23,217,681) |
Increase (decrease) in net assets | (72,099,340) | 30,572,148 |
Net assets at beginning of period | 494,622,639 | 464,050,491 |
Net assets at end of period | $422,523,299 | $494,622,639 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,126,054 | 2,699,800 |
Shares sold | 590,731 | 573,373 |
Shares issued to shareholders in reinvestment of distributions | 250,494 | 56,428 |
Shares redeemed | (409,736) | (203,547) |
Net increase (decrease) in Class A shares | 431,489 | 426,254 |
Shares outstanding at end of period | 3,557,543 | 3,126,054 |
Class B | ||
Shares outstanding at beginning of period | 29,598,447 | 31,208,785 |
Shares sold | 1,281,615 | 791,155 |
Shares issued to shareholders in reinvestment of distributions | 2,086,458 | 516,435 |
Shares redeemed | (3,970,788) | (2,917,928) |
Net increase (decrease) in Class B shares | (602,715) | (1,610,338) |
Shares outstanding at end of period | 28,995,732 | 29,598,447 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 11 |
Financial Highlights
DWS Alternative Asset Allocation VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $15.13 | $13.70 | $13.35 | $12.10 | $13.61 |
Income (loss) from investment operations: | |||||
Net investment incomea | .88 | 1.04 | .29 | .40 | .61 |
Net realized and unrealized gain (loss) | (1.93) | .69 | .40 | 1.35 | (1.84) |
Total from investment operations | (1.05) | 1.73 | .69 | 1.75 | (1.23) |
Less distributions from: | |||||
Net investment income | (1.08) | (.30) | (.34) | (.50) | (.28) |
Net realized gains | (.01) | — | — | — | — |
Total distributions | (1.09) | (.30) | (.34) | (.50) | (.28) |
Net asset value, end of period | $12.99 | $15.13 | $13.70 | $13.35 | $12.10 |
Total Return (%)b | (7.42) | 12.74 | 5.71 | 14.68c | (9.14)c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 46 | 47 | 37 | 34 | 26 |
Ratio of expenses before expense reductions (%)d,e | .23 | .23 | .23 | .56 | .73 |
Ratio of expenses after expense reductions (%)d,e | .23 | .23 | .23 | .23 | .16 |
Ratio of net investment income (%) | 6.44 | 7.13 | 2.29 | 3.09 | 4.78 |
Portfolio turnover rate (%) | 12 | 19 | 18 | 10 | 32 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
12 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
DWS Alternative Asset Allocation VIP — Class B | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $15.11 | $13.68 | $13.34 | $12.09 | $13.59 |
Income (loss) from investment operations: | |||||
Net investment incomea | .80 | .93 | .24 | .37 | .62 |
Net realized and unrealized gain (loss) | (1.90) | .75 | .41 | 1.34 | (1.88) |
Total from investment operations | (1.10) | 1.68 | .65 | 1.71 | (1.26) |
Less distributions from: | |||||
Net investment income | (1.02) | (.25) | (.31) | (.46) | (.24) |
Net realized gains | (.01) | — | — | — | — |
Total distributions | (1.03) | (.25) | (.31) | (.46) | (.24) |
Net asset value, end of period | $12.98 | $15.11 | $13.68 | $13.34 | $12.09 |
Total Return (%)b | (7.74) | 12.35c | 5.32c | 14.35c | (9.35)c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 376 | 447 | 427 | 349 | 208 |
Ratio of expenses before expense reductions (%)d,e | .61 | .61 | .61 | .92 | 1.08 |
Ratio of expenses after expense reductions (%)d,e | .61 | .60 | .59 | .52 | .45 |
Ratio of net investment income (%) | 5.81 | 6.37 | 1.94 | 2.90 | 4.85 |
Portfolio turnover rate (%) | 12 | 19 | 18 | 10 | 32 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 13 |
Notes to Financial Statements
14 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Undistributed ordinary income* | $ 27,069,978 |
Undistributed long-term capital gains | $ 3,802,233 |
Net unrealized appreciation (depreciation) on investments | $ (27,518,255) |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 32,107,445 | $ 8,214,295 |
Distributions from long-term capital gains | $ 464,661 | $ — |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 15 |
On assets invested in exchange-traded funds and mutual funds | .10% |
On assets invested in all other assets not considered exchange-traded funds and mutual funds | 1.00% |
Class A | 1.03% |
Class B | 1.41% |
Class A | 1.00% | |
Class B | 1.39% |
16 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 231 | $ 37 |
Class B | 375 | 68 |
$ 606 | $ 105 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 17 |
Report of Independent Registered Public Accounting Firm
18 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 994.60 | $ 993.10 |
Expenses Paid per $1,000* | $ 1.16 | $ 3.06 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,024.05 | $ 1,022.13 |
Expenses Paid per $1,000* | $ 1.17 | $ 3.11 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios** | Class A | Class B |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | .23% | .61% |
** | The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 23 |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
24 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 25 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
26 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Contents
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25 |
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 SummaryDecember 31, 2022 (Unaudited)
Comparative Results | |||||
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,460 | $9,415 | $11,203 | $17,765 |
Average annual total return | –15.40% | –1.99% | 2.30% | 5.91% | |
Russell 1000® Value Index | Growth of $10,000 | $9,246 | $11,896 | $13,809 | $26,632 |
Average annual total return | –7.54% | 5.96% | 6.67% | 10.29% | |
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $8,433 | $9,327 | $11,033 | $17,233 |
Average annual total return | –15.67% | –2.30% | 1.99% | 5.59% | |
Russell 1000® Value Index | Growth of $10,000 | $9,246 | $11,896 | $13,809 | $26,632 |
Average annual total return | –7.54% | 5.96% | 6.67% | 10.29% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Common Stocks | 99% | 100% |
Cash Equivalents | 1% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
Information Technology | 28% | 30% |
Health Care | 23% | 23% |
Financials | 11% | 12% |
Consumer Discretionary | 10% | 10% |
Communication Services | 8% | 8% |
Materials | 6% | 2% |
Energy | 5% | 1% |
Industrials | 5% | 5% |
Consumer Staples | 4% | 9% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Common Stocks 99.2% | |||
Communication Services 8.1% | |||
Interactive Media & Services 4.6% | |||
Alphabet, Inc. "A"* | 61,641 | 5,438,585 | |
Media 3.5% | |||
Fox Corp. "A" | 110,454 | 3,354,488 | |
TEGNA, Inc. | 38,242 | 810,348 | |
4,164,836 | |||
Consumer Discretionary 10.3% | |||
Hotels, Restaurants & Leisure 1.1% | |||
Boyd Gaming Corp. | 24,908 | 1,358,233 | |
Household Durables 5.3% | |||
D.R. Horton, Inc. | 50,557 | 4,506,651 | |
Garmin Ltd. | 19,321 | 1,783,135 | |
6,289,786 | |||
Specialty Retail 2.5% | |||
AutoNation, Inc.* | 10,451 | 1,121,392 | |
Lowe's Companies, Inc. | 4,662 | 928,857 | |
Signet Jewelers Ltd. | 13,258 | 901,544 | |
2,951,793 | |||
Textiles, Apparel & Luxury Goods 1.4% | |||
Capri Holdings Ltd.* | 16,007 | 917,521 | |
Tapestry, Inc. | 19,892 | 757,488 | |
1,675,009 | |||
Consumer Staples 4.4% | |||
Food & Staples Retailing 0.5% | |||
Kroger Co. | 13,450 | 599,601 | |
Food Products 2.9% | |||
Tyson Foods, Inc. "A" | 55,044 | 3,426,489 | |
Tobacco 1.0% | |||
Altria Group, Inc. | 25,912 | 1,184,438 | |
Energy 5.2% | |||
Oil, Gas & Consumable Fuels | |||
ConocoPhillips | 5,007 | 590,826 | |
Coterra Energy, Inc. | 38,185 | 938,206 | |
Exxon Mobil Corp. | 3,446 | 380,094 | |
Marathon Petroleum Corp. | 11,082 | 1,289,834 | |
Pioneer Natural Resources Co. | 8,836 | 2,018,054 | |
Valero Energy Corp. | 7,655 | 971,113 | |
6,188,127 | |||
Financials 11.1% | |||
Banks 4.0% | |||
Bank of America Corp. | 9,504 | 314,772 | |
Citigroup, Inc. | 14,654 | 662,800 |
Shares | Value ($) | ||
JPMorgan Chase & Co. | 17,459 | 2,341,252 | |
U.S. Bancorp. | 34,519 | 1,505,374 | |
4,824,198 | |||
Capital Markets 0.7% | |||
State Street Corp. | 10,201 | 791,292 | |
Consumer Finance 6.4% | |||
Capital One Financial Corp. | 33,140 | 3,080,694 | |
Discover Financial Services | 28,284 | 2,767,024 | |
Synchrony Financial | 54,052 | 1,776,149 | |
7,623,867 | |||
Health Care 22.4% | |||
Biotechnology 5.9% | |||
AbbVie, Inc. | 5,965 | 964,004 | |
Gilead Sciences, Inc. | 30,850 | 2,648,472 | |
Regeneron Pharmaceuticals, Inc.* | 3,673 | 2,650,033 | |
Vertex Pharmaceuticals, Inc.* | 2,641 | 762,668 | |
7,025,177 | |||
Health Care Equipment & Supplies 2.9% | |||
Hologic, Inc.* | 29,499 | 2,206,820 | |
Medtronic PLC | 15,571 | 1,210,178 | |
3,416,998 | |||
Health Care Providers & Services 2.2% | |||
HCA Healthcare, Inc. | 1,848 | 443,446 | |
Laboratory Corp. of America Holdings | 7,871 | 1,853,463 | |
Tenet Healthcare Corp.* | 7,142 | 348,459 | |
2,645,368 | |||
Pharmaceuticals 11.4% | |||
Bristol-Myers Squibb Co. | 74,084 | 5,330,344 | |
Johnson & Johnson | 14,308 | 2,527,508 | |
Merck & Co., Inc. | 13,959 | 1,548,751 | |
Pfizer, Inc. | 75,216 | 3,854,068 | |
Viatris, Inc. | 27,364 | 304,561 | |
13,565,232 | |||
Industrials 4.6% | |||
Air Freight & Logistics 2.8% | |||
C.H. Robinson Worldwide, Inc. | 3,794 | 347,379 | |
Expeditors International of Washington, Inc. | 28,170 | 2,927,426 | |
3,274,805 | |||
Professional Services 1.8% | |||
ManpowerGroup, Inc. | 10,075 | 838,341 | |
Robert Half International, Inc. | 17,791 | 1,313,509 | |
2,151,850 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 7 |
Shares | Value ($) | ||
Information Technology 27.6% | |||
Communications Equipment 2.6% | |||
Cisco Systems, Inc. | 65,521 | 3,121,420 | |
Electronic Equipment, Instruments & Components 1.6% | |||
Flex Ltd.* | 18,598 | 399,113 | |
Jabil, Inc. | 21,968 | 1,498,218 | |
1,897,331 | |||
IT Services 9.0% | |||
Amdocs Ltd. | 24,139 | 2,194,235 | |
Cognizant Technology Solutions Corp. "A" | 90,072 | 5,151,218 | |
Fidelity National Information Services, Inc. | 7,370 | 500,055 | |
Global Payments, Inc. | 11,672 | 1,159,263 | |
SS&C Technologies Holdings, Inc. | 33,458 | 1,741,823 | |
10,746,594 | |||
Semiconductors & Semiconductor Equipment 5.8% | |||
Broadcom, Inc. | 1,811 | 1,012,585 | |
KLA Corp. | 5,366 | 2,023,143 | |
QUALCOMM, Inc. | 35,028 | 3,850,978 | |
6,886,706 | |||
Software 4.7% | |||
Microsoft Corp. | 21,023 | 5,041,736 | |
Oracle Corp. | 5,874 | 480,140 | |
5,521,876 | |||
Technology Hardware, Storage & Peripherals 3.9% | |||
Apple, Inc. | 30,216 | 3,925,965 |
Shares | Value ($) | ||
Hewlett Packard Enterprise Co. | 23,089 | 368,500 | |
HP, Inc. | 12,403 | 333,269 | |
4,627,734 | |||
Materials 5.5% | |||
Chemicals 3.8% | |||
LyondellBasell Industries NV "A" | 32,557 | 2,703,207 | |
Olin Corp. | 24,136 | 1,277,760 | |
The Mosaic Co. | 13,517 | 592,991 | |
4,573,958 | |||
Containers & Packaging 0.3% | |||
Westrock Co. | 8,359 | 293,902 | |
Metals & Mining 1.4% | |||
Nucor Corp. | 13,054 | 1,720,648 | |
Total Common Stocks (Cost $121,153,793) | 117,985,853 | ||
Cash Equivalents 1.0% | |||
DWS Central Cash Management Government Fund, 4.2% (a) (Cost $1,132,870) | 1,132,870 | 1,132,870 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $122,286,663) | 100.2 | 119,118,723 | |
Other Assets and Liabilities, Net | (0.2) | (186,724) | |
Net Assets | 100.0 | 118,931,999 |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (a) (b) | ||||||||
763,000 | — | 763,000 (c) | — | — | 97 | — | — | — |
Cash Equivalents 1.0% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (a) | ||||||||
572,173 | 9,666,238 | 9,105,541 | — | — | 11,086 | — | 1,132,870 | 1,132,870 |
1,335,173 | 9,666,238 | 9,868,541 | — | — | 11,183 | — | 1,132,870 | 1,132,870 |
* | 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 year ended December 31, 2022. |
8 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 117,985,853 | $ — | $ — | $ 117,985,853 |
Short-Term Investments | 1,132,870 | — | — | 1,132,870 |
Total | $119,118,723 | $— | $— | $119,118,723 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 9 |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $121,153,793) | $ 117,985,853 |
Investment in DWS Central Cash Management Government Fund (cost $1,132,870) | 1,132,870 |
Cash | 10,000 |
Receivable for Fund shares sold | 158 |
Dividends receivable | 103,853 |
Interest receivable | 2,219 |
Other assets | 2,328 |
Total assets | 119,237,281 |
Liabilities | |
Payable for Fund shares redeemed | 163,751 |
Accrued management fee | 50,535 |
Accrued Trustees' fees | 3,156 |
Other accrued expenses and payables | 87,840 |
Total liabilities | 305,282 |
Net assets, at value | $118,931,999 |
Net Assets Consist of | |
Distributable earnings (loss) | (2,671,728) |
Paid-in capital | 121,603,727 |
Net assets, at value | $118,931,999 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($116,471,284 ÷ 8,866,757 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.14 |
Class B | |
Net Asset Value, offering and redemption price per share ($2,460,715 ÷ 186,623 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.19 |
Investment Income | |
Income: | |
Dividends | $ 2,967,866 |
Income distributions — DWS Central Cash Management Government Fund | 11,086 |
Securities lending income, net of borrower rebates | 97 |
Total income | 2,979,049 |
Expenses: | |
Management fee | 775,124 |
Administration fee | 125,312 |
Services to shareholders | 1,177 |
Record keeping fee (Class B) | 1,810 |
Distribution service fee (Class B) | 6,905 |
Custodian fee | 4,457 |
Professional fees | 77,464 |
Reports to shareholders | 25,743 |
Trustees' fees and expenses | 8,340 |
Other | 6,681 |
Total expenses before expense reductions | 1,033,013 |
Expense reductions | (184,439) |
Total expenses after expense reductions | 848,574 |
Net investment income | 2,130,475 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | (1,438,266) |
Change in net unrealized appreciation (depreciation) on investments | (23,764,440) |
Net gain (loss) | (25,202,706) |
Net increase (decrease) in net assets resulting from operations | $(23,072,231) |
10 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 2,130,475 | $ 2,352,177 |
Net realized gain (loss) | (1,438,266) | 18,442,647 |
Change in net unrealized appreciation (depreciation) | (23,764,440) | 13,221,244 |
Net increase (decrease) in net assets resulting from operations | (23,072,231) | 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 | 2,424,947 | 2,809,896 |
Reinvestment of distributions | 4,211,106 | 2,764,720 |
Payments for shares redeemed | (12,164,638) | (16,851,304) |
Net increase (decrease) in net assets from Class A share transactions | (5,528,585) | (11,276,688) |
Class B | ||
Proceeds from shares sold | 160,562 | 275,751 |
Reinvestment of distributions | 84,944 | 57,047 |
Payments for shares redeemed | (429,240) | (927,960) |
Net increase (decrease) in net assets from Class B share transactions | (183,734) | (595,162) |
Increase (decrease) in net assets | (33,080,600) | 19,322,451 |
Net assets at beginning of period | 152,012,599 | 132,690,148 |
Net assets at end of period | $118,931,999 | $152,012,599 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 9,269,906 | 10,025,875 |
Shares sold | 175,252 | 195,672 |
Shares issued to shareholders in reinvestment of distributions | 301,655 | 194,562 |
Shares redeemed | (880,056) | (1,146,203) |
Net increase (decrease) in Class A shares | (403,149) | (755,969) |
Shares outstanding at end of period | 8,866,757 | 9,269,906 |
Class B | ||
Shares outstanding at beginning of period | 201,242 | 240,926 |
Shares sold | 10,442 | 19,004 |
Shares issued to shareholders in reinvestment of distributions | 6,050 | 3,989 |
Shares redeemed | (31,111) | (62,677) |
Net increase (decrease) in Class B shares | (14,619) | (39,684) |
Shares outstanding at end of period | 186,623 | 201,242 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 11 |
Financial Highlights
DWS CROCI® U.S. VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $16.05 | $12.92 | $16.12 | $13.46 | $16.64 |
Income (loss) from investment operations: | |||||
Net investment incomea | .23 | .24 | .28 | .31 | .29 |
Net realized and unrealized gain (loss) | (2.68) | 3.17 | (2.47) | 3.92 | (1.89) |
Total from investment operations | (2.45) | 3.41 | (2.19) | 4.23 | (1.60) |
Less distributions from: | |||||
Net investment income | (.25) | (.28) | (.31) | (.30) | (.41) |
Net realized gains | (.21) | — | (.70) | (1.27) | (1.17) |
Total distributions | (.46) | (.28) | (1.01) | (1.57) | (1.58) |
Net asset value, end of period | $13.14 | $16.05 | $12.92 | $16.12 | $13.46 |
Total Return (%)b | (15.40) | 26.69 | (12.16) | 32.95 | (10.50) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 116 | 149 | 130 | 153 | 125 |
Ratio of expenses before expense reductions (%)c | .79 | .78 | .84 | .84 | .84 |
Ratio of expenses after expense reductions (%)c | .65 | .71 | .69 | .70 | .72 |
Ratio of net investment income (%) | 1.66 | 1.62 | 2.28 | 2.13 | 1.89 |
Portfolio turnover rate (%) | 60 | 99 | 122 | 111 | 100 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
12 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
DWS CROCI® U.S. VIP — Class B | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $16.11 | $12.97 | $16.17 | $13.50 | $16.67 |
Income (loss) from investment operations: | |||||
Net investment incomea | .19 | .19 | .24 | .27 | .24 |
Net realized and unrealized gain (loss) | (2.69) | 3.19 | (2.47) | 3.92 | (1.88) |
Total from investment operations | (2.50) | 3.38 | (2.23) | 4.19 | (1.64) |
Less distributions from: | |||||
Net investment income | (.21) | (.24) | (.27) | (.25) | (.36) |
Net realized gains | (.21) | — | (.70) | (1.27) | (1.17) |
Total distributions | (.42) | (.24) | (.97) | (1.52) | (1.53) |
Net asset value, end of period | $13.19 | $16.11 | $12.97 | $16.17 | $13.50 |
Total Return (%)b | (15.67) | 26.27 | (12.41) | 32.49 | (10.71) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 2 | 3 | 3 | 4 | 3 |
Ratio of expenses before expense reductions (%)c | 1.12 | 1.10 | 1.16 | 1.16 | 1.16 |
Ratio of expenses after expense reductions (%)c | .97 | 1.02 | 1.00 | 1.02 | 1.04 |
Ratio of net investment income (%) | 1.33 | 1.33 | 1.96 | 1.82 | 1.55 |
Portfolio turnover rate (%) | 60 | 99 | 122 | 111 | 100 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 13 |
Notes to Financial Statements
14 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 15 |
Undistributed ordinary income* | $ 2,070,015 |
Capital loss carryforwards | $ (1,311,000) |
Net unrealized appreciation (depreciation) on investments | $ (3,430,841) |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 2,878,028 | $ 2,821,767 |
Distributions from long-term capital gains | $ 1,418,022 | $ — |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
16 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
First $250 million of the Fund’s average daily net assets | .600% |
Next $750 million of such net assets | .575% |
Next $1.5 billion of such net assets | .550% |
Next $2.5 billion of such net assets | .525% |
Next $2.5 billion of such net assets | .500% |
Next $2.5 billion of such net assets | .475% |
Next $2.5 billion of such net assets | .450% |
Over $12.5 billion of such net assets | .425% |
Class A | .65% |
Class B | .97% |
Class A | $ 180,317 |
Class B | 4,122 |
$ 184,439 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 510 | $ 83 |
Class B | 317 | 58 |
$ 827 | $ 141 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 17 |
18 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Report of Independent Registered Public Accounting Firm
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 19 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,034.60 | $ 1,033.70 |
Expenses Paid per $1,000* | $ 3.33 | $ 4.97 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,021.93 | $ 1,020.32 |
Expenses Paid per $1,000* | $ 3.31 | $ 4.94 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | .65% | .97% |
20 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 21 |
Advisory Agreement Board Considerations and Fee Evaluation
22 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 25 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
26 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 27 |
Contents
3 | |
5 | |
7 | |
8 | |
20 | |
21 | |
22 | |
23 | |
25 | |
34 | |
35 | |
36 | |
36 | |
37 | |
40 |
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 SummaryDecember 31, 2022 (Unaudited)
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 3 |
Comparative Results | |||||
DWS Global Income Builder VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,502 | $10,214 | $11,333 | $16,837 |
Average annual total return | –14.98% | 0.71% | 2.53% | 5.35% | |
MSCI All Country World Index | Growth of $10,000 | $8,164 | $11,250 | $12,901 | $21,545 |
Average annual total return | –18.36% | 4.00% | 5.23% | 7.98% | |
Blended Index 60/40 | Growth of $10,000 | $8,409 | $10,566 | $11,917 | $17,157 |
Average annual total return | –15.91% | 1.85% | 3.57% | 5.55% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $8,701 | $9,257 | $10,091 | $11,415 |
Average annual total return | –12.99% | –2.54% | 0.18% | 1.33% |
Comparative Results | ||||
DWS Global Income Builder VIP | 1-Year | 3-Year | Life of Class* | |
Class B | Growth of $10,000 | $8,476 | $10,111 | $11,412 |
Average annual total return | –15.24% | 0.37% | 2.87% | |
MSCI All Country World Index | Growth of $10,000 | $8,164 | $11,250 | $12,903 |
