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: | 12/31/2023 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) |
Contents
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2 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Performance SummaryDecember 31, 2023 (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 | $10,619 | $11,084 | $13,437 | $13,393 |
Average annual total return | 6.19% | 3.49% | 6.09% | 2.96% | |
MSCI World Index | Growth of $10,000 | $12,379 | $12,344 | $18,265 | $22,825 |
Average annual total return | 23.79% | 7.27% | 12.80% | 8.60% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $10,553 | $9,038 | $10,564 | $11,964 |
Average annual total return | 5.53% | –3.31% | 1.10% | 1.81% | |
Blended Index | Growth of $10,000 | $11,819 | $11,326 | $15,743 | $19,231 |
Average annual total return | 18.19% | 4.24% | 9.50% | 6.76% | |
DWS Alternative Asset Allocation VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $10,567 | $10,953 | $13,191 | $12,962 |
Average annual total return | 5.67% | 3.08% | 5.70% | 2.63% | |
MSCI World Index | Growth of $10,000 | $12,379 | $12,344 | $18,265 | $22,825 |
Average annual total return | 23.79% | 7.27% | 12.80% | 8.60% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $10,553 | $9,038 | $10,564 | $11,964 |
Average annual total return | 5.53% | –3.31% | 1.10% | 1.81% | |
Blended Index | Growth of $10,000 | $11,819 | $11,326 | $15,743 | $19,231 |
Average annual total return | 18.19% | 4.24% | 9.50% | 6.76% | |
The growth of $10,000 is cumulative. |
4 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Management Summary December 31, 2023 (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) | 12/31/23 | 12/31/22 |
Real Asset | 40% | 38% |
DWS Enhanced Commodity Strategy Fund | 14% | 13% |
DWS RREEF Global Infrastructure Fund | 14% | 14% |
DWS RREEF Real Estate Securities Fund | 9% | 8% |
iShares Global Infrastructure ETF | 2% | 2% |
SPDR S&P Global Natural Resources ETF | 1% | 1% |
Alternative Fixed Income | 22% | 20% |
DWS Floating Rate Fund | 10% | 9% |
iShares JP Morgan USD Emerging Markets Bond ETF | 5% | 4% |
DWS Emerging Markets Fixed Income Fund | 4% | 4% |
SPDR Blackstone Senior Loan ETF | 3% | 3% |
Alternative Equity | 14% | 11% |
SPDR Bloomberg Convertible Securities ETF | 11% | 8% |
iShares Preferred & Income Securities ETF | 3% | 3% |
Absolute Return | 17% | 20% |
DWS ESG Liquidity Fund | 9% | 13% |
DWS Global Macro Fund | 8% | 7% |
Cash Equivalents | 7% | 11% |
DWS Central Cash Management Government Fund | 7% | 11% |
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, 2023
Shares | Value ($) | ||
Mutual Funds 59.1% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,429,841 | 16,984,587 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 10,565,437 | 59,589,066 | |
DWS Floating Rate Fund "Institutional" (a) | 5,707,415 | 43,718,798 | |
DWS Global Macro Fund "Institutional" (a) | 3,463,761 | 34,395,150 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,966,180 | 58,739,124 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 1,718,449 | 36,053,065 | |
Total Mutual Funds (Cost $270,489,749) | 249,479,790 | ||
Exchange-Traded Funds 24.7% | |||
iShares Global Infrastructure ETF | 141,313 | 6,648,777 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 238,293 | 21,222,374 | |
iShares Preferred & Income Securities ETF | 459,281 | 14,324,974 |
Shares | Value ($) | ||
SPDR Blackstone Senior Loan ETF | 280,331 | 11,754,279 | |
SPDR Bloomberg Convertible Securities ETF | 635,878 | 45,878,598 | |
SPDR S&P Global Natural Resources ETF | 73,958 | 4,189,721 | |
Total Exchange-Traded Funds (Cost $97,007,958) | 104,018,723 | ||
Cash Equivalents 16.3% | |||
DWS Central Cash Management Government Fund, 5.38% (a) (b) | 28,907,178 | 28,907,178 | |
DWS ESG Liquidity Fund "Institutional", 5.49% (a) (b) | 39,697,631 | 39,701,601 | |
Total Cash Equivalents (Cost $68,595,104) | 68,608,779 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $436,092,811) | 100.1 | 422,107,292 | |
Other Assets and Liabilities, Net | (0.1 ) | (386,380 ) | |
Net Assets | 100.0 | 421,720,912 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Mutual Funds 59.1% | ||||||||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | ||||||||
15,307,718 | 1,024,896 | — | — | 651,973 | 1,024,896 | — | 2,429,841 | 16,984,587 |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | ||||||||
54,938,029 | 8,940,718 | — | — | (4,289,681) | 1,133,918 | — | 10,565,437 | 59,589,066 |
DWS Floating Rate Fund "Institutional" (a) | ||||||||
39,196,806 | 3,481,514 | — | — | 1,040,478 | 3,481,514 | — | 5,707,415 | 43,718,798 |
DWS Global Macro Fund "Institutional" (a) | ||||||||
31,508,793 | 748,617 | — | — | 2,137,740 | 972,385 | — | 3,463,761 | 34,395,150 |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | ||||||||
57,617,260 | 1,538,903 | — | — | (417,039) | 1,305,168 | 233,735 | 3,966,180 | 58,739,124 |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | ||||||||
32,090,988 | 649,786 | — | — | 3,312,291 | 649,786 | — | 1,718,449 | 36,053,065 |
Cash Equivalents 16.3% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (a) (b) | ||||||||
48,680,508 | 27,087,231 | 46,860,561 | — | — | 2,074,088 | — | 28,907,178 | 28,907,178 |
DWS ESG Liquidity Fund "Institutional", 5.49% (a) (b) | ||||||||
54,525,559 | 2,081,220 | 16,914,900 | 1,672 | 8,050 | 2,078,174 | — | 39,697,631 | 39,701,601 |
333,865,661 | 45,552,885 | 63,775,461 | 1,672 | 2,443,812 | 12,719,929 | 233,735 | 96,455,892 | 318,088,569 |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. |
8 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
(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 | $249,479,790 | $— | $— | $249,479,790 |
Exchange-Traded Funds | 104,018,723 | — | — | 104,018,723 |
Short-Term Investments | 68,608,779 | — | — | 68,608,779 |
Total | $422,107,292 | $— | $— | $422,107,292 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 9 |
as of December 31, 2023
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $97,007,958) | $104,018,723 |
Investments in affiliated Underlying Funds, at value (cost $339,084,853) | 318,088,569 |
Cash | 10,000 |
Receivable for Fund shares sold | 23,234 |
Other assets | 10,399 |
Total assets | 422,150,925 |
Liabilities | |
Payable for Fund shares redeemed | 82,737 |
Accrued management fee | 36,100 |
Accrued Trustees' fees | 5,805 |
Other accrued expenses and payables | 305,371 |
Total liabilities | 430,013 |
Net assets, at value | $421,720,912 |
Net Assets Consist of | |
Distributable earnings (loss) | (4,333,287 ) |
Paid-in capital | 426,054,199 |
Net assets, at value | $421,720,912 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($51,031,151 ÷ 4,006,960 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.74 |
Class B | |
Net Asset Value, offering and redemption price per share ($370,689,761 ÷ 29,134,598 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.72 |
Investment Income | |
Income: | |
Dividends | $3,977,068 |
Income distributions from affiliated Underlying Funds | 12,719,929 |
Total income | 16,696,997 |
Expenses: | |
Management fee | 421,151 |
Administration fee | 408,516 |
Services to shareholders | 1,503 |
Record keeping fee (Class B) | 486,353 |
Distribution service fee (Class B) | 931,556 |
Custodian fee | 3,123 |
Professional fees | 73,746 |
Reports to shareholders | 27,496 |
Registration fees | 1 |
Trustees' fees and expenses | 18,205 |
Other | 11,498 |
Total expenses | 2,383,148 |
Net investment income | 14,313,849 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | 1,672 |
Capital gain distributions from affiliated Underlying Funds | 233,735 |
235,407 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | 2,443,812 |
Non-affiliated Underlying Funds | 6,334,022 |
8,777,834 | |
Net gain (loss) | 9,013,241 |
Net increase (decrease) in net assets resulting from operations | $23,327,090 |
10 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $14,313,849 | $26,459,643 |
Net realized gain (loss) | 235,407 | 5,513,392 |
Change in net unrealized appreciation (depreciation) | 8,777,834 | (68,849,097 ) |
Net increase (decrease) in net assets resulting from operations | 23,327,090 | (36,876,062 ) |
Distributions to shareholders: | ||
Class A | (3,667,936 ) | (3,486,882 ) |
Class B | (27,346,396 ) | (29,085,224 ) |
Total distributions | (31,014,332 ) | (32,572,106 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 4,314,432 | 8,154,196 |
Reinvestment of distributions | 3,667,936 | 3,486,882 |
Payments for shares redeemed | (2,401,585 ) | (5,596,341 ) |
Net increase (decrease) in net assets from Class A share transactions | 5,580,783 | 6,044,737 |
Class B | ||
Proceeds from shares sold | 7,854,171 | 17,581,298 |
Reinvestment of distributions | 27,346,396 | 29,085,224 |
Payments for shares redeemed | (33,896,495 ) | (55,362,431 ) |
Net increase (decrease) in net assets from Class B share transactions | 1,304,072 | (8,695,909 ) |
Increase (decrease) in net assets | (802,387 ) | (72,099,340 ) |
Net assets at beginning of period | 422,523,299 | 494,622,639 |
Net assets at end of period | $421,720,912 | $422,523,299 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,557,543 | 3,126,054 |
Shares sold | 341,343 | 590,731 |
Shares issued to shareholders in reinvestment of distributions | 300,404 | 250,494 |
Shares redeemed | (192,330 ) | (409,736 ) |
Net increase (decrease) in Class A shares | 449,417 | 431,489 |
Shares outstanding at end of period | 4,006,960 | 3,557,543 |
Class B | ||
Shares outstanding at beginning of period | 28,995,732 | 29,598,447 |
Shares sold | 625,239 | 1,281,615 |
Shares issued to shareholders in reinvestment of distributions | 2,236,010 | 2,086,458 |
Shares redeemed | (2,722,383 ) | (3,970,788 ) |
Net increase (decrease) in Class B shares | 138,866 | (602,715 ) |
Shares outstanding at end of period | 29,134,598 | 28,995,732 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 11 |
Financial Highlights
DWS Alternative Asset Allocation VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.99 | $15.13 | $13.70 | $13.35 | $12.10 |
Income (loss) from investment operations: | |||||
Net investment incomea | .47 | .88 | 1.04 | .29 | .40 |
Net realized and unrealized gain (loss) | .29 | (1.93 ) | .69 | .40 | 1.35 |
Total from investment operations | .76 | (1.05 ) | 1.73 | .69 | 1.75 |
Less distributions from: | |||||
Net investment income | (.89 ) | (1.08 ) | (.30 ) | (.34 ) | (.50 ) |
Net realized gains | (.12 ) | (.01 ) | — | — | — |
Total distributions | (1.01 ) | (1.09 ) | (.30 ) | (.34 ) | (.50 ) |
Net asset value, end of period | $12.74 | $12.99 | $15.13 | $13.70 | $13.35 |
Total Return (%)b | 6.19 | (7.42 ) | 12.74 | 5.71 | 14.68 c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 51 | 46 | 47 | 37 | 34 |
Ratio of expenses before expense reductions (%)d,e | .23 | .23 | .23 | .23 | .56 |
Ratio of expenses after expense reductions (%)d,e | .23 | .23 | .23 | .23 | .23 |
Ratio of net investment income (%) | 3.76 | 6.44 | 7.13 | 2.29 | 3.09 |
Portfolio turnover rate (%) | 0 | 12 | 19 | 18 | 10 |
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, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.98 | $15.11 | $13.68 | $13.34 | $12.09 |
Income (loss) from investment operations: | |||||
Net investment incomea | .42 | .80 | .93 | .24 | .37 |
Net realized and unrealized gain (loss) | .28 | (1.90 ) | .75 | .41 | 1.34 |
Total from investment operations | .70 | (1.10 ) | 1.68 | .65 | 1.71 |
Less distributions from: | |||||
Net investment income | (.84 ) | (1.02 ) | (.25 ) | (.31 ) | (.46 ) |
Net realized gains | (.12 ) | (.01 ) | — | — | — |
Total distributions | (.96 ) | (1.03 ) | (.25 ) | (.31 ) | (.46 ) |
Net asset value, end of period | $12.72 | $12.98 | $15.11 | $13.68 | $13.34 |
Total Return (%)b | 5.67 | (7.74 ) | 12.35 c | 5.32 c | 14.35 c |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 371 | 376 | 447 | 427 | 349 |
Ratio of expenses before expense reductions (%)d,e | .61 | .61 | .61 | .61 | .92 |
Ratio of expenses after expense reductions (%)d,e | .61 | .61 | .60 | .59 | .52 |
Ratio of net investment income (%) | 3.35 | 5.81 | 6.37 | 1.94 | 2.90 |
Portfolio turnover rate (%) | 0 | 12 | 19 | 18 | 10 |
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* | $14,193,248 |
Undistributed long-term capital gains | $210,387 |
Net unrealized appreciation (depreciation) on investments | $(18,736,922 ) |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $27,187,079 | $32,107,445 |
Distributions from long-term capital gains | $3,827,253 | $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 | 1.00% | |
Class B | 1.39% |
Class A | 1.02% |
Class B | 1.40% |
16 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $286 | $48 |
Class B | 391 | 72 |
$677 | $120 |
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 |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 19 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,036.60 | $1,034.10 |
Expenses Paid per $1,000* | $1.18 | $3.13 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $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. |
20 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 21 |
Advisory Agreement Board Considerations and Fee Evaluation
22 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation 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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation 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 |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
26 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 27 |
Contents
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2 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Performance SummaryDecember 31, 2023 (Unaudited)
Comparative Results | |||||
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $12,076 | $12,943 | $15,116 | $16,390 |
Average annual total return | 20.76% | 8.98% | 8.61% | 5.06% | |
Russell 1000® Value Index | Growth of $10,000 | $11,146 | $12,899 | $16,779 | $22,399 |
Average annual total return | 11.46% | 8.86% | 10.91% | 8.40% | |
DWS CROCI® U.S. VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $12,037 | $12,817 | $14,873 | $15,891 |
Average annual total return | 20.37% | 8.63% | 8.26% | 4.74% | |
Russell 1000® Value Index | Growth of $10,000 | $11,146 | $12,899 | $16,779 | $22,399 |
Average annual total return | 11.46% | 8.86% | 10.91% | 8.40% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 12/31/23 | 12/31/22 |
Common Stocks | 99% | 99% |
Cash Equivalents | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Cash Equivalents) | 12/31/23 | 12/31/22 |
Information Technology | 24% | 28% |
Health Care | 22% | 23% |
Communication Services | 14% | 8% |
Financials | 11% | 11% |
Consumer Discretionary | 10% | 10% |
Industrials | 6% | 5% |
Energy | 6% | 5% |
Materials | 4% | 6% |
Consumer Staples | 3% | 4% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Investment Portfolioas of December 31, 2023
Shares | Value ($) | ||
Common Stocks 99.3% | |||
Communication Services 13.8% | |||
Entertainment 1.6% | |||
Warner Bros Discovery, Inc.* | 186,564 | 2,123,098 | |
Interactive Media & Services 8.2% | |||
Alphabet, Inc. "A"* | 45,048 | 6,292,755 | |
Meta Platforms, Inc. "A"* | 13,280 | 4,700,589 | |
10,993,344 | |||
Media 3.2% | |||
Comcast Corp. "A" | 7,485 | 328,217 | |
Fox Corp. "A" | 131,126 | 3,890,509 | |
4,218,726 | |||
Wireless Telecommunication Services 0.8% | |||
T-Mobile U.S., Inc. | 6,868 | 1,101,146 | |
Consumer Discretionary 10.2% | |||
Hotels, Restaurants & Leisure 1.7% | |||
Boyd Gaming Corp. | 36,110 | 2,260,847 | |
Household Durables 5.2% | |||
D.R. Horton, Inc. | 41,470 | 6,302,611 | |
Garmin Ltd. | 4,724 | 607,223 | |
6,909,834 | |||
Specialty Retail 2.6% | |||
AutoNation, Inc.* | 9,538 | 1,432,417 | |
Best Buy Co., Inc. | 4,585 | 358,914 | |
Lowe's Companies, Inc. | 4,357 | 969,650 | |
Signet Jewelers Ltd. | 6,767 | 725,828 | |
3,486,809 | |||
Textiles, Apparel & Luxury Goods 0.7% | |||
Tapestry, Inc. | 26,444 | 973,404 | |
Consumer Staples 3.4% | |||
Beverages 0.5% | |||
Molson Coors Beverage Co. "B" | 10,352 | 633,646 | |
Consumer Staples Distribution & Retail 0.7% | |||
Kroger Co. | 20,848 | 952,962 | |
Food Products 1.2% | |||
Archer-Daniels-Midland Co. | 10,469 | 756,071 | |
Conagra Brands, Inc. | 31,034 | 889,434 | |
1,645,505 | |||
Tobacco 1.0% | |||
Altria Group, Inc. | 32,752 | 1,321,216 | |
Energy 5.7% | |||
Oil, Gas & Consumable Fuels 5.7% | |||
Coterra Energy, Inc. | 36,775 | 938,498 | |
Exxon Mobil Corp. | 15,539 | 1,553,589 | |
Marathon Petroleum Corp. | 11,958 | 1,774,089 | |
Phillips 66 | 3,780 | 503,269 |
Shares | Value ($) | ||
Pioneer Natural Resources Co. | 8,685 | 1,953,083 | |
Valero Energy Corp. | 6,543 | 850,590 | |
7,573,118 | |||
Financials 11.2% | |||
Banks 2.9% | |||
JPMorgan Chase & Co. | 19,819 | 3,371,212 | |
Wells Fargo & Co. | 9,097 | 447,754 | |
3,818,966 | |||
Capital Markets 1.2% | |||
State Street Corp. | 20,585 | 1,594,514 | |
Consumer Finance 7.1% | |||
Capital One Financial Corp. | 18,537 | 2,430,572 | |
Discover Financial Services | 40,661 | 4,570,296 | |
Synchrony Financial | 66,224 | 2,529,095 | |
9,529,963 | |||
Health Care 21.8% | |||
Biotechnology 8.5% | |||
AbbVie, Inc. | 6,776 | 1,050,077 | |
Amgen, Inc. | 1,454 | 418,781 | |
Gilead Sciences, Inc. | 45,216 | 3,662,948 | |
Regeneron Pharmaceuticals, Inc.* | 4,087 | 3,589,571 | |
Vertex Pharmaceuticals, Inc.* | 6,457 | 2,627,289 | |
11,348,666 | |||
Health Care Equipment & Supplies 2.9% | |||
Edwards Lifesciences Corp.* | 7,555 | 576,069 | |
Hologic, Inc.* | 20,022 | 1,430,572 | |
Medtronic PLC | 22,311 | 1,837,980 | |
3,844,621 | |||
Health Care Providers & Services 0.9% | |||
HCA Healthcare, Inc. | 1,253 | 339,162 | |
Laboratory Corp. of America Holdings | 4,078 | 926,888 | |
1,266,050 | |||
Pharmaceuticals 9.5% | |||
Johnson & Johnson | 28,650 | 4,490,601 | |
Merck & Co., Inc. | 61,387 | 6,692,411 | |
Viatris, Inc. | 137,834 | 1,492,742 | |
12,675,754 | |||
Industrials 6.0% | |||
Electrical Equipment 0.3% | |||
Acuity Brands, Inc. | 2,016 | 412,937 | |
Machinery 4.1% | |||
Cummins, Inc. | 5,998 | 1,436,941 | |
Deere & Co. | 1,829 | 731,362 | |
PACCAR, Inc. | 34,094 | 3,329,279 | |
5,497,582 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 7 |
Shares | Value ($) | ||
Professional Services 1.2% | |||
ManpowerGroup, Inc. | 4,292 | 341,085 | |
Robert Half, Inc. | 8,332 | 732,550 | |
SS&C Technologies Holdings, Inc. | 9,673 | 591,117 | |
�� | 1,664,752 | ||
Trading Companies & Distributors 0.4% | |||
Ferguson PLC | 2,521 | 486,730 | |
Information Technology 23.7% | |||
Communications Equipment 2.6% | |||
Cisco Systems, Inc. | 69,305 | 3,501,289 | |
Electronic Equipment, Instruments & Components 1.2% | |||
Sanmina Corp.* | 30,175 | 1,550,090 | |
IT Services 2.4% | |||
Cognizant Technology Solutions Corp. "A" | 42,401 | 3,202,547 | |
Semiconductors & Semiconductor Equipment 9.9% | |||
Applied Materials, Inc. | 11,833 | 1,917,775 | |
Broadcom, Inc. | 581 | 648,541 | |
KLA Corp. | 2,841 | 1,651,473 | |
Lam Research Corp. | 942 | 737,831 | |
Microchip Technology, Inc. | 18,616 | 1,678,791 | |
NXP Semiconductors NV | 3,818 | 876,918 | |
ON Semiconductor Corp.* | 15,987 | 1,335,394 | |
QUALCOMM, Inc. | 21,276 | 3,077,148 | |
Skyworks Solutions, Inc. | 11,957 | 1,344,206 | |
13,268,077 |
Shares | Value ($) | ||
Technology Hardware, Storage & Peripherals 7.6% | |||
Apple, Inc. | 20,987 | 4,040,627 | |
Dell Technologies, Inc. "C" | 13,611 | 1,041,241 | |
Hewlett Packard Enterprise Co. | 302,323 | 5,133,445 | |
10,215,313 | |||
Materials 3.5% | |||
Chemicals 0.2% | |||
LyondellBasell Industries NV "A" | 3,288 | 312,623 | |
Construction Materials 1.0% | |||
CRH PLC | 18,409 | 1,273,167 | |
Metals & Mining 2.3% | |||
Nucor Corp. | 17,684 | 3,077,723 | |
Total Common Stocks (Cost $112,830,750) | 132,735,019 | ||
Cash Equivalents 0.6% | |||
DWS Central Cash Management Government Fund, 5.38% (a) (Cost $748,795) | 748,795 | 748,795 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $113,579,545) | 99.9 | 133,483,814 | |
Other Assets and Liabilities, Net | 0.1 | 123,385 | |
Net Assets | 100.0 | 133,607,199 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (a) (b) | ||||||||
— | 0 (c) | — | — | — | 2,105 | — | — | — |
Cash Equivalents 0.6% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (a) | ||||||||
1,132,870 | 8,000,585 | 8,384,660 | — | — | 46,245 | — | 748,795 | 748,795 |
1,132,870 | 8,000,585 | 8,384,660 | — | — | 48,350 | — | 748,795 | 748,795 |
* | 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, 2023. |
8 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $132,735,019 | $— | $— | $132,735,019 |
Short-Term Investments | 748,795 | — | — | 748,795 |
Total | $133,483,814 | $— | $— | $133,483,814 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 9 |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $112,830,750) | $132,735,019 |
Investment in DWS Central Cash Management Government Fund (cost $748,795) | 748,795 |
Receivable for Fund shares sold | 78 |
Dividends receivable | 308,112 |
Interest receivable | 4,112 |
Other assets | 3,036 |
Total assets | 133,799,152 |
Liabilities | |
Payable for Fund shares redeemed | 42,670 |
Accrued management fee | 59,725 |
Accrued Trustees' fees | 2,330 |
Other accrued expenses and payables | 87,228 |
Total liabilities | 191,953 |
Net assets, at value | $133,607,199 |
Net Assets Consist of | |
Distributable earnings (loss) | 18,996,860 |
Paid-in capital | 114,610,339 |
Net assets, at value | $133,607,199 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($130,971,909 ÷ 8,399,063 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $15.59 |
Class B | |
Net Asset Value, offering and redemption price per share ($2,635,290 ÷ 168,337 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $15.65 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $1,196) | $2,914,533 |
Income distributions — DWS Central Cash Management Government Fund | 46,245 |
Securities lending income, net of borrower rebates | 2,105 |
Total income | 2,962,883 |
Expenses: | |
Management fee | 749,924 |
Administration fee | 121,238 |
Services to shareholders | 1,052 |
Record keeping fee (Class B) | 1,758 |
Distribution service fee (Class B) | 6,517 |
Custodian fee | 2,615 |
Audit fee | 50,161 |
Legal fees | 14,689 |
Tax fees | 7,206 |
Reports to shareholders | 23,550 |
Trustees' fees and expenses | 6,291 |
Other | 7,157 |
Total expenses before expense reductions | 992,158 |
Expense reductions | (130,297 ) |
Total expenses after expense reductions | 861,861 |
Net investment income | 2,101,022 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | (1,384,818 ) |
Change in net unrealized appreciation (depreciation) on investments | 23,072,209 |
Net gain (loss) | 21,687,391 |
Net increase (decrease) in net assets resulting from operations | $23,788,413 |
10 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $2,101,022 | $2,130,475 |
Net realized gain (loss) | (1,384,818 ) | (1,438,266 ) |
Change in net unrealized appreciation (depreciation) | 23,072,209 | (23,764,440 ) |
Net increase (decrease) in net assets resulting from operations | 23,788,413 | (23,072,231 ) |
Distributions to shareholders: | ||
Class A | (2,083,297 ) | (4,211,106 ) |
Class B | (36,527 ) | (84,944 ) |
Total distributions | (2,119,824 ) | (4,296,050 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,654,934 | 2,424,947 |
Reinvestment of distributions | 2,083,297 | 4,211,106 |
Payments for shares redeemed | (10,456,836 ) | (12,164,638 ) |
Net increase (decrease) in net assets from Class A share transactions | (6,718,605 ) | (5,528,585 ) |
Class B | ||
Proceeds from shares sold | 52,175 | 160,562 |
Reinvestment of distributions | 36,527 | 84,944 |
Payments for shares redeemed | (363,486 ) | (429,240 ) |
Net increase (decrease) in net assets from Class B share transactions | (274,784 ) | (183,734 ) |
Increase (decrease) in net assets | 14,675,200 | (33,080,600 ) |
Net assets at beginning of period | 118,931,999 | 152,012,599 |
Net assets at end of period | $133,607,199 | $118,931,999 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,866,757 | 9,269,906 |
Shares sold | 117,364 | 175,252 |
Shares issued to shareholders in reinvestment of distributions | 154,777 | 301,655 |
Shares redeemed | (739,835 ) | (880,056 ) |
Net increase (decrease) in Class A shares | (467,694 ) | (403,149 ) |
Shares outstanding at end of period | 8,399,063 | 8,866,757 |
Class B | ||
Shares outstanding at beginning of period | 186,623 | 201,242 |
Shares sold | 3,815 | 10,442 |
Shares issued to shareholders in reinvestment of distributions | 2,698 | 6,050 |
Shares redeemed | (24,799 ) | (31,111 ) |
Net increase (decrease) in Class B shares | (18,286 ) | (14,619 ) |
Shares outstanding at end of period | 168,337 | 186,623 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 11 |
Financial Highlights
DWS CROCI® U.S. VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.14 | $16.05 | $12.92 | $16.12 | $13.46 |
Income (loss) from investment operations: | |||||
Net investment incomea | .24 | .23 | .24 | .28 | .31 |
Net realized and unrealized gain (loss) | 2.45 | (2.68 ) | 3.17 | (2.47 ) | 3.92 |
Total from investment operations | 2.69 | (2.45 ) | 3.41 | (2.19 ) | 4.23 |
Less distributions from: | |||||
Net investment income | (.24 ) | (.25 ) | (.28 ) | (.31 ) | (.30 ) |
Net realized gains | — | (.21 ) | — | (.70 ) | (1.27 ) |
Total distributions | (.24 ) | (.46 ) | (.28 ) | (1.01 ) | (1.57 ) |
Net asset value, end of period | $15.59 | $13.14 | $16.05 | $12.92 | $16.12 |
Total Return (%)b | 20.76 | (15.40 ) | 26.69 | (12.16 ) | 32.95 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 131 | 116 | 149 | 130 | 153 |
Ratio of expenses before expense reductions (%)c | .79 | .79 | .78 | .84 | .84 |
Ratio of expenses after expense reductions (%)c | .68 | .65 | .71 | .69 | .70 |
Ratio of net investment income (%) | 1.69 | 1.66 | 1.62 | 2.28 | 2.13 |
Portfolio turnover rate (%) | 60 | 60 | 99 | 122 | 111 |
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, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.19 | $16.11 | $12.97 | $16.17 | $13.50 |
Income (loss) from investment operations: | |||||
Net investment incomea | .19 | .19 | .19 | .24 | .27 |
Net realized and unrealized gain (loss) | 2.47 | (2.69 ) | 3.19 | (2.47 ) | 3.92 |
Total from investment operations | 2.66 | (2.50 ) | 3.38 | (2.23 ) | 4.19 |
Less distributions from: | |||||
Net investment income | (.20 ) | (.21 ) | (.24 ) | (.27 ) | (.25 ) |
Net realized gains | — | (.21 ) | — | (.70 ) | (1.27 ) |
Total distributions | (.20 ) | (.42 ) | (.24 ) | (.97 ) | (1.52 ) |
Net asset value, end of period | $15.65 | $13.19 | $16.11 | $12.97 | $16.17 |
Total Return (%)b | 20.37 | (15.67 ) | 26.27 | (12.41 ) | 32.49 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 3 | 2 | 3 | 3 | 4 |
Ratio of expenses before expense reductions (%)c | 1.12 | 1.12 | 1.10 | 1.16 | 1.16 |
Ratio of expenses after expense reductions (%)c | 1.00 | .97 | 1.02 | 1.00 | 1.02 |
Ratio of net investment income (%) | 1.38 | 1.33 | 1.33 | 1.96 | 1.82 |
Portfolio turnover rate (%) | 60 | 60 | 99 | 122 | 111 |
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* | $2,051,213 |
Capital loss carryforwards | $(2,779,707 ) |
Net unrealized appreciation (depreciation) on investments | $19,725,354 |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $2,119,824 | $2,878,028 |
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 | .71% | |
Class B | 1.02% |
Class A | .68% | ||
Class B | 1.00% |
Class A | $127,230 |
Class B | 3,067 |
$130,297 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 17 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $510 | $85 |
Class B | 318 | 55 |
$828 | $140 |
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 |
Other Information (Unaudited)
20 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,081.10 | $1,079.30 |
Expenses Paid per $1,000* | $3.67 | $5.29 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,021.68 | $1,020.11 |
Expenses Paid per $1,000* | $3.57 | $5.14 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | .70% | 1.01% |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 25 |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
26 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 27 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
28 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Contents
3 | |
5 | |
7 | |
8 | |
20 | |
21 | |
22 | |
23 | |
25 | |
34 | |
35 | |
36 | |
37 | |
37 | |
38 | |
41 |
2 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Performance SummaryDecember 31, 2023 (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 | $11,489 | $10,838 | $14,102 | $16,586 |
Average annual total return | 14.89% | 2.72% | 7.12% | 5.19% | |
MSCI All Country World Index | Growth of $10,000 | $12,220 | $11,825 | $17,404 | $21,440 |
Average annual total return | 22.20% | 5.75% | 11.72% | 7.93% | |
Blended Index 60/40 | Growth of $10,000 | $11,570 | $10,744 | $14,615 | $17,624 |
Average annual total return | 15.70% | 2.42% | 7.89% | 5.83% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $10,617 | $9,136 | $10,741 | $12,285 |
Average annual total return | 6.17% | –2.97% | 1.44% | 2.08% |
Comparative Results | |||||
DWS Global Income Builder VIP | 1-Year | 3-Year | 5-Year | Life of Class* | |
Class B | Growth of $10,000 | $11,455 | $10,734 | $13,901 | $13,072 |
Average annual total return | 14.55% | 2.39% | 6.81% | 4.85% | |
MSCI All Country World Index | Growth of $10,000 | $12,220 | $11,825 | $17,404 | $15,768 |
Average annual total return | 22.20% | 5.75% | 11.72% | 8.37% | |
Blended Index 60/40 | Growth of $10,000 | $11,570 | $10,744 | $14,615 | $13,895 |
Average annual total return | 15.70% | 2.42% | 7.89% | 12.71% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $10,617 | $9,136 | $10,741 | $10,940 |
Average annual total return | 6.17% | –2.97% | 1.44% | 1.60% | |
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
4 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 5 |
6 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/23 | 12/31/22 |
Fixed Income | 48% | 34% |
Corporate Bonds | 20% | 20% |
Government & Agency Obligations | 12% | 6% |
Mortgage-Backed Securities Pass-Throughs | 6% | 0% |
Collateralized Mortgage Obligations | 5% | 1% |
Asset-Backed | 3% | 5% |
Commercial Mortgage-Backed Securities | 2% | 2% |
Equity | 44% | 65% |
Common Stocks | 39% | 59% |
Exchange-Traded Funds | 3% | 3% |
Preferred Stocks | 2% | 3% |
Warrants | 0% | 0% |
Rights | 0% | — |
Cash Equivalents | 8% | 1% |
Cash Equivalents | 8% | 1% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Rights, Warrants and Corporate Bonds) | 12/31/23 | 12/31/22 |
Financials | 24% | 22% |
Information Technology | 15% | 17% |
Industrials | 11% | 8% |
Consumer Discretionary | 10% | 7% |
Health Care | 9% | 10% |
Communication Services | 8% | 8% |
Consumer Staples | 6% | 8% |
Energy | 6% | 8% |
Utilities | 5% | 4% |
Real Estate | 3% | 4% |
Materials | 3% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
United States | 79% | 64% |
Japan | 3% | 4% |
Canada | 2% | 3% |
France | 2% | 2% |
Switzerland | 1% | 3% |
Netherlands | 1% | 2% |
United Kingdom | 1% | 3% |
Cayman Islands | 0% | 3% |
Mexico | — | 2% |
Other | 11% | 14% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 7 |
Investment Portfolioas of December 31, 2023
Shares | Value ($) | ||
Common Stocks 42.3% | |||
Communication Services 3.9% | |||
Diversified Telecommunication Services 0.3% | |||
AT&T, Inc. | 14,800 | 248,344 | |
KT Corp. (ADR) | 2,000 | 26,880 | |
Spark New Zealand Ltd. | 28,868 | 94,471 | |
369,695 | |||
Entertainment 0.7% | |||
Capcom Co. Ltd. | 800 | 25,798 | |
NetEase, Inc. (ADR) | 1,423 | 132,567 | |
Netflix, Inc.* | 346 | 168,460 | |
Nintendo Co., Ltd. | 8,260 | 430,790 | |
757,615 | |||
Interactive Media & Services 2.0% | |||
Alphabet, Inc. "A"* | 5,117 | 714,794 | |
Alphabet, Inc. "C"* | 4,758 | 670,545 | |
JOYY, Inc. (ADR) | 600 | 23,820 | |
Meta Platforms, Inc. "A"* | 1,735 | 614,121 | |
Tencent Holdings Ltd. (ADR) (a) | 3,684 | 139,218 | |
2,162,498 | |||
Media 0.2% | |||
Comcast Corp. "A" | 800 | 35,080 | |
Fox Corp. "B" | 748 | 20,682 | |
Interpublic Group of Companies, Inc. | 3,345 | 109,181 | |
Omnicom Group, Inc. | 280 | 24,223 | |
Trade Desk, Inc. "A"* | 299 | 21,516 | |
210,682 | |||
Wireless Telecommunication Services 0.7% | |||
KDDI Corp. | 5,300 | 168,467 | |
SoftBank Corp. | 25,601 | 319,340 | |
TIM SA (ADR) | 7,800 | 144,066 | |
T-Mobile U.S., Inc. | 800 | 128,264 | |
760,137 | |||
Consumer Discretionary 4.5% | |||
Automobile Components 0.4% | |||
Aisin Corp. | 1,200 | 41,848 | |
Denso Corp. | 4,300 | 64,614 | |
Lear Corp. | 788 | 111,273 | |
Magna International, Inc. | 4,504 | 266,117 | |
483,852 | |||
Automobiles 0.7% | |||
Honda Motor Co., Ltd. | 10,000 | 103,512 | |
Isuzu Motors Ltd. | 2,000 | 25,660 | |
Tesla, Inc.* | 1,497 | 371,975 | |
Toyota Motor Corp. | 12,700 | 233,003 | |
734,150 |
Shares | Value ($) | ||
Broadline Retail 1.1% | |||
Alibaba Group Holding Ltd. (ADR) | 1,524 | 118,125 | |
Amazon.com, Inc.* | 6,090 | 925,315 | |
JD.com, Inc. (ADR) | 1,708 | 49,344 | |
PDD Holdings, Inc. (ADR)* | 200 | 29,262 | |
Prosus NV | 1,568 | 46,795 | |
1,168,841 | |||
Distributors 0.1% | |||
Genuine Parts Co. | 200 | 27,700 | |
LKQ Corp. | 1,660 | 79,331 | |
107,031 | |||
Hotels, Restaurants & Leisure 0.7% | |||
Airbnb, Inc. "A"* | 200 | 27,228 | |
Booking Holdings, Inc.* | 23 | 81,586 | |
Chipotle Mexican Grill, Inc.* | 19 | 43,452 | |