Average annual total return | –18.36% | 4.00% | 5.61% | |
Blended Index 60/40 | Growth of $10,000 | $8,409 | $10,566 | $12,009 |
Average annual total return | –15.91% | 1.85% | 6.88% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $8,701 | $9,257 | $10,304 |
Average annual total return | –12.99% | –2.54% | 0.64% | |
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
4 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 5 |
6 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Equity | 65% | 65% |
Common Stocks | 59% | 60% |
Exchange-Traded Funds | 3% | 3% |
Preferred Stocks | 3% | 2% |
Warrants | 0% | 0% |
Fixed Income | 34% | 32% |
Corporate Bonds | 20% | 23% |
Government & Agency Obligations | 5% | 1% |
Asset-Backed | 5% | 3% |
Commercial Mortgage-Backed Securities | 2% | 2% |
Short-Term U.S. Treasury Obligation | 1% | 1% |
Collateralized Mortgage Obligations | 1% | 2% |
Mortgage-Backed Securities Pass-Throughs | 0% | 0% |
Cash Equivalents | 1% | 3% |
Cash Equivalents | 1% | 3% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Warrants and Corporate Bonds) | 12/31/22 | 12/31/21 |
Financials | 22% | 23% |
Information Technology | 17% | 20% |
Health Care | 10% | 9% |
Industrials | 8% | 6% |
Communication Services | 8% | 10% |
Consumer Staples | 8% | 5% |
Energy | 8% | 6% |
Consumer Discretionary | 7% | 8% |
Utilities | 4% | 5% |
Real Estate | 4% | 4% |
Materials | 4% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
United States | 64% | 63% |
Japan | 4% | 5% |
Cayman Islands | 3% | 1% |
Canada | 3% | 4% |
United Kingdom | 3% | 4% |
Switzerland | 3% | 3% |
France | 2% | 2% |
Netherlands | 2% | 2% |
Mexico | 2% | 1% |
Germany | 1% | 2% |
Australia | 1% | 1% |
Indonesia | 1% | 1% |
Other | 11% | 11% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 7 |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Common Stocks 59.0% | |||
Communication Services 5.0% | |||
Diversified Telecommunication Services 1.4% | |||
AT&T, Inc. | 13,900 | 255,899 | |
BCE, Inc. | 5,150 | 226,273 | |
Deutsche Telekom AG (Registered) | 4,903 | 97,950 | |
Spark New Zealand Ltd. | 26,602 | 91,251 | |
Swisscom AG (Registered) | 71 | 38,954 | |
Telkom Indonesia Persero Tbk PT (ADR) | 1,300 | 31,005 | |
Telstra Corp., Ltd. | 63,371 | 172,159 | |
TELUS Corp. | 7,878 | 152,033 | |
Verizon Communications, Inc. | 11,294 | 444,983 | |
1,510,507 | |||
Entertainment 0.4% | |||
Capcom Co., Ltd. | 1,100 | 35,133 | |
Netflix, Inc.* | 400 | 117,952 | |
Nintendo Co., Ltd. | 3,560 | 149,240 | |
Sea Ltd. (ADR)* | 1,200 | 62,436 | |
Tencent Music Entertainment Group (ADR)* | 4,500 | 37,260 | |
402,021 | |||
Interactive Media & Services 1.5% | |||
Alphabet, Inc. "A"* | 6,000 | 529,380 | |
Alphabet, Inc. "C"* | 5,780 | 512,859 | |
Autohome, Inc. ADR | 1,300 | 39,780 | |
Baidu, Inc. (ADR)* | 300 | 34,314 | |
Kakaku.com, Inc. | 2,000 | 32,256 | |
Kanzhun Ltd. (ADR)* | 3,800 | 77,406 | |
Meta Platforms, Inc. "A"* | 2,100 | 252,714 | |
ZoomInfo Technologies, Inc.* | 1,200 | 36,132 | |
1,514,841 | |||
Media 0.7% | |||
Comcast Corp. "A" | 5,538 | 193,664 | |
Interpublic Group of Companies, Inc. | 4,292 | 142,967 | |
Omnicom Group, Inc. | 1,700 | 138,669 | |
Publicis Groupe SA | 2,021 | 128,907 | |
Trade Desk, Inc. "A"* | 1,950 | 87,418 | |
691,625 | |||
Wireless Telecommunication Services 1.0% | |||
America Movil SAB de CV "L" (ADR) | 9,200 | 167,440 | |
SoftBank Corp. | 73,401 | 829,829 | |
Tele2 AB "B" | 3,865 | 31,526 | |
1,028,795 | |||
Consumer Discretionary 4.6% | |||
Automobiles 0.8% | |||
Bayerische Motoren Werke AG | 2,115 | 189,819 |
Shares | Value ($) | ||
Ford Motor Co. | 4,800 | 55,824 | |
Rivian Automotive, Inc.* | 1,100 | 20,273 | |
Tesla, Inc.* | 2,654 | 326,920 | |
Volkswagen AG (Preference) | 433 | 54,162 | |
Yamaha Motor Co., Ltd. | 6,800 | 153,778 | |
800,776 | |||
Hotels, Restaurants & Leisure 0.7% | |||
Airbnb, Inc. "A"* | 300 | 25,650 | |
Darden Restaurants, Inc. | 2,300 | 318,159 | |
La Francaise des Jeux SAEM 144A | 2,807 | 113,205 | |
Restaurant Brands International, Inc. | 1,812 | 117,191 | |
Starbucks Corp. | 989 | 98,109 | |
Vail Resorts, Inc. | 100 | 23,835 | |
696,149 | |||
Household Durables 0.1% | |||
Garmin Ltd. | 942 | 86,937 | |
Internet & Direct Marketing Retail 1.2% | |||
Amazon.com, Inc.* | 9,220 | 774,480 | |
JD.com, Inc. (ADR) | 2,900 | 162,777 | |
Meituan (ADR)* | 1,500 | 66,360 | |
Pinduoduo, Inc. (ADR)* | 2,300 | 187,565 | |
ZOZO, Inc. | 1,500 | 37,053 | |
1,228,235 | |||
Multiline Retail 0.3% | |||
Next PLC | 1,143 | 80,437 | |
Target Corp. | 441 | 65,726 | |
Wesfarmers Ltd. | 5,791 | 181,020 | |
327,183 | |||
Specialty Retail 1.2% | |||
Best Buy Co., Inc. | 3,100 | 248,651 | |
Chow Tai Fook Jewellery Group Ltd. | 74,800 | 151,949 | |
Home Depot, Inc. | 1,612 | 509,166 | |
Industria de Diseno Textil SA | 2,796 | 74,716 | |
Lowe's Companies, Inc. | 839 | 167,162 | |
TJX Companies, Inc. | 2,000 | 159,200 | |
1,310,844 | |||
Textiles, Apparel & Luxury Goods 0.3% | |||
Kering SA | 76 | 38,846 | |
LVMH Moet Hennessy Louis Vuitton SE | 204 | 148,884 | |
NIKE, Inc. "B" | 300 | 35,103 | |
VF Corp. | 3,200 | 88,352 | |
311,185 | |||
Consumer Staples 5.8% | |||
Beverages 1.5% | |||
Ambev SA (ADR) | 133,700 | 363,664 | |
Coca-Cola Co. | 5,382 | 342,349 |
8 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Coca-Cola Europacific Partners PLC | 6,200 | 342,984 | |
Coca-Cola Femsa SAB de CV (ADR) | 4,600 | 312,248 | |
PepsiCo, Inc. | 1,206 | 217,876 | |
1,579,121 | |||
Food & Staples Retailing 1.1% | |||
Costco Wholesale Corp. | 300 | 136,950 | |
Jeronimo Martins SGPS SA | 9,242 | 199,944 | |
Kesko Oyj "B" | 6,456 | 142,943 | |
Koninklijke Ahold Delhaize NV | 6,985 | 201,170 | |
Kroger Co. | 800 | 35,664 | |
Sysco Corp. | 500 | 38,225 | |
Walgreens Boots Alliance, Inc. | 3,920 | 146,451 | |
Walmart, Inc. | 1,643 | 232,961 | |
1,134,308 | |||
Food Products 0.3% | |||
Nestle SA (Registered) | 2,487 | 288,035 | |
Household Products 0.6% | |||
Clorox Co. | 200 | 28,066 | |
Kimberly-Clark Corp. | 855 | 116,066 | |
Procter & Gamble Co. | 3,340 | 506,211 | |
650,343 | |||
Personal Products 0.3% | |||
Unilever PLC | 5,482 | 277,227 | |
Tobacco 2.0% | |||
British American Tobacco PLC | 11,191 | 444,394 | |
Imperial Brands PLC | 5,865 | 147,490 | |
Japan Tobacco, Inc. | 48,400 | 977,143 | |
Philip Morris International, Inc. | 5,002 | 506,253 | |
2,075,280 | |||
Energy 4.1% | |||
Oil, Gas & Consumable Fuels | |||
Aker BP ASA | 6,178 | 192,356 | |
Canadian Natural Resources Ltd. | 500 | 27,766 | |
Chevron Corp. | 3,153 | 565,932 | |
Coterra Energy, Inc. | 1,800 | 44,226 | |
Enbridge, Inc. | 14,200 | 554,996 | |
EOG Resources, Inc. | 300 | 38,856 | |
Exxon Mobil Corp. | 7,900 | 871,370 | |
Kinder Morgan, Inc. | 6,600 | 119,328 | |
OMV AG | 2,396 | 123,531 | |
ONEOK, Inc. | 11,900 | 781,830 | |
Phillips 66 | 300 | 31,224 | |
TC Energy Corp. | 3,095 | 123,388 | |
TotalEnergies SE | 5,473 | 344,194 | |
Ultrapar Participacoes SA (ADR) | 24,200 | 58,564 | |
Williams Companies, Inc. | 9,100 | 299,390 | |
4,176,951 |
Shares | Value ($) | ||
Financials 9.4% | |||
Banks 4.7% | |||
Anz Group Holdings Ltd. | 8,689 | 139,801 | |
Banco Bilbao Vizcaya Argentaria SA | 37,504 | 226,663 | |
Banco de Chile (ADR) | 2,900 | 60,378 | |
Banco Santander Chile (ADR) | 5,900 | 93,456 | |
Bank Leumi Le-Israel BM | 38,268 | 319,091 | |
Bank of America Corp. | 1,600 | 52,992 | |
Bank of Nova Scotia | 5,515 | 270,211 | |
Canadian Imperial Bank of Commerce | 3,340 | 135,105 | |
Citigroup, Inc. | 700 | 31,661 | |
Citizens Financial Group, Inc. | 1,100 | 43,307 | |
Commonwealth Bank of Australia | 819 | 57,227 | |
DBS Group Holdings Ltd. | 1,800 | 45,464 | |
FinecoBank Banca Fineco SpA | 9,307 | 154,978 | |
Huntington Bancshares, Inc. | 41,976 | 591,862 | |
JPMorgan Chase & Co. | 4,145 | 555,844 | |
M&T Bank Corp. | 200 | 29,012 | |
Mizrahi Tefahot Bank Ltd. | 1,123 | 36,389 | |
Nordea Bank Abp | 35,740 | 383,590 | |
Oversea-Chinese Banking Corp., Ltd. | 8,200 | 74,401 | |
PNC Financial Services Group, Inc. | 899 | 141,988 | |
Regions Financial Corp. | 8,400 | 181,104 | |
Royal Bank of Canada | 1,800 | 169,232 | |
Shinhan Financial Group Co., Ltd. (ADR) | 2,800 | 78,204 | |
Skandinaviska Enskilda Banken AB "A" | 9,474 | 109,327 | |
Societe Generale SA | 3,506 | 88,471 | |
Swedbank AB "A" | 3,348 | 56,991 | |
Toronto-Dominion Bank | 6,410 | 415,040 | |
Truist Financial Corp. | 2,980 | 128,229 | |
U.S. Bancorp. | 2,120 | 92,453 | |
UniCredit SpA | 2,354 | 33,571 | |
Westpac Banking Corp. | 3,609 | 57,421 | |
4,853,463 | |||
Capital Markets 2.4% | |||
BlackRock, Inc. | 337 | 238,808 | |
Blackstone, Inc. | 4,733 | 351,141 | |
Charles Schwab Corp. | 1,000 | 83,260 | |
CME Group, Inc. | 1,500 | 252,240 | |
Franklin Resources, Inc. | 1,700 | 44,846 | |
Hargreaves Lansdown PLC | 18,522 | 193,173 | |
Julius Baer Group Ltd. | 6,935 | 405,667 | |
Morgan Stanley | 1,500 | 127,530 | |
Partners Group Holding AG | 337 | 299,039 | |
T. Rowe Price Group, Inc. | 4,200 | 458,052 | |
2,453,756 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
Consumer Finance 0.1% | |||
360 DigiTech, Inc. | 4,400 | 89,584 | |
Diversified Financial Services 0.3% | |||
Apollo Global Management, Inc. | 4,856 | 309,764 | |
Investor AB "B" | 2,078 | 37,690 | |
347,454 | |||
Insurance 1.9% | |||
Allianz SE (Registered) | 669 | 144,351 | |
AXA SA | 8,763 | 244,671 | |
Hannover Rueck SE | 1,843 | 366,715 | |
Medibank Private Ltd. | 60,860 | 122,260 | |
Ping An Insurance Group Co. of China Ltd. (ADR) | 6,900 | 90,735 | |
Poste Italiane SpA 144A | 46,009 | 450,698 | |
Zurich Insurance Group AG | 1,097 | 525,500 | |
1,944,930 | |||
Health Care 6.9% | |||
Biotechnology 1.6% | |||
AbbVie, Inc. | 3,460 | 559,171 | |
Amgen, Inc. | 1,392 | 365,595 | |
BeiGene Ltd. (ADR)* | 300 | 65,982 | |
Contra Abiomed, Inc.* (a) | 200 | 204 | |
Gilead Sciences, Inc. | 6,200 | 532,270 | |
Moderna, Inc.* | 300 | 53,886 | |
Zai Lab Ltd. (ADR)* | 1,800 | 55,260 | |
1,632,368 | |||
Health Care Equipment & Supplies 0.6% | |||
Abbott Laboratories | 2,058 | 225,948 | |
Coloplast AS "B" | 829 | 96,854 | |
DexCom, Inc.* | 800 | 90,592 | |
DiaSorin SpA | 267 | 37,342 | |
Intuitive Surgical, Inc.* | 400 | 106,140 | |
Masimo Corp.* | 300 | 44,385 | |
601,261 | |||
Health Care Providers & Services 0.9% | |||
Cigna Corp. | 500 | 165,670 | |
CVS Health Corp. | 2,169 | 202,129 | |
Elevance Health, Inc. | 100 | 51,297 | |
UnitedHealth Group, Inc. | 894 | 473,981 | |
893,077 | |||
Health Care Technology 0.0% | |||
M3, Inc. | 2,300 | 62,410 | |
Life Sciences Tools & Services 0.1% | |||
Danaher Corp. | 300 | 79,626 | |
Pharmaceuticals 3.7% | |||
Bristol-Myers Squibb Co. | 639 | 45,976 | |
Chugai Pharmaceutical Co., Ltd. | 2,017 | ��� 51,482 | |
Eisai Co., Ltd. | 600 | 39,616 | |
Eli Lilly & Co. | 579 | 211,821 | |
GSK PLC | 25,793 | 449,577 |
Shares | Value ($) | ||
Hikma Pharmaceuticals PLC | 4,233 | 79,931 | |
Johnson & Johnson | 2,556 | 451,518 | |
Merck & Co., Inc. | 5,286 | 586,482 | |
Novartis AG (Registered) | 4,937 | 446,744 | |
Novo Nordisk AS "B" | 2,186 | 295,451 | |
Pfizer, Inc. | 9,867 | 505,585 | |
Recordati Industria Chimica E Farmaceutica SpA | 1,965 | 81,661 | |
Roche Holding AG (Genusschein) | 708 | 222,339 | |
Sanofi | 1,247 | 120,177 | |
Takeda Pharmaceutical Co., Ltd. | 6,973 | 217,669 | |
3,806,029 | |||
Industrials 5.4% | |||
Aerospace & Defense 0.2% | |||
BAE Systems PLC | 3,782 | 39,177 | |
Lockheed Martin Corp. | 300 | 145,947 | |
185,124 | |||
Air Freight & Logistics 0.7% | |||
Deutsche Post AG (Registered) | 7,264 | 274,858 | |
United Parcel Service, Inc. "B" | 2,702 | 469,716 | |
744,574 | |||
Commercial Services & Supplies 0.0% | |||
Quad Graphics, Inc.* | 2 | 8 | |
Construction & Engineering 0.0% | |||
Bouygues SA | 1,059 | 31,830 | |
Electrical Equipment 0.4% | |||
Eaton Corp. PLC | 1,016 | 159,461 | |
Emerson Electric Co. | 1,726 | 165,800 | |
Rockwell Automation, Inc. | 100 | 25,757 | |
351,018 | |||
Industrial Conglomerates 0.8% | |||
3M Co. | 4,104 | 492,152 | |
CK Hutchison Holdings Ltd. | 7,000 | 42,381 | |
Honeywell International, Inc. | 699 | 149,796 | |
Siemens AG (Registered) | 840 | 117,213 | |
801,542 | |||
Machinery 1.9% | |||
Atlas Copco AB "A" | 37,956 | 449,992 | |
Atlas Copco AB "B" | 22,358 | 238,984 | |
Caterpillar, Inc. | 1,300 | 311,428 | |
Cummins, Inc. | 1,579 | 382,576 | |
Deere & Co. | 100 | 42,876 | |
Illinois Tool Works, Inc. | 300 | 66,090 | |
PACCAR, Inc. | 4,000 | 395,880 | |
Techtronic Industries Co., Ltd. | 7,000 | 77,721 | |
1,965,547 | |||
Marine 0.3% | |||
Kuehne & Nagel International AG (Registered) | 1,168 | 272,425 |
10 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Professional Services 0.2% | |||
Nihon M&A Center Holdings, Inc. | 4,600 | 56,943 | |
SGS SA (Registered) | 29 | 67,535 | |
Thomson Reuters Corp. | 473 | 53,958 | |
178,436 | |||
Road & Rail 0.4% | |||
Aurizon Holdings Ltd. | 13,739 | 34,900 | |
Canadian National Railway Co. | 1,000 | 118,789 | |
CSX Corp. | 1,000 | 30,980 | |
Old Dominion Freight Line, Inc. | 200 | 56,756 | |
Union Pacific Corp. | 941 | 194,853 | |
436,278 | |||
Trading Companies & Distributors 0.5% | |||
Fastenal Co. | 4,618 | 218,524 | |
ITOCHU Corp. | 2,100 | 66,063 | |
Marubeni Corp. | 5,100 | 58,506 | |
Mitsui & Co., Ltd. | 1,100 | 32,050 | |
Sumitomo Corp. | 8,300 | 138,401 | |
Toyota Tsusho Corp. | 900 | 33,090 | |
546,634 | |||
Information Technology 12.6% | |||
Communications Equipment 0.7% | |||
Cisco Systems, Inc. | 15,524 | 739,563 | |
Electronic Equipment, Instruments & Components 0.2% | |||
Venture Corp., Ltd. | 16,200 | 206,271 | |
IT Services 3.2% | |||
Accenture PLC "A" | 500 | 133,420 | |
Adyen NV 144A* | 53 | 73,543 | |
Automatic Data Processing, Inc. | 841 | 200,881 | |
Block, Inc.* | 1,358 | 85,337 | |
Cloudflare, Inc. "A"* | 1,400 | 63,294 | |
EPAM Systems, Inc.* | 200 | 65,548 | |
Infosys Ltd. (ADR) | 20,900 | 376,409 | |
International Business Machines Corp. | 3,702 | 521,575 | |
Mastercard, Inc. "A" | 676 | 235,066 | |
MongoDB, Inc.* | 500 | 98,420 | |
Obic Co., Ltd. | 300 | 44,077 | |
Otsuka Corp. | 2,900 | 91,198 | |
Paychex, Inc. | 3,695 | 426,994 | |
PayPal Holdings, Inc.* | 1,365 | 97,215 | |
Shopify, Inc. "A"* | 3,420 | 118,740 | |
Snowflake, Inc. "A"* | 700 | 100,478 | |
Twilio, Inc. "A"* | 1,207 | 59,095 | |
Visa, Inc. "A" | 1,400 | 290,864 | |
Western Union Co. | 15,100 | 207,927 | |
3,290,081 |
Shares | Value ($) | ||
Semiconductors & Semiconductor Equipment 3.3% | |||
Advanced Micro Devices, Inc.* | 700 | 45,339 | |
Analog Devices, Inc. | 1,244 | 204,053 | |
ASML Holding NV | 173 | 93,999 | |
Broadcom, Inc. | 749 | 418,788 | |
Enphase Energy, Inc.* | 255 | 67,565 | |
Intel Corp. | 4,171 | 110,240 | |
KLA Corp. | 379 | 142,894 | |
Lam Research Corp. | 156 | 65,567 | |
Lasertec Corp. | 200 | 32,579 | |
Microchip Technology, Inc. | 500 | 35,125 | |
Monolithic Power Systems, Inc. | 500 | 176,805 | |
NVIDIA Corp. | 2,248 | 328,523 | |
QUALCOMM, Inc. | 2,384 | 262,097 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 9,500 | 707,655 | |
Texas Instruments, Inc. | 3,004 | 496,321 | |
Tokyo Electron Ltd. | 626 | �� 184,308 | |
3,371,858 | |||
Software 3.0% | |||
Adobe, Inc.* | 600 | 201,918 | |
Bill.com Holdings, Inc.* | 500 | 54,480 | |
Cadence Design Systems, Inc.* | 200 | 32,128 | |
Crowdstrike Holdings, Inc. "A"* | 361 | 38,010 | |
Fortinet, Inc.* | 1,200 | 58,668 | |
Intuit, Inc. | 830 | 323,053 | |
Microsoft Corp. | 7,966 | 1,910,406 | |
Oracle Corp. | 414 | 33,840 | |
Paycom Software, Inc.* | 200 | 62,062 | |
Salesforce, Inc.* | 300 | 39,777 | |
ServiceNow, Inc.* | 558 | 216,655 | |
Trend Micro, Inc. | 1,300 | 60,622 | |
Zscaler, Inc.* | 300 | 33,570 | |
3,065,189 | |||
Technology Hardware, Storage & Peripherals 2.2% | |||
Apple, Inc. | 17,009 | 2,209,979 | |
NetApp, Inc. | 600 | 36,036 | |
2,246,015 | |||
Materials 1.9% | |||
Chemicals 0.7% | |||
Air Products & Chemicals, Inc. | 488 | 150,431 | |
Albemarle Corp. | 100 | 21,686 | |
Dow, Inc. | 5,734 | 288,936 | |
LyondellBasell Industries NV "A" | 500 | 41,515 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 11 |
Shares | Value ($) | ||
Shin-Etsu Chemical Co., Ltd. | 700 | 85,510 | |
Sociedad Quimica y Minera de Chile SA (ADR) | 2,200 | 175,648 | |
763,726 | |||
Containers & Packaging 0.2% | |||
Amcor PLC | 15,593 | 185,713 | |
International Paper Co. | 1,031 | 35,703 | |
221,416 | |||
Metals & Mining 0.9% | |||
Mineral Resources Ltd. | 3,136 | 165,647 | |
Newmont Corp. | 1,300 | 61,360 | |
Norsk Hydro ASA | 13,275 | 99,820 | |
Nucor Corp. | 600 | 79,086 | |
POSCO Holdings, Inc. (ADR) | 4,400 | 239,668 | |
Steel Dynamics, Inc. | 800 | 78,160 | |
Sumitomo Metal Mining Co., Ltd. | 4,100 | 144,696 | |
868,437 | |||
Paper & Forest Products 0.1% | |||
UPM-Kymmene Oyj | 1,381 | 51,756 | |
Real Estate 2.2% | |||
Equity Real Estate Investment Trusts (REITs) 1.9% | |||
Ascendas Real Estate Investment Trust | 40,165 | 82,299 | |
Crown Castle, Inc. | 573 | 77,722 | |
Gaming and Leisure Properties, Inc. | 8,300 | 432,347 | |
Iron Mountain, Inc. | 5,600 | 279,160 | |
Link REIT | 10,500 | 76,896 | |
Simon Property Group, Inc. | 5,700 | 669,636 | |
VICI Properties, Inc. | 8,562 | 277,409 | |
1,895,469 | |||
Real Estate Management & Development 0.3% | |||
Daito Trust Construction Co., Ltd. | 500 | 51,223 | |
Sino Land Co., Ltd. | 26,000 | 32,474 | |
Swire Pacific Ltd. "A" | 13,500 | 118,397 | |
Swire Properties Ltd. | 53,400 | 135,289 | |
337,383 | |||
Utilities 1.1% | |||
Electric Utilities 0.7% | |||
American Electric Power Co., Inc. | 767 | 72,827 | |
Red Electrica Corp. SA | 7,381 | 128,527 | |
Southern Co. | 3,669 | 262,003 | |
SSE PLC | 9,131 | 189,702 | |
653,059 | |||
Gas Utilities 0.1% | |||
Snam SpA | 26,187 | 127,012 | |
Multi-Utilities 0.3% | |||
E.ON SE | 20,209 | 202,523 |
Shares | Value ($) | ||
Engie SA | 5,421 | 77,789 | |
Sempra Energy | 259 | 40,026 | |
320,338 | |||
Total Common Stocks (Cost $53,580,483) | 60,525,310 | ||
Preferred Stocks 2.5% | |||
Financials 1.8% | |||
AGNC Investment Corp., Series C, 7.0% | 14,427 | 364,570 | |
Fifth Third Bancorp., Series I, 6.625% | 10,000 | 245,200 | |
KeyCorp., Series E, 6.125% | 10,000 | 231,800 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 230,100 | |
The Goldman Sachs Group, Inc., Series J, 5.5% | 17,000 | 419,050 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 326,850 | |
1,817,570 | |||
Real Estate 0.7% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 297,300 | |
Prologis, Inc., Series Q, 8.54% | 164 | 9,156 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 483,280 | |
789,736 | |||
Total Preferred Stocks (Cost $3,039,895) | 2,607,306 | ||
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (a) (Cost $30,283) | 170 | 16,944 |
Principal Amount ($) (b) | Value ($) | ||
Corporate Bonds 20.1% | |||
Communication Services 1.8% | |||
America Movil SAB de CV, 4.375%, 4/22/2049 | 300,000 | 256,233 | |
AT&T, Inc.: | |||
2.25%, 2/1/2032 | 80,000 | 62,706 | |
3.65%, 6/1/2051 | 100,000 | 70,431 | |
Charter Communications Operating LLC: | |||
2.25%, 1/15/2029 | 120,000 | 96,585 | |
3.5%, 3/1/2042 | 57,000 | 36,523 | |
3.7%, 4/1/2051 | 34,000 | 20,674 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 24,035 | |
Grupo Televisa SAB, 5.25%, 5/24/2049 | 300,000 | 264,878 |
12 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (b) | Value ($) | ||
Netflix, Inc., 5.875%, 11/15/2028 | 140,000 | 141,894 | |
Rogers Communications, Inc., 144A, 3.8%, 3/15/2032 | 145,000 | 125,128 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 | 300,000 | 244,279 | |
T-Mobile U.S.A., Inc.: | |||
2.625%, 4/15/2026 | 90,000 | 82,477 | |
3.3%, 2/15/2051 | 125,000 | 83,418 | |
3.375%, 4/15/2029 | 115,000 | 101,289 | |
3.6%, 11/15/2060 | 25,000 | 16,507 | |
4.375%, 4/15/2040 | 60,000 | 51,204 | |
5.65%, 1/15/2053 | 50,000 | 48,395 | |
Verizon Communications, Inc.: | |||
2.65%, 11/20/2040 | 40,000 | 26,999 | |
3.7%, 3/22/2061 | 100,000 | 69,749 | |
1,823,404 | |||
Consumer Discretionary 1.0% | |||
Ford Motor Co., 3.25%, 2/12/2032 | 210,000 | 157,488 | |
Ford Motor Credit Co. LLC: | |||
2.7%, 8/10/2026 | 230,000 | 199,732 | |
2.9%, 2/16/2028 | 200,000 | 165,184 | |
General Motors Co., 5.6%, 10/15/2032 | 275,000 | 255,474 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 60,321 | |
3.1%, 1/12/2032 | 90,000 | 70,519 | |
Newell Brands, Inc., 6.375%, 9/15/2027 | 70,000 | 69,475 | |
Warnermedia Holdings, Inc., 144A, 5.05%, 3/15/2042 | 50,000 | 38,254 | |
1,016,447 | |||
Consumer Staples 0.5% | |||
Anheuser-Busch Companies LLC, 4.9%, 2/1/2046 | 28,000 | 25,454 | |
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 121,000 | 119,620 | |
JBS U.S.A. Lux SA: | |||
144A, 2.5%, 1/15/2027 | 260,000 | 227,427 | |
144A, 5.75%, 4/1/2033 | 180,000 | 171,681 | |
544,182 | |||
Energy 2.2% | |||
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 201,215 | |
Cheniere Energy Partners LP, 4.5%, 10/1/2029 | 175,000 | 157,364 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 272,050 | |
Energy Transfer LP: | |||
5.0%, 5/15/2050 | 208,000 | 166,177 |
Principal Amount ($) (b) | Value ($) | ||
5.75%, 2/15/2033 | 80,000 | 78,269 | |
Enterprise Products Operating LLC: | |||
3.3%, 2/15/2053 | 90,000 | 59,866 | |
4.2%, 1/31/2050 | 144,000 | 113,223 | |
Oneok, Inc., 6.1%, 11/15/2032 | 40,000 | 39,998 | |
Petroleos Mexicanos, 6.7%, 2/16/2032 | 622,000 | 488,424 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 43,454 | |
Saudi Arabian Oil Co., 144A, 2.25%, 11/24/2030 | 625,000 | 513,950 | |
Williams Companies, Inc., 4.65%, 8/15/2032 | 120,000 | 111,708 | |
2,245,698 | |||
Financials 6.4% | |||
AerCap Ireland Capital DAC: | |||
1.75%, 1/30/2026 | 150,000 | 131,967 | |
3.4%, 10/29/2033 | 150,000 | 113,729 | |
Air Lease Corp., 4.125%, Perpetual (c) | 200,000 | 137,000 | |
Aircastle Ltd., 144A, 5.25%, Perpetual (c) | 130,000 | 100,100 | |
Ally Financial, Inc., 4.7%, Perpetual (c) | 500,000 | 334,375 | |
Ares Capital Corp., 2.875%, 6/15/2027 | 150,000 | 127,128 | |
Banco Nacional de Panama, 144A, 2.5%, 8/11/2030 | 200,000 | 160,300 | |
Banco Santander SA, 5.294%, 8/18/2027 | 400,000 | 390,543 | |
Bank of America Corp.: | |||
2.972%, 2/4/2033 | 200,000 | 161,124 | |
4.375%, Perpetual (c) | 530,000 | 448,873 | |
Bank of New York Mellon Corp.: | |||
3.7%, Perpetual (c) | 180,000 | 160,091 | |
3.75%, Perpetual (c) | 345,000 | 277,883 | |
Blackstone Secured Lending Fund: | |||
2.85%, 9/30/2028 | 110,000 | 85,407 | |
3.625%, 1/15/2026 | 155,000 | 142,578 | |
Capital One Financial Corp., 3.95% (d), Perpetual (c) | 350,000 | 274,883 | |
Citigroup, Inc.: | |||
2.561%, 5/1/2032 | 40,000 | 31,579 | |
3.057%, 1/25/2033 | 70,000 | 56,491 | |
Enstar Finance LLC, 5.5%, 1/15/2042 | 200,000 | 159,858 | |
HSBC Holdings PLC, 7.39%, 11/3/2028 | 200,000 | 210,190 | |
JPMorgan Chase & Co., 3.328%, 4/22/2052 | 27,000 | 18,247 | |
KKR Group Finance Co., XII LLC, 144A, 4.85%, 5/17/2032 | 130,000 | 121,373 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (b) | Value ($) | ||
Liberty Mutual Group, Inc., 144A, 5.5%, 6/15/2052 | 50,000 | 44,860 | |
Lloyds Banking Group PLC, 4.716%, 8/11/2026 | 200,000 | 195,687 | |
Morgan Stanley, 2.484%, 9/16/2036 | 141,000 | 102,244 | |
PNC Financial Services Group, Inc., 3.4%, Perpetual (c) | 320,000 | 253,600 | |
REC Ltd., 144A, 4.75%, 5/19/2023 | 200,000 | 199,072 | |
Societe Generale, 144A, 9.375%, 11/22/2027 | 260,000 | 266,815 | |
Societe Generale SA: | |||
144A, 5.375%, Perpetual (c) | 250,000 | 202,534 | |
144A, 6.221%, 6/15/2033 | 225,000 | 210,439 | |
State Street Corp., 4.164%, 8/4/2033 | 130,000 | 120,085 | |
Synchrony Bank, 5.625%, 8/23/2027 | 250,000 | 243,608 | |
The Charles Schwab Corp., Series I, 4.0%, Perpetual (c) | 265,000 | 229,887 | |
The Goldman Sachs Group, Inc.: | |||
2.908%, 7/21/2042 | 80,000 | 54,402 | |
3.8%, Perpetual (c) | 170,000 | 138,499 | |
Truist Financial Corp., 4.8%, Perpetual (c) | 300,000 | 270,076 | |
U.S. Bancorp., 5.85%, 10/21/2033 | 60,000 | 62,288 | |
UBS Group AG, 144A, 4.375%, Perpetual (c) | 200,000 | 151,952 | |
Westpac Banking Corp., 5.0%, Perpetual (c) | 200,000 | 174,000 | |
6,563,767 | |||
Health Care 1.7% | |||
Centene Corp.: | |||
2.45%, 7/15/2028 | 60,000 | 50,643 | |
2.625%, 8/1/2031 | 130,000 | 102,154 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 300,000 | 265,320 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 157,070 | |
Elevance Health, Inc., 6.1%, 10/15/2052 | 30,000 | 31,982 | |
HCA, Inc., 5.25%, 6/15/2026 | 300,000 | 296,379 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | 925,000 | 808,913 | |
1,712,461 | |||
Industrials 1.7% | |||
Adani Ports & Special Economic Zone Ltd., 144A, 4.2%, 8/4/2027 | 200,000 | 175,555 |
Principal Amount ($) (b) | Value ($) | ||
American Airlines, Inc., 144A, 5.5%, 4/20/2026 | 105,000 | 100,973 | |
Block, Inc., 2.75%, 6/1/2026 | 30,000 | 26,802 | |
Boeing Co., 2.196%, 2/4/2026 | 237,000 | 215,329 | |
Delta Air Lines, Inc., 3.75%, 10/28/2029 | 135,000 | 112,215 | |
Eaton Corp., 4.15%, 3/15/2033 | 80,000 | 74,369 | |
Humana, Inc, 5.875%, 3/1/2033 | 40,000 | 41,292 | |
Kraft Heinz Foods Co., 4.375%, 6/1/2046 | 200,000 | 162,521 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 180,012 | 178,968 | |
Oracle Corp., 6.9%, 11/9/2052 | 40,000 | 42,793 | |
Pacificorp., 5.35%, 12/1/2053 | 115,000 | 113,815 | |
Philip Morris International, Inc.: | |||
5.625%, 11/17/2029 | 60,000 | 60,869 | |
5.75%, 11/17/2032 | 50,000 | 50,971 | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | 250,000 | 245,577 | |
Thermo Fisher Scientific, 4.95%, 11/21/2032 | 60,000 | 60,846 | |
United Rentals North America, Inc., 144A, 6.0%, 12/15/2029 | 110,000 | 109,313 | |
1,772,208 | |||
Information Technology 1.2% | |||
Broadcom, Inc., 144A, 2.6%, 2/15/2033 | 70,000 | 52,542 | |
Dell International LLC, 5.3%, 10/1/2029 | 85,000 | 83,130 | |
HP, Inc., 5.5%, 1/15/2033 | 200,000 | 187,890 | |
Micron Technology, Inc., 6.75%, 11/1/2029 | 210,000 | 213,313 | |
MSCI, Inc.: | |||
144A, 3.25%, 8/15/2033 | 40,000 | 30,890 | |
144A, 3.625%, 9/1/2030 | 90,000 | 74,812 | |
NXP BV: | |||
2.65%, 2/15/2032 | 58,000 | 45,393 | |
3.125%, 2/15/2042 | 60,000 | 40,668 | |
Open Text Corp.: | |||
144A, 3.875%, 2/15/2028 | 175,000 | 150,173 | |
144A, 6.9%, 12/1/2027 | 50,000 | 50,000 | |
Oracle Corp.: | |||
3.6%, 4/1/2050 | 7,000 | 4,713 | |
3.65%, 3/25/2041 | 118,000 | 87,107 | |
SK Hynix, Inc., 144A, 1.5%, 1/19/2026 | 200,000 | 173,321 | |
1,193,952 |
14 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (b) | Value ($) | ||
Materials 1.2% | |||
AngloGold Ashanti Holdings PLC, 3.75%, 10/1/2030 | 200,000 | 173,467 | |
Berry Global, Inc., 1.65%, 1/15/2027 | 300,000 | 256,581 | |
Celanese U.S. Holdings LLC: | |||
5.9%, 7/5/2024 | 225,000 | 224,927 | |
6.165%, 7/15/2027 | 290,000 | 286,035 | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 251,392 | |
Suzano Austria GmbH, 2.5%, 9/15/2028 | 80,000 | 67,310 | |
1,259,712 | |||
Real Estate 0.2% | |||
Boston Properties LP: | |||
(REIT), 2.55%, 4/1/2032 | 75,000 | 57,019 | |
6.75%, 12/1/2027 | 90,000 | 92,799 | |
MPT Operating Partnership LP, (REIT), 3.5%, 3/15/2031 | 80,000 | 54,839 | |
204,657 | |||
Utilities 2.2% | |||
CMS Energy Corp., 3.75%, 12/1/2050 | 400,000 | 301,226 | |
Duke Energy Corp., 3.25%, 1/15/2082 | 250,000 | 182,601 | |
Duke Energy Florida LLC, 5.95%, 11/15/2052 | 50,000 | 53,215 | |
Enel Finance International NV, 144A, 5.0%, 6/15/2032 | 210,000 | 189,131 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 184,500 | |
New England Power Co., 144A, 5.936%, 11/25/2052 | 50,000 | 51,414 | |
NextEra Energy Operating Partners LP: | |||
144A, 3.875%, 10/15/2026 | 190,000 | 173,854 | |
144A, 4.25%, 7/15/2024 | 275,000 | 266,750 | |
Pacific Gas and Electric Co.: | |||
2.5%, 2/1/2031 | 20,000 | 15,518 | |
3.25%, 6/1/2031 | 80,000 | 65,028 | |
3.3%, 8/1/2040 | 70,000 | 47,395 | |
5.45%, 6/15/2027 | 90,000 | 88,750 | |
Perusahaan Listrik Negara PT, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 268,025 |
Sempra Energy, 4.125%, 4/1/2052 | 310,000 | 240,044 | |
Southern Co., 3.75%, 9/15/2051 | 215,000 | 173,602 | |
2,301,053 | |||
Total Corporate Bonds (Cost $24,083,024) | 20,637,541 |
Principal Amount ($) (b) | Value ($) | ||
Asset-Backed 4.6% | |||
Automobile Receivables 0.2% | |||
JPMorgan Chase Bank NA, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 199,667 | 192,543 | |
Miscellaneous 4.4% | |||
CF Hippolyta Issuer LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 525,350 | 438,009 | |
DB Master Finance LLC, “A23”, Series 2021-1A, 144A, 2.791%, 11/20/2051 | 1,113,750 | 857,973 | |
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 323,850 | 296,784 | |
Madison Park Funding XXVI Ltd., “AR”, Series 2007-4A, 144A, 3-month USD- LIBOR + 1.2%, 5.615% (e), 7/29/2030 | 1,100,000 | 1,089,537 | |
Octagon Investment Partners Ltd., “A1R”, Series 2019-4A, 144A, 3-month USD-LIBOR + 1.15%, 5.8% (e), 5/12/2031 | 750,000 | 737,482 | |
Venture 37 CLO Ltd., “A1R”, Series 2019-37A, 144A, 3-month USD-LIBOR + 1.15%, 5.229% (e), 7/15/2032 | 800,000 | 778,693 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 415,670 | 323,860 | |
4,522,338 | |||
Total Asset-Backed (Cost $5,224,468) | 4,714,881 | ||
Mortgage-Backed Securities Pass- Throughs 0.0% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 924 | 970 | |
Federal National Mortgage Association: | |||
4.5%, 9/1/2035 | 2,796 | 2,757 | |
6.0%, 1/1/2024 | 806 | 803 | |
Total Mortgage-Backed Securities Pass- Throughs (Cost $4,380) | 4,530 | ||
Commercial Mortgage-Backed Securities 2.0% | |||
Citigroup Commercial Mortgage Trust, “D”, Series 2019-PRM, 144A, 4.35%, 5/10/2036 | 500,000 | 494,667 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 15 |
Principal Amount ($) (b) | Value ($) | ||
Credit Suisse Commercial Mortgage Trust, “B”, Series 2020-TMIC, 144A, 1-month USD-LIBOR + 5.0%, 9.818% (e), 12/15/2035 | 700,000 | 694,420 | |
Credit Suisse Mortgage Trust, “A”, Series 2020- TMIC, 144A, 1-month USD-LIBOR + 3.0%, 7.818% (e), 12/15/2035 | 700,000 | 697,355 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 7.678% (e), 1/25/2051 | 194,000 | 173,256 | |
Total Commercial Mortgage-Backed Securities (Cost $2,110,968) | 2,059,698 | ||
Collateralized Mortgage Obligations 0.8% | |||
Connecticut Avenue Securities Trust: | |||
“1M2”, Series 2019-R03, 144A, 1-month USD- LIBOR + 2.15%, 6.539% (e), 9/25/2031 | 6,887 | 6,870 | |
“1M2”, Series 2019-R02, 144A, 1-month USD- LIBOR + 2.3%, 6.689% (e), 8/25/2031 | 8,594 | 8,583 | |
Federal National Mortgage Association, “I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 46,286 | 9,060 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M2”, Series 2020-DNA2, 144A, 1-month USD- LIBOR + 1.85%, 6.239% (e), 2/25/2050 | 429,247 | 428,301 | |
“M2”, Series 2019-DNA2, 144A, 1-month USD- LIBOR + 2.45%, 6.839% (e), 3/25/2049 | 256,499 | 253,928 | |
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.241%, 10/25/2046 | 130,459 | 114,907 | |
Total Collateralized Mortgage Obligations (Cost $837,883) | 821,649 | ||
Government & Agency Obligations 5.2% | |||
Sovereign Bonds 0.9% | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 | 200,000 | 173,567 |
Principal Amount ($) (b) | Value ($) | ||
Indonesia Government International Bond: | |||
2.85%, 2/14/2030 | 312,000 | 276,938 | |
3.85%, 10/15/2030 | 300,000 | 280,554 | |
Perusahaan Penerbit SBSN Indonesia III, 144A, 2.8%, 6/23/2030 | 200,000 | 175,000 | |
906,059 | |||
U.S. Treasury Obligations 4.3% | |||
U.S. Treasury Bonds: | |||
1.875%, 11/15/2051 | 277,400 | 175,694 | |
2.0%, 11/15/2041 | 163,100 | 116,457 | |
U.S. Treasury Notes: | |||
2.75%, 5/31/2029 | 2,326,900 | 2,161,836 | |
2.875%, 5/15/2032 | 2,171,700 | 2,001,357 | |
4,455,344 | |||
Total Government & Agency Obligations (Cost $5,825,677) | 5,361,403 | ||
Short-Term U.S. Treasury Obligation 1.4% | |||
U.S. Treasury Bills, 1.998% (f), 4/20/2023 (g) (h) (Cost $1,490,926) | 1,500,000 | 1,480,443 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.8% | |||
SPDR Bloomberg Convertible Securities ETF (Cost $2,340,555) | 43,880 | 2,823,239 | |
Securities Lending Collateral 0.1% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (i) (j) (Cost $82,000) | 82,000 | 82,000 | |
Cash Equivalents 1.1% | |||
DWS Central Cash Management Government Fund, 4.2% (i) (Cost $1,133,981) | 1,133,981 | 1,133,981 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $99,784,523) | 99.6 | 102,268,925 | |
Other Assets and Liabilities, Net | 0.4 | 400,057 | |
Net Assets | 100.0 | 102,668,982 |
16 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 0.1% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (i) (j) | ||||||||
4,062,127 | — | 3,980,127 (k) | — | — | 20,958 | — | 82,000 | 82,000 |
Cash Equivalents 1.1% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (i) | ||||||||
1,914,561 | 43,112,263 | 43,892,843 | — | — | 30,109 | — | 1,133,981 | 1,133,981 |
5,976,688 | 43,112,263 | 47,872,970 | — | — | 51,067 | — | 1,215,981 | 1,215,981 |
* | Non-income producing security. |
(a) | Investment was valued using significant unobservable inputs. |
(b) | Principal amount stated in U.S. dollars unless otherwise noted. |
(c) | Perpetual, callable security with no stated maturity date. |
(d) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at December 31, 2022 amounted to $78,540, which is 0.1% of net assets. |
(e) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 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 December 31, 2022, this security has been pledged, in whole or in part, to cover initial margin requirements for open centrally cleared swap contracts. |
(h) | At December 31, 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 year ended December 31, 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 |
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 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 17 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Depreciation ($) |
10 Year U.S. Treasury Note | USD | 3/22/2023 | 16 | 1,813,405 | 1,796,750 | (16,655) |
MSCI Emerging Market Index | USD | 3/17/2023 | 53 | 2,579,391 | 2,542,410 | (36,981) |
Ultra 10 Year U.S. Treasury Note | USD | 3/22/2023 | 9 | 1,073,976 | 1,064,531 | (9,445) |
Ultra Long U.S. Treasury Bond | USD | 3/22/2023 | 32 | 4,356,994 | 4,298,000 | (58,994) |
Total unrealized depreciation | (122,075) |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
5 Year U.S. Treasury Note | USD | 3/31/2023 | 18 | 1,941,360 | 1,942,734 | (1,374) |
Euro Stoxx 50 Index | EUR | 3/17/2023 | 15 | 637,019 | 607,748 | 29,271 |
Euro-Schatz | EUR | 3/8/2023 | 27 | 3,079,625 | 3,046,863 | 32,762 |
S&P 500 E-Mini Index | USD | 3/17/2023 | 36 | 7,245,993 | 6,949,800 | 296,193 |
TOPIX Index | JPY | 3/9/2023 | 1 | 148,215 | 144,125 | 4,090 |
Total net unrealized appreciation | 360,942 |
Centrally Cleared Swaps | |||||||
Cash Flows Paid by the Fund/ Frequency | Cash Flows Received by the Fund/ Frequency | Effective/ Expiration Date | Notional Amount ($) | Currency | Value ($) | Upfront Payments Paid/ (Received) ($) | Unrealized Appreciation ($) |
Fixed — 0.25% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2023 | 3,200,000 | USD | 34,390 | 31 | 34,359 |
Fixed — 0.45% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2024 | 2,100,000 | USD | 115,192 | (20) | 115,212 |
Fixed — 1.3% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2028 | 400,000 | USD | 49,136 | 70 | 49,066 |
Fixed — 1.63% Semi-Annually | Floating — 3-Month LIBOR Quarterly β | 3/16/2021/ 3/16/2031 | 300,000 | USD | 45,205 | 293 | 44,912 |
Total unrealized appreciation | 243,549 |
β | 3-month LIBOR rate as of December 31, 2022 is 4.767%. |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
USD | 3,670,786 | EUR | 3,465,804 | 3/8/2023 | 55,084 | Bank of America |
EUR | Euro |
JPY | Japanese Yen |
USD | United States Dollar |
18 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Communication Services | $ 3,540,584 | $ 1,607,205 | $ — | $ 5,147,789 |
Consumer Discretionary | 3,537,440 | 1,223,869 | — | 4,761,309 |
Consumer Staples | 3,325,968 | 2,678,346 | — | 6,004,314 |
Energy | 3,516,870 | 660,081 | — | 4,176,951 |
Financials | 5,116,038 | 4,573,149 | — | 9,689,187 |
Health Care | 4,873,314 | 2,201,253 | 204 | 7,074,771 |
Industrials | 3,481,347 | 2,032,069 | — | 5,513,416 |
Information Technology | 12,132,380 | 786,597 | — | 12,918,977 |
Materials | 1,357,906 | 547,429 | — | 1,905,335 |
Real Estate | 1,736,274 | 496,578 | — | 2,232,852 |
Utilities | 374,856 | 725,553 | — | 1,100,409 |
Preferred Stocks (a) | 2,607,306 | — | — | 2,607,306 |
Warrants | — | — | 16,944 | 16,944 |
Corporate Bonds (a) | — | 20,637,541 | — | 20,637,541 |
Asset-Backed (a) | — | 4,714,881 | — | 4,714,881 |
Mortgage-Backed Securities Pass-Throughs | — | 4,530 | — | 4,530 |
Commercial Mortgage-Backed Securities | — | 2,059,698 | — | 2,059,698 |
Collateralized Mortgage Obligations | — | 821,649 | — | 821,649 |
Government & Agency Obligations (a) | — | 5,361,403 | — | 5,361,403 |
Short-Term U.S. Treasury Obligation | — | 1,480,443 | — | 1,480,443 |
Exchange-Traded Funds | 2,823,239 | — | — | 2,823,239 |
Short-Term Investments (a) | 1,215,981 | — | — | 1,215,981 |
Derivatives (b) | ||||
Futures Contracts | 362,316 | — | — | 362,316 |
Interest Rate Swap Contracts | — | 243,549 | — | 243,549 |
Forward Foreign Currency Contracts | — | 55,084 | — | 55,084 |
Total | $50,001,819 | $52,910,907 | $17,148 | $102,929,874 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $ (123,449) | $ — | $ — | $ (123,449) |
Total | $(123,449) | $— | $— | $(123,449) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open futures contracts, interest rate swap contracts and forward foreign currency contracts. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 19 |
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $98,568,542) — including $78,540 of securities loaned | $ 101,052,944 |
Investment in DWS Government & Agency Securities Portfolio (cost $82,000)* | 82,000 |
Investment in DWS Central Cash Management Government Fund (cost $1,133,981) | 1,133,981 |
Cash | 15,790 |
Foreign currency, at value (cost $109,258) | 110,872 |
Receivable for Fund shares sold | 3,720 |
Dividends receivable | 170,561 |
Interest receivable | 319,705 |
Receivable for variation margin on centrally cleared swaps | 1,877 |
Unrealized appreciation on forward foreign currency contracts | 55,084 |
Foreign taxes recoverable | 92,412 |
Other assets | 1,725 |
Total assets | 103,040,671 |
Liabilities | |
Payable upon return of securities loaned | 82,000 |
Payable for Fund shares redeemed | 84,878 |
Payable for variation margin on futures contracts | 31,948 |
Accrued management fee | 32,845 |
Accrued Trustees' fees | 2,311 |
Other accrued expenses and payables | 137,707 |
Total liabilities | 371,689 |
Net assets, at value | $102,668,982 |
Net Assets Consist of | |
Distributable earnings (loss) | 2,263,453 |
Paid-in capital | 100,405,529 |
Net assets, at value | $102,668,982 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($102,657,572 ÷ 5,077,917 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 20.22 |
Class B | |
Net Asset Value, offering and redemption price per share ($11,410 ÷ 566 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $ 20.17 |
* | Represents collateral on securities loaned. |
** | Net asset value and redemption price per share may not recalculate due to rounding of net assets and/or shares outstanding. |
20 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $146,656) | $ 2,330,458 |
Interest | 1,492,548 |
Income distributions — DWS Central Cash Management Government Fund | 30,109 |
Securities lending income, net of borrower rebates | 20,958 |
Total income | 3,874,073 |
Expenses: | |
Management fee | 415,967 |
Administration fee | 109,051 |
Services to shareholders | 919 |
Distribution service fee (Class B) | 30 |
Custodian fee | 25,769 |
Audit fee | 71,361 |
Legal fees | 22,233 |
Tax fees | 9,692 |
Reports to shareholders | 44,767 |
Trustees' fees and expenses | 7,778 |
Other | 20,033 |
Total expenses before expense reductions | 727,600 |
Expense reductions | (19) |
Total expenses after expense reductions | 727,581 |
Net investment income | 3,146,492 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (2,610,606) |
Swap contracts | 111,285 |
Futures | (1,095,742) |
Forward foreign currency contracts | 127,088 |
Foreign currency | (11,059) |
(3,479,034) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (19,540,683) |
Swap contracts | 212,536 |
Futures | 224,783 |
Forward foreign currency contracts | 51,974 |
Foreign currency | 76,862 |
(18,974,528) | |
Net gain (loss) | (22,453,562) |
Net increase (decrease) in net assets resulting from operations | $(19,307,070) |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 21 |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 3,146,492 | $ 3,073,408 |
Net realized gain (loss) | (3,479,034) | 9,810,558 |
Change in net unrealized appreciation (depreciation) | (18,974,528) | 554,839 |
Net increase (decrease) in net assets resulting from operations | (19,307,070) | 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 | 4,686,710 | 7,428,971 |
Reinvestment of distributions | 12,945,935 | 4,841,632 |
Payments for shares redeemed | (14,102,685) | (16,230,213) |
Net increase (decrease) in net assets from Class A share transactions | 3,529,960 | (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 | (28,723,045) | 4,637,563 |
Net assets at beginning of period | 131,392,027 | 126,754,464 |
Net assets at end of period | $102,668,982 | $131,392,027 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,905,426 | 5,056,269 |
Shares sold | 215,723 | 282,829 |
Shares issued to shareholders in reinvestment of distributions | 602,697 | 189,422 |
Shares redeemed | (645,929) | (623,094) |
Net increase (decrease) in Class A shares | 172,491 | (150,843) |
Shares outstanding at end of period | 5,077,917 | 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 |
22 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Financial Highlights
DWS Global Income Builder VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $26.78 | $25.07 | $24.63 | $21.33 | $26.56 |
Income (loss) from investment operations: | |||||
Net investment incomea | .61 | .62 | .57 | .69 | .80 |
Net realized and unrealized gain (loss) | (4.47) | 2.08 | 1.16 | 3.54 | (2.67) |
Total from investment operations | (3.86) | 2.70 | 1.73 | 4.23 | (1.87) |
Less distributions from: | |||||
Net investment income | (.69) | (.62) | (.74) | (.90) | (.98) |
Net realized gains | (2.01) | (.37) | (.55) | (.03) | (2.38) |
Total distributions | (2.70) | (.99) | (1.29) | (.93) | (3.36) |