Darden Restaurants, Inc. | 876 | 143,927 | |
Evolution AB 144A | 393 | 46,874 | |
Genting Singapore Ltd. | 68,200 | 51,641 | |
La Francaise des Jeux SAEM 144A | 3,275 | 118,807 | |
Marriott International, Inc. "A" | 143 | 32,248 | |
Starbucks Corp. | 2,300 | 220,823 | |
Yum! Brands, Inc. | 200 | 26,132 | |
792,718 | |||
Household Durables 0.2% | |||
Garmin Ltd. | 1,262 | 162,217 | |
Panasonic Holdings Corp. | 2,600 | 25,655 | |
187,872 | |||
Specialty Retail 1.1% | |||
Best Buy Co., Inc. | 2,077 | 162,588 | |
H & M Hennes & Mauritz AB "B" | 5,115 | 89,746 | |
Home Depot, Inc. | 536 | 185,751 | |
Industria de Diseno Textil SA | 8,896 | 387,464 | |
Lowe's Companies, Inc. | 1,300 | 289,315 | |
TJX Companies, Inc. | 1,372 | 128,707 | |
USS Co., Ltd. | 1,400 | 28,119 | |
1,271,690 | |||
Textiles, Apparel & Luxury Goods 0.2% | |||
Deckers Outdoor Corp.* | 72 | 48,127 | |
NIKE, Inc. "B" | 1,198 | 130,067 | |
178,194 | |||
Consumer Staples 3.5% | |||
Beverages 0.7% | |||
Ambev SA (ADR) | 76,262 | 213,534 | |
Coca-Cola Co. | 5,069 | 298,716 |
8 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Monster Beverage Corp.* | 2,692 | 155,086 | |
PepsiCo, Inc. | 684 | 116,171 | |
783,507 | |||
Consumer Staples Distribution & Retail 1.1% | |||
Costco Wholesale Corp. | 143 | 94,391 | |
Jeronimo Martins SGPS SA | 1,010 | 25,715 | |
Sysco Corp. | 3,435 | 251,201 | |
Target Corp. | 2,805 | 399,488 | |
Tesco PLC | 105,108 | 389,733 | |
1,160,528 | |||
Food Products 0.2% | |||
General Mills, Inc. | 900 | 58,626 | |
Lamb Weston Holdings, Inc. | 200 | 21,618 | |
Nestle SA (Registered) | 663 | 76,843 | |
Salmar ASA | 1,865 | 104,603 | |
261,690 | |||
Household Products 0.4% | |||
Kimberly-Clark Corp. | 200 | 24,302 | |
Procter & Gamble Co. | 2,531 | 370,893 | |
395,195 | |||
Personal Care Products 0.1% | |||
Kenvue, Inc. | 4,100 | 88,273 | |
Tobacco 1.0% | |||
Japan Tobacco, Inc. (a) | 30,100 | 777,776 | |
Philip Morris International, Inc. | 3,477 | 327,116 | |
1,104,892 | |||
Energy 1.7% | |||
Energy Equipment & Services 0.0% | |||
Tenaris SA | 1,573 | 27,382 | |
Oil, Gas & Consumable Fuels 1.7% | |||
Canadian Natural Resources Ltd. | 2,577 | 168,831 | |
Chevron Corp. | 2,707 | 403,776 | |
ConocoPhillips | 987 | 114,561 | |
Coterra Energy, Inc. | 3,503 | 89,397 | |
Diamondback Energy, Inc. | 100 | 15,508 | |
EOG Resources, Inc. | 1,688 | 204,164 | |
Imperial Oil Ltd. | 2,292 | 130,561 | |
Marathon Petroleum Corp. | 200 | 29,672 | |
ONEOK, Inc. | 5,497 | 385,999 | |
Phillips 66 | 1,415 | 188,393 | |
Pioneer Natural Resources Co. | 173 | 38,904 | |
Valero Energy Corp. | 500 | 65,000 | |
1,834,766 | |||
Financials 6.9% | |||
Banks 2.4% | |||
Banco Bradesco SA (ADR) | 22,579 | 79,027 | |
BNP Paribas SA | 1,868 | 129,217 | |
CaixaBank SA | 50,380 | 207,508 | |
Erste Group Bank AG | 676 | 27,451 |
Shares | Value ($) | ||
Fifth Third Bancorp. | 26,623 | 918,227 | |
HSBC Holdings PLC | 22,793 | 184,661 | |
ING Groep NVSeries N | 19,509 | 291,966 | |
Intesa Sanpaolo SpA | 154,865 | 453,254 | |
M&T Bank Corp. | 430 | 58,944 | |
PNC Financial Services Group, Inc. | 573 | 88,729 | |
U.S. Bancorp. | 666 | 28,824 | |
UniCredit SpA | 910 | 24,722 | |
Wells Fargo & Co. | 3,500 | 172,270 | |
2,664,800 | |||
Capital Markets 1.3% | |||
3i Group PLC | 847 | 26,178 | |
Ares Management Corp. "A" | 366 | 43,525 | |
BlackRock, Inc. | 231 | 187,526 | |
CME Group, Inc. | 143 | 30,116 | |
Hargreaves Lansdown PLC | 3,514 | 32,841 | |
Partners Group Holding AG | 205 | 296,150 | |
S&P Global, Inc. | 716 | 315,412 | |
SBI Holdings, Inc. | 8,300 | 186,325 | |
Singapore Exchange Ltd. | 10,400 | 77,508 | |
T. Rowe Price Group, Inc. | 2,439 | 262,656 | |
1,458,237 | |||
Consumer Finance 0.4% | |||
American Express Co. | 543 | 101,726 | |
Discover Financial Services | 1,645 | 184,898 | |
Synchrony Financial | 2,400 | 91,656 | |
378,280 | |||
Financial Services 0.6% | |||
Investor AB "B" | 3,045 | 70,566 | |
Mastercard, Inc. "A" | 532 | 226,903 | |
PayPal Holdings, Inc.* | 460 | 28,249 | |
Visa, Inc. "A" | 1,266 | 329,603 | |
655,321 | |||
Insurance 2.2% | |||
Aegon Ltd. | 42,908 | 249,259 | |
Allianz SE (Registered) | 648 | 173,462 | |
Assicurazioni Generali SpA | 5,860 | 123,715 | |
AXA SA | 7,711 | 251,557 | |
Chubb Ltd. | 215 | 48,590 | |
Cincinnati Financial Corp. | 758 | 78,423 | |
Fidelity National Financial, Inc. | 7,102 | 362,344 | |
Gjensidige Forsikring ASA | 4,126 | 76,208 | |
Great-West Lifeco, Inc. | 1,100 | 36,411 | |
Manulife Financial Corp. | 28,836 | 637,197 | |
Power Corp. of Canada | 1,000 | 28,595 | |
Principal Financial Group, Inc. | 1,261 | 99,203 | |
Progressive Corp. | 573 | 91,267 | |
Travelers Companies, Inc. | 358 | 68,195 | |
Zurich Insurance Group AG | 162 | 84,740 | |
2,409,166 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
Health Care 4.7% | |||
Biotechnology 0.7% | |||
AbbVie, Inc. | 2,158 | 334,425 | |
Amgen, Inc. | 517 | 148,906 | |
Gilead Sciences, Inc. | 1,525 | 123,540 | |
Moderna, Inc.* | 246 | 24,465 | |
Neurocrine Biosciences, Inc.* | 300 | 39,528 | |
Vertex Pharmaceuticals, Inc.* | 315 | 128,171 | |
799,035 | |||
Health Care Equipment & Supplies 0.4% | |||
BioMerieux | 276 | 30,663 | |
Dexcom, Inc.* | 434 | 53,855 | |
DiaSorin SpA | 275 | 28,302 | |
Edwards Lifesciences Corp.* | 549 | 41,861 | |
Fisher & Paykel Healthcare Corp. Ltd. | 5,797 | 86,075 | |
Hoya Corp. | 300 | 37,336 | |
Intuitive Surgical, Inc.* | 337 | 113,690 | |
ResMed, Inc. | 100 | 17,202 | |
408,984 | |||
Health Care Providers & Services 0.8% | |||
Cigna Group | 128 | 38,330 | |
Elevance Health, Inc. | 149 | 70,262 | |
Humana, Inc. | 243 | 111,248 | |
Molina Healthcare, Inc.* | 72 | 26,014 | |
UnitedHealth Group, Inc. | 1,190 | 626,499 | |
872,353 | |||
Pharmaceuticals 2.8% | |||
Daiichi Sankyo Co. Ltd. | 900 | 24,679 | |
Eli Lilly & Co. | 749 | 436,607 | |
Hikma Pharmaceuticals PLC | 6,436 | 146,848 | |
Johnson & Johnson | 2,344 | 367,399 | |
Merck & Co., Inc. | 5,525 | 602,336 | |
Novartis AG (Registered) | 3,779 | 382,105 | |
Novo Nordisk AS "B" | 2,919 | 301,805 | |
Ono Pharmaceutical Co. Ltd. | 8,100 | 144,273 | |
Pfizer, Inc. | 17,527 | 504,602 | |
Roche Holding AG | 624 | 183,473 | |
3,094,127 | |||
Industrials 5.4% | |||
Aerospace & Defense 0.5% | |||
Airbus SE | 933 | 144,093 | |
BAE Systems PLC | 2,527 | 35,812 | |
Dassault Aviation SA | 222 | 44,015 | |
General Dynamics Corp. | 922 | 239,416 | |
Huntington Ingalls Industries, Inc. | 372 | 96,586 | |
Kongsberg Gruppen ASA | 793 | 36,352 | |
596,274 |
Shares | Value ($) | ||
Air Freight & Logistics 0.3% | |||
FedEx Corp. | 700 | 177,079 | |
United Parcel Service, Inc. "B" | 748 | 117,608 | |
294,687 | |||
Building Products 0.2% | |||
AGC, Inc. (a) | 5,600 | 207,877 | |
Carlisle Companies, Inc. | 72 | 22,495 | |
230,372 | |||
Commercial Services & Supplies 0.0% | |||
Copart, Inc.* | 978 | 47,922 | |
Quad Graphics, Inc.* | 2 | 11 | |
47,933 | |||
Construction & Engineering 0.3% | |||
Bouygues SA | 7,332 | 276,363 | |
Electrical Equipment 0.4% | |||
Emerson Electric Co. | 3,100 | 301,723 | |
Mitsubishi Electric Corp. | 2,300 | 32,875 | |
Rockwell Automation, Inc. | 206 | 63,959 | |
398,557 | |||
Ground Transportation 0.3% | |||
J.B. Hunt Transport Services, Inc. | 287 | 57,326 | |
MTR Corp. Ltd. | 42,500 | 164,977 | |
Union Pacific Corp. | 245 | 60,177 | |
282,480 | |||
Industrial Conglomerates 0.6% | |||
3M Co. | 2,886 | 315,497 | |
Jardine Cycle & Carriage Ltd. | 4,900 | 110,677 | |
Keppel Corp. Ltd. | 37,500 | 201,036 | |
Siemens AG (Registered) | 156 | 29,289 | |
656,499 | |||
Machinery 1.8% | |||
Caterpillar, Inc. | 771 | 227,962 | |
Cummins, Inc. | 671 | 160,752 | |
Daimler Truck Holding AG | 2,467 | 93,081 | |
Kone Oyj "B" | 3,418 | 170,505 | |
Metso Oyj | 6,550 | 66,469 | |
Nordson Corp. | 200 | 52,832 | |
Parker-Hannifin Corp. | 200 | 92,140 | |
Schindler Holding AG (Registered) | 430 | 101,957 | |
SKF AB "B" | 2,314 | 46,233 | |
Snap-on, Inc. | 206 | 59,501 | |
Volvo AB "A" | 3,790 | 100,424 | |
Volvo AB "B" | 31,489 | 818,110 | |
1,989,966 | |||
Marine Transportation 0.1% | |||
Kuehne & Nagel International AG (Registered) | 205 | 70,825 | |
Professional Services 0.8% | |||
Automatic Data Processing, Inc. | 1,263 | 294,241 |
10 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Paychex, Inc. | 2,334 | 278,003 | |
Paycom Software, Inc. | 165 | 34,109 | |
Thomson Reuters Corp. | 1,734 | 253,521 | |
859,874 | |||
Trading Companies & Distributors 0.1% | |||
United Rentals, Inc. | 72 | 41,286 | |
W.W. Grainger, Inc. | 100 | 82,869 | |
124,155 | |||
Transportation Infrastructure 0.0% | |||
Aena SME SA 144A | 214 | 38,783 | |
Information Technology 8.6% | |||
Communications Equipment 0.5% | |||
Arista Networks, Inc.* | 243 | 57,229 | |
Cisco Systems, Inc. | 10,615 | 536,270 | |
593,499 | |||
IT Services 0.4% | |||
Accenture PLC "A" | 326 | 114,397 | |
Infosys Ltd. (ADR) | 9,070 | 166,707 | |
International Business Machines Corp. | 256 | 41,869 | |
MongoDB, Inc.* | 34 | 13,901 | |
Shopify, Inc. "A"* | 1,187 | 92,412 | |
429,286 | |||
Semiconductors & Semiconductor Equipment 3.0% | |||
Advanced Micro Devices, Inc.* | 1,876 | 276,541 | |
Applied Materials, Inc. | 358 | 58,021 | |
ASML Holding NV | 647 | 488,221 | |
BE Semiconductor Industries NV | 394 | 59,504 | |
Broadcom, Inc. | 499 | 557,009 | |
First Solar, Inc.* | 100 | 17,228 | |
Intel Corp. | 594 | 29,848 | |
Lam Research Corp. | 107 | 83,809 | |
Monolithic Power Systems, Inc. | 65 | 41,001 | |
NVIDIA Corp. | 1,925 | 953,298 | |
QUALCOMM, Inc. | 361 | 52,211 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 3,016 | 313,664 | |
Texas Instruments, Inc. | 2,060 | 351,148 | |
3,281,503 | |||
Software 3.0% | |||
Adobe, Inc.* | 354 | 211,196 | |
Autodesk, Inc.* | 100 | 24,348 | |
Cadence Design Systems, Inc.* | 561 | 152,800 | |
Fortinet, Inc.* | 800 | 46,824 | |
Intuit, Inc. | 506 | 316,265 | |
Microsoft Corp. | 5,571 | 2,094,919 | |
Oracle Corp. | 915 | 96,468 | |
Salesforce, Inc.* | 500 | 131,570 |
Shares | Value ($) | ||
SAP SE | 179 | 27,612 | |
ServiceNow, Inc.* | 100 | 70,649 | |
Splunk, Inc.* | 200 | 30,470 | |
Synopsys, Inc.* | 143 | 73,632 | |
UiPath, Inc. "A"* | 1,500 | 37,260 | |
Zoom Video Communications, Inc. "A"* | 358 | 25,744 | |
3,339,757 | |||
Technology Hardware, Storage & Peripherals 1.7% | |||
Apple, Inc. | 9,030 | 1,738,546 | |
Brother Industries Ltd. | 4,100 | 65,312 | |
Canon, Inc. | 1,300 | 33,312 | |
1,837,170 | |||
Materials 1.3% | |||
Chemicals 0.4% | |||
Air Products & Chemicals, Inc. | 63 | 17,250 | |
CF Industries Holdings, Inc. | 300 | 23,850 | |
Clariant AG (Registered) | 2,398 | 35,397 | |
LyondellBasell Industries NV "A" | 2,414 | 229,523 | |
Sasol Ltd. (ADR) | 4,700 | 46,718 | |
Shin-Etsu Chemical Co., Ltd. | 1,800 | 75,197 | |
427,935 | |||
Construction Materials 0.1% | |||
CRH PLC | 1,438 | 99,112 | |
Holcim AG | 298 | 23,418 | |
122,530 | |||
Metals & Mining 0.8% | |||
Antofagasta PLC | 5,721 | 122,592 | |
Barrick Gold Corp. | 1,800 | 32,521 | |
BHP Group Ltd. | 8,016 | 274,242 | |
Newmont Corp. | 4,700 | 194,533 | |
Rio Tinto PLC | 1,664 | 124,076 | |
Sumitomo Metal Mining Co., Ltd. | 3,200 | 95,934 | |
843,898 | |||
Real Estate 1.2% | |||
Real Estate Management & Development 0.2% | |||
Daito Trust Construction Co., Ltd. | 500 | 57,919 | |
Sino Land Co., Ltd. | 36,000 | 39,187 | |
Swire Pacific Ltd. "A" | 13,000 | 110,113 | |
207,219 | |||
Retail REITs 0.1% | |||
Simon Property Group, Inc. | 744 | 106,124 | |
Specialized REITs 0.9% | |||
American Tower Corp. | 200 | 43,176 | |
Gaming and Leisure Properties, Inc. | 2,029 | 100,131 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 11 |
Shares | Value ($) | ||
Public Storage | 260 | 79,300 | |
VICI Properties, Inc. | 26,100 | 832,068 | |
1,054,675 | |||
Utilities 0.6% | |||
Electric Utilities 0.3% | |||
CLP Holdings Ltd. | 5,000 | 41,283 | |
Orsted AS 144A | 3,174 | 175,724 | |
SSE PLC | 1,157 | 27,384 | |
Verbund AG | 992 | 92,096 | |
336,487 | |||
Gas Utilities 0.3% | |||
Hong Kong & China Gas Co., Ltd. | 190,000 | 145,604 | |
Naturgy Energy Group SA | 3,407 | 101,588 | |
247,192 | |||
Independent Power & Renewable Electricity Producers 0.0% | |||
Northland Power, Inc. | 1,500 | 27,248 | |
Total Common Stocks (Cost $34,095,536) | 46,302,802 | ||
Preferred Stocks 2.1% | |||
Financials 1.3% | |||
AGNC Investment Corp., Series C, 7.0% | 14,427 | 358,222 | |
Fifth Third Bancorp., Series I, 9.302% | 10,000 | 254,700 | |
KeyCorp., Series E, 6.125% | 10,000 | 214,400 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 242,200 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 358,950 | |
1,428,472 | |||
Real Estate 0.8% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 351,000 | |
Prologis, Inc., Series Q, 8.54% | 164 | 9,100 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 474,400 | |
834,500 | |||
Total Preferred Stocks (Cost $2,574,794) | 2,262,972 | ||
Rights 0.0% | |||
Health Care | |||
Contra Abiomed, Inc.,* (b) (Cost $204) | 200 | 204 |
Shares | Value ($) | ||
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (b) (Cost $30,283) | 170 | 5,994 |
Principal Amount ($) (c) | Value ($) | ||
Corporate Bonds 21.3% | |||
Communication Services 1.2% | |||
AT&T, Inc.: | |||
2.25%, 2/1/2032 | 80,000 | 66,155 | |
3.65%, 6/1/2051 | 100,000 | 75,307 | |
5.4%, 2/15/2034 | 50,000 | 51,566 | |
CCO Holdings LLC, 144A, 5.125%, 5/1/2027 | 275,000 | 265,697 | |
Charter Communications Operating LLC: | |||
2.25%, 1/15/2029 | 120,000 | 104,120 | |
3.5%, 3/1/2042 | 57,000 | 39,648 | |
Comcast Corp., 5.5%, 5/15/2064 | 75,000 | 78,889 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 28,462 | |
Paramount Global, 4.6%, 1/15/2045 | 60,000 | 45,628 | |
Rogers Communications, Inc., 3.8%, 3/15/2032 | 102,000 | 93,863 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 | 300,000 | 255,655 | |
T-Mobile U.S.A., Inc.: | |||
3.3%, 2/15/2051 | 125,000 | 90,304 | |
3.6%, 11/15/2060 | 25,000 | 18,196 | |
4.375%, 4/15/2040 | 60,000 | 54,137 | |
Verizon Communications, Inc.: | |||
2.65%, 11/20/2040 | 40,000 | 28,821 | |
3.7%, 3/22/2061 | 100,000 | 76,395 | |
1,372,843 | |||
Consumer Discretionary 1.8% | |||
Ford Motor Co., 3.25%, 2/12/2032 | 260,000 | 216,243 | |
Ford Motor Credit Co. LLC: | |||
2.7%, 8/10/2026 | 230,000 | 213,023 | |
2.9%, 2/16/2028 | 200,000 | 179,555 | |
General Motors Co., 5.6%, 10/15/2032 | 275,000 | 281,175 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 66,133 | |
5.4%, 4/6/2026 | 70,000 | 70,444 | |
6.1%, 1/7/2034 | 210,000 | 216,218 | |
Lowe's Companies, Inc., 5.625%, 4/15/2053 | 50,000 | 52,421 | |
Tapestry, Inc.: | |||
7.0%, 11/27/2026 | 180,000 | 186,603 | |
7.35%, 11/27/2028 | 130,000 | 136,369 |
12 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Warnermedia Holdings, Inc.: | |||
4.279%, 3/15/2032 | 300,000 | 274,561 | |
5.05%, 3/15/2042 | 50,000 | 44,079 | |
5.141%, 3/15/2052 | 100,000 | 85,836 | |
2,022,660 | |||
Consumer Staples 0.9% | |||
Anheuser-Busch Companies LLC, 4.9%, 2/1/2046 | 166,000 | 162,720 | |
JBS U.S.A. Lux SA: | |||
2.5%, 1/15/2027 | 260,000 | 239,268 | |
144A, 6.75%, 3/15/2034 | 150,000 | 158,044 | |
Philip Morris International, Inc.: | |||
5.125%, 2/15/2030 | 150,000 | 152,448 | |
5.625%, 11/17/2029 | 60,000 | 62,916 | |
5.75%, 11/17/2032 | 50,000 | 52,473 | |
The J M Smucker Co.: | |||
6.5%, 11/15/2043 | 80,000 | 89,121 | |
6.5%, 11/15/2053 | 50,000 | 57,662 | |
974,652 | |||
Energy 2.5% | |||
BP Capital Markets PLC, 4.375%, Perpetual (d) | 200,000 | 195,103 | |
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 200,426 | |
Cheniere Energy Partners LP, 4.0%, 3/1/2031 | 250,000 | 227,286 | |
Cheniere Energy, Inc., 4.625%, 10/15/2028 | 320,000 | 312,361 | |
Columbia Pipelines Holding Co. LLC, 144A, 6.055%, 8/15/2026 | 40,000 | 40,945 | |
Columbia Pipelines Operating Co. LLC: | |||
144A, 5.927%, 8/15/2030 | 80,000 | 82,721 | |
144A, 6.497%, 8/15/2043 | 30,000 | 32,128 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 297,293 | |
Enbridge, Inc., 6.2%, 11/15/2030 | 70,000 | 74,901 | |
Energy Transfer LP: | |||
5.0%, 5/15/2050 | 208,000 | 185,447 | |
144A, 7.375%, 2/1/2031 | 85,000 | 89,330 | |
Enterprise Products Operating LLC, 4.2%, 1/31/2050 | 144,000 | 124,903 | |
MPLX LP, 5.0%, 3/1/2033 | 50,000 | 48,980 | |
Occidental Petroleum Corp., 8.875%, 7/15/2030 | 300,000 | 351,061 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 46,010 | |
Targa Resources Corp., 6.5%, 2/15/2053 | 80,000 | 86,455 | |
TransCanada PipeLines Ltd., 2.5%, 10/12/2031 | 90,000 | 75,225 |
Principal Amount ($) (c) | Value ($) | ||
Western Midstream Operating LP, 5.3%, 3/1/2048 | 85,000 | 73,969 | |
Williams Companies, Inc.: | |||
4.65%, 8/15/2032 | 120,000 | 116,976 | |
5.65%, 3/15/2033 | 90,000 | 94,016 | |
2,755,536 | |||
Financials 7.3% | |||
AerCap Ireland Capital DAC: | |||
1.75%, 1/30/2026 | 150,000 | 139,294 | |