Net asset value, end of period | $20.22 | $26.78 | $25.07 | $24.63 | $21.33 |
Total Return (%) | (14.98) | 10.95 | 8.28 | 20.16 | (7.66)b |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 103 | 131 | 127 | 130 | 120 |
Ratio of expenses before expense reductions (%)c | .65 | .61 | .64 | .68 | .69 |
Ratio of expenses after expense reductions (%)c | .65 | .61 | .64 | .68 | .68 |
Ratio of net investment income (%) | 2.80 | 2.36 | 2.51 | 2.96 | 3.34 |
Portfolio turnover rate (%) | 95 | 104 | 137 | 182 | 70 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 23 |
DWS Global Income Builder VIP — Class B | |||||
Years Ended December 31, | Period Ended | ||||
2022 | 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 | .55 | .52 | .50 | .65 | .50 |
Net realized and unrealized gain (loss) | (4.46) | 2.08 | 1.15 | 3.55 | (1.85) |
Total from investment operations | (3.91) | 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 | $20.17 | $26.70 | $25.01 | $24.61 | $21.30 |
Total Return (%)c | (15.24) | 10.56 | 7.90 | 20.01 | (5.96)* |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ thousands) | 11 | 13 | 12 | 11 | 9 |
Ratio of expenses before expense reductions (%)d | 1.12 | 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 (%) | 2.49 | 1.99 | 2.20 | 2.77 | 3.30** |
Portfolio turnover rate (%) | 95 | 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 |
24 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Notes to Financial Statements
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 25 |
26 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Undistributed ordinary income* | $ 3,257,182 |
Capital loss carryforwards | $ (3,559,000) |
Net unrealized appreciation (depreciation) on investments | $ 2,393,740 |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 6,588,183 | $ 3,017,227 |
Distributions from long-term capital gains | $ 6,359,072 | $ 1,824,848 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 27 |
28 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 29 |
Assets Derivative | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $ — | $ — | $ 329,554 | $ 329,554 |
Interest Rate Contracts (a) | — | 243,549 | 32,762 | 276,311 |
Foreign Exchange Contracts (b) | 55,084 | — | — | 55,084 |
$ 55,084 | $ 243,549 | $ 362,316 | $ 660,949 | |
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) | $ (36,981) |
Interest Rate Contracts (a) | (86,468) |
$ (123,449) | |
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) | $ — | $ — | $ 258,976 | $ 258,976 |
Interest Rate Contracts (a) | — | 71,996 | (1,354,718) | (1,282,722) |
Credit Contracts (a) | — | 39,289 | — | 39,289 |
Foreign Exchange Contracts (a) | 127,088 | — | — | 127,088 |
$127,088 | $111,285 | $(1,095,742) | $(857,369) | |
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) | $ — | $ — | $ 384,503 | $ 384,503 |
Interest Rate Contracts (a) | — | 212,536 | (159,720) | 52,816 |
Foreign Exchange Contracts (a) | 51,974 | — | — | 51,974 |
$51,974 | $212,536 | $224,783 | $489,293 | |
Each of the above derivatives is located in the following Statement of Operations accounts: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts, swap and futures contracts, respectively |
30 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
Bank of America | $ 55,084 | $ — | $ — | $ 55,084 |
Purchases | Sales | |
Non-U.S. Treasury Obligations | $91,477,199 | $101,811,833 |
U.S. Treasury Obligations | $10,661,278 | $5,685,107 |
First $250 million of the Fund’s average daily net assets | .370% |
Next $750 million of such net assets | .345% |
Over $1 billion of such net assets | .310% |
Class A | .71% |
Class B | .96% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 31 |
Distribution Fee | Total Aggregated | Unpaid at December 31, 2022 |
Class B | $ 30 | $ 2 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 612 | $ 103 |
Class B | 27 | 5 |
$ 639 | $ 108 |
32 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 33 |
Report of Independent Registered Public Accounting Firm
34 | | 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 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,004.50 | $ 1,002.50 |
Expenses Paid per $1,000* | $ 3.28 | $ 4.80 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,021.93 | $ 1,020.42 |
Expenses Paid per $1,000* | $ 3.31 | $ 4.84 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | .65% | .95% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 35 |
36 | | 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 | | 37 |
38 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 39 |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
40 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 41 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
42 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Contents
3 | |
5 | |
6 | |
8 | |
8 | |
9 | |
10 | |
11 | |
14 | |
15 | |
16 | |
16 | |
17 | |
20 |
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 |
Management Summary December 31, 2022 (Unaudited)
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 3 |
7-Day Current Yield | |
DWS Government Money Market VIP — Class A | 3.85% |
4 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 12/31/22 | 12/31/21 |
Repurchase Agreements | 68% | 17% |
Government & Agency Obligations | 32% | 83% |
100% | 100% |
Weighted Average Maturity | 12/31/22 | 12/31/21 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 8 days | 33 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 15 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 | | 5 |
Investment Portfolioas of December 31, 2022
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 31.6% | |||
U.S. Government Sponsored Agencies 22.2% | |||
Federal Home Loan Bank: | |||
2.01%, 3/30/2023 | 3,000,000 | 3,000,000 | |
2.5%, 4/28/2023 | 2,500,000 | 2,500,000 | |
SOFR + 0.03%, 4.33% (a), 1/13/2023 | 2,000,000 | 2,000,000 | |
SOFR + 0.04%, 4.34% (a), 1/26/2023 | 7,000,000 | 7,000,000 | |
SOFR + 0.04%, 4.34% (a), 2/10/2023 | 5,000,000 | 5,000,000 | |
SOFR + 0.055%, 4.355% (a), 3/9/2023 | 4,000,000 | 4,000,000 | |
SOFR + 0.06%, 4.36% (a), 5/1/2023 | 9,000,000 | 9,000,000 | |
SOFR + 0.07%, 4.37% (a), 4/3/2023 | 7,000,000 | 7,000,000 | |
SOFR + 0.09%, 4.39% (a), 5/23/2023 | 2,000,000 | 2,000,000 | |
41,500,000 | |||
U.S. Treasury Obligations 9.4% | |||
U.S. Treasury Bills: | |||
1.184% (b), 2/23/2023 | 1,000,000 | 998,273 | |
1.187% (b), 2/23/2023 | 1,000,000 | 998,283 | |
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield minus 0.015%, 4.383% (a), 1/31/2024 | 3,000,000 | 3,002,194 | |
3-month U.S. Treasury Bill Money Market Yield + 0.029%, 4.427% (a), 7/31/2023 | 4,500,000 | 4,503,958 | |
3-month U.S. Treasury Bill Money Market Yield + 0.034%, 4.432% (a), 4/30/2023 | 8,000,000 | 8,005,898 | |
17,508,606 | |||
Total Government & Agency Obligations (Cost $59,008,606) | 59,008,606 |
Principal Amount ($) | Value ($) | ||
Repurchase Agreements 68.5% | |||
BNP Paribas, 4.25%, dated 12/30/2022, to be repurchased at $28,813,600 on 1/3/2023 (c) | 28,800,000 | 28,800,000 | |
Citigroup Global Markets, Inc., 4.25%, dated 12/30/2022, to be repurchased at $32,215,206 on 1/3/2023 (d) | 32,200,000 | 32,200,000 | |
JPMorgan Securities, Inc., 4.26%, dated 12/30/2022, to be repurchased at $33,996,084 on 1/3/2023 (e) | 33,980,000 | 33,980,000 | |
Wells Fargo Bank, 4.31%, dated 12/30/2022, to be repurchased at $32,785,693 on 1/3/2023 (f) | 32,770,000 | 32,770,000 | |
Total Repurchase Agreements (Cost $127,750,000) | 127,750,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $186,758,606) | 100.1 | 186,758,606 | |
Other Assets and Liabilities, Net | (0.1) | (211,836) | |
Net Assets | 100.0 | 186,546,770 |
(a) | Floating rate security. These securities are shown at their current rate as of December 31, 2022. |
(b) | Annualized yield at time of purchase; not a coupon rate. |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
29,526,200 | U.S. Treasury Bills | Zero Coupon | 2/14/2023 | 29,376,089 |
(d) | Collateralized by: |
6 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
300 | U.S. Treasury Notes | 1.625–2.625 | 7/31/2029–8/15/2029 | 269 |
34,983,700 | U.S. Treasury Inflation-Indexed Notes | 0.125–0.625 | 7/15/2031–7/15/2032 | 33,005,164 |
Total Collateral Value | 33,005,433 |
(e) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
36,662,300 | U.S. Treasury Notes | 1.375 | 1/31/2025 | 34,659,635 |
(f) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
35,325,605 | Federal National Mortgage Association | 2.0–7.0 | 9/1/2025–12/1/2052 | 33,425,400 |
SOFR: Secured Overnight Financing Rate |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $ — | $ 59,008,606 | $ — | $ 59,008,606 |
Repurchase Agreements | — | 127,750,000 | — | 127,750,000 |
Total | $— | $186,758,606 | $— | $186,758,606 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 7 |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in securities, valued at amortized cost | $ 59,008,606 |
Repurchase agreements, valued at amortized cost | 127,750,000 |
Cash | 62,957 |
Receivable for Fund shares sold | 19,674 |
Interest receivable | 370,145 |
Other assets | 3,923 |
Total assets | 187,215,305 |
Liabilities | |
Payable for Fund shares redeemed | 205,587 |
Distributions payable | 314,143 |
Accrued management fee | 37,000 |
Accrued Trustees' fees | 4,005 |
Other accrued expenses and payables | 107,800 |
Total liabilities | 668,535 |
Net assets, at value | $186,546,770 |
Net Assets Consist of | |
Distributable earnings (loss) | 6,364 |
Paid-in capital | 186,540,406 |
Net assets, at value | $186,546,770 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($186,546,770 ÷ 186,606,016 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 1.00 |
Investment Income | |
Income: | |
Interest | $ 2,998,145 |
Expenses: | |
Management fee | 449,704 |
Administration fee | 185,623 |
Services to shareholders | 3,195 |
Custodian fee | 5,603 |
Professional fees | 60,132 |
Reports to shareholders | 40,152 |
Trustees' fees and expenses | 11,784 |
Other | 8,356 |
Total expenses before expense reductions | 764,549 |
Expense reductions | (151,993) |
Total expenses after expense reductions | 612,556 |
Net investment income | 2,385,589 |
Net realized gain (loss) from investments | (119) |
Net increase (decrease) in net assets resulting from operations | $2,385,470 |
8 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 2,385,589 | $ 15,954 |
Net realized gain (loss) | (119) | (29) |
Net increase (decrease) in net assets resulting from operations | 2,385,470 | 15,925 |
Distributions to shareholders: | ||
Class A | (2,385,590) | (15,954) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 174,719,180 | 187,035,970 |
Reinvestment of distributions | 2,068,026 | 15,781 |
Payments for shares redeemed | (186,972,657) | (143,576,595) |
Net increase (decrease) in net assets from Class A share transactions | (10,185,451) | 43,475,156 |
Increase (decrease) in net assets | (10,185,571) | 43,475,127 |
Net assets at beginning of period | 196,732,341 | 153,257,214 |
Net assets at end of period | $186,546,770 | $196,732,341 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 196,801,073 | 153,325,917 |
Shares sold | 174,709,574 | 187,035,970 |
Shares issued to shareholders in reinvestment of distributions | 2,068,026 | 15,781 |
Shares redeemed | (186,972,657) | (143,576,595) |
Net increase (decrease) in Class A shares | (10,195,057) | 43,475,156 |
Shares outstanding at end of period | 186,606,016 | 196,801,073 |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 9 |
Financial Highlights
DWS Government Money Market VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations: | |||||
Net investment income | .013 | .000* | .002 | .018 | .014 |
Net realized gain (loss) | (.000)* | (.000)* | .000* | .000* | (.000)* |
Total from investment operations | .013 | .000* | .002 | .018 | .014 |
Less distributions from: | |||||
Net investment income | (.013) | (.000)* | (.002) | (.018) | (.014) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%)a | 1.29 | .01 | .24 | 1.77 | 1.39 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 187 | 197 | 153 | 122 | 107 |
Ratio of expenses before expense reductions (%)b | .40 | .42 | .42 | .47 | .50 |
Ratio of expenses after expense reductions (%)b | .32 | .06 | .23 | .47 | .50 |
Ratio of net investment income (%) | 1.25 | .01 | .20 | 1.74 | 1.37 |
a | Total return would have been lower had certain expenses not been reduced. |
b | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Amount is less than $.0005. |
10 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Notes to Financial Statements
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 11 |
Undistributed ordinary income | $ 6,512 |
Capital loss carryforwards | $ (148) |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income | $ 2,385,590 | $ 15,954 |
First $500 million of the Fund’s average daily net assets | .235% |
Next $500 million of such net assets | .220% |
Next $1.0 billion of such net assets | .205% |
Over $2.0 billion of such net assets | .190% |
12 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 13 |
Report of Independent Registered Public Accounting Firm
14 | | 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 7/1/22 | $1,000.00 |
Ending Account Value 12/31/22 | $1,012.06 |
Expenses Paid per $1,000* | $1.98 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/22 | $1,000.00 |
Ending Account Value 12/31/22 | $1,023.24 |
Expenses Paid per $1,000* | $1.99 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | .39% |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 15 |
16 | | 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 | | 17 |
18 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 19 |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
20 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 21 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
22 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Contents
3 | |
4 | |
6 | |
7 | |
15 | |
16 | |
17 | |
18 | |
20 | |
27 | |
28 | |
29 | |
29 | |
30 | |
33 |
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 SummaryDecember 31, 2022 (Unaudited)
Comparative Results | |||||
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $9,112 | $10,068 | $11,355 | $14,417 |
Average annual total return | –8.88% | 0.23% | 2.57% | 3.73% | |
ICE BofA US High Yield Index | Growth of $10,000 | $8,879 | $9,922 | $11,095 | $14,715 |
Average annual total return | –11.21% | –0.26% | 2.10% | 3.94% | |
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $9,062 | $9,949 | $11,157 | $13,933 |
Average annual total return | –9.38% | –0.17% | 2.21% | 3.37% | |
ICE BofA US High Yield Index | Growth of $10,000 | $8,879 | $9,922 | $11,095 | $14,715 |
Average annual total return | –11.21% | –0.26% | 2.10% | 3.94% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Corporate Bonds | 91% | 93% |
Cash Equivalents | 4% | 6% |
Loan Participations and Assignments | 3% | 1% |
Exchange-Traded Funds | 2% | — |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
Energy | 19% | 19% |
Communication Services | 19% | 14% |
Consumer Discretionary | 18% | 20% |
Industrials | 14% | 14% |
Materials | 9% | 9% |
Health Care | 8% | 10% |
Utilities | 4% | 4% |
Real Estate | 4% | 5% |
Consumer Staples | 3% | 2% |
Information Technology | 1% | 1% |
Financials | 1% | 2% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
AA | — | 0% |
BBB | 10% | 7% |
BB | 61% | 56% |
B | 25% | 30% |
CCC | 2% | 7% |
C | — | 0% |
Not Rated | 2% | 0% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Investment Portfolioas of December 31, 2022
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 89.4% | |||
Communication Services 15.9% | |||
Altice France Holding SA: | |||
144A, 6.0%, 2/15/2028 (b) | 200,000 | 118,058 | |
144A, 10.5%, 5/15/2027 | 200,000 | 152,500 | |
Altice France SA, 144A, 5.5%, 1/15/2028 | 200,000 | 156,624 | |
CCO Holdings LLC: | |||
4.5%, 5/1/2032 | 10,000 | 7,960 | |
144A, 4.75%, 3/1/2030 | 140,000 | 120,738 | |
144A, 5.0%, 2/1/2028 | 250,000 | 226,998 | |
144A, 5.125%, 5/1/2027 | 375,000 | 349,526 | |
144A, 5.375%, 6/1/2029 | 350,000 | 316,494 | |
Clear Channel Outdoor Holdings, Inc., 144A, 5.125%, 8/15/2027 | 320,000 | 277,280 | |
CommScope Technologies LLC: | |||
144A, 5.0%, 3/15/2027 | 65,000 | 44,148 | |
144A, 6.0%, 6/15/2025 | 75,000 | 68,250 | |
CSC Holdings LLC: | |||
144A, 4.125%, 12/1/2030 | 200,000 | 141,166 | |
144A, 6.5%, 2/1/2029 | 200,000 | 163,500 | |
DirecTV Financing LLC, 144A, 5.875%, 8/15/2027 | 45,000 | 40,260 | |
DISH DBS Corp.: | |||
144A, 5.25%, 12/1/2026 | 140,000 | 117,927 | |
144A, 5.75%, 12/1/2028 | 125,000 | 99,766 | |
5.875%, 11/15/2024 | 221,000 | 205,361 | |
DISH Network Corp., 144A, 11.75%, 11/15/2027 | 75,000 | 77,243 | |
Frontier Communications Holdings LLC: | |||
144A, 5.0%, 5/1/2028 | 265,000 | 231,085 | |
144A, 6.0%, 1/15/2030 | 110,000 | 86,413 | |
Gen Digital, Inc.: | |||
144A, 6.75%, 9/30/2027 | 100,000 | 98,000 | |
144A, 7.125%, 9/30/2030 | 70,000 | 68,775 | |
Iliad Holding SASU, 144A, 6.5%, 10/15/2026 | 200,000 | 185,491 | |
Lamar Media Corp., 4.875%, 1/15/2029 | 80,000 | 73,454 | |
LCPR Senior Secured Financing DAC, 144A, 6.75%, 10/15/2027 | 189,000 | 176,715 | |
Lumen Technologies, Inc., 144A, 5.125%, 12/15/2026 (b) | 400,000 | 347,720 | |
Outfront Media Capital LLC: | |||
144A, 4.25%, 1/15/2029 | 70,000 | 58,081 | |
144A, 5.0%, 8/15/2027 | 140,000 | 126,035 | |
Sirius XM Radio, Inc.: | |||
144A, 3.125%, 9/1/2026 | 110,000 | 97,673 | |
144A, 4.0%, 7/15/2028 | 75,000 | 65,273 |
Principal Amount ($)(a) | Value ($) | ||
Sprint Capital Corp., 6.875%, 11/15/2028 | 100,000 | 103,794 | |
Sprint LLC, 7.625%, 3/1/2026 | 245,000 | 257,815 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 305,000 | 249,517 | |
Telenet Finance Luxembourg Notes Sarl, 144A, 5.5%, 3/1/2028 | 200,000 | 180,000 | |
Uber Technologies, Inc.: | |||
144A, 4.5%, 8/15/2029 | 20,000 | 17,425 | |
144A, 6.25%, 1/15/2028 | 25,000 | 24,000 | |
144A, 7.5%, 5/15/2025 | 160,000 | 159,883 | |
144A, 7.5%, 9/15/2027 | 50,000 | 50,035 | |
ViaSat, Inc., 144A, 5.625%, 9/15/2025 | 136,000 | 126,179 | |
Virgin Media Finance PLC, 144A, 5.0%, 7/15/2030 | 200,000 | 160,412 | |
Virgin Media Secured Finance PLC, 144A, 5.5%, 5/15/2029 | 345,000 | 309,044 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 265,000 | 266,439 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 270,000 | 207,431 |
Ziggo BV, 144A, 4.875%, 1/15/2030 | 290,000 | 242,663 | |
6,653,151 | |||
Consumer Discretionary 17.1% | |||
Affinity Gaming, 144A, 6.875%, 12/15/2027 | 160,000 | 135,654 | |
Arko Corp., 144A, 5.125%, 11/15/2029 | 60,000 | 47,112 | |
Avis Budget Car Rental LLC: | |||
144A, 5.375%, 3/1/2029 (b) | 100,000 | 85,544 | |
144A, 5.75%, 7/15/2027 | 90,000 | 81,630 | |
Bath & Body Works, Inc.: | |||
144A, 6.625%, 10/1/2030 | 70,000 | 65,688 | |
6.875%, 11/1/2035 | 100,000 | 88,890 | |
144A, 9.375%, 7/1/2025 | 35,000 | 37,282 | |
Beacon Roofing Supply, Inc., 144A, 4.125%, 5/15/2029 | 100,000 | 83,099 | |
Boyd Gaming Corp.: | |||
4.75%, 12/1/2027 | 130,000 | 121,079 | |
144A, 4.75%, 6/15/2031 | 100,000 | 87,000 | |
Caesars Entertainment, Inc.: | |||
144A, 4.625%, 10/15/2029 | 210,000 | 170,900 | |
144A, 6.25%, 7/1/2025 | 270,000 | 262,352 | |
144A, 8.125%, 7/1/2027 | 410,000 | 402,846 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 170,000 | 121,387 | |
144A, 6.0%, 5/1/2029 | 30,000 | 19,991 | |
144A, 9.875%, 8/1/2027 | 130,000 | 122,850 | |
REG S, 10.125%, 2/1/2026 | EUR | 100,000 | 105,829 |
144A, 10.5%, 2/1/2026 | 80,000 | 80,381 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 98,784 |
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 197,569 |
Ford Motor Credit Co. LLC: | |||
3.375%, 11/13/2025 | 209,000 | 188,939 | |
3.625%, 6/17/2031 | 240,000 | 188,534 | |
4.95%, 5/28/2027 | 200,000 | 186,580 | |
5.113%, 5/3/2029 | 200,000 | 181,109 | |
5.125%, 6/16/2025 | 230,000 | 221,109 | |
5.584%, 3/18/2024 | 200,000 | 197,370 | |
Hilton Grand Vacations Borrower Escrow LLC: | |||
144A, 4.875%, 7/1/2031 | 30,000 | 24,485 | |
144A, 5.0%, 6/1/2029 | 90,000 | 77,400 | |
Jaguar Land Rover Automotive PLC, 144A, 5.875%, 1/15/2028 | 200,000 | 152,090 | |
Las Vegas Sands Corp.: | |||
2.9%, 6/25/2025 | 100,000 | 91,897 | |
3.5%, 8/18/2026 | 150,000 | 135,420 | |
Macy's Retail Holdings LLC, 144A, 5.875%, 3/15/2030 | 76,000 | 65,948 | |
Marriott Ownership Resorts, Inc., 144A, 4.5%, 6/15/2029 | 125,000 | 103,703 | |
Melco Resorts Finance Ltd., 144A, 5.375%, 12/4/2029 | 200,000 | 159,918 | |
Meritage Homes Corp., 6.0%, 6/1/2025 | 90,000 | 89,567 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 85,086 | |
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 | 100,000 | 85,436 | |
144A, 5.875%, 3/15/2026 | 130,000 | 102,111 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 44,293 | |
Newell Brands, Inc., 5.75%, 4/1/2046 | 60,000 | 47,824 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 170,000 | 151,028 | |
Royal Caribbean Cruises Ltd.: | |||
144A, 9.25%, 1/15/2029 | 340,000 | 349,384 | |
144A, 11.5%, 6/1/2025 | 30,000 | 32,175 | |
144A, 11.625%, 8/15/2027 | 110,000 | 110,465 | |
Sands China Ltd., 4.875%, 6/18/2030 | 200,000 | 175,756 | |
Scientific Games International, Inc.: | |||
144A, 7.0%, 5/15/2028 | 235,000 | 224,169 | |
144A, 8.625%, 7/1/2025 | 50,000 | 51,010 | |
SRS Distribution, Inc.: | |||
144A, 4.625%, 7/1/2028 | 50,000 | 44,324 | |
144A, 6.0%, 12/1/2029 | 60,000 | 47,751 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 240,000 | 206,563 | |
Travel & Leisure Co.: | |||
144A, 4.5%, 12/1/2029 | 100,000 | 81,483 |
Principal Amount ($)(a) | Value ($) | ||
144A, 6.625%, 7/31/2026 | 120,000 | 117,391 | |
Vail Resorts, Inc., 144A, 6.25%, 5/15/2025 | 100,000 | 100,000 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 85,592 | |
144A, 7.0%, 2/15/2029 | 90,000 | 74,475 | |
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 15,000 | 12,075 | |
Williams Scotsman International, Inc., 144A, 6.125%, 6/15/2025 | 122,000 | 120,780 | |
Wynn Macau Ltd., 144A, 5.125%, 12/15/2029 | 200,000 | 161,818 | |
Wynn Resorts Finance LLC, 144A, 5.125%, 10/1/2029 | 105,000 | 89,999 | |
Yum Brands, Inc., 5.375%, 4/1/2032 | 100,000 | 92,625 | |
7,173,549 | |||
Consumer Staples 2.1% | |||
Albertsons Companies, Inc., 144A, 3.25%, 3/15/2026 | 150,000 | 136,808 | |
Coty, Inc., REG S, 3.875%, 4/15/2026 | EUR | 100,000 | 99,390 |
Darling Ingredients, Inc., 144A, 6.0%, 6/15/2030 | 30,000 | 29,325 | |
Pilgrim's Pride Corp.: | |||
144A, 4.25%, 4/15/2031 | 245,000 | 208,386 | |
144A, 5.875%, 9/30/2027 | 230,000 | 223,094 | |
Post Holdings, Inc.: | |||
144A, 5.625%, 1/15/2028 | 75,000 | 70,601 | |
144A, 5.75%, 3/1/2027 | 110,000 | 106,379 | |
873,983 | |||
Energy 17.4% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 70,000 | 63,997 | |
144A, 5.75%, 3/1/2027 | 130,000 | 122,896 | |
144A, 5.75%, 1/15/2028 | 90,000 | 83,485 | |
144A, 7.875%, 5/15/2026 | 156,000 | 157,914 | |
Antero Resources Corp.: | |||
144A, 5.375%, 3/1/2030 | 50,000 | 46,356 | |
144A, 7.625%, 2/1/2029 | 138,000 | 138,760 | |
Apache Corp., 5.1%, 9/1/2040 | 57,000 | 47,237 | |
Archrock Partners LP: | |||
144A, 6.25%, 4/1/2028 | 220,000 | 201,303 | |
144A, 6.875%, 4/1/2027 | 110,000 | 105,013 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 130,000 | 115,912 | |
144A, 8.25%, 12/31/2028 | 65,000 | 63,713 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 70,320 | |
Cheniere Energy Partners LP: | |||
3.25%, 1/31/2032 | 30,000 | 23,841 | |
4.5%, 10/1/2029 | 272,000 | 244,588 |
8 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Chesapeake Energy Corp.: | |||
144A, 5.875%, 2/1/2029 | 75,000 | 71,061 | |
144A, 6.75%, 4/15/2029 | 330,000 | 321,288 | |
Chord Energy Corp., 144A, 6.375%, 6/1/2026 | 40,000 | 38,957 | |
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 124,219 | |
144A, 7.25%, 3/14/2027 | 10,000 | 9,925 | |
144A, 7.375%, 1/15/2031 | 70,000 | 67,094 | |
Colgate Energy Partners III LLC, 144A, 5.875%, 7/1/2029 | 225,000 | 193,244 | |
Comstock Resources, Inc.: | |||
144A, 5.875%, 1/15/2030 | 30,000 | 25,791 | |
144A, 6.75%, 3/1/2029 | 155,000 | 139,888 | |
DCP Midstream Operating LP, 5.375%, 7/15/2025 | 527,000 | 522,099 | |
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 155,000 | 133,162 | |
144A, 4.375%, 6/15/2031 | 30,000 | 25,167 | |
Endeavor Energy Resources LP, 144A, 5.75%, 1/30/2028 | 145,000 | 138,840 | |
EnLink Midstream LLC, 144A, 6.5%, 9/1/2030 | 30,000 | 29,691 | |
EQM Midstream Partners LP: | |||
4.125%, 12/1/2026 | 100,000 | 88,944 | |
144A, 4.5%, 1/15/2029 | 50,000 | 41,996 | |
5.5%, 7/15/2028 | 55,000 | 49,179 | |
144A, 6.0%, 7/1/2025 | 52,000 | 50,180 | |
144A, 6.5%, 7/1/2027 | 80,000 | 76,460 | |
144A, 7.5%, 6/1/2027 | 45,000 | 44,067 | |
Genesis Energy LP: | |||
5.625%, 6/15/2024 | 85,000 | 82,025 | |
6.5%, 10/1/2025 | 90,000 | 86,014 | |
7.75%, 2/1/2028 | 75,000 | 69,036 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 147,938 | |
Hess Midstream Operations LP: | |||
144A, 4.25%, 2/15/2030 | 110,000 | 94,041 | |
144A, 5.125%, 6/15/2028 | 75,000 | 69,352 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 137,960 | |
144A, 6.0%, 2/1/2031 | 110,000 | 94,881 | |
144A, 6.25%, 11/1/2028 | 35,000 | 31,675 | |
Howard Midstream Energy Partners LLC, 144A, 6.75%, 1/15/2027 | 40,000 | 38,342 | |
Murphy Oil U.S.A., Inc., 4.75%, 9/15/2029 | 55,000 | 50,327 | |
Nabors Industries, Inc.: | |||
5.75%, 2/1/2025 | 105,000 | 100,129 | |
144A, 7.375%, 5/15/2027 | 105,000 | 101,713 | |
NuStar Logistics LP, 5.75%, 10/1/2025 | 80,000 | 76,907 | |
Occidental Petroleum Corp.: | |||
6.125%, 1/1/2031 | 255,000 | 257,343 |
Principal Amount ($)(a) | Value ($) | ||
6.625%, 9/1/2030 | 200,000 | 206,676 | |
8.5%, 7/15/2027 | 100,000 | 107,681 | |
Parkland Corp., 144A, 5.875%, 7/15/2027 | 80,000 | 75,960 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 27,930 | |
Range Resources Corp.: | |||
144A, 4.75%, 2/15/2030 | 10,000 | 8,811 | |
8.25%, 1/15/2029 | 280,000 | 288,525 | |
Rockcliff Energy II LLC, 144A, 5.5%, 10/15/2029 | 30,000 | 27,449 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 76,702 | |
Southwestern Energy Co.: | |||
4.75%, 2/1/2032 | 70,000 | 59,821 | |
5.375%, 2/1/2029 | 155,000 | 143,694 | |
5.7%, 1/23/2025 | 36,000 | 35,370 | |
7.75%, 10/1/2027 | 200,000 | 203,824 | |
8.375%, 9/15/2028 | 50,000 | 51,547 | |
Sunoco LP: | |||
4.5%, 5/15/2029 | 56,000 | 48,983 | |
5.875%, 3/15/2028 | 35,000 | 33,146 | |
TransAlta Corp., 7.75%, 11/15/2029 | 85,000 | 86,809 | |
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 179,375 | 174,553 | |
Transocean, Inc., 144A, 7.5%, 1/15/2026 | 50,000 | 42,092 | |
USA Compression Partners LP: | |||
6.875%, 4/1/2026 | 142,000 | 136,219 | |
6.875%, 9/1/2027 | 100,000 | 93,500 | |
Venture Global Calcasieu Pass LLC, 144A, 4.125%, 8/15/2031 | 30,000 | 25,560 | |
Weatherford International Ltd., 144A, 8.625%, 4/30/2030 | 222,000 | 213,188 | |
7,282,310 | |||
Financials 0.9% | |||
Navient Corp., 6.125%, 3/25/2024 | 393,000 | 384,990 | |
Health Care 7.6% | |||
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 250,000 | 229,925 | |
Avantor Funding, Inc., REG S, 3.875%, 7/15/2028 | EUR | 100,000 | 98,321 |
Bausch Health Companies, Inc.: | |||
144A, 5.5%, 11/1/2025 (b) | 51,000 | 43,325 | |
144A, 6.125%, 2/1/2027 | 125,000 | 86,204 | |
Catalent Pharma Solutions, Inc.: | |||
REG S, 2.375%, 3/1/2028 | EUR | 100,000 | 86,552 |
144A, 5.0%, 7/15/2027 | 125,000 | 116,315 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 57,486 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 83,492 | |
144A, 5.25%, 5/15/2030 | 90,000 | 67,863 | |
144A, 5.625%, 3/15/2027 | 135,000 | 115,757 | |
144A, 6.0%, 1/15/2029 | 65,000 | 54,371 | |
144A, 6.125%, 4/1/2030 (b) | 50,000 | 24,759 | |
Encompass Health Corp.: | |||
4.5%, 2/1/2028 | 45,000 | 40,878 | |
4.75%, 2/1/2030 | 137,000 | 120,305 | |
IQVIA, Inc., 144A, 5.0%, 5/15/2027 | 220,000 | 209,726 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 63,437 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 | 115,000 | 64,987 | |
Molina Healthcare, Inc., 144A, 3.875%, 11/15/2030 | 100,000 | 84,744 | |
Organon & Co, 144A, 4.125%, 4/30/2028 | 200,000 | 177,080 | |
Owens & Minor, Inc.: | |||
144A, 4.5%, 3/31/2029 | 55,000 | 43,852 | |
144A, 6.625%, 4/1/2030 | 50,000 | 42,970 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 118,854 | |
Tenet Healthcare Corp.: | |||
144A, 4.875%, 1/1/2026 | 250,000 | 236,411 | |
144A, 5.125%, 11/1/2027 | 150,000 | 139,536 | |
144A, 6.125%, 6/15/2030 | 215,000 | 204,852 | |
Teva Pharmaceutical Finance Netherlands II BV: | |||
4.375%, 5/9/2030 | EUR | 100,000 | 88,086 |
4.5%, 3/1/2025 | EUR | 100,000 | 102,474 |
Teva Pharmaceutical Finance Netherlands III BV: | |||
5.125%, 5/9/2029 (b) | 200,000 | 178,109 | |
6.0%, 4/15/2024 | 200,000 | 196,017 | |
3,176,688 | |||
Industrials 12.7% | |||
ADT Security Corp., 144A, 4.875%, 7/15/2032 | 50,000 | 42,491 | |
Advanced Drainage Systems, Inc., 144A, 6.375%, 6/15/2030 | 90,000 | 87,449 | |
American Airlines, Inc.: | |||
144A, 5.5%, 4/20/2026 | 275,000 | 264,453 | |
144A, 5.75%, 4/20/2029 | 135,000 | 123,384 | |
144A, 11.75%, 7/15/2025 | 120,000 | 128,712 | |
ATS Corp., 144A, 4.125%, 12/15/2028 | 30,000 | 25,883 | |
Avient Corp., 144A, 7.125%, 8/1/2030 | 30,000 | 29,326 | |
Bombardier, Inc.: | |||
144A, 6.0%, 2/15/2028 | 200,000 | 184,944 | |
144A, 7.5%, 3/15/2025 | 82,000 | 81,206 | |
Builders FirstSource, Inc., 144A, 4.25%, 2/1/2032 | 105,000 | 85,126 |
Principal Amount ($)(a) | Value ($) | ||
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 100,000 | 90,761 | |
Chart Industries, Inc.: | |||
144A, 7.5%, 1/1/2030 | 110,000 | 110,582 | |
144A, 9.5%, 1/1/2031 | 40,000 | 41,024 | |
Clean Harbors, Inc., 144A, 5.125%, 7/15/2029 | 90,000 | 83,471 | |
Delta Air Lines, Inc.: | |||
3.75%, 10/28/2029 | 51,000 | 42,392 | |
144A, 7.0%, 5/1/2025 | 71,000 | 72,558 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 80,000 | 75,600 | |
144A, 4.0%, 8/1/2028 | 100,000 | 85,500 | |
144A, 4.25%, 6/1/2025 | 40,000 | 38,208 | |
144A, 5.125%, 12/15/2026 | 50,000 | 47,815 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 200,000 | 181,000 | |
Hertz Corp., 144A, 4.625%, 12/1/2026 | 270,000 | 226,125 | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | 140,000 | 143,664 | |
Imola Merger Corp., 144A, 4.75%, 5/15/2029 | 105,000 | 91,099 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 74,000 | 68,421 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 117,008 | 116,329 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 148,000 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 83,125 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 65,000 | 56,107 | |
144A, 5.75%, 4/15/2026 | 135,000 | 129,938 | |
144A, 6.25%, 1/15/2028 | 135,000 | 122,872 | |
Sabre GLBL, Inc., 144A, 11.25%, 12/15/2027 | 65,000 | 66,932 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 146,853 | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 219,000 | 219,763 | |
Summit Materials LLC, 144A, 5.25%, 1/15/2029 | 54,000 | 50,275 | |
TK Elevator U.S. Newco, Inc., 144A, 5.25%, 7/15/2027 | 200,000 | 177,508 | |
TransDigm, Inc.: | |||
4.625%, 1/15/2029 | 205,000 | 180,250 | |
5.5%, 11/15/2027 | 115,000 | 107,991 | |
144A, 6.25%, 3/15/2026 | 535,000 | 527,612 | |
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 148,308 | |
United Rentals North America, Inc.: | |||
4.875%, 1/15/2028 | 330,000 | 312,725 | |
5.25%, 1/15/2030 | 80,000 | 75,166 |
10 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
144A, 6.0%, 12/15/2029 | 200,000 | 198,750 | |
5,319,698 | |||
Information Technology 0.7% | |||
NCR Corp.: | |||
144A, 5.0%, 10/1/2028 | 100,000 | 85,253 | |
144A, 5.125%, 4/15/2029 | 110,000 | 91,996 | |
144A, 5.25%, 10/1/2030 | 25,000 | 20,625 | |
Open Text Corp., 144A, 6.9%, 12/1/2027 | 30,000 | 30,000 | |
Playtika Holding Corp., 144A, 4.25%, 3/15/2029 | 110,000 | 86,345 | |
314,219 | |||
Materials 7.7% | |||
Arconic Corp., 144A, 6.125%, 2/15/2028 | 245,000 | 229,875 | |
Chemours Co.: | |||
4.0%, 5/15/2026 | EUR | 100,000 | 95,554 |
144A, 4.625%, 11/15/2029 | 100,000 | 81,750 | |
5.375%, 5/15/2027 | 95,000 | 87,727 | |
144A, 5.75%, 11/15/2028 | 290,000 | 260,487 | |
Clearwater Paper Corp.: | |||
144A, 4.75%, 8/15/2028 | 155,000 | 136,195 | |
144A, 5.375%, 2/1/2025 | 110,000 | 106,881 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.625%, 3/1/2029 | 31,000 | 27,513 | |
144A, 4.875%, 3/1/2031 | 101,000 | 89,182 | |
144A, 6.75%, 3/15/2026 | 175,000 | 175,437 | |
Consolidated Energy Finance SA, 144A, 5.625%, 10/15/2028 | 150,000 | 127,452 | |
Constellium SE, 144A, 3.75%, 4/15/2029 | 250,000 | 203,109 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 189,404 | |
144A, 6.875%, 10/15/2027 | 300,000 | 281,467 | |
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 60,000 | 54,500 | |
144A, 6.125%, 4/1/2029 | 100,000 | 90,555 | |
Methanex Corp., 5.25%, 12/15/2029 | 120,000 | 106,471 | |
Novelis Corp.: | |||
144A, 3.25%, 11/15/2026 | 195,000 | 174,819 | |
144A, 4.75%, 1/30/2030 | 375,000 | 332,462 | |
Roller Bearing Co. of America, Inc., 144A, 4.375%, 10/15/2029 | 80,000 | 69,176 | |
SK Invictus Intermediate II Sarl, 144A, 5.0%, 10/30/2029 | 45,000 | 36,900 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 109,917 | |
Tronox, Inc., 144A, 4.625%, 3/15/2029 | 205,000 | 170,406 | |
3,237,239 |
Principal Amount ($)(a) | Value ($) | ||
Real Estate 3.7% | |||
Iron Mountain Information Management Services, Inc., 144A, (REIT), 5.0%, 7/15/2032 | 40,000 | 33,228 | |
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2027 | 100,000 | 91,960 | |
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 52,332 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 67,364 | |
144A, (REIT), 5.25%, 3/15/2028 | 145,000 | 133,381 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 86,900 | |
iStar, Inc.: | |||
(REIT), 4.25%, 8/1/2025 | 100,000 | 97,992 | |
(REIT), 4.75%, 10/1/2024 | 170,000 | 168,723 | |
MPT Operating Partnership LP: | |||
(REIT), 3.5%, 3/15/2031 | 105,000 | 71,976 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 106,762 | |
SBA Communications Corp., (REIT), 3.125%, 2/1/2029 | 60,000 | 49,889 | |
Starwood Property Trust, Inc., 144A, (REIT), 3.625%, 7/15/2026 | 50,000 | 43,750 | |
Uniti Group LP, 144A, (REIT), 6.0%, 1/15/2030 (b) | 40,000 | 25,311 | |
VICI Properties LP: | |||
144A, (REIT), 4.625%, 6/15/2025 | 233,000 | 223,389 | |
144A, (REIT), 5.75%, 2/1/2027 | 310,000 | 302,176 | |
1,555,133 | |||
Utilities 3.6% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 196,969 | |
5.75%, 5/20/2027 | 110,000 | 102,230 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 178,396 | |
144A, 4.625%, 2/1/2029 | 30,000 | 25,742 | |
144A, 5.125%, 3/15/2028 | 50,000 | 44,615 | |
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 106,139 | |
FirstEnergy Corp., 4.4%, 7/15/2027 | 90,000 | 83,722 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 110,229 | |
144A, 5.25%, 6/15/2029 | 157,000 | 138,590 | |
5.75%, 1/15/2028 | 200,000 | 187,734 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 80,697 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 11 |
Principal Amount ($)(a) | Value ($) | ||
PG&E Corp., 5.25%, 7/1/2030 | 135,000 | 122,850 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 135,000 | 116,318 | |
1,494,231 | |||
Total Corporate Bonds (Cost $40,866,954) | 37,465,191 | ||
Loan Participations and Assignments 3.3% | |||
Senior Loans (c) | |||
Athenahealth, Inc., Term Loan B, 30-day average SOFR + 3.5%, 7.821%, 2/15/2029 | 63,810 | 57,771 | |
Clear Channel Outdoor Holdings, Inc., Term Loan B, 3-month USD-LIBOR + 3.5%, 7.915%, 8/21/2026 | 197,954 | 180,757 | |
CommScope, Inc., Term Loan B, 1-month USD-LIBOR + 3.25%, 7.634%, 4/6/2026 | 149,421 | 141,240 | |
DirecTV Financing LLC, Term Loan, 1-month USD-LIBOR + 5.0%, 9.384%, 8/2/2027 | 270,432 | 263,869 | |
Frontier Communications Corp., First Lien Term Loan, 3-month USD-LIBOR + 3.75%, 8.5%, 5/1/2028 | 148,489 | 142,191 | |
Gray Television, Inc., Term Loan B, 1-month USD-LIBOR + 2.5%, 6.62% - 6.884%, 2/7/2024 | 61,977 | 61,999 | |
Naked Juice LLC, Term Loan, 90-day average SOFR + 3.25%, 7.93%, 1/24/2029 | 22,885 | 20,581 | |
Option Care Health, Inc., Term Loan B, 1-month USD- LIBOR + 2.75%, 7.134%, 10/27/2028 | 128,700 | 127,976 | |
Pacific Gas & Electric Co., Term Loan, 1-month USD- LIBOR + 3.0%, 7.438%, 6/23/2025 | 197,969 | 196,732 | |
Tronox Finance LLC, Term Loan B, 1-month USD-LIBOR + 2.25%, 6.634%, 3/11/2028 | 200,000 | 194,103 | |
Total Loan Participations and Assignments (Cost $1,432,902) | 1,387,219 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.2% | |||
iShares iBoxx High Yield Corporate Bond ETF (b) | 4,800 | 353,424 | |
SPDR Bloomberg High Yield Bond ETF | 6,600 | 594,000 | |
Total Exchange-Traded Funds (Cost $1,073,795) | 947,424 | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (Cost $0) | 287 | 1,171 | |
Warrants 0.3% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (d) (Cost $244,286) | 1,100 | 109,636 | |
Securities Lending Collateral 2.9% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (e) (f) (Cost $1,212,645) | 1,212,645 | 1,212,645 | |
Cash Equivalents 3.5% | |||
DWS Central Cash Management Government Fund, 4.2% (e) (Cost $1,468,062) | 1,468,062 | 1,468,062 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $46,298,644) | 101.6 | 42,591,348 | |
Other Assets and Liabilities, Net | (1.6) | (679,202) | |
Net Assets | 100.0 | 41,912,146 |
12 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 2.9% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (e) (f) | ||||||||
1,857,630 | — | 644,985 (g) | — | — | 21,341 | — | 1,212,645 | 1,212,645 |
Cash Equivalents 3.5% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (e) | ||||||||
2,785,992 | 15,700,502 | 17,018,432 | — | — | 30,053 | — | 1,468,062 | 1,468,062 |
4,643,622 | 15,700,502 | 17,663,417 | — | — | 51,394 | — | 2,680,707 | 2,680,707 |
* | Non-income producing security. |
(a) | Principal amount stated in U.S. dollars unless otherwise noted. |
(b) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at December 31, 2022 amounted to $1,165,801, which is 2.8% of net assets. |
(c) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(d) | Investment was valued using significant unobservable inputs. |
(e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2022. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
Borrower | Unfunded Loan Commitments ($) | Value ($) | Unrealized Depreciation ($) |
Athenahealth, Inc., Delayed Draw Term Loan, 2/15/2029 | 10,434 | 9,841 | (593) |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
USD | 14,044 | EUR | 13,142 | 1/31/2023 | 54 | BNP Paribas SA |
USD | 16,111 | EUR | 15,143 | 1/31/2023 | 134 | JPMorgan Chase Bank N.A. |
Total unrealized appreciation | 188 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 13 |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Depreciation ($) | Counterparty | ||
EUR | 1,174,039 | USD | 1,234,994 | 1/31/2023 | (24,498) | Barclays Bank PLC |
EUR | Euro |
USD | United States Dollar |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $ — | $ 37,465,191 | $ — | $ 37,465,191 |
Loan Participations and Assignments | — | 1,387,219 | — | 1,387,219 |
Exchange-Traded Funds | 947,424 | — | — | 947,424 |
Common Stocks | 1,171 | — | — | 1,171 |
Warrants | — | — | 109,636 | 109,636 |
Short-Term Investments (a) | 2,680,707 | — | — | 2,680,707 |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | — | 188 | — | 188 |
Total | $3,629,302 | $38,852,598 | $109,636 | $42,591,536 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Unfunded Loan Commitment (c) | $ — | $ (593) | $ — | $ (593) |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | — | (24,498) | — | (24,498) |
Total | $— | $(25,091) | $— | $(25,091) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open forward foreign currency contracts. |
(c) | Includes depreciation on unfunded loan commitments. |
14 | | Deutsche DWS Variable Series II — DWS High Income VIP |
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $43,617,937) — including $1,165,801 of securities loaned | $ 39,910,641 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,212,645)* | 1,212,645 |
Investment in DWS Central Cash Management Government Fund (cost $1,468,062) | 1,468,062 |
Cash | 19,791 |
Foreign currency, at value (cost $23,612) | 24,486 |
Receivable for investments sold | 7,524 |
Receivable for Fund shares sold | 345 |
Interest receivable | 661,241 |
Unrealized appreciation on forward foreign currency contracts | 188 |
Other assets | 851 |
Total assets | 43,305,774 |
Liabilities | |
Payable upon return of securities loaned | 1,212,645 |
Payable for Fund shares redeemed | 33,802 |
Unrealized depreciation on forward foreign currency contracts | 24,498 |
Unrealized depreciation on unfunded commitments | 593 |
Accrued management fee | 14,839 |
Accrued Trustees' fees | 1,668 |
Other accrued expenses and payables | 105,583 |
Total liabilities | 1,393,628 |
Net assets, at value | $41,912,146 |
Net Assets Consist of | |
Distributable earnings (loss) | (9,401,413) |
Paid-in capital | 51,313,559 |
Net assets, at value | $41,912,146 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($41,237,977 ÷ 7,728,847 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 5.34 |
Class B | |
Net Asset Value, offering and redemption price per share ($674,169 ÷ 125,968 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 5.35 |
* | Represents collateral on securities loaned. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 15 |
Investment Income | |
Income: | |
Interest | $ 2,380,773 |
Dividends | 61,550 |
Income distributions — DWS Central Cash Management Government Fund | 30,053 |
Securities lending income, net of borrower rebates | 21,341 |
Total income | 2,493,717 |
Expenses: | |
Management fee | 225,488 |
Administration fee | 43,745 |
Services to shareholders | 985 |
Record keeping fee (Class B) | 954 |
Distribution service fee (Class B) | 1,609 |
Custodian fee | 5,652 |
Audit fee | 66,733 |
Legal fees | 19,236 |
Tax fees | 7,206 |
Reports to shareholders | 28,476 |
Trustees' fees and expenses | 4,703 |
Other | 2,461 |
Total expenses before expense reductions | 407,248 |
Expense reductions | (85,584) |
Total expenses after expense reductions | 321,664 |
Net investment income | 2,172,053 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (1,581,723) |
Forward foreign currency contracts | 79,077 |
Foreign currency | (5,050) |
(1,507,696) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (5,207,128) |
Unfunded loan commitments | (593) |
Forward foreign currency contracts | (19,230) |
Foreign currency | 1,829 |