3.4%, 10/29/2033 | 150,000 | 128,801 | |
Air Lease Corp., Series C, 4.125%, Perpetual (d) | 200,000 | 155,191 | |
Aircastle Ltd.: | |||
Series A, 144A, 5.25%, Perpetual (d) | 130,000 | 111,450 | |
144A, 6.5%, 7/18/2028 | 90,000 | 91,774 | |
Ally Financial, Inc., Series B, 4.7%, Perpetual (d) | 500,000 | 375,031 | |
American Express Co., 5.282%, 7/27/2029 | 140,000 | 142,906 | |
Bank of America Corp.: | |||
2.972%, 2/4/2033 | 200,000 | 170,164 | |
Series RR, 4.375%, Perpetual (d) | 530,000 | 472,350 | |
Bank of New York Mellon Corp.: | |||
Series H, 3.7%, Perpetual (d) | 180,000 | 168,608 | |
Series I, 3.75%, Perpetual (d) | 345,000 | 298,194 | |
BNP Paribas SA, 144A, 8.5%, Perpetual (d) | 280,000 | 293,223 | |
Capital One Financial Corp.: | |||
Series M, 3.95%, Perpetual (d) | 350,000 | 280,504 | |
7.149%, 10/29/2027 | 150,000 | 155,720 | |
Charles Schwab Corp.: | |||
Series I, 4.0%, Perpetual (d) | 220,000 | 193,925 | |
5.853%, 5/19/2034 | 150,000 | 154,838 | |
Citigroup, Inc.: | |||
3.057%, 1/25/2033 | 70,000 | 59,723 | |
6.27%, 11/17/2033 | 130,000 | 139,101 | |
7.625%, Perpetual (d) | 150,000 | 153,165 | |
Corebridge Financial, Inc., 5.75%, 1/15/2034 | 130,000 | 132,881 | |
Enstar Finance LLC, 5.5%, 1/15/2042 | 200,000 | 169,388 | |
Fairfax Financial Holdings Ltd., 144A, 6.0%, 12/7/2033 | 130,000 | 133,429 | |
HSBC Holdings PLC: | |||
7.39%, 11/3/2028 | 200,000 | 214,307 | |
7.399%, 11/13/2034 | 300,000 | 329,091 | |
Huntington Bancshares, Inc., 6.208%, 8/21/2029 | 150,000 | 154,670 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (c) | Value ($) | ||
KKR Group Finance Co., XII LLC, 144A, 4.85%, 5/17/2032 | 130,000 | 127,130 | |
Morgan Stanley, 2.484%, 9/16/2036 | 141,000 | 111,755 | |
PNC Financial Services Group, Inc.: | |||
Series T, 3.4%, Perpetual (d) | 320,000 | 255,976 | |
5.068%, 1/24/2034 | 70,000 | 68,492 | |
Series W, 6.25%, Perpetual (d) | 430,000 | 400,832 | |
Societe Generale SA: | |||
144A, 5.375%, Perpetual (d) | 250,000 | 204,533 | |
144A, 6.221%, 6/15/2033 | 225,000 | 224,584 | |
Synchrony Bank, 5.625%, 8/23/2027 | 250,000 | 245,713 | |
The Goldman Sachs Group, Inc.: | |||
2.615%, 4/22/2032 | 165,000 | 138,502 | |
Series T, 3.8%, Perpetual (d) | 170,000 | 151,391 | |
Series W, 7.5%, Perpetual (d) | 225,000 | 235,101 | |
Truist Financial Corp.: | |||
Series N, 4.8%, Perpetual (d) | 300,000 | 275,803 | |
5.122%, 1/26/2034 | 90,000 | 87,147 | |
U.S. Bancorp.: | |||
5.775%, 6/12/2029 | 250,000 | 256,838 | |
5.85%, 10/21/2033 | 60,000 | 61,814 | |
UBS Group AG, 144A, 4.375%, Perpetual (d) | 200,000 | 157,956 | |
Westpac Banking Corp., 5.0%, Perpetual (d) | 200,000 | 183,686 | |
8,004,981 | |||
Health Care 1.3% | |||
Amgen, Inc.: | |||
5.25%, 3/2/2033 | 80,000 | 82,019 | |
5.65%, 3/2/2053 | 80,000 | 84,167 | |
Bayer U.S. Finance LLC, 144A, 6.125%, 11/21/2026 | 200,000 | 203,336 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 300,000 | 274,716 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 163,679 | |
HCA, Inc., 5.5%, 6/15/2047 | 55,000 | 52,949 | |
Humana, Inc., 5.875%, 3/1/2033 | 40,000 | 42,612 | |
Quest Diagnostics, Inc., 6.4%, 11/30/2033 | 90,000 | 99,819 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | 463,000 | 428,691 | |
1,431,988 |
Principal Amount ($) (c) | Value ($) | ||
Industrials 1.7% | |||
American Airlines, Inc., 144A, 5.5%, 4/20/2026 | 87,500 | 86,869 | |
Block, Inc., 2.75%, 6/1/2026 | 30,000 | 28,291 | |
Boeing Co., 5.805%, 5/1/2050 | 115,000 | 119,088 | |
Carrier Global Corp.: | |||
144A, 5.9%, 3/15/2034 | 60,000 | 64,896 | |
144A, 6.2%, 3/15/2054 | 20,000 | 23,119 | |
Delta Air Lines, Inc., 3.75%, 10/28/2029 | 135,000 | 123,586 | |
Global Payments, Inc., 5.95%, 8/15/2052 | 70,000 | 71,327 | |
Howmet Aerospace, Inc., 5.95%, 2/1/2037 | 275,000 | 287,052 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 421,400 | 422,596 | |
Penske Truck Leasing Co. LP, 144A, 6.05%, 8/1/2028 | 170,000 | 176,203 | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | 33,000 | 32,715 | |
RTX Corp., 6.4%, 3/15/2054 | 135,000 | 156,287 | |
Ryder System, Inc., 6.6%, 12/1/2033 | 100,000 | 110,870 | |
United Rentals North America, Inc., 144A, 6.0%, 12/15/2029 | 110,000 | 111,680 | |
1,814,579 | |||
Information Technology 1.2% | |||
Broadcom, Inc., 144A, 2.6%, 2/15/2033 | 70,000 | 57,670 | |
Hewlett Packard Enterprise Co., 5.9%, 10/1/2024 | 280,000 | 280,655 | |
HP, Inc., 5.5%, 1/15/2033 (a) | 200,000 | 205,248 | |
Marvell Technology, Inc.: | |||
2.95%, 4/15/2031 | 95,000 | 83,017 | |
5.95%, 9/15/2033 | 60,000 | 63,623 | |
Micron Technology, Inc., 6.75%, 11/1/2029 | 210,000 | 226,923 | |
Open Text Corp., 144A, 3.875%, 2/15/2028 | 175,000 | 162,612 | |
Oracle Corp.: | |||
3.65%, 3/25/2041 | 118,000 | 93,587 | |
5.55%, 2/6/2053 | 50,000 | 50,014 | |
6.9%, 11/9/2052 | 52,000 | 61,031 | |
1,284,380 | |||
Materials 0.6% | |||
Celanese U.S. Holdings LLC: | |||
6.165%, 7/15/2027 | 100,000 | 102,536 | |
6.35%, 11/15/2028 | 50,000 | 52,436 |
14 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Corp. Nacional del Cobre de Chile, 144A, 5.95%, 1/8/2034 | 200,000 | 202,730 | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 252,774 | |
610,476 | |||
Real Estate 0.2% | |||
Boston Properties LP: | |||
2.55%, 4/1/2032 | 75,000 | 59,705 | |
6.75%, 12/1/2027 | 90,000 | 94,234 | |
Kimco Realty OP LLC, 6.4%, 3/1/2034 | 70,000 | 76,751 | |
230,690 | |||
Utilities 2.6% | |||
CMS Energy Corp., 3.75%, 12/1/2050 | 400,000 | 315,750 | |
Constellation Energy Generation LLC, 6.5%, 10/1/2053 | 90,000 | 101,494 | |
Duke Energy Corp., 3.25%, 1/15/2082 | 250,000 | 193,311 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 194,279 | |
Jersey Central Power & Light Co., 144A, 2.75%, 3/1/2032 | 85,000 | 71,738 | |
Nevada Power Co., 6.0%, 3/15/2054 | 90,000 | 98,737 | |
NextEra Energy Operating Partners LP, 144A, 3.875%, 10/15/2026 | 190,000 | 180,903 | |
NRG Energy, Inc., 144A, 2.45%, 12/2/2027 | 250,000 | 225,396 | |
Ohio Edison Co., 144A, 5.5%, 1/15/2033 | 67,000 | 67,809 | |
Pacific Gas and Electric Co.: | |||
3.3%, 8/1/2040 | 70,000 | 51,224 | |
5.45%, 6/15/2027 | 90,000 | 90,725 | |
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 281,245 |
Sempra: | |||
4.125%, 4/1/2052 | 310,000 | 266,032 | |
5.5%, 8/1/2033 | 68,000 | 70,479 | |
Sierra Pacific Power Co., 144A, 5.9%, 3/15/2054 | 50,000 | 52,923 | |
Southern Co.: | |||
Series 21-A, 3.75%, 9/15/2051 | 215,000 | 195,758 | |
5.2%, 6/15/2033 | 80,000 | 81,605 | |
Vistra Operations Co. LLC, 144A, 6.95%, 10/15/2033 | 200,000 | 210,487 | |
Xcel Energy, Inc., 4.6%, 6/1/2032 | 140,000 | 136,481 | |
2,886,376 | |||
Total Corporate Bonds (Cost $24,480,766) | 23,389,161 |
Principal Amount ($) (c) | Value ($) | ||
Asset-Backed 3.3% | |||
Automobile Receivables 0.8% | |||
CPS Auto Receivables Trust, “C”, Series 2023-C, 144A, 6.27%, 10/15/2029 | 100,000 | 100,820 | |
Foursight Capital Automobile Receivables Trust, “C”, Series 2023-2, 144A, 6.21%, 4/16/2029 | 250,000 | 252,714 | |
Hertz Vehicle Financing III LLC, “C”, Series 2023-1A, 144A, 6.91%, 6/25/2027 | 340,000 | 340,481 | |
JPMorgan Chase Bank NA, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 61,959 | 61,026 | |
Santander Drive Auto Receivables Trust, “C”, Series 2023-3, 5.77%, 11/15/2030 | 100,000 | 101,267 | |
856,308 | |||
Miscellaneous 2.5% | |||
CF Hippolyta Issuer LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 520,231 | 441,222 | |
DB Master Finance LLC, “A23”, Series 2021-1A, 144A, 2.791%, 11/20/2051 | 1,102,500 | 909,684 | |
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 320,450 | 305,635 | |
Frontier Issuer LLC, “A2”, Series 2023-1, 144A, 6.6%, 8/20/2053 | 250,000 | 248,704 | |
Madison Park Funding XXXVIII Ltd., “C”, Series 2021-38A, 144A, 90-day average SOFR + 2.162%, 7.564% (e), 7/17/2034 | 250,000 | 248,068 | |
Mosaic Solar Loan Trust, “B”, Series 2023-1A, 144A, 6.92%, 6/20/2053 | 316,715 | 314,352 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 411,450 | 343,417 | |
2,811,082 | |||
Total Asset-Backed (Cost $4,006,369) | 3,667,390 | ||
Mortgage-Backed Securities Pass- Throughs 7.3% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 882 | 929 | |
Federal National Mortgage Association: | |||
2.0%, 1/1/2054 (f) | 1,300,000 | 1,062,351 | |
2.5%, 1/1/2054 (f) | 900,000 | 765,636 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 15 |
Principal Amount ($) (c) | Value ($) | ||
4.5%, with various maturities from 9/1/2035 - 1/1/2054 (f) | 1,002,609 | 972,076 | |
5.0%, 1/1/2054 (f) | 3,000,000 | 2,969,046 | |
5.5%, 1/1/2054 (f) | 2,200,000 | 2,210,494 | |
Total Mortgage-Backed Securities Pass-Throughs (Cost $7,822,116) | 7,980,532 | ||
Commercial Mortgage-Backed Securities 2.1% | |||
20 Times Square Trust, “C”, Series 2018-20TS, 144A, 3.1% (e), 5/15/2035 | 200,000 | 170,533 | |
2023-MIC Trust, “B”, Series 2023-MIC, 144A, 9.532%, 12/5/2038 | 600,000 | 633,611 | |
Benchmark Mortgage Trust, “A4”, Series 2020-IG3, 144A, 2.437%, 9/15/2048 | 100,000 | 80,787 | |
BXP Trust, “B”, Series 2021- 601L, 144A, 2.775% (e), 1/15/2044 | 250,000 | 184,451 | |
Citigroup Commercial Mortgage Trust: | |||
“A”, Series 2013-375P, 144A, 3.251%, 5/10/2035 | 141,926 | 133,948 | |
“F”, Series 2021-PRM2, 144A, 30-day average SOFR + 3.864%, 9.226% (e), 10/15/2038 | 275,000 | 264,588 | |
Cold Storage Trust, “D”, Series 2020-ICE5, 144A, 30-day average SOFR + 2.214%, 7.572% (e), 11/15/2037 | 245,748 | 242,837 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 9.087% (e), 1/25/2051 | 194,000 | 185,245 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
“A”, Series 2021-1MEM, 144A, 2.516%, 10/9/2042 | 250,000 | 194,997 | |
“A”, Series 2019-OSB, 144A, 3.397%, 6/5/2039 | 250,000 | 224,866 | |
Total Commercial Mortgage-Backed Securities (Cost $2,269,189) | 2,315,863 |
Principal Amount ($) (c) | Value ($) | ||
Collateralized Mortgage Obligations 5.2% | |||
Federal National Mortgage Association: | |||
“I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 40,103 | 6,680 | |
“FG”, Series 2023-53, 30- day average SOFR + 1.9%, 7.0% (e), 11/25/2053 | 3,859,000 | 4,009,717 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M1B”, Series 2022-DNA2, 144A, 30-day average SOFR + 2.4%, 7.737% (e), 2/25/2042 | 155,000 | 156,837 | |
“M2”, Series 2019-DNA2, 144A, 30-day average SOFR + 2.564%, 7.902% (e), 3/25/2049 | 199,598 | 200,602 | |
Government National Mortgage Association,, 6.0%, 1/1/2054 (f) | 1,000,000 | 1,015,700 | |
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.239% (e), 10/25/2046 | 113,944 | 101,643 | |
Western Mortgage Reference Notes, “M1”, Series 2021-CL2, 144A, 30-day average SOFR + 3.15%, 8.487% (e), 7/25/2059 | 241,520 | 240,642 | |
Total Collateralized Mortgage Obligations (Cost $5,577,891) | 5,731,821 | ||
Government & Agency Obligations 12.7% | |||
Sovereign Bonds 0.4% | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 | 200,000 | 183,026 | |
Indonesia Government International Bond, 3.85%, 10/15/2030 | 300,000 | 285,675 | |
468,701 | |||
U.S. Treasury Obligations 12.3% | |||
U.S. Treasury Bills, 5.374% (g), 3/21/2024 (h) | 3,000,000 | 2,965,821 | |
U.S. Treasury Bonds, 3.625%, 2/15/2053 | 47,800 | 44,140 | |
U.S. Treasury Floating Rate Notes, 3-month U.S. Treasury Bill Money Market Yield + 0.125%, 5.456% (e), 7/31/2025 | 7,941,700 | 7,930,963 | |
U.S. Treasury Notes: | |||
2.75%, 5/31/2029 | 1,021,100 | 964,022 | |
3.5%, 2/15/2033 | 686,300 | 665,524 | |
4.125%, 11/15/2032 | 600,100 | 609,992 |
16 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
4.625%, 9/30/2028 | 286,400 | 295,619 | |
13,476,081 | |||
Total Government & Agency Obligations (Cost $14,021,696) | 13,944,782 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.9% | |||
SPDR Bloomberg Convertible Securities ETF (Cost $2,340,555) | 43,880 | 3,165,942 | |
Securities Lending Collateral 1.0% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (i) (j) (Cost $1,074,287) | 1,074,287 | 1,074,287 |
Shares | Value ($) | ||
Cash Equivalents 8.5% | |||
DWS Central Cash Management Government Fund, 5.38% (i) (Cost $9,281,154) | 9,281,154 | 9,281,154 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $107,574,840) | 108.7 | 119,122,904 | |
Other Assets and Liabilities, Net | (8.7 ) | (9,555,232 ) | |
Net Assets | 100.0 | 109,567,672 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 1.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (i) (j) | ||||||||
82,000 | 992,287 (k) | — | — | — | 15,919 | — | 1,074,287 | 1,074,287 |
Cash Equivalents 8.5% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (i) | ||||||||
1,133,981 | 62,430,152 | 54,282,979 | — | — | 239,098 | — | 9,281,154 | 9,281,154 |
1,215,981 | 63,422,439 | 54,282,979 | — | — | 255,017 | — | 10,355,441 | 10,355,441 |
* | 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, 2023 amounted to $1,025,936, which is 0.9% of net assets. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Principal amount stated in U.S. dollars unless otherwise noted. |
(d) | Perpetual, callable security with no stated maturity date. |
(e) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 2023. 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) | When-issued or delayed delivery securities included. |
(g) | Annualized yield at time of purchase; not a coupon rate. |
(h) | At December 31, 2023, 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, 2023. |
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 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 17 |
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 |
SOC: State Owned Company |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation ($) |
MSCI Emerging Market Index | USD | 3/15/2024 | 91 | 4,502,841 | 4,703,335 | 200,494 |
MSCI World Index | USD | 3/15/2024 | 182 | 17,658,726 | 18,152,680 | 493,954 |
TOPIX Index | JPY | 3/7/2024 | 14 | 2,334,374 | 2,349,220 | 14,846 |
Ultra 10 Year U.S. Treasury Note | USD | 3/19/2024 | 4 | 454,459 | 472,063 | 17,604 |
Ultra Long U.S. Treasury Bond | USD | 3/19/2024 | 23 | 2,796,361 | 3,072,656 | 276,295 |
Total unrealized appreciation | 1,003,193 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
10 Year U.S. Treasury Note | USD | 3/19/2024 | 7 | 761,450 | 790,234 | (28,784) |
2 Year U.S. Treasury Note | USD | 3/28/2024 | 14 | 2,853,012 | 2,882,797 | (29,785) |
5 Year U.S. Treasury Note | USD | 3/28/2024 | 1 | 106,287 | 108,773 | (2,486) |
Euro Stoxx 50 Index | EUR | 3/15/2024 | 22 | 1,112,521 | 1,103,354 | 9,167 |
Euro-Schatz | EUR | 3/7/2024 | 16 | 1,873,422 | 1,881,926 | (8,504) |
S&P 500 E-Mini Index | USD | 3/15/2024 | 25 | 5,847,001 | 6,025,000 | (177,999) |
Total net unrealized depreciation | (238,391) |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Depreciation ($) | Counterparty | ||
SEK | 2,410,000 | USD | 229,388 | 2/13/2024 | (9,943) | BNP Paribas SA |
GBP | 528,000 | USD | 656,900 | 2/13/2024 | (16,262) | Citigroup, Inc. |
CHF | 219,000 | USD | 249,355 | 2/13/2024 | (12,115) | Bank of America |
JPY | 109,700,000 | USD | 743,298 | 2/13/2024 | (39,481) | State Street Bank and Trust |
CAD | 678,000 | USD | 494,607 | 2/13/2024 | (17,369) | State Street Bank and Trust |
EUR | 2,874,000 | USD | 3,141,032 | 2/13/2024 | (36,832) | Australia and New Zealand Banking Group Ltd. |
Total unrealized depreciation | (132,002) |
CAD | Canadian Dollar |
CHF | Swiss Franc |
EUR | Euro |
GBP | British Pound |
18 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
JPY | Japanese Yen |
SEK | Swedish Krona |
USD | United States Dollar |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Communication Services | $3,221,761 | $1,038,866 | $— | $4,260,627 |
Consumer Discretionary | 3,660,610 | 1,263,738 | — | 4,924,348 |
Consumer Staples | 2,419,415 | 1,374,670 | — | 3,794,085 |
Energy | 1,834,766 | 27,382 | — | 1,862,148 |
Financials | 4,598,516 | 2,967,288 | — | 7,565,804 |
Health Care | 3,808,940 | 1,365,559 | — | 5,174,499 |
Industrials | 3,077,015 | 2,789,753 | — | 5,866,768 |
Information Technology | 8,807,254 | 673,961 | — | 9,481,215 |
Materials | 544,395 | 849,968 | — | 1,394,363 |
Real Estate | 1,160,799 | 207,219 | — | 1,368,018 |
Utilities | 27,248 | 583,679 | — | 610,927 |
Preferred Stocks (a) | 2,262,972 | — | — | 2,262,972 |
Rights | — | — | 204 | 204 |
Warrants | — | — | 5,994 | 5,994 |
Corporate Bonds (a) | — | 23,389,161 | — | 23,389,161 |
Asset-Backed (a) | — | 3,667,390 | — | 3,667,390 |
Mortgage-Backed Securities Pass-Throughs | — | 7,980,532 | — | 7,980,532 |
Commercial Mortgage-Backed Securities | — | 2,315,863 | — | 2,315,863 |
Collateralized Mortgage Obligations | — | 5,731,821 | — | 5,731,821 |
Government & Agency Obligations (a) | — | 13,944,782 | — | 13,944,782 |
Exchange-Traded Funds | 3,165,942 | — | — | 3,165,942 |
Short-Term Investments | 10,355,441 | — | — | 10,355,441 |
Derivatives (b) | ||||
Futures Contracts | 1,012,360 | — | — | 1,012,360 |
Total | $49,957,434 | $70,171,632 | $6,198 | $120,135,264 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $(247,558 ) | $— | $— | $(247,558 ) |
Forward Foreign Currency Contracts | — | (132,002 ) | — | (132,002 ) |
Total | $(247,558 ) | $(132,002 ) | $— | $(379,560 ) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 19 |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $97,219,399) — including $1,025,936 of securities loaned | $108,767,463 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,074,287)* | 1,074,287 |
Investment in DWS Central Cash Management Government Fund (cost $9,281,154) | 9,281,154 |
Cash | 20,000 |
Foreign currency, at value (cost $105,177) | 107,581 |
Receivable for Fund shares sold | 15,022 |
Dividends receivable | 109,342 |
Interest receivable | 433,009 |
Foreign taxes recoverable | 118,110 |
Other assets | 2,509 |
Total assets | 119,928,477 |
Liabilities | |
Payable upon return of securities loaned | 1,074,287 |
Payable for investments purchased — TBA purchase commitments | 8,848,805 |
Payable for Fund shares redeemed | 41,326 |
Payable for variation margin on futures contracts | 92,389 |
Unrealized depreciation on forward foreign currency contracts | 132,002 |
Accrued management fee | 33,959 |
Accrued Trustees' fees | 2,067 |
Other accrued expenses and payables | 135,970 |
Total liabilities | 10,360,805 |
Net assets, at value | $109,567,672 |
Net Assets Consist of | |
Distributable earnings (loss) | 13,623,884 |
Paid-in capital | 95,943,788 |
Net assets, at value | $109,567,672 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($109,554,601 ÷ 4,871,473 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $22.49 |
Class B | |
Net Asset Value, offering and redemption price per share ($13,071 ÷ 583 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $22.44 |
* | 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: | |
Interest | $2,116,100 |
Dividends (net of foreign taxes withheld of $130,722) | 1,948,745 |
Income distributions — DWS Central Cash Management Government Fund | 239,098 |
Securities lending income, net of borrower rebates | 15,919 |
Total income | 4,319,862 |
Expenses: | |
Management fee | 387,827 |
Administration fee | 101,674 |
Services to shareholders | 972 |
Distribution service fee (Class B) | 30 |
Custodian fee | 28,189 |
Audit fee | 71,383 |
Legal fees | 21,516 |
Tax fees | 9,692 |
Reports to shareholders | 35,512 |
Trustees' fees and expenses | 6,057 |
Other | 18,766 |
Total expenses before expense reductions | 681,618 |
Expense reductions | (20 ) |
Total expenses after expense reductions | 681,598 |
Net investment income | 3,638,264 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 1,923,467 |
Swap contracts | 266,035 |
Futures | (220,866 ) |
Forward foreign currency contracts | 50,610 |
Foreign currency | (16,468 ) |
2,002,778 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 9,063,662 |
Swap contracts | (243,549 ) |
Futures | 525,935 |
Forward foreign currency contracts | (187,086 ) |
Foreign currency | (117,825 ) |
9,041,137 | |
Net gain (loss) | 11,043,915 |
Net increase (decrease) in net assets resulting from operations | $14,682,179 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 21 |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $3,638,264 | $3,146,492 |
Net realized gain (loss) | 2,002,778 | (3,479,034 ) |
Change in net unrealized appreciation (depreciation) | 9,041,137 | (18,974,528 ) |
Net increase (decrease) in net assets resulting from operations | 14,682,179 | (19,307,070 ) |
Distributions to shareholders: | ||
Class A | (3,321,406 ) | (12,945,935 ) |
Class B | (342 ) | (1,320 ) |
Total distributions | (3,321,748 ) | (12,947,255 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 4,136,010 | 4,686,710 |
Reinvestment of distributions | 3,321,406 | 12,945,935 |
Payments for shares redeemed | (11,919,499 ) | (14,102,685 ) |
Net increase (decrease) in net assets from Class A share transactions | (4,462,083 ) | 3,529,960 |
Class B | ||
Reinvestment of distributions | 342 | 1,320 |
Net increase (decrease) in net assets from Class B share transactions | 342 | 1,320 |
Increase (decrease) in net assets | 6,898,690 | (28,723,045 ) |
Net assets at beginning of period | 102,668,982 | 131,392,027 |
Net assets at end of period | $109,567,672 | $102,668,982 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,077,917 | 4,905,426 |
Shares sold | 197,546 | 215,723 |
Shares issued to shareholders in reinvestment of distributions | 162,814 | 602,697 |
Shares redeemed | (566,804 ) | (645,929 ) |
Net increase (decrease) in Class A shares | (206,444 ) | 172,491 |
Shares outstanding at end of period | 4,871,473 | 5,077,917 |
Class B | ||
Shares outstanding at beginning of period | 566 | 504 |
Shares issued to shareholders in reinvestment of distributions | 17 | 62 |
Net increase (decrease) in Class B shares | 17 | 62 |
Shares outstanding at end of period | 583 | 566 |
22 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Financial Highlights
DWS Global Income Builder VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $20.22 | $26.78 | $25.07 | $24.63 | $21.33 |
Income (loss) from investment operations: | |||||
Net investment incomea | .73 | .61 | .62 | .57 | .69 |
Net realized and unrealized gain (loss) | 2.21 | (4.47 ) | 2.08 | 1.16 | 3.54 |
Total from investment operations | 2.94 | (3.86 ) | 2.70 | 1.73 | 4.23 |
Less distributions from: | |||||
Net investment income | (.67 ) | (.69 ) | (.62 ) | (.74 ) | (.90 ) |
Net realized gains | — | (2.01 ) | (.37 ) | (.55 ) | (.03 ) |
Total distributions | (.67 ) | (2.70 ) | (.99 ) | (1.29 ) | (.93 ) |
Net asset value, end of period | $22.49 | $20.22 | $26.78 | $25.07 | $24.63 |
Total Return (%) | 14.89 | (14.98 ) | 10.95 | 8.28 | 20.16 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 110 | 103 | 131 | 127 | 130 |
Ratio of expenses (%)b | .65 | .65 | .61 | .64 | .68 |
Ratio of net investment income (%) | 3.47 | 2.80 | 2.36 | 2.51 | 2.96 |
Portfolio turnover rate (%) | 180 | 95 | 104 | 137 | 182 |
a | Based on average shares outstanding during the period. |
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. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 23 |
DWS Global Income Builder VIP — Class B | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $20.17 | $26.70 | $25.01 | $24.61 | $21.30 |
Income (loss) from investment operations: | |||||
Net investment incomea | .66 | .55 | .52 | .50 | .65 |
Net realized and unrealized gain (loss) | 2.21 | (4.46 ) | 2.08 | 1.15 | 3.55 |
Total from investment operations | 2.87 | (3.91 ) | 2.60 | 1.65 | 4.20 |
Less distributions from: | |||||
Net investment income | (.60 ) | (.61 ) | (.54 ) | (.70 ) | (.86 ) |
Net realized gains | — | (2.01 ) | (.37 ) | (.55 ) | (.03 ) |
Total distributions | (.60 ) | (2.62 ) | (.91 ) | (1.25 ) | (.89 ) |
Net asset value, end of period | $22.44 | $20.17 | $26.70 | $25.01 | $24.61 |
Total Return (%)b | 14.55 | (15.24 ) | 10.56 | 7.90 | 20.01 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ thousands) | 13 | 11 | 13 | 12 | 11 |
Ratio of expenses before expense reductions (%)c | 1.13 | 1.12 | 1.05 | 1.10 | 1.10 |
Ratio of expenses after expense reductions (%)c | .96 | .96 | .96 | .93 | .86 |
Ratio of net investment income (%) | 3.17 | 2.49 | 1.99 | 2.20 | 2.77 |
Portfolio turnover rate (%) | 180 | 95 | 104 | 137 | 182 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
24 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
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 |
Overnight and Continuous | ˂30 days | Between 30 & 90 days | ˃90 days | Total | |
Securities Lending Transactions | |||||
Common Stocks | $1,068,912 | $— | $— | $— | $1,068,912 |
Corporate Bonds | 5,375 | — | — | — | 5,375 |
Total Borrowings | $1,074,287 | $— | $— | $— | $1,074,287 |
Gross amount of recognized liabilities for securities lending transactions: | $1,074,287 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 27 |
Undistributed ordinary income* | $3,872,455 |
Capital loss carryforwards | $(1,574,339 ) |
Net unrealized appreciation (depreciation) on investments | $11,292,655 |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $3,321,748 | $6,588,183 |
Distributions from long-term capital gains | $— | $6,359,072 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
28 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 29 |
Assets Derivative | Futures Contracts |
Equity Contracts (a) | $718,461 |
Interest Rate Contracts (a) | 293,899 |
$1,012,360 | |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Includes cumulative appreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Liability Derivative | Forward Contracts | Futures Contracts | Total |
Equity Contracts (a) | $— | $(177,999 ) | $(177,999 ) |
Interest Rate Contracts (a) | — | (69,559 ) | (69,559 ) |
Foreign Exchange Contracts (b) | (132,002 ) | — | (132,002 ) |
$(132,002 ) | $(247,558 ) | $(379,560 ) | |
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts: |
(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. |
(b) | Unrealized depreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $— | $— | $129,783 | $129,783 |
Interest Rate Contracts (a) | — | 266,035 | (350,649 ) | (84,614 ) |
Foreign Exchange Contracts (a) | 50,610 | — | — | 50,610 |
$50,610 | $266,035 | $(220,866 ) | $95,779 | |
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) | $— | $— | $247,889 | $247,889 |
Interest Rate Contracts (a) | — | (243,549 ) | 278,046 | 34,497 |
Foreign Exchange Contracts (a) | (187,086 ) | — | — | (187,086 ) |
$(187,086 ) | $(243,549 ) | $525,935 | $95,300 | |
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 and futures, respectively |
30 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
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 |
Australia and New Zealand Banking Group Ltd. | $36,832 | $— | $— | $36,832 |
Bank of America | 12,115 | — | — | 12,115 |
BNP Paribas SA | 9,943 | — | — | 9,943 |
Citigroup, Inc. | 16,262 | — | — | 16,262 |
State Street Bank and Trust | 56,850 | — | — | 56,850 |
132,002 | — | — | 132,002 |
Purchases | Sales | |
Non-U.S. Treasury Obligations | $164,434,593 | $175,106,794 |
U.S. Treasury Obligations | $20,767,376 | $14,794,703 |
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 |
Class A | .70% | |
Class B | .95% |
Distribution Fee | Total Aggregated | Unpaid at December 31, 2023 |
Class B | $30 | $3 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $649 | $109 |
Class B | 28 | 5 |
$677 | $114 |
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 |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 35 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,066.40 | $1,064.50 |
Expenses Paid per $1,000* | $3.33 | $5.00 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,021.98 | $1,020.37 |
Expenses Paid per $1,000* | $3.26 | $4.89 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | .64% | .96% |
36 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 37 |
Advisory Agreement Board Considerations and Fee Evaluation
38 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 39 |
40 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 41 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
42 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 43 |
Contents
3 | |
5 | |
6 | |
10 | |
10 | |
11 | |
12 | |
13 | |
16 | |
17 | |
18 | |
19 | |
19 | |
20 | |
23 |
2 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Management Summary December 31, 2023 (Unaudited)
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 3 |
7-Day Current Yield | |
DWS Government Money Market VIP — Class A | 5.07% |
4 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 12/31/23 | 12/31/22 |
Repurchase Agreements | 54% | 68% |
Government & Agency Obligations | 46% | 32% |
100% | 100% |
Weighted Average Maturity | 12/31/23 | 12/31/22 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 32 days | 8 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 31 days | 15 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, 2023
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 46.5% | |||
U.S. Government Sponsored Agencies 12.0% | |||
Federal Farm Credit Banks: | |||
5.25% (a), 12/13/2024 | 175,000 | 174,973 | |
SOFR + 0.135%, 5.535% (b), 6/3/2025 | 500,000 | 500,000 | |
SOFR + 0.145%, 5.545% (b), 7/25/2025 | 500,000 | 500,000 | |
Federal Home Loan Bank Discount Notes, 5.222% (a), 4/5/2024 | 1,300,000 | 1,282,333 | |
Federal Home Loan Banks: | |||
5.0% (a), 9/18/2024 | 1,500,000 | 1,499,374 | |
5.4% (a), 1/14/2025 | 1,250,000 | 1,250,000 | |
SOFR + 0.03%, 5.43% (b), 1/12/2024 | 2,000,000 | 2,000,000 | |
SOFR + 0.03%, 5.43% (b), 1/16/2024 | 1,000,000 | 1,000,000 | |
SOFR + 0.035%, 5.435% (b), 2/12/2024 | 2,000,000 | 2,000,000 | |
SOFR + 0.035%, 5.435% (b), 2/13/2024 | 1,000,000 | 1,000,000 | |
SOFR + 0.04%, 5.44% (b), 2/20/2024 | 2,000,000 | 2,000,000 | |
SOFR + 0.04%, 5.44% (b), 2/26/2024 | 4,000,000 | 4,000,000 | |
SOFR + 0.045%, 5.445% (b), 2/2/2024 | 500,000 | 500,000 | |
SOFR + 0.45%, 5.445% (b), 2/5/2024 | 1,000,000 | 1,000,000 | |
SOFR + 0.045%, 5.445% (b), 2/28/2024 | 3,000,000 | 3,000,000 | |
SOFR + 0.45%, 5.445% (b), 3/15/2024 | 2,000,000 | 2,000,000 | |
SOFR + 0.045%, 5.445% (b), 4/4/2024 | 4,000,000 | 4,000,000 | |
SOFR + 0.05%, 5.45% (b), 3/20/2024 | 3,150,000 | 3,150,000 | |
5.45% (a), 6/18/2024 | 500,000 | 499,770 | |
SOFR + 0.125%, 5.525% (b), 2/24/2025 | 2,000,000 | 2,000,000 | |
Federal National Mortgage Association, 5.52%, 7/16/2024 | 1,000,000 | 1,000,000 | |
34,356,450 | |||
U.S. Treasury Obligations 34.5% | |||
U.S. Treasury Bills: | |||
5.08% (a), 7/11/2024 | 3,500,000 | 3,406,480 | |
5.105% (a), 8/8/2024 | 2,000,000 | 1,938,455 | |
5.119% (a), 10/31/2024 | 1,000,000 | 957,594 | |
5.161% (a), 6/13/2024 | 3,000,000 | 2,930,437 | |
5.162% (a), 10/31/2024 | 2,000,000 | 1,914,905 | |
5.163% (a), 10/31/2024 | 2,000,000 | 1,912,889 | |
5.227% (a), 6/6/2024 | 4,000,000 | 3,910,074 | |
5.305% (a), 1/11/2024 | 6,000,000 | 5,959,980 |
Principal Amount ($) | Value ($) | ||
5.314% (a), 4/2/2024 | 5,000,000 | 4,933,032 | |
5.319% (a), 4/16/2024 | 3,000,000 | 2,953,656 | |
5.32% (a), 3/21/2024 | 4,000,000 | 3,968,072 | |
5.323% (a), 1/18/2024 | 4,500,000 | 4,488,844 | |
5.333% (a), 1/4/2024 | 1,250,000 | 1,249,452 | |
5.343% (a), 2/22/2024 | 5,000,000 | 4,961,939 | |
5.356% (a), 1/11/2024 | 2,000,000 | 2,028,364 | |
5.358% (a), 3/12/2024 | 6,000,000 | 5,937,461 | |
5.374% (a), 3/21/2024 | 1,500,000 | 1,467,621 | |
5.375% (a), 4/25/2024 | 2,000,000 | 1,966,132 | |
5.39% (a), 1/30/2024 | 3,000,000 | 2,987,610 | |
5.409% (a), 2/27/2024 | 4,000,000 | 3,966,212 | |
5.409% (a), 3/5/2024 | 3,000,000 | 2,971,547 | |
5.424% (a), 2/6/2024 | 2,000,000 | 1,989,300 | |
5.424% (a), 2/29/2024 | 4,000,000 | 3,964,928 | |
5.424% (a), 4/18/2024 | 2,000,000 | 1,967,899 | |
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield minus 0.075%, 5.256% (b), 4/30/2024 | 3,000,000 | 2,999,613 | |
3-month U.S. Treasury Bill Money Market Yield minus 0.015%, 5.316% (b), 1/31/2024 | 3,000,000 | 3,000,167 | |
3-month U.S. Treasury Bill Money Market Yield + 0.037%, 5.368% (b), 7/31/2024 | 10,000,000 | 10,002,449 | |
3-month U.S. Treasury Bill Money Market Yield + 0.125%, 5.456% (b), 7/31/2025 | 4,000,000 | 3,997,458 | |
3-month U.S. Treasury Bill Money Market Yield + 0.17%, 5.501% (b), 10/31/2025 | 4,000,000 | 3,997,756 | |
98,730,326 | |||
Total Government & Agency Obligations (Cost $133,086,776) | 133,086,776 | ||
Repurchase Agreements 54.6% | |||
BNP Paribas, 5.34%, dated 12/29/2023, to be repurchased at $27,716,435 on 1/2/2024 (c) | 27,700,000 | 27,700,000 | |
Citigroup Global Markets, Inc., 5.33%, dated 12/29/2023, to be repurchased at $24,114,273 on 1/2/2024 (d) | 24,100,000 | 24,100,000 |
6 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Principal Amount ($) | Value ($) | ||
JPMorgan Securities, Inc.: | |||
5.33%, dated 12/29/2023, to be repurchased at $11,406,751 on 1/2/2024 (e) | 11,400,000 | 11,400,000 | |
5.34%, dated 12/29/2023, to be repurchased at $23,914,181 on 1/2/2024 (f) | 23,900,000 | 23,900,000 | |
Royal Bank of Canada: | |||
5.33%, dated 12/29/2023, to be repurchased at $7,904,679 on 1/2/2024 (g) | 7,900,000 | 7,900,000 | |
5.33%, dated 12/29/2023, to be repurchased at $12,407,344 on 1/2/2024 (h) | 12,400,000 | 12,400,000 | |
5.34%, dated 12/29/2023, to be repurchased at $23,213,765 on 1/2/2024 (i) | 23,200,000 | 23,200,000 | |
Wells Fargo Bank, 5.35%, dated 12/29/2023, to be repurchased at $25,415,099 on 1/2/2024 (j) | 25,400,000 | 25,400,000 | |
Total Repurchase Agreements (Cost $156,000,000) | 156,000,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $289,086,776) | 101.1 | 289,086,776 | |
Other Assets and Liabilities, Net | (1.1 ) | (3,222,072 ) | |