(5,225,122) | |
Net gain (loss) | (6,732,818) |
Net increase (decrease) in net assets resulting from operations | $(4,560,765) |
16 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 2,172,053 | $ 2,284,536 |
Net realized gain (loss) | (1,507,696) | 1,370,374 |
Change in net unrealized appreciation (depreciation) | (5,225,122) | (1,547,405) |
Net increase (decrease) in net assets resulting from operations | (4,560,765) | 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 | 2,744,738 | 6,500,206 |
Reinvestment of distributions | 2,374,887 | 2,455,814 |
Payments for shares redeemed | (8,372,146) | (11,190,770) |
Net increase (decrease) in net assets from Class A share transactions | (3,252,521) | (2,234,750) |
Class B | ||
Proceeds from shares sold | 385,798 | 481,262 |
Reinvestment of distributions | 28,302 | 6,327 |
Payments for shares redeemed | (269,273) | (21,374) |
Net increase (decrease) in net assets from Class B share transactions | 144,827 | 466,215 |
Increase (decrease) in net assets | (10,071,648) | (2,123,171) |
Net assets at beginning of period | 51,983,794 | 54,106,965 |
Net assets at end of period | $41,912,146 | $51,983,794 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,311,044 | 8,668,128 |
Shares sold | 498,999 | 1,055,087 |
Shares issued to shareholders in reinvestment of distributions | 431,798 | 408,621 |
Shares redeemed | (1,512,994) | (1,820,792) |
Net increase (decrease) in Class A shares | (582,197) | (357,084) |
Shares outstanding at end of period | 7,728,847 | 8,311,044 |
Class B | ||
Shares outstanding at beginning of period | 100,035 | 23,669 |
Shares sold | 69,817 | 78,794 |
Shares issued to shareholders in reinvestment of distributions | 5,118 | 1,048 |
Shares redeemed | (49,002) | (3,476) |
Net increase (decrease) in Class B shares | 25,933 | 76,366 |
Shares outstanding at end of period | 125,968 | 100,035 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 17 |
Financial Highlights
DWS High Income VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $6.18 | $6.23 | $6.23 | $5.71 | $6.36 |
Income (loss) from investment operations: | |||||
Net investment incomea | .27 | .27 | .29 | .31 | .33 |
Net realized and unrealized gain (loss) | (.81) | (.03) | .04 | .56 | (.48) |
Total from investment operations | (.54) | .24 | .33 | .87 | (.15) |
Less distributions from: | |||||
Net investment income | (.30) | (.29) | (.33) | (.35) | (.50) |
Net asset value, end of period | $5.34 | $6.18 | $6.23 | $6.23 | $5.71 |
Total Return (%)b | (8.88) | 4.00 | 6.24 | 15.69 | (2.52) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 41 | 51 | 54 | 56 | 52 |
Ratio of expenses before expense reductions (%)c | .90 | .84 | .87 | .96 | .94 |
Ratio of expenses after expense reductions (%)c | .71 | .71 | .70 | .68 | .69 |
Ratio of net investment income (%) | 4.82 | 4.32 | 4.86 | 5.09 | 5.41 |
Portfolio turnover rate (%) | 45 | 56 | 94 | 82 | 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. |
18 | | Deutsche DWS Variable Series II — DWS High Income VIP |
DWS High Income VIP — Class B | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $6.20 | $6.24 | $6.25 | $5.73 | $6.38 |
Income (loss) from investment operations: | |||||
Net investment incomea | .25 | .24 | .27 | .29 | .31 |
Net realized and unrealized gain (loss) | (.82) | (.01) | .04 | .57 | (.48) |
Total from investment operations | (.57) | .23 | .31 | .86 | (.17) |
Less distributions from: | |||||
Net investment income | (.28) | (.27) | (.32) | (.34) | (.48) |
Net asset value, end of period | $5.35 | $6.20 | $6.24 | $6.25 | $5.73 |
Total Return (%)b | (9.38) | 3.79 | 5.77 | 15.33 | (2.76) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .7 | .6 | .1 | .2 | .1 |
Ratio of expenses before expense reductions (%)c | 1.31 | 1.27 | 1.30 | 1.40 | 1.34 |
Ratio of expenses after expense reductions (%)c | 1.10 | 1.10 | 1.05 | .94 | .96 |
Ratio of net investment income (%) | 4.47 | 3.86 | 4.52 | 4.82 | 5.14 |
Portfolio turnover rate (%) | 45 | 56 | 94 | 82 | 62 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 19 |
Notes to Financial Statements
20 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 21 |
Overnight and Continuous | ˂30 days | Between 30 & 90 days | ˃90 days | Total | |
Securities Lending Transactions | |||||
Corporate Bonds | $ 851,520 | $ — | $ — | $ — | $ 851,520 |
Exchange-Traded Funds | 361,125 | — | — | — | 361,125 |
Total Borrowings | $ 1,212,645 | $ — | $ — | $ — | $ 1,212,645 |
Gross amount of recognized liabilities for securities lending transactions: | $1,212,645 |
Undistributed ordinary income* | $ 2,221,114 |
Capital loss carryforwards | $ (7,865,000) |
Net unrealized appreciation (depreciation) on investments | $ (3,759,099) |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 2,403,189 | $ 2,462,141 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
22 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Assets Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $ 188 |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized appreciation on forward foreign currency contracts |
Liability Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $ (24,498) |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized depreciation on forward foreign currency contracts |
Deutsche DWS Variable Series II — DWS High Income VIP | | 23 |
Realized Gain (Loss) | Forward Contracts |
Foreign Exchange Contracts (a) | $ 79,077 |
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) | $ (19,230) |
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 |
BNP Paribas SA | $ 54 | $ — | $ — | $ 54 |
JPMorgan Chase Bank N.A. | 134 | — | — | 134 |
188 | — | — | 188 |
Counterparty | Gross Amount of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Pledged | Net Amount of Derivative Liabilities |
Barclays Bank PLC | $ 24,498 | $ — | $ — | $ 24,498 |
24 | | Deutsche DWS Variable Series II — DWS High Income VIP |
First $250 million of the Fund’s average daily net assets | .500% |
Next $750 million of such net assets | .470% |
Next $1.5 billion of such net assets | .450% |
Next $2.5 billion of such net assets | .430% |
Next $2.5 billion of such net assets | .400% |
Next $2.5 billion of such net assets | .380% |
Next $2.5 billion of such net assets | .360% |
Over $12.5 billion of such net assets | .340% |
Class A | .71% |
Class B | 1.10% |
Class A | .70% | |
Class B | 1.09% |
Class A | $ 84,214 |
Class B | 1,370 |
$ 85,584 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 371 | $ 59 |
Class B | 105 | 23 |
$ 476 | $ 82 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 25 |
26 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Report of Independent Registered Public Accounting Firm
Deutsche DWS Variable Series II — DWS High Income VIP | | 27 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,043.00 | $ 1,038.80 |
Expenses Paid per $1,000* | $ 3.66 | $ 5.65 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,021.63 | $ 1,019.66 |
Expenses Paid per $1,000* | $ 3.62 | $ 5.60 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS High Income VIP | .71% | 1.10% |
28 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 29 |
Advisory Agreement Board Considerations and Fee Evaluation
30 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 31 |
32 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
Deutsche DWS Variable Series II — DWS High Income VIP | | 33 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
34 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 35 |
Contents
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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 SummaryDecember 31, 2022 (Unaudited)
Comparative Results | |||||
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $7,149 | $9,482 | $10,366 | $16,284 |
Average annual total return | –28.51% | –1.76% | 0.72% | 5.00% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $8,400 | $10,022 | $10,449 | $14,520 |
Average annual total return | –16.00% | 0.07% | 0.88% | 3.80% | |
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $7,129 | $9,405 | $10,224 | $15,814 |
Average annual total return | –28.71% | –2.02% | 0.44% | 4.69% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $8,400 | $10,022 | $10,449 | $14,520 |
Average annual total return | –16.00% | 0.07% | 0.88% | 3.80% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 3 |
Management Summary December 31, 2022 (Unaudited)
4 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Common Stocks | 97% | 98% |
Cash Equivalents | 2% | 1% |
Preferred Stocks | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
Information Technology | 21% | 25% |
Industrials | 19% | 22% |
Financials | 18% | 14% |
Health Care | 13% | 14% |
Consumer Discretionary | 8% | 8% |
Consumer Staples | 7% | 6% |
Communication Services | 5% | 4% |
Energy | 5% | 2% |
Materials | 4% | 5% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
Germany | 15% | 13% |
France | 14% | 12% |
Switzerland | 9% | 8% |
Canada | 9% | 8% |
Japan | 9% | 9% |
United States | 8% | 8% |
Netherlands | 6% | 10% |
China | 6% | 4% |
United Kingdom | 4% | 4% |
Ireland | 4% | 5% |
Singapore | 4% | 2% |
Uruguay | 3% | — |
Taiwan | 2% | 2% |
Sweden | 2% | 4% |
Hong Kong | 2% | — |
Korea | 1% | 2% |
Argentina | — | 4% |
Other | 2% | 5% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Common Stocks 97.4% | |||
Brazil 0.4% | |||
Pagseguro Digital Ltd. "A"* (Cost $261,752) | 8,599 | 75,155 | |
Canada 8.7% | |||
Agnico Eagle Mines Ltd. | 3,110 | 161,610 | |
Alimentation Couche-Tard, Inc. | 6,861 | 301,499 | |
Brookfield Asset Management Ltd. "A"* | 5,014 | 143,569 | |
Brookfield Corp. | 19,226 | 604,611 | |
Canadian National Railway Co. | 3,660 | 434,767 | |
Nuvei Corp. 144A* | 1,023 | 25,998 | |
(Cost $1,155,509) | 1,672,054 | ||
China 5.4% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,932 | 170,190 | |
ANTA Sports Products Ltd. | 6,800 | 88,430 | |
JD.com, Inc. "A" | 295 | 8,221 | |
Minth Group Ltd. | 22,870 | 61,718 | |
Ping An Insurance Group Co. of China Ltd. "H" | 55,000 | 360,929 | |
Tencent Holdings Ltd. | 8,300 | 352,677 | |
(Cost $1,170,699) | 1,042,165 | ||
Denmark 0.6% | |||
Novo Nordisk AS "B" (Cost $101,279) | 830 | 112,179 | |
France 13.5% | |||
Airbus SE | 1,760 | 209,915 | |
Capgemini SE | 1,744 | 291,982 | |
Cie de Saint-Gobain | 2,530 | 124,153 | |
LVMH Moet Hennessy Louis Vuitton SE | 590 | 430,594 | |
Schneider Electric SE | 1,385 | 194,703 | |
Teleperformance | 1,275 | 304,663 | |
TotalEnergies SE | 9,591 | 603,172 | |
Vinci SA | 4,168 | 416,826 | |
(Cost $2,102,744) | 2,576,008 | ||
Germany 14.3% | |||
adidas AG | 580 | 79,433 | |
Allianz SE (Registered) | 2,062 | 444,922 | |
Auto1 Group SE 144A* | 3,181 | 26,634 | |
BASF SE | 1,980 | 98,776 | |
BNP Paribas Emissions- und Handelsgesellschaft mbH | 23,770 | 290,128 | |
Brenntag SE | 2,428 | 156,061 | |
Deutsche Boerse AG | 2,770 | 479,187 | |
Deutsche Post AG (Registered) | 3,410 | 129,029 | |
Deutsche Telekom AG (Registered) | 12,900 | 257,710 | |
Evonik Industries AG | 3,170 | 61,024 | |
Evotec SE* | 6,090 | 99,981 | |
SAP SE | 2,200 | 227,768 |
Shares | Value ($) | ||
Siemens Healthineers AG 144A | 1,930 | 96,804 | |
TeamViewer AG 144A* | 8,860 | 114,790 | |
Wacker Chemie AG | 865 | 110,830 | |
Zalando SE 144A* | 1,700 | 60,413 | |
(Cost $3,362,023) | 2,733,490 | ||
Hong Kong 1.5% | |||
Techtronic Industries Co., Ltd. (Cost $216,384) | 26,097 | 289,755 | |
Ireland 4.0% | |||
Experian PLC | 8,517 | 291,741 | |
ICON PLC* (a) | 993 | 192,890 | |
Kerry Group PLC "A" | 3,086 | 278,363 | |
(Cost $685,675) | 762,994 | ||
Israel 0.3% | |||
Kornit Digital Ltd.* (a) (Cost $239,759) | 2,234 | 51,315 | |
Japan 8.4% | |||
Daikin Industries Ltd. | 2,100 | 319,365 | |
Fast Retailing Co., Ltd. | 330 | 201,448 | |
Hoya Corp. | 2,600 | 249,868 | |
Keyence Corp. | 800 | 311,304 | |
Lasertec Corp. | 400 | 65,159 | |
MISUMI Group, Inc. | 6,011 | 128,228 | |
Shimadzu Corp. | 6,600 | 186,845 | |
Shiseido Co., Ltd. | 3,100 | 151,607 | |
(Cost $1,381,578) | 1,613,824 | ||
Korea 1.4% | |||
Samsung Electronics Co., Ltd. (Cost $262,946) | 5,942 | 260,600 | |
Luxembourg 0.5% | |||
Eurofins Scientific SE (Cost $57,184) | 1,434 | 103,100 | |
Netherlands 6.4% | |||
Adyen NV 144A* | 90 | 124,885 | |
ASML Holding NV | 771 | 418,920 | |
Koninklijke DSM NV | 1,842 | 225,953 | |
NXP Semiconductors NV (a) | 615 | 97,188 | |
Prosus NV | 2,066 | 142,810 | |
Universal Music Group NV | 8,800 | 212,660 | |
(Cost $1,222,969) | 1,222,416 | ||
Norway 0.4% | |||
Mowi ASA (Cost $110,025) | 4,800 | 82,102 | |
Singapore 3.6% | |||
DBS Group Holdings Ltd. (Cost $523,815) | 27,600 | 697,117 | |
Sweden 2.0% | |||
Assa Abloy AB "B" | 6,090 | 131,000 | |
Hexagon AB "B" | 13,100 | 137,485 | |
Spotify Technology SA* (b) | 1,352 | 106,741 | |
(Cost $525,637) | 375,226 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 7 |
Shares | Value ($) | ||
Switzerland 9.0% | |||
Alcon, Inc. | 2,160 | 148,009 | |
Lonza Group AG (Registered) | 1,180 | 580,310 | |
Nestle SA (Registered) | 5,000 | 579,082 | |
Roche Holding AG (Genusschein) | 1,150 | 361,144 | |
Sportradar Holding AG "A"* (a) (c) | 6,100 | 60,756 | |
(Cost $1,424,207) | 1,729,301 | ||
Taiwan 2.1% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $274,548) | 27,000 | 392,626 | |
United Kingdom 4.3% | |||
AstraZeneca PLC | 1,480 | 201,823 | |
Farfetch Ltd. "A"* (b) | 6,800 | 32,164 | |
Halma PLC | 5,341 | 128,278 | |
Rentokil Initial PLC | 72,600 | 446,980 | |
VTEX "A"* (b) | 3,204 | 12,015 | |
(Cost $976,573) | 821,260 | ||
United States 7.8% | |||
EPAM Systems, Inc.* | 760 | 249,082 | |
Marsh & McLennan Companies, Inc. | 2,318 | 383,583 | |
Mastercard, Inc. "A" | 520 | 180,820 | |
NVIDIA Corp. | 1,224 | 178,875 | |
Schlumberger Ltd. | 5,620 | 300,445 | |
Thermo Fisher Scientific, Inc. | 370 | 203,755 | |
(Cost $681,092) | 1,496,560 | ||
Uruguay 2.8% | |||
Globant SA* | 2,660 | 447,306 | |
MercadoLibre, Inc.* | 106 | 89,701 | |
(Cost $445,646) | 537,007 | ||
Total Common Stocks (Cost $17,182,044) | 18,646,254 |
Shares | Value ($) | ||
Preferred Stocks 0.7% | |||
Germany | |||
Sartorius AG (Cost $88,635) | 360 | 142,954 | |
Securities Lending Collateral 0.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (d) (e) (Cost $58,500) | 58,500 | 58,500 | |
Cash Equivalents 1.7% | |||
DWS Central Cash Management Government Fund, 4.2% (d) (Cost $328,851) | 328,851 | 328,851 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $17,658,030) | 100.1 | 19,176,559 | |
Other Assets and Liabilities, Net | (0.1) | (23,100) | |
Net Assets | 100.0 | 19,153,459 |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 0.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (d) (e) | ||||||||
631,412 | — | 572,912 (f) | — | — | 2,208 | — | 58,500 | 58,500 |
Cash Equivalents 1.7% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (d) | ||||||||
236,102 | 11,450,754 | 11,358,005 | — | — | 6,469 | — | 328,851 | 328,851 |
867,514 | 11,450,754 | 11,930,917 | — | — | 8,677 | — | 387,351 | 387,351 |
* | Non-income producing security. |
(a) | Listed on the NASDAQ Stock Market, Inc. |
(b) | Listed on the New York Stock Exchange. |
(c) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at December 31, 2022 amounted to $59,760, which is 0.3% of net assets. |
(d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
8 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
(e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 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 | ||||
Brazil | $ 75,155 | $ — | $ — | $ 75,155 |
Canada | 1,672,054 | — | — | 1,672,054 |
China | 170,190 | 871,975 | — | 1,042,165 |
Denmark | — | 112,179 | — | 112,179 |
France | — | 2,576,008 | — | 2,576,008 |
Germany | — | 2,733,490 | — | 2,733,490 |
Hong Kong | — | 289,755 | — | 289,755 |
Ireland | 192,890 | 570,104 | — | 762,994 |
Israel | 51,315 | — | — | 51,315 |
Japan | — | 1,613,824 | — | 1,613,824 |
Korea | — | 260,600 | — | 260,600 |
Luxembourg | — | 103,100 | — | 103,100 |
Netherlands | 97,188 | 1,125,228 | — | 1,222,416 |
Norway | — | 82,102 | — | 82,102 |
Singapore | — | 697,117 | — | 697,117 |
Sweden | 106,741 | 268,485 | — | 375,226 |
Switzerland | 60,756 | 1,668,545 | — | 1,729,301 |
Taiwan | — | 392,626 | — | 392,626 |
United Kingdom | 44,179 | 777,081 | — | 821,260 |
United States | 1,496,560 | — | — | 1,496,560 |
Uruguay | 537,007 | — | — | 537,007 |
Preferred Stocks | — | 142,954 | — | 142,954 |
Short-Term Investments (a) | 387,351 | — | — | 387,351 |
Total | $4,891,386 | $14,285,173 | $— | $19,176,559 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 9 |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $17,270,679) — including $59,760 of securities loaned | $ 18,789,208 |
Investment in DWS Government & Agency Securities Portfolio (cost $58,500)* | 58,500 |
Investment in DWS Central Cash Management Government Fund (cost $328,851) | 328,851 |
Foreign currency, at value (cost $93,537) | 91,100 |
Receivable for Fund shares sold | 465 |
Dividends receivable | 5,627 |
Interest receivable | 1,341 |
Foreign taxes recoverable | 33,040 |
Other assets | 380 |
Total assets | 19,308,512 |
Liabilities | |
Payable upon return of securities loaned | 58,500 |
Payable for Fund shares redeemed | 9,598 |
Accrued management fee | 5,249 |
Accrued Trustees' fees | 1,259 |
Other accrued expenses and payables | 80,447 |
Total liabilities | 155,053 |
Net assets, at value | $19,153,459 |
Net Assets Consist of | |
Distributable earnings (loss) | 147,349 |
Paid-in capital | 19,006,110 |
Net assets, at value | $19,153,459 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($19,127,667 ÷ 1,457,916 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.12 |
Class B | |
Net Asset Value, offering and redemption price per share ($25,792 ÷ 1,962 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 13.15 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $51,100) | $ 370,915 |
Income distributions — DWS Central Cash Management Government Fund | 6,469 |
Securities lending income, net of borrower rebates | 2,208 |
Total income | 379,592 |
Expenses: | |
Management fee | 137,950 |
Administration fee | 21,583 |
Services to shareholders | 723 |
Record keeping fee (Class B) | 15 |
Distribution service fee (Class B) | 156 |
Custodian fee | 11,061 |
Audit fee | 56,127 |
Legal fees | 18,907 |
Tax fees | 7,206 |
Reports to shareholders | 25,166 |
Trustees' fees and expenses | 3,669 |
Other | 10,779 |
Total expenses before expense reductions | 293,342 |
Expense reductions | (88,069) |
Total expenses after expense reductions | 205,273 |
Net investment income | 174,319 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (1,476,176) |
Foreign currency | (17,198) |
(1,493,374) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (6,871,790) |
Foreign currency | (913) |
(6,872,703) | |
Net gain (loss) | (8,366,077) |
Net increase (decrease) in net assets resulting from operations | $(8,191,758) |
10 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 174,319 | $ 85,743 |
Net realized gain (loss) | (1,493,374) | 453,819 |
Change in net unrealized appreciation (depreciation) | (6,872,703) | 987,523 |
Net increase (decrease) in net assets resulting from operations | (8,191,758) | 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 | 9,085,996 | 3,858,747 |
Reinvestment of distributions | 549,151 | 300,260 |
Payments for shares redeemed | (4,239,328) | (2,223,148) |
Net increase (decrease) in net assets from Class A share transactions | 5,395,819 | 1,935,859 |
Class B | ||
Proceeds from shares sold | 9,878 | 69,880 |
Reinvestment of distributions | 1,661 | 1,284 |
Payments for shares redeemed | (63,096) | (79,732) |
Net increase (decrease) in net assets from Class B share transactions | (51,557) | (8,568) |
Increase (decrease) in net assets | (3,398,308) | 3,152,832 |
Net assets at beginning of period | 22,551,767 | 19,398,935 |
Net assets at end of period | $19,153,459 | $22,551,767 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,193,724 | 1,093,246 |
Shares sold | 536,046 | 205,692 |
Shares issued to shareholders in reinvestment of distributions | 38,864 | 16,498 |
Shares redeemed | (310,718) | (121,712) |
Net increase (decrease) in Class A shares | 264,192 | 100,478 |
Shares outstanding at end of period | 1,457,916 | 1,193,724 |
Class B | ||
Shares outstanding at beginning of period | 5,576 | 6,025 |
Shares sold | 712 | 3,808 |
Shares issued to shareholders in reinvestment of distributions | 117 | 70 |
Shares redeemed | (4,443) | (4,327) |
Net increase (decrease) in Class B shares | (3,614) | (449) |
Shares outstanding at end of period | 1,962 | 5,576 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 11 |
Financial Highlights
DWS International Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $18.80 | $17.65 | $14.64 | $11.47 | $13.90 |
Income (loss) from investment operations: | |||||
Net investment incomea | .11 | .08 | .06 | .22 | .16 |
Net realized and unrealized gain (loss) | (5.45) | 1.34 | 3.17 | 3.32 | (2.46) |
Total from investment operations | (5.34) | 1.42 | 3.23 | 3.54 | (2.30) |
Less distributions from: | |||||
Net investment income | (.15) | (.06) | (.22) | (.17) | (.13) |
Net realized gains | (.19) | (.21) | — | (.20) | — |
Total distributions | (.34) | (.27) | (.22) | (.37) | (.13) |
Net asset value, end of period | $13.12 | $18.80 | $17.65 | $14.64 | $11.47 |