Net Assets | 100.0 | 285,864,704 |
(a) | Annualized yield at time of purchase; not a coupon rate. |
(b) | Floating rate security. These securities are shown at their current rate as of December 31, 2023. |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
33,067,274 | U.S. Treasury STRIPS | Zero Coupon | 11/15/2029–5/15/2046 | 26,286,050 |
2,052,600 | U.S. Treasury Notes | 2.625 | 5/31/2027 | 1,967,951 |
Total Collateral Value | 28,254,001 |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
26,608,800 | U.S. Treasury Notes | 0.375–5.0 | 8/31/2025–9/30/2027 | 24,582,018 |
(e) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
12,648,600 | U.S. Treasury Notes | 0.75–1.25 | 8/31/2026–11/30/2026 | 11,628,068 |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 7 |
(f) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
0.29 | Federal Home Loan Mortgage Corp. | 6.0 | 11/1/2036 | 0.30 |
13,289,063 | Federal National Mortgage Association | 3.0–5.18 | 9/1/2029–6/1/2052 | 13,796,273 |
11,135,606 | Government National Mortgage Association | 2.5–6.5 | 3/15/2025–11/15/2057 | 10,581,728 |
Total Collateral Value | 24,378,001 |
(g) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
8,068,600 | U.S. Treasury Bills | Zero Coupon | 1/11/2024 | 8,058,030 |
(h) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
100 | U.S. Treasury Bills | Zero Coupon | 3/21/2024 | 99 |
14,447,500 | U.S. Treasury Bonds | 1.375–4.0 | 11/15/2040–11/15/2047 | 11,936,291 |
200 | U.S. Treasury Notes | 2.25–3.0 | 12/31/2024–7/15/2025 | 198 |
166,700 | U.S. Treasury Inflation-Indexed Bonds | 0.625–2.0 | 1/15/2026–2/15/2047 | 173,390 |
1,366,700 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2043–8/15/2050 | 545,550 |
Total Collateral Value | 12,655,528 |
(i) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
13,985 | Federal Home Loan Mortgage Corp. | 2.5–7.0 | 6/1/2048–1/1/2054 | 12,829 |
8,521,008 | Federal National Mortgage Association | 2.0–7.5 | 6/1/2041–12/1/2053 | 7,277,735 |
4,542,378 | Government National Mortgage Association | 2.0–6.5 | 2/20/2042–11/20/2053 | 4,308,872 |
18,293,300 | U.S. Treasury Bonds | 1.125–4.0 | 8/15/2040–11/15/2042 | 11,823,661 |
100 | U.S. Treasury Notes | 0.375 | 1/31/2026 | 93 |
72,900 | U.S. Treasury Inflation-Indexed Bonds | 0.625–2.375 | 1/15/2025–2/15/2043 | 77,004 |
514,900 | U.S. Treasury STRIPS | Zero Coupon | 8/15/2046–8/15/2050 | 177,847 |
Total Collateral Value | 23,678,041 |
(j) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
24,976,262 | Federal Home Loan Mortgage Corp. | 6.0–7.0 | 10/1/2053–12/1/2053 | 25,908,000 |
SOFR: Secured Overnight Financing Rate |
STRIPS: Separate Trading of Registered Interest and Principal Securities |
8 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $— | $133,086,776 | $— | $133,086,776 |
Repurchase Agreements | — | 156,000,000 | — | 156,000,000 |
Total | $— | $289,086,776 | $— | $289,086,776 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 9 |
as of December 31, 2023
Assets | |
Investments in securities, valued at amortized cost | $133,086,776 |
Repurchase agreements, valued at amortized cost | 156,000,000 |
Cash | 16,715 |
Receivable for Fund shares sold | 82,526 |
Interest receivable | 553,032 |
Other assets | 4,642 |
Total assets | 289,743,691 |
Liabilities | |
Payable for investments purchased | 2,987,610 |
Payable for Fund shares redeemed | 150,231 |
Distributions payable | 577,504 |
Accrued management fee | 57,204 |
Accrued Trustees' fees | 3,163 |
Other accrued expenses and payables | 103,275 |
Total liabilities | 3,878,987 |
Net assets, at value | $285,864,704 |
Net Assets Consist of | |
Distributable earnings (loss) | 8,791 |
Paid-in capital | 285,855,913 |
Net assets, at value | $285,864,704 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($285,864,704 ÷ 285,920,893 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $1.00 |
Investment Income | |
Income: | |
Interest | $10,517,929 |
Expenses: | |
Management fee | 485,273 |
Administration fee | 200,304 |
Services to shareholders | 2,896 |
Custodian fee | 7,460 |
Professional fees | 53,068 |
Reports to shareholders | 38,273 |
Trustees' fees and expenses | 8,907 |
Other | 10,244 |
Total expenses | 806,425 |
Net investment income | 9,711,504 |
Net realized gain (loss) from investments | 2,426 |
Net increase (decrease) in net assets resulting from operations | $9,713,930 |
10 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $9,711,504 | $2,385,589 |
Net realized gain (loss) | 2,426 | (119 ) |
Net increase (decrease) in net assets resulting from operations | 9,713,930 | 2,385,470 |
Distributions to shareholders: | ||
Class A | (9,711,503 ) | (2,385,590 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 193,367,672 | 174,719,180 |
Reinvestment of distributions | 9,448,141 | 2,068,026 |
Payments for shares redeemed | (103,500,306 ) | (186,972,657 ) |
Net increase (decrease) in net assets from Class A share transactions | 99,315,507 | (10,185,451 ) |
Increase (decrease) in net assets | 99,317,934 | (10,185,571 ) |
Net assets at beginning of period | 186,546,770 | 196,732,341 |
Net assets at end of period | $285,864,704 | $186,546,770 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 186,606,016 | 196,801,073 |
Shares sold | 193,367,042 | 174,709,574 |
Shares issued to shareholders in reinvestment of distributions | 9,448,141 | 2,068,026 |
Shares redeemed | (103,500,306 ) | (186,972,657 ) |
Net increase (decrease) in Class A shares | 99,314,877 | (10,195,057 ) |
Shares outstanding at end of period | 285,920,893 | 186,606,016 |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 11 |
Financial Highlights
DWS Government Money Market VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
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 | .047 | .013 | .000 * | .002 | .018 |
Net realized gain (loss) | .000 * | (.000 )* | (.000 )* | .000 * | .000 * |
Total from investment operations | .047 | .013 | .000 * | .002 | .018 |
Less distributions from: | |||||
Net investment income | (.047 ) | (.013 ) | (.000 )* | (.002 ) | (.018 ) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%) | 4.75 | 1.29 a | .01 a | .24 a | 1.77 a |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 286 | 187 | 197 | 153 | 122 |
Ratio of expenses before expense reductions (%)b | .39 | .40 | .42 | .42 | .47 |
Ratio of expenses after expense reductions (%)b | .39 | .32 | .06 | .23 | .47 |
Ratio of net investment income (%) | 4.70 | 1.25 | .01 | .20 | 1.74 |
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. |
12 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Notes to Financial Statements
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 13 |
Undistributed ordinary income | $8,791 |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income | $9,711,503 | $2,385,590 |
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% |
14 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 15 |
Report of Independent Registered Public Accounting Firm
16 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 17 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 7/1/23 | $1,000.00 |
Ending Account Value 12/31/23 | $1,025.34 |
Expenses Paid per $1,000* | $1.89 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/23 | $1,000.00 |
Ending Account Value 12/31/23 | $1,023.34 |
Expenses Paid per $1,000* | $1.89 |
* | 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 | .37% |
18 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 19 |
Advisory Agreement Board Considerations and Fee Evaluation
20 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS Government Money Market 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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 23 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
24 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 25 |
Contents
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34 |
2 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Performance SummaryDecember 31, 2023 (Unaudited)
Comparative Results | |||||
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,134 | $10,551 | $12,968 | $14,875 |
Average annual total return | 11.34% | 1.80% | 5.34% | 4.05% | |
ICE BofA US High Yield Index | Growth of $10,000 | $11,347 | $10,614 | $12,882 | $15,546 |
Average annual total return | 13.47% | 2.01% | 5.19% | 4.51% | |
DWS High Income VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $11,107 | $10,447 | $12,744 | $14,403 |
Average annual total return | 11.07% | 1.47% | 4.97% | 3.72% | |
ICE BofA US High Yield Index | Growth of $10,000 | $11,347 | $10,614 | $12,882 | $15,546 |
Average annual total return | 13.47% | 2.01% | 5.19% | 4.51% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/23 | 12/31/22 |
Corporate Bonds | 92% | 91% |
Exchange-Traded Funds | 5% | 2% |
Cash Equivalents | 3% | 4% |
Loan Participations and Assignments | 0% | 3% |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
Consumer Discretionary | 18% | 18% |
Energy | 18% | 19% |
Communication Services | 18% | 19% |
Materials | 12% | 9% |
Industrials | 11% | 14% |
Health Care | 7% | 8% |
Utilities | 6% | 4% |
Financials | 4% | 1% |
Information Technology | 3% | 1% |
Real Estate | 2% | 4% |
Consumer Staples | 1% | 3% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
BBB | 6% | 10% |
BB | 63% | 61% |
B | 24% | 25% |
CCC | 6% | 2% |
Not Rated | 1% | 2% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Investment Portfolioas of December 31, 2023
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 90.9% | |||
Communication Services 16.0% | |||
Altice France Holding SA, 144A, 10.5%, 5/15/2027 | 200,000 | 129,524 | |
Altice France SA, 144A, 5.5%, 1/15/2028 | 200,000 | 164,715 | |
CCO Holdings LLC: | |||
144A, 4.5%, 8/15/2030 | 100,000 | 90,148 | |
4.5%, 5/1/2032 | 10,000 | 8,565 | |
144A, 4.5%, 6/1/2033 | 210,000 | 177,689 | |
144A, 4.75%, 3/1/2030 | 140,000 | 127,927 | |
144A, 5.125%, 5/1/2027 | 375,000 | 362,314 | |
144A, 5.375%, 6/1/2029 | 550,000 | 518,422 | |
Clear Channel Outdoor Holdings, Inc.: | |||
144A, 7.5%, 6/1/2029 | 35,000 | 29,101 | |
144A, 7.75%, 4/15/2028 | 120,000 | 103,465 | |
CSC Holdings LLC: | |||
144A, 4.125%, 12/1/2030 | 200,000 | 152,150 | |
144A, 5.0%, 11/15/2031 | 280,000 | 169,400 | |
144A, 6.5%, 2/1/2029 | 400,000 | 353,040 | |
DirecTV Financing LLC, 144A, 5.875%, 8/15/2027 | 45,000 | 42,281 | |
DISH DBS Corp.: | |||
144A, 5.25%, 12/1/2026 | 140,000 | 119,945 | |
144A, 5.75%, 12/1/2028 | 125,000 | 99,700 | |
5.875%, 11/15/2024 | 86,000 | 80,648 | |
7.75%, 7/1/2026 | 155,000 | 107,959 | |
DISH Network Corp., 144A, 11.75%, 11/15/2027 | 75,000 | 78,289 | |
Frontier Communications Holdings LLC: | |||
144A, 5.0%, 5/1/2028 | 150,000 | 138,627 | |
5.875%, 11/1/2029 | 130,000 | 109,847 | |
Gray Television, Inc., 144A, 5.875%, 7/15/2026 | 80,000 | 77,817 | |
iHeartCommunications, Inc., 144A, 5.25%, 8/15/2027 | 110,000 | 87,403 | |
Iliad Holding SASU, 144A, 6.5%, 10/15/2026 | 200,000 | 199,609 | |
LCPR Senior Secured Financing DAC: | |||
144A, 5.125%, 7/15/2029 | 200,000 | 174,227 | |
144A, 6.75%, 10/15/2027 | 189,000 | 185,118 | |
Lumen Technologies, Inc., 144A, 4.0%, 2/15/2027 | 60,000 | 38,722 | |
Nexstar Media, Inc., 144A, 4.75%, 11/1/2028 | 125,000 | 115,185 | |
Outfront Media Capital LLC: | |||
144A, 4.25%, 1/15/2029 | 45,000 | 40,607 | |
144A, 5.0%, 8/15/2027 | 55,000 | 53,163 | |
Sirius XM Radio, Inc.: | |||
144A, 3.875%, 9/1/2031 | 290,000 | 248,091 | |
144A, 4.0%, 7/15/2028 | 75,000 | 69,363 |
Principal Amount ($)(a) | Value ($) | ||
144A, 5.5%, 7/1/2029 | 250,000 | 241,708 | |
Sprint LLC, 7.625%, 3/1/2026 | 245,000 | 255,957 | |
TEGNA, Inc., 4.625%, 3/15/2028 | 160,000 | 149,451 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 305,000 | 298,323 | |
Telenet Finance Luxembourg Notes Sarl, 144A, 5.5%, 3/1/2028 | 200,000 | 187,000 | |
UPC Broadband Finco BV, 144A, 4.875%, 7/15/2031 | 200,000 | 176,022 | |
ViaSat, Inc., 144A, 5.625%, 9/15/2025 | 136,000 | 132,605 | |
Virgin Media Finance PLC, 144A, 5.0%, 7/15/2030 | 200,000 | 176,332 | |
Virgin Media Secured Finance PLC, 144A, 5.5%, 5/15/2029 | 345,000 | 333,354 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 265,000 | 273,216 | |
Zayo Group Holdings, Inc., 144A, 4.0%, 3/1/2027 | 60,000 | 48,106 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 350,000 | 325,550 |
7,050,685 | |||
Consumer Discretionary 16.9% | |||
Adient Global Holdings Ltd., 144A, 8.25%, 4/15/2031 | 125,000 | 132,360 | |
Affinity Interactive, 144A, 6.875%, 12/15/2027 | 160,000 | 142,597 | |
American Axle & Manufacturing, Inc., 6.5%, 4/1/2027 | 130,000 | 130,525 | |
Avis Budget Car Rental LLC, 144A, 5.375%, 3/1/2029 | 100,000 | 92,504 | |
Bath & Body Works, Inc., 6.875%, 11/1/2035 | 120,000 | 121,504 | |
Boyd Gaming Corp., 144A, 4.75%, 6/15/2031 | 145,000 | 133,084 | |
Caesars Entertainment, Inc.: | |||
144A, 4.625%, 10/15/2029 | 280,000 | 252,562 | |
144A, 6.25%, 7/1/2025 | 270,000 | 270,734 | |
144A, 8.125%, 7/1/2027 | 410,000 | 420,291 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 330,000 | 321,893 | |
144A, 6.0%, 5/1/2029 | 320,000 | 307,906 | |
144A, 7.0%, 8/15/2029 | 40,000 | 41,765 | |
144A, 7.625%, 3/1/2026 | 95,000 | 96,718 | |
Cinemark USA, Inc., 144A, 5.875%, 3/15/2026 | 55,000 | 53,832 | |
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 109,455 |
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 218,910 |
Crocs, Inc., 144A, 4.125%, 8/15/2031 | 155,000 | 131,160 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
Dana Financing Luxembourg Sarl, REG S, 8.5%, 7/15/2031 | EUR | 100,000 | 120,580 |
Ferrellgas LP, 144A, 5.875%, 4/1/2029 | 100,000 | 94,466 | |
FirstCash, Inc., 144A, 4.625%, 9/1/2028 | 130,000 | 121,348 | |
Ford Motor Co., 6.1%, 8/19/2032 (b) | 335,000 | 337,690 | |
Ford Motor Credit Co. LLC: | |||
4.95%, 5/28/2027 | 200,000 | 195,110 | |
5.125%, 6/16/2025 | 30,000 | 29,606 | |
Goodyear Europe BV, REG S, 2.75%, 8/15/2028 | EUR | 100,000 | 102,356 |
IHO Verwaltungs GmbH, REG S, 8.75%, 5/15/2028, 8.75% Cash or 9.5% PIK, PIK | EUR | 110,000 | 132,051 |
Jaguar Land Rover Automotive PLC: | |||
144A, 5.875%, 1/15/2028 (b) | 200,000 | 197,440 | |
144A, 7.75%, 10/15/2025 | 200,000 | 202,211 | |
Macy's Retail Holdings LLC, 144A, 5.875%, 3/15/2030 | 46,000 | 43,704 | |
Marriott Ownership Resorts, Inc., 144A, 4.5%, 6/15/2029 | 125,000 | 110,151 | |
Melco Resorts Finance Ltd., 144A, 5.375%, 12/4/2029 | 200,000 | 176,056 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 93,000 | |
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 | 100,000 | 97,146 | |
144A, 5.875%, 3/15/2026 | 130,000 | 127,030 | |
144A, 8.125%, 1/15/2029 | 60,000 | 62,675 | |
144A, 8.375%, 2/1/2028 | 110,000 | 116,478 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 57,434 | |
Newell Brands, Inc., 5.2%, 4/1/2026 | 160,000 | 157,794 | |
PetSmart, Inc., 144A, 7.75%, 2/15/2029 | 250,000 | 243,204 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 170,000 | 162,037 | |
Royal Caribbean Cruises Ltd.: | |||
144A, 4.25%, 7/1/2026 | 75,000 | 72,441 | |
144A, 11.625%, 8/15/2027 | 210,000 | 228,515 | |
SRS Distribution, Inc., 144A, 6.0%, 12/1/2029 | 100,000 | 93,241 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 70,000 | 65,130 | |
The Goodyear Tire & Rubber Co., 5.625%, 4/30/2033 | 120,000 | 107,567 | |
Travel & Leisure Co., 144A, 6.625%, 7/31/2026 | 120,000 | 121,051 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 101,325 | |
144A, 7.0%, 2/15/2029 | 90,000 | 89,226 |
Principal Amount ($)(a) | Value ($) | ||
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 95,000 | 92,625 | |
Windsor Holdings III LLC, 144A, 8.5%, 6/15/2030 | 60,000 | 62,702 | |
Wynn Macau Ltd., 144A, 5.125%, 12/15/2029 | 200,000 | 177,694 | |
Wynn Resorts Finance LLC: | |||
144A, 5.125%, 10/1/2029 | 35,000 | 33,032 | |
144A, 7.125%, 2/15/2031 | 85,000 | 88,521 | |
ZF North America Capital, Inc., 144A, 7.125%, 4/14/2030 | 150,000 | 159,869 | |
7,450,306 | |||
Consumer Staples 0.6% | |||
Albertsons Companies, Inc.: | |||
144A, 3.25%, 3/15/2026 | 75,000 | 70,763 | |
144A, 3.5%, 3/15/2029 | 100,000 | 90,798 | |
Chobani LLC, 144A, 7.5%, 4/15/2025 | 100,000 | 99,500 | |
261,061 | |||
Energy 16.3% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 180,000 | 173,046 | |
144A, 5.75%, 1/15/2028 | 90,000 | 89,103 | |
Antero Resources Corp., 144A, 5.375%, 3/1/2030 | 150,000 | 143,769 | |
Archrock Partners LP, 144A, 6.875%, 4/1/2027 | 110,000 | 110,275 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 130,000 | 120,946 | |
144A, 8.25%, 12/31/2028 | 150,000 | 150,872 | |
Baytex Energy Corp., 144A, 8.5%, 4/30/2030 | 105,000 | 108,666 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 75,374 | |
Callon Petroleum Co., 144A, 7.5%, 6/15/2030 | 80,000 | 80,682 | |
Calumet Specialty Products Partners LP, 144A, 8.125%, 1/15/2027 | 105,000 | 103,163 | |
Chesapeake Energy Corp.: | |||
144A, 5.875%, 2/1/2029 | 75,000 | 73,496 | |
144A, 6.75%, 4/15/2029 | 170,000 | 171,582 | |
Chord Energy Corp., 144A, 6.375%, 6/1/2026 | 40,000 | 40,000 | |
Civitas Resources, Inc.: | |||
144A, 8.375%, 7/1/2028 | 130,000 | 135,713 | |
144A, 8.625%, 11/1/2030 | 40,000 | 42,429 | |
144A, 8.75%, 7/1/2031 | 185,000 | 196,941 | |
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 129,415 | |
144A, 7.25%, 3/14/2027 | 10,000 | 10,087 | |
144A, 7.375%, 1/15/2031 | 70,000 | 70,486 | |
Comstock Resources, Inc., 144A, 5.875%, 1/15/2030 | 30,000 | 26,019 |
8 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 155,000 | 142,597 | |
144A, 4.375%, 6/15/2031 | 30,000 | 27,061 | |
Endeavor Energy Resources LP, 144A, 5.75%, 1/30/2028 | 35,000 | 35,033 | |
EnLink Midstream LLC, 144A, 6.5%, 9/1/2030 | 75,000 | 76,573 | |
EQM Midstream Partners LP: | |||
144A, 4.5%, 1/15/2029 | 25,000 | 23,618 | |
144A, 4.75%, 1/15/2031 | 105,000 | 97,718 | |
144A, 6.5%, 7/1/2027 | 80,000 | 81,459 | |
Genesis Energy LP: | |||
7.75%, 2/1/2028 | 75,000 | 75,261 | |
8.875%, 4/15/2030 | 170,000 | 175,780 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 154,082 | |
Hess Midstream Operations LP: | |||
144A, 4.25%, 2/15/2030 | 205,000 | 188,600 | |
144A, 5.125%, 6/15/2028 | 75,000 | 72,360 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 149,683 | |
144A, 6.0%, 2/1/2031 | 165,000 | 159,042 | |
144A, 6.25%, 11/1/2028 | 125,000 | 124,518 | |
Howard Midstream Energy Partners LLC: | |||
144A, 6.75%, 1/15/2027 | 40,000 | 39,555 | |
144A, 8.875%, 7/15/2028 | 85,000 | 89,213 | |
Kinetik Holdings LP, 144A, 5.875%, 6/15/2030 | 85,000 | 83,389 | |
Moss Creek Resources Holdings, Inc., 144A, 10.5%, 5/15/2027 | 60,000 | 61,692 | |
Murphy Oil U.S.A., Inc., 4.75%, 9/15/2029 | 55,000 | 52,113 | |
Nabors Industries, Inc., 144A, 7.375%, 5/15/2027 | 150,000 | 146,953 | |
Northern Oil & Gas, Inc., 144A, 8.75%, 6/15/2031 | 40,000 | 41,664 | |
PBF Holding Co. LLC, 144A, 7.875%, 9/15/2030 | 95,000 | 96,748 | |
PDC Energy, Inc., 5.75%, 5/15/2026 | 105,000 | 104,800 | |
Permian Resources Operating LLC: | |||
144A, 5.875%, 7/1/2029 | 20,000 | 19,499 | |
144A, 7.0%, 1/15/2032 | 100,000 | 103,167 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 28,930 | |
Range Resources Corp., 8.25%, 1/15/2029 | 280,000 | 289,792 | |
Rockcliff Energy II LLC, 144A, 5.5%, 10/15/2029 | 30,000 | 28,353 | |
Sitio Royalties Operating Partnership LP, 144A, 7.875%, 11/1/2028 | 30,000 | 31,087 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 80,037 |
Principal Amount ($)(a) | Value ($) | ||
Southwestern Energy Co.: | |||
4.75%, 2/1/2032 | 275,000 | 254,433 | |
5.375%, 2/1/2029 | 155,000 | 151,264 | |
8.375%, 9/15/2028 | 50,000 | 51,729 | |
TransAlta Corp., 7.75%, 11/15/2029 | 85,000 | 90,277 | |
Transocean Aquila Ltd., 144A, 8.0%, 9/30/2028 | 85,000 | 86,272 | |
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 153,750 | 152,986 | |
Transocean Titan Financing Ltd., 144A, 8.375%, 2/1/2028 | 90,000 | 93,374 | |
Transocean, Inc.: | |||
144A, 7.5%, 1/15/2026 | 160,000 | 157,194 | |
144A, 8.75%, 2/15/2030 | 104,500 | 109,178 | |
USA Compression Partners LP, 6.875%, 4/1/2026 | 142,000 | 141,401 | |
Venture Global Calcasieu Pass LLC: | |||
144A, 3.875%, 11/1/2033 | 80,000 | 67,796 | |
144A, 4.125%, 8/15/2031 | 30,000 | 26,430 | |
144A, 6.25%, 1/15/2030 | 50,000 | 49,729 | |
Venture Global LNG, Inc.: | |||
144A, 8.125%, 6/1/2028 | 90,000 | 90,891 | |
144A, 8.375%, 6/1/2031 | 110,000 | 109,943 | |
144A, 9.5%, 2/1/2029 | 170,000 | 179,888 | |
144A, 9.875%, 2/1/2032 | 85,000 | 88,539 | |
Vital Energy, Inc., 10.125%, 1/15/2028 | 40,000 | 41,102 | |
Weatherford International Ltd., 144A, 8.625%, 4/30/2030 | 272,000 | 283,984 | |
7,158,851 | |||
Financials 3.2% | |||
Alliant Holdings Intermediate LLC, 144A, 7.0%, 1/15/2031 | 10,000 | 10,549 | |
Ally Financial, Inc., 6.7%, 2/14/2033 | 140,000 | 140,166 | |
GTCR W-2 Merger Sub LLC, 144A, 7.5%, 1/15/2031 | 200,000 | 211,344 | |
Icahn Enterprises LP, 6.375%, 12/15/2025 | 225,000 | 220,888 | |
Intesa Sanpaolo SpA, 144A, 4.198%, 6/1/2032 | 200,000 | 164,914 | |
Macquarie Airfinance Holdings Ltd., 144A, 8.375%, 5/1/2028 | 50,000 | 52,368 | |
Navient Corp., 5.0%, 3/15/2027 | 135,000 | 130,336 | |
OneMain Finance Corp.: | |||
3.5%, 1/15/2027 | 70,000 | 64,781 | |
3.875%, 9/15/2028 | 100,000 | 88,475 | |
SLM Corp., 3.125%, 11/2/2026 | 135,000 | 125,879 | |
UniCredit SpA, 144A, 5.861%, 6/19/2032 | 200,000 | 195,674 | |
1,405,374 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
Health Care 6.8% | |||
1375209 BC Ltd., 144A, 9.0%, 1/30/2028 | 125,000 | 121,887 | |
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 25,000 | 24,000 | |
Avantor Funding, Inc., REG S, 3.875%, 7/15/2028 | EUR | 200,000 | 215,822 |
Bausch & Lomb Escrow Corp., 144A, 8.375%, 10/1/2028 | 70,000 | 73,846 | |
Bausch Health Companies, Inc.: | |||
144A, 5.5%, 11/1/2025 | 51,000 | 46,653 | |
144A, 6.125%, 2/1/2027 | 250,000 | 168,750 | |
Catalent Pharma Solutions, Inc.: | |||
REG S, 2.375%, 3/1/2028 | EUR | 100,000 | 95,906 |
144A, 5.0%, 7/15/2027 | 50,000 | 48,309 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 59,522 | |
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 90,406 | |
144A, 5.25%, 5/15/2030 | 90,000 | 75,271 | |
144A, 5.625%, 3/15/2027 | 135,000 | 125,433 | |
144A, 6.0%, 1/15/2029 | 35,000 | 31,505 | |
144A, 6.125%, 4/1/2030 | 50,000 | 32,372 | |
Encompass Health Corp., 4.625%, 4/1/2031 | 55,000 | 50,610 | |
Fortrea Holdings, Inc., 144A, 7.5%, 7/1/2030 | 105,000 | 107,832 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 69,243 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 | 115,000 | 85,038 | |
Medline Borrower LP, 144A, 5.25%, 10/1/2029 | 200,000 | 188,515 | |
Molina Healthcare, Inc., 144A, 3.875%, 11/15/2030 | 100,000 | 89,890 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 125,622 | |
Star Parent, Inc., 144A, 9.0%, 10/1/2030 | 85,000 | 89,578 | |
Tenet Healthcare Corp., 6.875%, 11/15/2031 | 260,000 | 266,977 | |
Teva Pharmaceutical Finance Netherlands II BV, 4.375%, 5/9/2030 | EUR | 100,000 | 103,420 |
Teva Pharmaceutical Finance Netherlands III BV: | |||
4.75%, 5/9/2027 | 200,000 | 191,500 | |
5.125%, 5/9/2029 (b) | 200,000 | 191,009 | |
8.125%, 9/15/2031 | 200,000 | 218,116 | |
2,987,032 | |||
Industrials 9.7% | |||
ADT Security Corp., 144A, 4.875%, 7/15/2032 | 50,000 | 46,249 |
Principal Amount ($)(a) | Value ($) | ||
Allied Universal Holdco LLC: | |||
144A, 6.0%, 6/1/2029 | 200,000 | 163,059 | |
144A, 9.75%, 7/15/2027 | 50,000 | 48,995 | |
American Airlines, Inc.: | |||
144A, 5.5%, 4/20/2026 | 229,167 | 227,513 | |
144A, 5.75%, 4/20/2029 | 135,000 | 131,593 | |
144A, 7.25%, 2/15/2028 | 90,000 | 91,029 | |
ATS Corp., 144A, 4.125%, 12/15/2028 | 30,000 | 27,592 | |
Bombardier, Inc.: | |||
144A, 6.0%, 2/15/2028 | 135,000 | 131,527 | |
144A, 7.125%, 6/15/2026 | 35,000 | 34,837 | |
144A, 7.5%, 2/1/2029 | 265,000 | 269,393 | |
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 45,000 | 41,184 | |
Chart Industries, Inc., 144A, 7.5%, 1/1/2030 | 40,000 | 41,810 | |
Clean Harbors, Inc., 144A, 6.375%, 2/1/2031 | 110,000 | 111,766 | |
Emerald Debt Merger Sub LLC, 144A, 6.625%, 12/15/2030 | 80,000 | 81,710 | |
Fortress Transportation & Infrastructure Investors LLC, 144A, 6.5%, 10/1/2025 | 80,000 | 79,744 | |
Garda World Security Corp.: | |||
144A, 7.75%, 2/15/2028 | 30,000 | 31,038 | |
144A, 9.5%, 11/1/2027 | 75,000 | 75,611 | |
GFL Environmental, Inc.: | |||
144A, 4.0%, 8/1/2028 | 250,000 | 231,098 | |
144A, 5.125%, 12/15/2026 | 50,000 | 49,470 | |
144A, 6.75%, 1/15/2031 | 50,000 | 51,514 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 45,000 | 42,396 | |
Hertz Corp.: | |||
144A, 4.625%, 12/1/2026 | 160,000 | 143,446 | |
144A, 5.0%, 12/1/2029 | 80,000 | 65,625 | |
International Consolidated Airlines Group SA, REG S, 3.75%, 3/25/2029 | EUR | 100,000 | 106,807 |
Madison IAQ LLC, 144A, 5.875%, 6/30/2029 | 80,000 | 70,487 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 19,000 | 18,240 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 151,081 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 87,836 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 65,000 | 60,268 | |
144A, 6.25%, 1/15/2028 | 135,000 | 134,213 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 141,437 |
10 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Spirit AeroSystems, Inc., 144A, 9.375%, 11/30/2029 | 90,000 | 98,485 | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 134,000 | 96,368 | |
Summit Materials LLC, 144A, 5.25%, 1/15/2029 | 54,000 | 52,245 | |
TK Elevator Holdco GmbH, REG S, 6.625%, 7/15/2028 | EUR | 180,000 | 182,828 |
TransDigm, Inc.: | |||
4.625%, 1/15/2029 | 205,000 | 192,469 | |
5.5%, 11/15/2027 | 115,000 | 112,669 | |
Triumph Group, Inc., 144A, 9.0%, 3/15/2028 | 85,000 | 90,384 | |
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 155,905 | |
United Rentals North America, Inc.: | |||
5.25%, 1/15/2030 | 80,000 | 78,770 | |
144A, 6.0%, 12/15/2029 | 200,000 | 203,054 | |
4,251,745 | |||
Information Technology 2.2% | |||
AthenaHealth Group, Inc., 144A, 6.5%, 2/15/2030 | 90,000 | 81,646 | |
Capstone Borrower, Inc., 144A, 8.0%, 6/15/2030 | 30,000 | 31,211 | |
Cloud Software Group, Inc.: | |||
144A, 6.5%, 3/31/2029 | 115,000 | 109,531 | |
144A, 9.0%, 9/30/2029 | 240,000 | 228,109 | |
McAfee Corp., 144A, 7.375%, 2/15/2030 | 165,000 | 150,686 | |
NCR Atleos Corp., 144A, 9.5%, 4/1/2029 | 80,000 | 85,000 | |
Playtika Holding Corp., 144A, 4.25%, 3/15/2029 | 110,000 | 95,980 | |
Presidio Holdings, Inc., 144A, 8.25%, 2/1/2028 | 120,000 | 121,234 | |
Western Digital Corp., 3.1%, 2/1/2032 | 110,000 | 87,516 | |
990,913 | |||
Materials 11.8% | |||
Ardagh Packaging Finance PLC, 144A, 5.25%, 8/15/2027 | 200,000 | 155,373 | |
Axalta Coating Systems LLC, 144A, 3.375%, 2/15/2029 | 150,000 | 134,614 | |
Chemours Co.: | |||
144A, 4.625%, 11/15/2029 | 255,000 | 223,878 | |
144A, 5.75%, 11/15/2028 | 290,000 | 276,227 | |
Clearwater Paper Corp., 144A, 4.75%, 8/15/2028 | 155,000 | 143,685 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.875%, 3/1/2031 | 46,000 | 41,564 | |
144A, 6.75%, 4/15/2030 | 160,000 | 162,253 | |
Consolidated Energy Finance SA, 144A, 5.625%, 10/15/2028 | 150,000 | 127,017 |
Principal Amount ($)(a) | Value ($) | ||
Constellium SE, 144A, 3.75%, 4/15/2029 | 250,000 | 226,840 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 179,027 | |
144A, 6.875%, 10/15/2027 | 300,000 | 254,953 | |
FMG Resources August 2006 Pty Ltd., 144A, 4.375%, 4/1/2031 | 245,000 | 224,056 | |
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 190,000 | 183,783 | |
144A, 6.125%, 4/1/2029 | 100,000 | 98,048 | |
LABL, Inc.: | |||
144A, 8.25%, 11/1/2029 | 35,000 | 29,488 | |
144A, 9.5%, 11/1/2028 | 20,000 | 20,200 | |
144A, 10.5%, 7/15/2027 | 55,000 | 52,748 | |
Mauser Packaging Solutions Holding Co.: | |||
144A, 7.875%, 8/15/2026 | 155,000 | 157,741 | |
144A, 9.25%, 4/15/2027 | 45,000 | 44,170 | |
Methanex Corp., 5.25%, 12/15/2029 | 220,000 | 211,668 | |
Mineral Resources Ltd., 144A, 9.25%, 10/1/2028 | 80,000 | 85,102 | |
NOVA Chemicals Corp.: | |||
144A, 4.875%, 6/1/2024 | 19,000 | 18,834 | |
144A, 8.5%, 11/15/2028 | 120,000 | 125,839 | |
Novelis Corp.: | |||
144A, 3.25%, 11/15/2026 | 195,000 | 183,573 | |
144A, 4.75%, 1/30/2030 | 145,000 | 136,365 | |
Olin Corp., 5.0%, 2/1/2030 | 370,000 | 353,037 | |
Olympus Water U.S. Holding Corp.: | |||
144A, 6.25%, 10/1/2029 | 200,000 | 177,632 | |
REG S, 9.625%, 11/15/2028 | EUR | 100,000 | 118,123 |
Roller Bearing Co. of America, Inc., 144A, 4.375%, 10/15/2029 | 80,000 | 74,034 | |
SCIH Salt Holdings, Inc., 144A, 6.625%, 5/1/2029 | 50,000 | 46,661 | |
SCIL IV LLC, 144A, 5.375%, 11/1/2026 | 200,000 | 191,986 | |
Sealed Air Corp., 144A, 7.25%, 2/15/2031 | 180,000 | 190,854 | |
SK Invictus Intermediate II Sarl, 144A, 5.0%, 10/30/2029 | 155,000 | 134,462 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 118,462 | |
Trident TPI Holdings, Inc., 144A, 12.75%, 12/31/2028 | 20,000 | 21,400 | |
Tronox, Inc., 144A, 4.625%, 3/15/2029 | 205,000 | 181,589 | |
WR Grace Holdings LLC, 144A, 7.375%, 3/1/2031 | 85,000 | 85,026 | |
5,190,312 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 11 |
Principal Amount ($)(a) | Value ($) | ||
Real Estate 2.2% | |||
Cushman & Wakefield U.S. Borrower LLC: | |||
144A, 6.75%, 5/15/2028 | 30,000 | 29,850 | |
144A, 8.875%, 9/1/2031 | 40,000 | 42,391 | |
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2027 | 100,000 | 97,581 | |
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 56,825 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 72,059 | |
144A, (REIT), 5.25%, 3/15/2028 | 145,000 | 140,976 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 95,191 | |
MPT Operating Partnership LP: | |||
(REIT), 3.325%, 3/24/2025 | EUR | 100,000 | 99,561 |
(REIT), 3.5%, 3/15/2031 | 105,000 | 65,649 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 100,669 | |
SBA Communications Corp., (REIT), 3.125%, 2/1/2029 | 135,000 | 121,297 | |
Uniti Group LP, 144A, (REIT), 6.0%, 1/15/2030 | 40,000 | 27,956 | |
950,005 | |||
Utilities 5.2% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 202,124 | |
5.75%, 5/20/2027 | 110,000 | 106,977 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 190,230 | |
144A, 4.625%, 2/1/2029 | 30,000 | 27,865 | |
144A, 5.125%, 3/15/2028 | 50,000 | 47,939 | |
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 110,793 | |
Edison International, 8.125%, 6/15/2053 | 55,000 | 56,146 | |
Electricite de France SA, REG S, 3.375%, Perpetual (c) | EUR | 200,000 | 193,457 |
NextEra Energy Operating Partners LP, 144A, 7.25%, 1/15/2029 | 75,000 | 78,518 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 124,581 | |
144A, 3.875%, 2/15/2032 | 350,000 | 299,617 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 85,127 | |
PG&E Corp., 5.25%, 7/1/2030 | 135,000 | 130,214 | |
Talen Energy Supply LLC, 144A, 8.625%, 6/1/2030 | 70,000 | 74,377 | |
Vistra Corp., 144A, 7.0%, Perpetual (c) | 110,000 | 108,350 | |
Vistra Operations Co. LLC: | |||
144A, 4.375%, 5/1/2029 | 135,000 | 126,024 |
Principal Amount ($)(a) | Value ($) | ||
144A, 7.75%, 10/15/2031 | 315,000 | 327,155 | |
2,289,494 | |||
Total Corporate Bonds (Cost $40,278,429) | 39,985,778 | ||
Loan Participations and Assignments 0.4% | |||
Senior Loans (d) | |||
Athenahealth Group, Inc., Term Loan B, 30-day average SOFR + 3.25%, 8.606%, 2/15/2029 | 65,858 | 65,661 | |
Frontier Communications Corp., First Lien Term Loan, 30-day average SOFR + 3.75%, 9.106%, 10/8/2027 | 67,590 | 67,336 | |
Naked Juice LLC, Term Loan, 90-day average SOFR + 3.25%, 8.698%, 1/24/2029 | 22,655 | 21,968 | |
Total Loan Participations and Assignments (Cost $153,994) | 154,965 |
Shares | Value ($) | ||
Exchange-Traded Funds 4.8% | |||
iShares Broad USD High Yield Corporate Bond ETF | 54,720 | 1,989,072 | |
iShares iBoxx $ High Yield Corporate Bond ETF | 1,800 | 139,302 | |
Total Exchange-Traded Funds (Cost $2,065,057) | 2,128,374 | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (Cost $0) | 287 | 1,555 | |
Warrants 0.1% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (e) (Cost $244,285) | 1,100 | 38,783 | |
Securities Lending Collateral 0.6% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (f) (g) (Cost $252,595) | 252,595 | 252,595 | |
Cash Equivalents 2.8% | |||
DWS Central Cash Management Government Fund, 5.38% (f) (Cost $1,219,535) | 1,219,535 | 1,219,535 |
12 | | Deutsche DWS Variable Series II — DWS High Income VIP |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $44,213,895) | 99.6 | 43,781,585 | |
Other Assets and Liabilities, Net | 0.4 | 196,887 | |
Net Assets | 100.0 | 43,978,472 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 0.6% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (f) (g) | ||||||||
1,212,645 | — | 960,050 (h) | — | — | 7,572 | — | 252,595 | 252,595 |
Cash Equivalents 2.8% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (f) | ||||||||
1,468,062 | 14,497,278 | 14,745,805 | — | — | 56,410 | — | 1,219,535 | 1,219,535 |
2,680,707 | 14,497,278 | 15,705,855 | — | — | 63,982 | — | 1,472,130 | 1,472,130 |
* | 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, 2023 amounted to $242,078, which is 0.6% of net assets. |
(c) | Perpetual, callable security with no stated maturity date. |
(d) | Variable or floating rate security. These securities are shown at their current rate as of December 31, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(e) | Investment was valued using significant unobservable inputs. |
(f) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(g) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(h) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2023. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