Total Return (%)b | (28.51) | 8.11 | 22.69 | 31.22 | (16.69) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 19 | 22 | 19 | 18 | 14 |
Ratio of expenses before expense reductions (%)c | 1.32 | 1.33 | 1.50 | 1.64 | 1.72 |
Ratio of expenses after expense reductions (%)c | .92 | .90 | .87 | .86 | .81 |
Ratio of net investment income (%) | .78 | .41 | .42 | 1.63 | 1.21 |
Portfolio turnover rate (%) | 17 | 20 | 10 | 16 | 38 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
12 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
DWS International Growth VIP — Class B | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $18.84 | $17.67 | $14.66 | $11.49 | $13.93 |
Income (loss) from investment operations: | |||||
Net investment incomea | .09 | .03 | .01 | .18 | .12 |
Net realized and unrealized gain (loss) | (5.48) | 1.36 | 3.18 | 3.33 | (2.46) |
Total from investment operations | (5.39) | 1.39 | 3.19 | 3.51 | (2.34) |
Less distributions from: | |||||
Net investment income | (.11) | (.01) | (.18) | (.14) | (.10) |
Net realized gains | (.19) | (.21) | — | (.20) | — |
Total distributions | (.30) | (.22) | (.18) | (.34) | (.10) |
Net asset value, end of period | $13.15 | $18.84 | $17.67 | $14.66 | $11.49 |
Total Return (%)b | (28.71) | 7.88 | 22.29 | 30.84 | (16.92) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .03 | .1 | .1 | .2 | .2 |
Ratio of expenses before expense reductions (%)c | 1.66 | 1.62 | 1.81 | 1.95 | 2.07 |
Ratio of expenses after expense reductions (%)c | 1.18 | 1.17 | 1.18 | 1.16 | 1.06 |
Ratio of net investment income (%) | .64 | .18 | .07 | 1.31 | .92 |
Portfolio turnover rate (%) | 17 | 20 | 10 | 16 | 38 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 13 |
Notes to Financial Statements
14 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 15 |
Undistributed ordinary income* | $ 143,929 |
Capital loss carryforwards | $ (1,481,000) |
Net unrealized appreciation (depreciation) on investments | $ 1,487,505 |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 246,866 | $ 69,290 |
Distributions from long-term capital gains | $ 303,946 | $ 232,254 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
16 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Class A | .92% |
Class B | 1.17% |
Class A | .93% | |
Class B | 1.20% |
Class A | .91% | ||
Class B | 1.17% |
Class A | $ 87,772 |
Class B | 297 |
$ 88,069 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 17 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 299 | $ 48 |
Class B | 43 | 7 |
$ 342 | $ 55 |
18 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Report of Independent Registered Public Accounting Firm
Deutsche DWS Variable Series II — DWS International Growth VIP | | 19 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,022.60 | $ 1,021.00 |
Expenses Paid per $1,000* | $ 4.69 | $ 6.06 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,020.57 | $ 1,019.21 |
Expenses Paid per $1,000* | $ 4.69 | $ 6.06 |
* | 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 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS International Growth VIP | .92% | 1.19% |
20 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 21 |
Advisory Agreement Board Considerations and Fee Evaluation
22 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 25 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
26 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 27 |
Contents
3 | |
4 | |
6 | |
7 | |
11 | |
11 | |
12 | |
13 | |
14 | |
18 | |
19 | |
20 | |
20 | |
21 | |
24 |
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 SummaryDecember 31, 2022 (Unaudited)
Comparative Results | |||||
DWS Small Mid Cap Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $7,198 | $10,667 | $11,284 | $22,480 |
Average annual total return | –28.02% | 2.18% | 2.45% | 8.44% | |
Russell 2500 Growth Index | Growth of $10,000 | $7,379 | $10,888 | $13,365 | $27,430 |
Average annual total return | –26.21% | 2.88% | 5.97% | 10.62% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Common Stocks | 96% | 99% |
Cash Equivalents | 4% | 1% |
Other Investments | 0% | — |
Exchange-Traded Funds | — | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Cash Equivalents and Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Information Technology | 24% | 28% |
Health Care | 22% | 26% |
Industrials | 19% | 16% |
Consumer Discretionary | 12% | 14% |
Financials | 7% | 5% |
Energy | 6% | 1% |
Materials | 4% | 4% |
Real Estate | 3% | 3% |
Consumer Staples | 2% | 2% |
Communication Services | 1% | 1% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Common Stocks 96.2% | |||
Communication Services 1.1% | |||
Diversified Telecommunication Services 0.7% | |||
Iridium Communications, Inc.* | 6,600 | 339,240 | |
Entertainment 0.4% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 226,379 | |
Consumer Discretionary 10.9% | |||
Auto Components 1.0% | |||
Gentherm, Inc.* | 7,364 | 480,795 | |
Diversified Consumer Services 0.4% | |||
Bright Horizons Family Solutions, Inc.* | 3,398 | 214,414 | |
Hotels, Restaurants & Leisure 1.9% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 481,403 | |
Jack in the Box, Inc. | 7,229 | 493,235 | |
974,638 | |||
Household Durables 3.2% | |||
Helen of Troy Ltd.* | 2,963 | 328,626 | |
iRobot Corp.* (a) | 4,373 | 210,473 | |
LGI Homes, Inc.* | 3,489 | 323,081 | |
TopBuild Corp.* | 4,573 | 715,629 | |
1,577,809 | |||
Leisure Products 1.3% | |||
YETI Holdings, Inc.* | 15,522 | 641,214 | |
Specialty Retail 3.1% | |||
Burlington Stores, Inc.* | 2,883 | 584,557 | |
Camping World Holdings, Inc. "A" (a) | 22,907 | 511,284 | |
National Vision Holdings, Inc.* | 7,865 | 304,848 | |
The Children's Place, Inc.* | 4,788 | 174,379 | |
1,575,068 | |||
Consumer Staples 2.2% | |||
Food & Staples Retailing 1.9% | |||
Casey's General Stores, Inc. | 4,371 | 980,634 | |
Household Products 0.3% | |||
Spectrum Brands Holdings, Inc. | 2,282 | 139,019 | |
Energy 5.4% | |||
Oil, Gas & Consumable Fuels | |||
Arch Resources, Inc. | 2,200 | 314,138 | |
Crescent Energy Co. "A" | 6,384 | 76,544 | |
Denbury, Inc.* | 7,100 | 617,842 | |
Kosmos Energy Ltd.* | 48,000 | 305,280 | |
Matador Resources Co. | 8,300 | 475,092 | |
Ovintiv, Inc. | 9,711 | 492,445 | |
Southwestern Energy Co.* | 67,176 | 392,980 | |
2,674,321 |
Shares | Value ($) | ||
Financials 7.0% | |||
Banks 2.7% | |||
Pinnacle Financial Partners, Inc. | 5,944 | 436,290 | |
South State Corp. | 4,704 | 359,197 | |
SVB Financial Group* | 542 | 124,736 | |
Synovus Financial Corp. | 11,493 | 431,562 | |
1,351,785 | |||
Capital Markets 3.3% | |||
FactSet Research Systems, Inc. | 1,036 | 415,654 | |
Lazard Ltd. "A" | 12,317 | 427,030 | |
LPL Financial Holdings, Inc. | 2,100 | 453,957 | |
Moelis & Co. "A" | 9,136 | 350,548 | |
1,647,189 | |||
Insurance 1.0% | |||
Kinsale Capital Group, Inc. | 1,900 | 496,888 | |
Health Care 21.3% | |||
Biotechnology 5.2% | |||
Apellis Pharmaceuticals, Inc.* | 4,251 | 219,819 | |
Beam Therapeutics, Inc.* | 1,593 | 62,302 | |
Biohaven Ltd.* | 1,787 | 24,804 | |
Blueprint Medicines Corp.* | 4,684 | 205,206 | |
Fate Therapeutics, Inc.* | 2,646 | 26,698 | |
Halozyme Therapeutics, Inc.* | 7,000 | 398,300 | |
Insmed, Inc.* | 6,610 | 132,068 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 131,360 | |
Neurocrine Biosciences, Inc.* | 7,085 | 846,232 | |
Travere Therapeutics, Inc.* | 18,778 | 394,901 | |
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 141,631 | |
2,583,321 | |||
Health Care Equipment & Supplies 3.7% | |||
Axonics, Inc.* | 5,613 | 350,981 | |
Globus Medical, Inc. "A"* | 4,424 | 328,570 | |
Haemonetics Corp.* | 1,353 | 106,413 | |
Masimo Corp.* | 1,627 | 240,715 | |
Nevro Corp.* | 2,428 | 96,149 | |
Omnicell, Inc.* | 2,300 | 115,966 | |
Outset Medical, Inc.* | 8,674 | 223,963 | |
Shockwave Medical, Inc.* | 500 | 102,805 | |
STAAR Surgical Co.* | 975 | 47,327 | |
Tandem Diabetes Care, Inc.* | 5,419 | 243,584 | |
1,856,473 | |||
Health Care Providers & Services 9.4% | |||
AMN Healthcare Services, Inc.* | 13,141 | 1,351,158 | |
HealthEquity, Inc.* | 4,129 | 254,511 | |
ModivCare, Inc.* | 5,696 | 511,102 | |
Molina Healthcare, Inc.* | 2,819 | 930,890 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 7 |
Shares | Value ($) | ||
Option Care Health, Inc.* | 21,064 | 633,816 | |
Privia Health Group, Inc.* | 8,600 | 195,306 | |
RadNet, Inc.* | 44,177 | 831,853 | |
4,708,636 | |||
Life Sciences Tools & Services 0.4% | |||
BioLife Solutions, Inc.* | 8,451 | 153,808 | |
OmniAb, Inc.* | 13,092 | 47,131 | |
200,939 | |||
Pharmaceuticals 2.6% | |||
Aclaris Therapeutics, Inc.* | 12,953 | 204,010 | |
Arvinas, Inc.* | 2,000 | 68,420 | |
Intra-Cellular Therapies, Inc.* | 7,000 | 370,440 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 178,490 | |
Pacira BioSciences, Inc.* | 11,807 | 455,868 | |
1,277,228 | |||
Industrials 18.3% | |||
Aerospace & Defense 1.4% | |||
HEICO Corp. | 4,476 | 687,692 | |
Building Products 5.5% | |||
Advanced Drainage Systems, Inc. | 3,260 | 267,222 | |
Allegion PLC | 7,499 | 789,345 | |
Builders FirstSource, Inc.* | 17,596 | 1,141,628 | |
Masonite International Corp.* | 6,705 | 540,490 | |
2,738,685 | |||
Commercial Services & Supplies 3.2% | |||
MSA Safety, Inc. | 2,392 | 344,902 | |
Tetra Tech, Inc. | 4,419 | 641,595 | |
The Brink's Co. | 11,036 | 592,744 | |
1,579,241 | |||
Construction & Engineering 0.5% | |||
MasTec, Inc.* | 3,160 | 269,643 | |
Electrical Equipment 0.8% | |||
Generac Holdings, Inc.* | 1,478 | 148,775 | |
Plug Power, Inc.* | 4,018 | 49,703 | |
Thermon Group Holdings, Inc.* | 9,149 | 183,712 | |
382,190 | |||
Machinery 1.0% | |||
IDEX Corp. | 2,202 | 502,783 | |
Professional Services 1.8% | |||
Kforce, Inc. | 16,725 | 917,032 | |
Trading Companies & Distributors 4.1% | |||
H&E Equipment Services, Inc. | 16,406 | 744,833 | |
Rush Enterprises, Inc. "A" | 16,590 | 867,325 | |
Titan Machinery, Inc.* | 11,743 | 466,549 | |
2,078,707 |
Shares | Value ($) | ||
Information Technology 22.9% | |||
Communications Equipment 1.7% | |||
Calix, Inc.* | 8,844 | 605,195 | |
Lumentum Holdings, Inc.* | 4,772 | 248,955 | |
854,150 | |||
Electronic Equipment, Instruments & Components 2.9% | |||
Advanced Energy Industries, Inc. | 12,629 | 1,083,316 | |
Cognex Corp. | 7,873 | 370,897 | |
1,454,213 | |||
IT Services 3.7% | |||
Broadridge Financial Solutions, Inc. | 5,482 | 735,301 | |
Maximus, Inc. | 8,556 | 627,411 | |
WEX, Inc.* | 2,932 | 479,822 | |
1,842,534 | |||
Semiconductors & Semiconductor Equipment 4.3% | |||
Entegris, Inc. | 7,076 | 464,115 | |
FormFactor, Inc.* | 7,627 | 169,548 | |
Monolithic Power Systems, Inc. | 1,447 | 511,674 | |
Semtech Corp.* | 7,632 | 218,962 | |
SiTime Corp.* | 4,087 | 415,321 | |
Ultra Clean Holdings, Inc.* | 10,873 | 360,440 | |
2,140,060 | |||
Software 10.3% | |||
Aspen Technology, Inc.* | 3,737 | 767,580 | |
Dynatrace, Inc.* | 7,679 | 294,106 | |
Envestnet, Inc.* | 9,852 | 607,868 | |
Five9, Inc.* | 9,547 | 647,860 | |
Rapid7, Inc.* | 6,849 | 232,729 | |
Tenable Holdings, Inc.* | 12,141 | 463,179 | |
Tyler Technologies, Inc.* | 3,276 | 1,056,215 | |
Varonis Systems, Inc.* | 35,677 | 854,107 | |
Workiva, Inc.* | 3,058 | 256,780 | |
5,180,424 | |||
Materials 4.0% | |||
Chemicals 0.5% | |||
Valvoline, Inc. | 6,900 | 225,285 | |
Construction Materials 1.6% | |||
Eagle Materials, Inc. | 5,901 | 783,948 | |
Containers & Packaging 0.8% | |||
Berry Global Group, Inc. | 6,828 | 412,616 | |
Metals & Mining 1.1% | |||
Cleveland-Cliffs, Inc.* | 34,787 | 560,418 | |
Real Estate 3.1% | |||
Equity Real Estate Investment Trusts (REITs) 2.9% | |||
Americold Realty Trust, Inc. | 5,999 | 169,832 | |
EastGroup Properties, Inc. | 2,708 | 400,946 |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
Essential Properties Realty Trust, Inc. | 21,678 | 508,783 | |
Four Corners Property Trust, Inc. | 13,954 | 361,827 | |
1,441,388 | |||
Real Estate Management & Development 0.2% | |||
Newmark Group, Inc. "A" | 11,392 | 90,794 | |
Total Common Stocks (Cost $34,067,725) | 48,087,793 | ||
Other Investments 0.0% | |||
OmniAb, Inc. $12.50 Earnout* (b) (c) | 1,013 | 0 | |
OmniAb, Inc. $15.00 Earnout* (b) (c) | 1,013 | 0 | |
Total Other Investments (Cost $0) | 0 | ||
Securities Lending Collateral 1.5% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (d) (e) (Cost $735,203) | 735,203 | 735,203 |
Shares | Value ($) | ||
Cash Equivalents 3.9% | |||
DWS Central Cash Management Government Fund, 4.2% (d) (Cost $1,969,280) | 1,969,280 | 1,969,280 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $36,772,208) | 101.6 | 50,792,276 | |
Other Assets and Liabilities, Net | (1.6) | (791,999) | |
Net Assets | 100.0 | 50,000,277 |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 1.5% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (d) (e) | ||||||||
2,874,385 | — | 2,139,182 (f) | — | — | 34,591 | — | 735,203 | 735,203 |
Cash Equivalents 3.9% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (d) | ||||||||
950,292 | 8,061,648 | 7,042,660 | — | — | 40,856 | — | 1,969,280 | 1,969,280 |
3,824,677 | 8,061,648 | 9,181,842 | — | — | 75,447 | — | 2,704,483 | 2,704,483 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at December 31, 2022 amounted to $721,552, which is 1.4% of net assets. |
(b) | Earnout Shares: Will vest based upon the achievement of certain volume-weighted average trading prices (VWAP) for shares of OmniAb Inc. Earnout Shares are not transferrable until the vesting condition for the applicable tranche of Earnout Shares has been achieved. |
(c) | Investment was valued using significant unobservable inputs. |
(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. |
(f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2022. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 9 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 48,087,793 | $ — | $ — | $ 48,087,793 |
Other Investments | — | — | 0 | 0 |
Short-Term Investments (a) | 2,704,483 | — | — | 2,704,483 |
Total | $50,792,276 | $— | $0 | $50,792,276 |
(a) | See Investment Portfolio for additional detailed categorizations. |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $34,067,725) — including $721,552 of securities loaned | $ 48,087,793 |
Investment in DWS Government & Agency Securities Portfolio (cost $735,203)* | 735,203 |
Investment in DWS Central Cash Management Government Fund (cost $1,969,280) | 1,969,280 |
Cash | 9,106 |
Receivable for Fund shares sold | 2,802 |
Dividends receivable | 25,853 |
Interest receivable | 9,180 |
Other assets | 849 |
Total assets | 50,840,066 |
Liabilities | |
Payable upon return of securities loaned | 735,203 |
Payable for Fund shares redeemed | 5,858 |
Accrued management fee | 26,630 |
Accrued Trustees' fees | 1,100 |
Other accrued expenses and payables | 70,998 |
Total liabilities | 839,789 |
Net assets, at value | $50,000,277 |
Net Assets Consist of | |
Distributable earnings (loss) | 15,704,054 |
Paid-in capital | 34,296,223 |
Net assets, at value | $50,000,277 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($50,000,277 ÷ 4,175,946 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 11.97 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends | $ 381,281 |
Income distributions — DWS Central Cash Management Government Fund | 40,856 |
Securities lending income, net of borrower rebates | 34,591 |
Total income | 456,728 |
Expenses: | |
Management fee | 314,818 |
Administration fee | 55,523 |
Services to shareholders | 693 |
Custodian fee | 2,046 |
Audit fee | 36,511 |
Legal fees | 19,142 |
Tax fees | 8,316 |
Reports to shareholders | 30,693 |
Trustees' fees and expenses | 4,420 |
Other | 3,335 |
Total expenses before expense reductions | 475,497 |
Expense reductions | (9,104) |
Total expenses after expense reductions | 466,393 |
Net investment income (loss) | (9,665) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 1,791,043 |
Foreign currency | (3,943) |
1,787,100 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (22,497,718) |
Foreign currency | (8) |
(22,497,726) | |
Net gain (loss) | (20,710,626) |
Net increase (decrease) in net assets resulting from operations | $(20,720,291) |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 11 |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income (loss) | $ (9,665) | $ (246,837) |
Net realized gain (loss) | 1,787,100 | 7,087,492 |
Change in net unrealized appreciation (depreciation) | (22,497,726) | 2,870,407 |
Net increase (decrease) in net assets resulting from operations | (20,720,291) | 9,711,062 |
Distributions to shareholders: | ||
Class A | (7,059,397) | (3,804,844) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,256,254 | 2,680,334 |
Reinvestment of distributions | 7,059,397 | 3,804,844 |
Payments for shares redeemed | (5,846,309) | (10,049,938) |
Net increase (decrease) in net assets from Class A share transactions | 2,469,342 | (3,564,760) |
Increase (decrease) in net assets | (25,310,346) | 2,341,458 |
Net assets at beginning of period | 75,310,623 | 72,969,165 |
Net assets at end of period | $50,000,277 | $75,310,623 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,990,886 | 4,186,167 |
Shares sold | 83,425 | 144,423 |
Shares issued to shareholders in reinvestment of distributions | 527,214 | 211,028 |
Shares redeemed | (425,579) | (550,732) |
Net increase (decrease) in Class A shares | 185,060 | (195,281) |
Shares outstanding at end of period | 4,175,946 | 3,990,886 |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Financial Highlights
DWS Small Mid Cap Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $18.87 | $17.43 | $13.66 | $12.68 | $21.94 |
Income (loss) from investment operations: | |||||
Net investment income (loss)a | (.00)* | (.06) | (.01) | .01 | (.01) |
Net realized and unrealized gain (loss) | (5.10) | 2.43 | 4.00 | 2.73 | (1.92) |
Total from investment operations | (5.10) | 2.37 | 3.99 | 2.74 | (1.93) |
Less distributions from: | |||||
Net investment income | — | (.01) | (.01) | — | — |
Net realized gains | (1.80) | (.92) | (.21) | (1.76) | (7.33) |
Total distributions | (1.80) | (.93) | (.22) | (1.76) | (7.33) |
Net asset value, end of period | $11.97 | $18.87 | $17.43 | $13.66 | $12.68 |
Total Return (%) | (28.02)b | 13.84 | 30.18b | 22.41b | (13.59)b |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 50 | 75 | 73 | 64 | 64 |
Ratio of expenses before expense reductions (%)c | .83 | .78 | .82 | .82 | .81 |
Ratio of expenses after expense reductions (%)c | .81 | .78 | .81 | .81 | .80 |
Ratio of net investment income (loss) (%) | (.02) | (.33) | (.05) | .11 | (.06) |
Portfolio turnover rate (%) | 11 | 16 | 12 | 10 | 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. |
* | Amount is less than $.005. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 13 |
Notes to Financial Statements
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Undistributed ordinary income* | $ 22,507 |
Undistributed long-term capital gains | $ 1,735,522 |
Net unrealized appreciation (depreciation) on investments | $ 13,939,679 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 15 |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ — | $ 753,322 |
Distributions from long-term capital gains | $ 7,059,397 | $ 3,051,522 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
First $250 million of the Fund's average daily net assets | .550% |
Next $750 million of such net assets | .525% |
Over $1 billion of such net assets | .500% |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 17 |
Report of Independent Registered Public Accounting Firm
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 7/1/22 | $1,000.00 |
Ending Account Value 12/31/22 | $1,012.70 |
Expenses Paid per $1,000* | $4.16 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/22 | $1,000.00 |
Ending Account Value 12/31/22 | $1,021.07 |
Expenses Paid per $1,000* | $4.18 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | .82% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 23 |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
24 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 25 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
26 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Contents
3 | |
4 | |
5 | |
6 | |
10 | |
10 | |
11 | |
12 | |
14 | |
19 | |
20 | |
21 | |
21 | |
22 | |
25 |
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 SummaryDecember 31, 2022 (Unaudited)
Comparative Results | |||||
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $8,420 | $10,900 | $11,124 | $20,117 |
Average annual total return | –15.80% | 2.91% | 2.15% | 7.24% | |
Russell 2500 Value Index | Growth of $10,000 | $8,692 | $11,648 | $12,614 | $23,523 |
Average annual total return | –13.08% | 5.22% | 4.75% | 8.93% | |
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $8,386 | $10,785 | $10,918 | $19,386 |
Average annual total return | –16.14% | 2.55% | 1.77% | 6.84% | |
Russell 2500 Value Index | Growth of $10,000 | $8,692 | $11,648 | $12,614 | $23,523 |
Average annual total return | –13.08% | 5.22% | 4.75% | 8.93% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/22 | 12/31/21 |
Common Stocks | 100% | 99% |
Cash Equivalents | — | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/22 | 12/31/21 |
Financials | 21% | 22% |
Industrials | 17% | 16% |
Consumer Discretionary | 12% | 10% |
Real Estate | 12% | 13% |
Information Technology | 8% | 10% |
Health Care | 7% | 8% |
Materials | 6% | 6% |
Energy | 5% | 5% |
Utilities | 5% | 4% |
Communication Services | 4% | 3% |
Consumer Staples | 3% | 3% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 5 |
Investment Portfolioas of December 31, 2022
Shares | Value ($) | ||
Common Stocks 99.3% | |||
Communication Services 3.4% | |||
Diversified Telecommunication Services 0.8% | |||
Liberty Latin America Ltd. "A"* | 83,215 | 626,609 | |
Entertainment 0.4% | |||
Madison Square Garden Sports Corp. | 1,859 | 340,811 | |
Media 1.9% | |||
Interpublic Group of Companies, Inc. | 39,760 | 1,324,405 | |
Nexstar Media Group, Inc. | 1,224 | 214,237 | |
1,538,642 | |||
Wireless Telecommunication Services 0.3% | |||
Telephone & Data Systems, Inc. | 20,294 | 212,884 | |
Consumer Discretionary 12.3% | |||
Auto Components 1.8% | |||
American Axle & Manufacturing Holdings, Inc.* | 43,873 | 343,087 | |
Lear Corp. | 8,664 | 1,074,509 | |
1,417,596 | |||
Automobiles 0.5% | |||
Winnebago Industries, Inc. | 6,930 | 365,211 | |
Diversified Consumer Services 2.8% | |||
Vivint Smart Home, Inc.* | 169,008 | 2,011,195 | |
WW International, Inc.* | 57,688 | 222,676 | |
2,233,871 | |||
Hotels, Restaurants & Leisure 0.6% | |||
International Game Technology PLC | 19,871 | 450,674 | |
Household Durables 2.7% | |||
Beazer Homes U.S.A., Inc.* | 25,089 | 320,136 | |
Mohawk Industries, Inc.* | 5,001 | 511,202 | |
PulteGroup, Inc. | 29,095 | 1,324,695 | |
2,156,033 | |||
Internet & Direct Marketing Retail 0.5% | |||
Porch Group, Inc.* (a) | 191,004 | 359,088 | |
Specialty Retail 1.6% | |||
Foot Locker, Inc. | 10,718 | 405,033 | |
RH* | 1,451 | 387,693 | |
TravelCenters of America, Inc.* | 11,339 | 507,760 | |
1,300,486 | |||
Textiles, Apparel & Luxury Goods 1.8% | |||
Columbia Sportswear Co. | 16,694 | 1,462,061 | |
Consumer Staples 2.9% | |||
Food & Staples Retailing 0.5% | |||
Performance Food Group Co.* | 6,533 | 381,462 |
Shares | Value ($) | ||
Food Products 1.8% | |||
B&G Foods, Inc. (a) | 33,158 | 369,712 | |
Cal-Maine Foods, Inc. | 6,988 | 380,496 | |
Darling Ingredients, Inc.* | 10,608 | 663,955 | |
1,414,163 | |||
Household Products 0.4% | |||
Central Garden & Pet Co.* | 7,995 | 299,413 | |
Personal Products 0.2% | |||
Herbalife Nutrition Ltd.* | 13,836 | 205,879 | |
Energy 4.7% | |||
Energy Equipment & Services 1.1% | |||
Nabors Industries Ltd.* | 2,550 | 394,919 | |
NexTier Oilfield Solutions, Inc.* | 52,206 | 482,383 | |
877,302 | |||
Oil, Gas & Consumable Fuels 3.6% | |||
Devon Energy Corp. | 9,797 | 602,614 | |
HF Sinclair Corp. | 12,253 | 635,808 | |
Kinetik Holdings, Inc. (a) | 7,128 | 235,794 | |
PDC Energy, Inc. | 7,559 | 479,845 | |
Targa Resources Corp. | 9,153 | 672,746 | |
Vertex Energy, Inc.* (a) | 30,725 | 190,495 | |
2,817,302 | |||
Financials 21.0% | |||
Banks 12.0% | |||
Associated Banc-Corp. | 50,702 | 1,170,709 | |
BankUnited, Inc. | 35,094 | 1,192,143 | |
Columbia Banking System, Inc. | 13,657 | 411,485 | |
Eagle Bancorp., Inc. | 21,907 | 965,442 | |
Eastern Bankshares, Inc. | 19,265 | 332,321 | |
First BanCorp. | 26,138 | 332,475 | |
First Financial Corp. | 6,410 | 295,373 | |
First Horizon Corp. | 29,685 | 727,283 | |
Fulton Financial Corp. | 21,539 | 362,501 | |
Hancock Whitney Corp. | 23,244 | 1,124,777 | |
Hilltop Holdings, Inc. | 25,784 | 773,778 | |
Simmons First National Corp. "A" | 30,569 | 659,679 | |
UMB Financial Corp. | 14,217 | 1,187,404 | |
9,535,370 | |||
Capital Markets 0.4% | |||
Evercore, Inc. "A" | 3,114 | 339,675 | |
Consumer Finance 0.8% | |||
Credit Acceptance Corp.* (a) | 1,410 | 668,904 | |
Diversified Financial Services 2.2% | |||
A-Mark Precious Metals, Inc. | 11,136 | 386,754 | |
Apollo Global Management, Inc. | 5,624 | 358,755 | |
Voya Financial, Inc. | 15,823 | 972,956 | |
1,718,465 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
Insurance 4.8% | |||
Assurant, Inc. | 9,089 | 1,136,670 | |
Brown & Brown, Inc. | 23,705 | 1,350,474 | |
Everest Re Group Ltd. | 3,840 | 1,272,077 | |
3,759,221 | |||
Mortgage Real Estate Investment Trusts (REITs) 0.8% | |||
Rithm Capital Corp. | 74,134 | 605,675 | |
Health Care 7.4% | |||
Biotechnology 2.8% | |||
EQRx, Inc.* (a) | 76,345 | 187,809 | |
Myriad Genetics, Inc.* | 28,066 | 407,238 | |
Sage Therapeutics, Inc.* | 20,690 | 789,117 | |
Sana Biotechnology, Inc.* (a) | 76,915 | 303,814 | |
Twist Bioscience Corp.* | 22,683 | 540,082 | |
2,228,060 | |||
Health Care Equipment & Supplies 0.6% | |||
Cue Health, Inc.* (a) | 81,996 | 169,732 | |
ICU Medical, Inc.* | 1,845 | 290,550 | |
460,282 | |||
Health Care Providers & Services 2.2% | |||
Chemed Corp. | 1,231 | 628,339 | |
Molina Healthcare, Inc.* | 2,804 | 925,937 | |
Owens & Minor, Inc.* | 10,228 | 199,753 | |
1,754,029 | |||
Health Care Technology 0.1% | |||
Multiplan Corp.* | 71,151 | 81,824 | |
Life Sciences Tools & Services 1.1% | |||
PerkinElmer, Inc. | 6,269 | 879,039 | |
Pharmaceuticals 0.6% | |||
Reata Pharmaceuticals, Inc. "A"* (a) | 11,894 | 451,853 | |
Industrials 16.9% | |||
Aerospace & Defense 0.7% | |||
Huntington Ingalls Industries, Inc. | 2,537 | 585,235 | |
Air Freight & Logistics 0.7% | |||
Atlas Air Worldwide Holdings, Inc.* | 3,480 | 350,784 | |
GXO Logistics, Inc.* | 5,515 | 235,435 | |
586,219 | |||
Building Products 2.8% | |||
Carlisle Companies, Inc. | 6,936 | 1,634,469 | |
Owens Corning | 6,801 | 580,125 | |
2,214,594 | |||
Electrical Equipment 3.0% | |||
Encore Wire Corp. | 6,753 | 928,943 | |
EnerSys | 19,390 | 1,431,757 | |
2,360,700 |
Shares | Value ($) | ||
Machinery 3.3% | |||
Hillenbrand, Inc. | 51,641 | 2,203,522 | |
The Manitowoc Co., Inc.* | 42,427 | 388,631 | |
2,592,153 | |||
Professional Services 2.9% | |||
Jacobs Solutions, Inc. | 10,424 | 1,251,610 | |
ManpowerGroup, Inc. | 3,398 | 282,747 | |
Science Applications International Corp. | 6,673 | 740,236 | |
2,274,593 | |||
Road & Rail 1.3% | |||
Knight-Swift Transportation Holdings, Inc. | 10,885 | 570,483 | |
RXO, Inc.* | 18,131 | 311,853 | |
XPO, Inc.* | 5,515 | 183,595 | |
1,065,931 | |||
Trading Companies & Distributors 2.2% | |||
MRC Global, Inc.* | 47,506 | 550,119 | |
NOW, Inc.* | 92,675 | 1,176,973 | |
1,727,092 | |||
Information Technology 8.3% | |||
Communications Equipment 0.5% | |||
Ciena Corp.* | 7,945 | 405,036 | |
Electronic Equipment, Instruments & Components 2.8% | |||
Avnet, Inc. | 33,437 | 1,390,310 | |
Itron, Inc.* | 9,376 | 474,894 | |
TD SYNNEX Corp. | 3,829 | 362,645 | |
2,227,849 | |||
IT Services 0.9% | |||
AvidXchange Holdings, Inc.* | 71,323 | 708,951 | |
Semiconductors & Semiconductor Equipment 2.0% | |||
Cirrus Logic, Inc.* | 11,969 | 891,451 | |
Ichor Holdings Ltd.* | 8,469 | 227,139 | |
Photronics, Inc.* | 26,946 | 453,501 | |
1,572,091 | |||
Software 2.1% | |||
Adeia, Inc. | 33,819 | 320,604 | |
NCR Corp.* | 12,880 | 301,521 | |
Verint Systems, Inc.* | 26,229 | 951,588 | |
Xperi, Inc.* | 13,527 | 116,467 | |
1,690,180 | |||
Materials 6.4% | |||
Chemicals 1.9% | |||
Amyris, Inc.* (a) | 165,272 | 252,866 | |
Avient Corp. | 7,871 | 265,725 | |
Chemours Co. | 20,651 | 632,334 | |
Huntsman Corp. | 12,248 | 336,575 | |
1,487,500 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 7 |
Shares | Value ($) | ||
Containers & Packaging 0.9% | |||
Graphic Packaging Holding Co. | 33,885 | 753,941 | |
Metals & Mining 3.6% | |||
Cleveland-Cliffs, Inc.* | 22,180 | 357,320 | |
Steel Dynamics, Inc. | 25,274 | 2,469,269 | |
2,826,589 | |||
Real Estate 11.5% | |||
Equity Real Estate Investment Trusts (REITs) 10.9% | |||
BRT Apartments Corp. | 38,543 | 756,985 | |
Gaming and Leisure Properties, Inc. | 32,113 | 1,672,766 | |
Highwoods Properties, Inc. | 27,146 | 759,545 | |
Iron Mountain, Inc. | 8,026 | 400,096 | |
iStar, Inc. | 54,698 | 417,346 | |
LXP Industrial Trust | 155,012 | 1,553,220 | |
Prologis, Inc. | 7,624 | 859,454 | |
SITE Centers Corp. | 38,592 | 527,167 | |
STAG Industrial, Inc. | 52,479 | 1,695,596 | |
8,642,175 | |||
Real Estate Management & Development 0.6% | |||
Kennedy-Wilson Holdings, Inc. | 28,877 | 454,235 | |
Utilities 4.5% | |||
Electric Utilities 3.0% | |||
IDACORP, Inc. | 15,434 | 1,664,557 | |
Otter Tail Corp. | 12,371 | 726,301 | |
2,390,858 |
Shares | Value ($) | ||
Gas Utilities 1.5% | |||
Northwest Natural Holding Co. | 9,452 | 449,821 | |
UGI Corp. | 20,014 | 741,919 | |
1,191,740 | |||
Total Common Stocks (Cost $69,776,646) | 78,699,546 | ||
Securities Lending Collateral 3.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (b) (c) (Cost $2,566,790) | 2,566,790 | 2,566,790 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $72,343,436) | 102.6 | 81,266,336 | |
Other Assets and Liabilities, Net | (2.6) | (2,028,878) | |
Net Assets | 100.0 | 79,237,458 |
Value ($) 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 12/31/2022 | Value ($) at 12/31/2022 |
Securities Lending Collateral 3.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 4.07% (b) (c) | ||||||||
6,453,827 | — | 3,887,037 (d) | — | — | 75,455 | — | 2,566,790 | 2,566,790 |
Cash Equivalents 0.0% | ||||||||
DWS Central Cash Management Government Fund, 4.2% (b) | ||||||||
663,321 | 7,745,124 | 8,408,445 | — | — | 11,194 | — | — | — |
7,117,148 | 7,745,124 | 12,295,482 | — | — | 86,649 | — | 2,566,790 | 2,566,790 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at December 31, 2022 amounted to $2,484,956, which is 3.1% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2022. |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $ 78,699,546 | $ — | $ — | $ 78,699,546 |
Short-Term Investments | 2,566,790 | — | — | 2,566,790 |
Total | $81,266,336 | $— | $— | $81,266,336 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 9 |
Assets and Liabilities
as of December 31, 2022
Assets | |
Investments in non-affiliated securities, at value (cost $69,776,646) — including $2,484,956 of securities loaned | $ 78,699,546 |
Investment in DWS Government & Agency Securities Portfolio (cost $2,566,790)* | 2,566,790 |
Receivable for investments sold | 581,817 |
Receivable for Fund shares sold | 2,039 |
Dividends receivable | 121,826 |
Interest receivable | 4,010 |
Other assets | 1,567 |
Total assets | 81,977,595 |
Liabilities | |
Cash overdraft | 11,861 |
Payable upon return of securities loaned | 2,566,790 |
Payable for Fund shares redeemed | 40,783 |
Accrued management fee | 40,332 |
Accrued Trustees' fees | 2,418 |
Other accrued expenses and payables | 77,953 |
Total liabilities | 2,740,137 |
Net assets, at value | $79,237,458 |
Net Assets Consist of | |
Distributable earnings (loss) | 12,793,645 |
Paid-in capital | 66,443,813 |
Net assets, at value | $79,237,458 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($63,631,797 ÷ 5,000,004 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.73 |
Class B | |
Net Asset Value, offering and redemption price per share ($15,605,661 ÷ 1,226,929 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $ 12.72 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $314) | $ 1,639,874 |
Income distributions — DWS Central Cash Management Government Fund | 11,194 |
Securities lending income, net of borrower rebates | 75,455 |
Total income | 1,726,523 |
Expenses: | |
Management fee | 570,321 |
Administration fee | 85,109 |
Services to shareholders | 2,380 |
Record keeping fee (Class B) | 20,750 |
Distribution service fee (Class B) | 44,294 |
Custodian fee | 2,795 |
Professional fees | 59,136 |
Reports to shareholders | 28,901 |
Trustees' fees and expenses | 6,855 |
Other | 4,850 |
Total expenses before expense reductions | 825,391 |
Expense reductions | (35,543) |
Total expenses after expense reductions | 789,848 |
Net investment income | 936,675 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 3,139,256 |
Change in net unrealized appreciation (depreciation) on investments | (20,152,339) |
Net gain (loss) | (17,013,083) |
Net increase (decrease) in net assets resulting from operations | $(16,076,408) |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2022 | 2021 |
Operations: | ||
Net investment income | $ 936,675 | $ 679,104 |
Net realized gain (loss) | 3,139,256 | 9,995,060 |
Change in net unrealized appreciation (depreciation) | (20,152,339) | 14,423,979 |
Net increase (decrease) in net assets resulting from operations | (16,076,408) | 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 | 3,556,679 | 10,833,180 |
Reinvestment of distributions | 1,631,110 | 986,559 |
Payments for shares redeemed | (8,973,908) | (19,477,705) |
Net increase (decrease) in net assets from Class A share transactions | (3,786,119) | (7,657,966) |
Class B | ||
Proceeds from shares sold | 1,142,137 | 3,370,266 |
Reinvestment of distributions | 353,137 | 171,519 |
Payments for shares redeemed | (3,381,561) | (4,132,281) |
Net increase (decrease) in net assets from Class B share transactions | (1,886,287) | (590,496) |
Increase (decrease) in net assets | (23,733,061) | 15,691,603 |
Net assets at beginning of period | 102,970,519 | 87,278,916 |
Net assets at end of period | $79,237,458 | $102,970,519 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,282,801 | 5,853,631 |
Shares sold | 260,559 | 758,092 |
Shares issued to shareholders in reinvestment of distributions | 119,671 | 67,758 |
Shares redeemed | (663,027) | (1,396,680) |
Net increase (decrease) in Class A shares | (282,797) | (570,830) |
Shares outstanding at end of period | 5,000,004 | 5,282,801 |
Class B | ||
Shares outstanding at beginning of period | 1,372,395 | 1,418,467 |
Shares sold | 83,227 | 230,525 |
Shares issued to shareholders in reinvestment of distributions | 25,852 | 11,756 |
Shares redeemed | (254,545) | (288,353) |
Net increase (decrease) in Class B shares | (145,466) | (46,072) |
Shares outstanding at end of period | 1,226,929 | 1,372,395 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 11 |
Financial Highlights
DWS Small Mid Cap Value VIP — Class A | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $15.47 | $12.00 | $13.83 | $12.21 | $17.88 |
Income (loss) from investment operations: | |||||
Net investment incomea | .15 | .11 | .16 | .18 | .10 |
Net realized and unrealized gain (loss) | (2.57) | 3.54 | (.90) | 2.53b | (2.47) |
Total from investment operations | (2.42) | 3.65 | (.74) | 2.71 | (2.37) |
Less distributions from: | |||||
Net investment income | (.12) | (.18) | (.16) | (.10) | (.24) |
Net realized gains | (.20) | — | (.93) | (.99) | (3.06) |
Total distributions | (.32) | (.18) | (1.09) | (1.09) | (3.30) |
Net asset value, end of period | $12.73 | $15.47 | $12.00 | $13.83 | $12.21 |
Total Return (%)c | (15.80) | 30.50 | (1.80) | 22.76b | (16.01) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 64 | 82 | 70 | 78 | 70 |
Ratio of expenses before expense reductions (%)d | .87 | .85 | .88 | .88 | .87 |
Ratio of expenses after expense reductions (%)d | .83 | .83 | .82 | .83 | .81 |
Ratio of net investment income (%) | 1.14 | .76 | 1.57 | 1.35 | .65 |
Portfolio turnover rate (%) | 33 | 32 | 43 | 55 | 64 |
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. |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
DWS Small Mid Cap Value VIP — Class B | |||||
Years Ended December 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $15.46 | $11.99 | $13.82 | $12.20 | $17.86 |
Income (loss) from investment operations: | |||||
Net investment incomea | .10 | .06 | .13 | .13 | .05 |
Net realized and unrealized gain (loss) | (2.58) | 3.53 | (.90) | 2.53b | (2.48) |
Total from investment operations | (2.48) | 3.59 | (.77) | 2.66 | (2.43) |
Less distributions from: | |||||
Net investment income | (.06) | (.12) | (.13) | (.05) | (.17) |
Net realized gains | (.20) | — | (.93) | (.99) | (3.06) |
Total distributions | (.26) | (.12) | (1.06) | (1.04) | (3.23) |
Net asset value, end of period | $12.72 | $15.46 | $11.99 | $13.82 | $12.20 |
Total Return (%)c | (16.14) | 30.04 | (2.18) | 22.32b | (16.32) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 16 | 21 | 17 | 17 | 15 |
Ratio of expenses before expense reductions (%)d | 1.24 | 1.22 | 1.25 | 1.25 | 1.24 |
Ratio of expenses after expense reductions (%)d | 1.20 | 1.20 | 1.19 | 1.19 | 1.16 |
Ratio of net investment income (%) | .77 | .40 | 1.21 | .99 | .30 |
Portfolio turnover rate (%) | 33 | 32 | 43 | 55 | 64 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 13 |
Notes to Financial Statements
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Undistributed ordinary income* | $ 864,635 |
Undistributed long-term capital gains | $ 3,077,774 |
Net unrealized appreciation (depreciation) on investments | $ 8,796,959 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 15 |
Years Ended December 31, | ||
2022 | 2021 | |
Distributions from ordinary income* | $ 684,433 | $ 1,158,078 |
Distributions from long-term capital gains | $ 1,299,814 | $ — |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
First $250 million of the Fund’s average daily net assets | .650% |
Next $750 million of such net assets | .620% |
Next $1.5 billion of such net assets | .600% |
Next $2.5 billion of such net assets | .580% |
Next $2.5 billion of such net assets | .550% |
Next $2.5 billion of such net assets | .540% |
Next $2.5 billion of such net assets | .530% |
Over $12.5 billion of such net assets | .520% |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Class A | .83% | |
Class B | 1.20% |
Class A | .81% |
Class B | 1.18% |
Class A | $ 28,404 |
Class B | 7,139 |
$ 35,543 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2022 |
Class A | $ 873 | $ 142 |
Class B | 716 | 125 |
$ 1,589 | $ 267 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 17 |
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Report of Independent Registered Public Accounting Firm
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 19 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,040.00 | $ 1,037.50 |
Expenses Paid per $1,000* | $ 4.22 | $ 6.11 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/22 | $ 1,000.00 | $ 1,000.00 |
Ending Account Value 12/31/22 | $ 1,021.07 | $ 1,019.21 |
Expenses Paid per $1,000* | $ 4.18 | $ 6.06 |
* | 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 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | .82% | 1.19% |
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 21 |
Advisory Agreement Board Considerations and Fee Evaluation
22 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Board Members and Officers
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Directorships: Progressive International Corporation (kitchen goods designer and distributor); former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds) | 69 | — |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 25 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (since 2011); formerly Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Director, The Bridgespan Group (nonprofit organization) (since October 2020); formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | — |
Catherine Schrand (1964) Board Member since 2021* | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994), The Wharton School, University of Pennsylvania; formerly Vice Dean, Wharton Doctoral Programs (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer's Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
26 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since October 6, 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
* | Ms. Schrand was an Advisory Board Member for certain funds in the DWS Fund Complex for the period from November 18, 2021 to December 31, 2022 and was elected as a Full Board Member as of January 1, 2023 for all funds in the DWS Fund Complex. |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 27 |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Ms. Catherine Schrand, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Deutsche DWS Variable Series II
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year Ended December 31, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
2022 | $387,811 | $0 | $61,246 | $0 |
2021 | $408,222 | $0 | $67,461 | $0 |
The above “Tax Fees” were billed for professional services rendered for tax preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year Ended December 31, | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
2022 | $0 | $148,212 | $0 |
2021 | $0 | $461,717 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year Ended December 31, | Total Non-Audit Fees Billed to Fund (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) and (C) |
2022 | $61,246 | $148,212 | $0 | $209,458 |
2021 | $67,461 | $461,717 | $0 | $529,178 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
In connection with the audit of the 2021 and 2022 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue to act as the Independent Registered Public Accounting Firm for the Fund.
· | EY advised the Fund’s Audit Committee that various covered persons within EY and EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any professionals who were part of the audit engagement team for the Fund or in the position to influence the audit engagement team for the Fund. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | SCHEDULE OF INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Deutsche DWS Variable Series II |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 2/15/2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 2/15/2023 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 2/15/2023 |