PIK: Denotes that all or a portion of the income is paid in-kind in the form of additional principal. |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
SOFR: Secured Overnight Financing Rate |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Depreciation ($) | Counterparty | ||
EUR | 22,253 | USD | 24,248 | 1/31/2024 | (350) | Toronto-Dominion Bank |
EUR | 1,847,696 | USD | 2,035,054 | 1/31/2024 | (7,347) | Barclays Bank PLC |
EUR | 96,706 | USD | 105,632 | 1/31/2024 | (1,265) | State Street Bank and Trust |
Total unrealized depreciation | (8,962) |
Deutsche DWS Variable Series II — DWS High Income VIP | | 13 |
EUR | Euro |
USD | United States Dollar |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $— | $39,985,778 | $— | $39,985,778 |
Loan Participations and Assignments | — | 154,965 | — | 154,965 |
Exchange-Traded Funds | 2,128,374 | — | — | 2,128,374 |
Common Stocks | 1,555 | — | — | 1,555 |
Warrants | — | — | 38,783 | 38,783 |
Short-Term Investments (a) | 1,472,130 | — | — | 1,472,130 |
Total | $3,602,059 | $40,140,743 | $38,783 | $43,781,585 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Forward Foreign Currency Contracts | $— | $(8,962 ) | $— | $(8,962 ) |
Total | $— | $(8,962 ) | $— | $(8,962 ) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open forward foreign currency contracts. |
14 | | Deutsche DWS Variable Series II — DWS High Income VIP |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $42,741,765) — including $242,078 of securities loaned | $42,309,455 |
Investment in DWS Government & Agency Securities Portfolio (cost $252,595)* | 252,595 |
Investment in DWS Central Cash Management Government Fund (cost $1,219,535) | 1,219,535 |
Cash | 9,922 |
Foreign currency, at value (cost $10,068) | 10,114 |
Receivable for Fund shares sold | 21,258 |
Interest receivable | 704,484 |
Other assets | 1,025 |
Total assets | 44,528,388 |
Liabilities | |
Payable upon return of securities loaned | 252,595 |
Payable for investments purchased | 157,779 |
Payable for Fund shares redeemed | 10,588 |
Unrealized depreciation on forward foreign currency contracts | 8,962 |
Accrued management fee | 16,778 |
Accrued Trustees' fees | 1,226 |
Other accrued expenses and payables | 101,988 |
Total liabilities | 549,916 |
Net assets, at value | $43,978,472 |
Net Assets Consist of | |
Distributable earnings (loss) | (7,032,236 ) |
Paid-in capital | 51,010,708 |
Net assets, at value | $43,978,472 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($43,179,101 ÷ 7,664,032 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $5.63 |
Class B | |
Net Asset Value, offering and redemption price per share ($799,371 ÷ 141,411 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $5.65 |
* | Represents collateral on securities loaned. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 15 |
Investment Income | |
Income: | |
Interest | $2,712,978 |
Dividends | 98,487 |
Income distributions — DWS Central Cash Management Government Fund | 56,410 |
Securities lending income, net of borrower rebates | 7,572 |
Total income | 2,875,447 |
Expenses: | |
Management fee | 212,504 |
Administration fee | 41,226 |
Services to shareholders | 916 |
Record keeping fee (Class B) | 1,233 |
Distribution service fee (Class B) | 2,064 |
Custodian fee | 5,403 |
Audit fee | 66,723 |
Legal fees | 14,413 |
Tax fees | 7,206 |
Reports to shareholders | 22,618 |
Trustees' fees and expenses | 3,256 |
Other | 9,464 |
Total expenses before expense reductions | 387,026 |
Expense reductions | (87,237 ) |
Total expenses after expense reductions | 299,789 |
Net investment income | 2,575,658 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (1,198,646 ) |
Forward foreign currency contracts | (31,100 ) |
Foreign currency | 4,500 |
(1,225,246 ) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 3,274,986 |
Unfunded loan commitments | 593 |
Forward foreign currency contracts | 15,348 |
Foreign currency | (929 ) |
3,289,998 | |
Net gain (loss) | 2,064,752 |
Net increase (decrease) in net assets resulting from operations | $4,640,410 |
16 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $2,575,658 | $2,172,053 |
Net realized gain (loss) | (1,225,246 ) | (1,507,696 ) |
Change in net unrealized appreciation (depreciation) | 3,289,998 | (5,225,122 ) |
Net increase (decrease) in net assets resulting from operations | 4,640,410 | (4,560,765 ) |
Distributions to shareholders: | ||
Class A | (2,221,545 ) | (2,374,887 ) |
Class B | (49,689 ) | (28,302 ) |
Total distributions | (2,271,234 ) | (2,403,189 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,426,752 | 2,744,738 |
Reinvestment of distributions | 2,221,545 | 2,374,887 |
Payments for shares redeemed | (5,042,770 ) | (8,372,146 ) |
Net increase (decrease) in net assets from Class A share transactions | (394,473 ) | (3,252,521 ) |
Class B | ||
Proceeds from shares sold | 465,987 | 385,798 |
Reinvestment of distributions | 49,689 | 28,302 |
Payments for shares redeemed | (424,053 ) | (269,273 ) |
Net increase (decrease) in net assets from Class B share transactions | 91,623 | 144,827 |
Increase (decrease) in net assets | 2,066,326 | (10,071,648 ) |
Net assets at beginning of period | 41,912,146 | 51,983,794 |
Net assets at end of period | $43,978,472 | $41,912,146 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 7,728,847 | 8,311,044 |
Shares sold | 454,357 | 498,999 |
Shares issued to shareholders in reinvestment of distributions | 423,959 | 431,798 |
Shares redeemed | (943,131 ) | (1,512,994 ) |
Net increase (decrease) in Class A shares | (64,815 ) | (582,197 ) |
Shares outstanding at end of period | 7,664,032 | 7,728,847 |
Class B | ||
Shares outstanding at beginning of period | 125,968 | 100,035 |
Shares sold | 85,890 | 69,817 |
Shares issued to shareholders in reinvestment of distributions | 9,429 | 5,118 |
Shares redeemed | (79,876 ) | (49,002 ) |
Net increase (decrease) in Class B shares | 15,443 | 25,933 |
Shares outstanding at end of period | 141,411 | 125,968 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 17 |
Financial Highlights
DWS High Income VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $5.34 | $6.18 | $6.23 | $6.23 | $5.71 |
Income (loss) from investment operations: | |||||
Net investment incomea | .33 | .27 | .27 | .29 | .31 |
Net realized and unrealized gain (loss) | .25 | (.81 ) | (.03 ) | .04 | .56 |
Total from investment operations | .58 | (.54 ) | .24 | .33 | .87 |
Less distributions from: | |||||
Net investment income | (.29 ) | (.30 ) | (.29 ) | (.33 ) | (.35 ) |
Net asset value, end of period | $5.63 | $5.34 | $6.18 | $6.23 | $6.23 |
Total Return (%)b | 11.34 | (8.88 ) | 4.00 | 6.24 | 15.69 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 43 | 41 | 51 | 54 | 56 |
Ratio of expenses before expense reductions (%)c | .90 | .90 | .84 | .87 | .96 |
Ratio of expenses after expense reductions (%)c | .70 | .71 | .71 | .70 | .68 |
Ratio of net investment income (%) | 6.07 | 4.82 | 4.32 | 4.86 | 5.09 |
Portfolio turnover rate (%) | 62 | 45 | 56 | 94 | 82 |
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, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $5.35 | $6.20 | $6.24 | $6.25 | $5.73 |
Income (loss) from investment operations: | |||||
Net investment incomea | .31 | .25 | .24 | .27 | .29 |
Net realized and unrealized gain (loss) | .26 | (.82 ) | (.01 ) | .04 | .57 |
Total from investment operations | .57 | (.57 ) | .23 | .31 | .86 |
Less distributions from: | |||||
Net investment income | (.27 ) | (.28 ) | (.27 ) | (.32 ) | (.34 ) |
Net asset value, end of period | $5.65 | $5.35 | $6.20 | $6.24 | $6.25 |
Total Return (%)b | 11.07 | (9.38 ) | 3.79 | 5.77 | 15.33 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .8 | .7 | .6 | .1 | .2 |
Ratio of expenses before expense reductions (%)c | 1.31 | 1.31 | 1.27 | 1.30 | 1.40 |
Ratio of expenses after expense reductions (%)c | 1.09 | 1.10 | 1.10 | 1.05 | .94 |
Ratio of net investment income (%) | 5.67 | 4.47 | 3.86 | 4.52 | 4.82 |
Portfolio turnover rate (%) | 62 | 45 | 56 | 94 | 82 |
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 |
Undistributed ordinary income* | $2,534,571 |
Capital loss carryforwards | $(9,055,082 ) |
Net unrealized appreciation (depreciation) on investments | $(512,474 ) |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $2,271,234 | $2,403,189 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
22 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Liability Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $(8,962 ) |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized depreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts |
Foreign Exchange Contracts (a) | $(31,100 ) |
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) | $15,348 |
The above derivative is located in the following Statement of Operations account: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts |
Deutsche DWS Variable Series II — DWS High Income VIP | | 23 |
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 | $7,347 | $— | $— | $7,347 |
State Street Bank and Trust | 1,265 | — | — | 1,265 |
Toronto-Dominion Bank | 350 | — | — | 350 |
8,962 | — | — | 8,962 |
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% |
24 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Class A | .70% | |
Class B | 1.09% |
Class A | $85,399 |
Class B | 1,838 |
$87,237 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $385 | $65 |
Class B | 104 | 17 |
$489 | $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 |
Other Information (Unaudited)
28 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,068.30 | $1,066.00 |
Expenses Paid per $1,000* | $3.65 | $5.68 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,021.68 | $1,019.71 |
Expenses Paid per $1,000* | $3.57 | $5.55 |
* | 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 | .70% | 1.09% |
Deutsche DWS Variable Series II — DWS High Income VIP | | 29 |
30 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS High Income VIP | | 31 |
32 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 33 |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
34 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
Deutsche DWS Variable Series II — DWS High Income VIP | | 35 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
36 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Contents
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26 |
2 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Performance SummaryDecember 31, 2023 (Unaudited)
Comparative Results | |||||
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,604 | $8,968 | $14,439 | $15,479 |
Average annual total return | 16.04% | –3.56% | 7.62% | 4.47% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $11,562 | $10,471 | $14,079 | $14,561 |
Average annual total return | 15.62% | 1.55% | 7.08% | 3.83% | |
DWS International Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $11,577 | $8,904 | $14,246 | $15,053 |
Average annual total return | 15.77% | –3.79% | 7.33% | 4.17% | |
MSCI All Country World ex-USA Index | Growth of $10,000 | $11,562 | $10,471 | $14,079 | $14,561 |
Average annual total return | 15.62% | 1.55% | 7.08% | 3.83% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 3 |
Management Summary December 31, 2023 (Unaudited)
4 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/23 | 12/31/22 |
Common Stocks | 97% | 97% |
Cash Equivalents | 2% | 2% |
Preferred Stocks | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
Information Technology | 21% | 21% |
Financials | 21% | 18% |
Industrials | 17% | 19% |
Health Care | 15% | 13% |
Consumer Discretionary | 8% | 8% |
Consumer Staples | 7% | 7% |
Communication Services | 5% | 5% |
Energy | 4% | 5% |
Materials | 2% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
France | 14% | 14% |
Germany | 13% | 15% |
Canada | 9% | 9% |
United States | 8% | 8% |
Switzerland | 8% | 9% |
Netherlands | 8% | 6% |
Japan | 7% | 9% |
United Kingdom | 5% | 4% |
Ireland | 4% | 4% |
China | 4% | 6% |
Uruguay | 4% | 3% |
Singapore | 4% | 4% |
Sweden | 3% | 2% |
Taiwan | 2% | 2% |
Korea | 2% | 1% |
Hong Kong | 1% | 2% |
Other | 4% | 2% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Investment Portfolioas of December 31, 2023
Shares | Value ($) | ||
Common Stocks 96.5% | |||
Brazil 0.5% | |||
Pagseguro Digital Ltd. "A"* (Cost $200,174) | 7,712 | 96,169 | |
Canada 9.1% | |||
Agnico Eagle Mines Ltd. | 2,798 | 153,409 | |
Alimentation Couche-Tard, Inc. | 6,678 | 393,256 | |
Brookfield Asset Management Ltd. "A" | 4,472 | 179,616 | |
Brookfield Corp. | 19,169 | 768,901 | |
Canadian National Railway Co. | 1,630 | 204,880 | |
Lululemon Athletica, Inc.* | 300 | 153,387 | |
(Cost $905,633) | 1,853,449 | ||
China 3.8% | |||
ANTA Sports Products Ltd. | 9,200 | 89,339 | |
BYD Co., Ltd. "H" | 2,000 | 55,153 | |
Minth Group Ltd. | 20,870 | 42,476 | |
Ping An Insurance Group Co. of China Ltd. "H" | 51,500 | 233,444 | |
Tencent Holdings Ltd. | 7,700 | 290,818 | |
Trip.com Group Ltd.* | 1,550 | 55,862 | |
(Cost $1,003,107) | 767,092 | ||
Denmark 1.1% | |||
Novo Nordisk AS "B" (Cost $139,596) | 2,200 | 227,465 | |
France 13.5% | |||
Air Liquide SA | 560 | 108,871 | |
Airbus SE | 1,437 | 221,931 | |
Capgemini SE | 1,780 | 370,779 | |
Cie de Saint-Gobain SA | 2,358 | 173,715 | |
LVMH Moet Hennessy Louis Vuitton SE | 425 | 344,247 | |
Schneider Electric SE | 1,291 | 259,657 | |
Teleperformance SE | 1,350 | 197,110 | |
TotalEnergies SE | 8,636 | 588,466 | |
Vinci SA | 3,950 | 496,074 | |
(Cost $1,990,875) | 2,760,850 | ||
Germany 12.4% | |||
adidas AG | 320 | 65,073 | |
Allianz SE (Registered) | 2,037 | 545,281 | |
Brenntag SE | 1,870 | 172,099 | |
Deutsche Boerse AG | 2,728 | 562,119 | |
Deutsche Post AG | 3,078 | 152,861 | |
Deutsche Telekom AG (Registered) | 8,479 | 203,926 | |
Evotec SE* | 5,475 | 129,072 | |
SAP SE | 2,320 | 357,874 | |
Siemens Healthineers AG 144A | 2,880 | 167,472 | |
TeamViewer SE 144A* | 5,400 | 84,104 |
Shares | Value ($) | ||
Wacker Chemie AG | 391 | 49,531 | |
Zalando SE 144A* | 1,585 | 37,743 | |
(Cost $2,254,231) | 2,527,155 | ||
Hong Kong 1.2% | |||
Techtronic Industries Co., Ltd. (Cost $106,056) | 20,097 | 239,766 | |
Ireland 4.0% | |||
Experian PLC | 6,065 | 247,568 | |
Flutter Entertainment PLC* | 340 | 60,141 | |
ICON PLC* (a) | 926 | 262,123 | |
Kerry Group PLC "A" | 2,776 | 241,154 | |
(Cost $629,768) | 810,986 | ||
Israel 0.6% | |||
CyberArk Software Ltd.* (a) (Cost $96,465) | 570 | 124,859 | |
Italy 1.0% | |||
Stevanato Group SpA (b) (Cost $227,886) | 7,880 | 215,045 | |
Japan 6.8% | |||
Daikin Industries Ltd. | 1,500 | 244,242 | |
Fast Retailing Co., Ltd. | 990 | 244,786 | |
Hoya Corp. | 2,400 | 298,684 | |
Keyence Corp. | 700 | 307,490 | |
Lasertec Corp. | 400 | 104,819 | |
MISUMI Group, Inc. | 5,611 | 94,611 | |
Shiseido Co., Ltd. | 2,900 | 87,467 | |
(Cost $969,509) | 1,382,099 | ||
Korea 1.6% | |||
Samsung Electronics Co., Ltd. (Cost $237,051) | 5,537 | 336,540 | |
Netherlands 7.3% | |||
Adyen NV 144A* | 84 | 108,295 | |
Argenx SE* | 120 | 45,460 | |
ASML Holding NV | 648 | 488,975 | |
DSM BV* (c) | 1,139 | 117,466 | |
ING Groep NV | 18,600 | 278,362 | |
NXP Semiconductors NV (a) | 470 | 107,950 | |
Prosus NV | 4,197 | 125,253 | |
Universal Music Group NV | 7,899 | 225,168 | |
(Cost $1,195,163) | 1,496,929 | ||
Norway 0.4% | |||
Mowi ASA (Cost $96,834) | 4,273 | 76,600 | |
Singapore 3.6% | |||
DBS Group Holdings Ltd. | 26,800 | 676,814 | |
Sea Ltd. (ADR)* | 1,300 | 52,650 | |
(Cost $556,618) | 729,464 | ||
Sweden 2.9% | |||
Assa Abloy AB "B" | 8,559 | 246,863 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 7 |
Shares | Value ($) | ||
Hexagon AB "B" | 11,804 | 141,597 | |
Spotify Technology SA* (b) | 1,099 | 206,513 | |
(Cost $496,588) | 594,973 | ||
Switzerland 7.7% | |||
Alcon, Inc. | 1,855 | 145,106 | |
Lonza Group AG (Registered) | 1,155 | 485,978 | |
Nestle SA (Registered) | 4,937 | 572,206 | |
Roche Holding AG (Genusschein) | 1,072 | 311,727 | |
Sportradar Holding AG "A"* (a) (d) | 5,484 | 60,598 | |
(Cost $1,311,294) | 1,575,615 | ||
Taiwan 2.0% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $137,146) | 21,000 | 404,621 | |
United Kingdom 5.1% | |||
AstraZeneca PLC | 2,920 | 395,112 | |
Ferguson PLC (b) | 400 | 77,228 | |
Halma PLC | 4,777 | 139,154 | |
Rentokil Initial PLC | 71,195 | 400,545 | |
VTEX "A"* (b) | 2,886 | 19,856 | |
(Cost $1,076,340) | 1,031,895 | ||
United States 8.1% | |||
Marsh & McLennan Companies, Inc. | 1,977 | 374,582 | |
Mastercard, Inc. "A" | 614 | 261,877 | |
NVIDIA Corp. | 1,041 | 515,524 | |
Schlumberger NV | 5,900 | 307,036 | |
Thermo Fisher Scientific, Inc. | 345 | 183,123 | |
(Cost $558,244) | 1,642,142 | ||
Uruguay 3.8% | |||
Globant SA* | 2,568 | 611,133 | |
MercadoLibre, Inc.* | 99 | 155,582 | |
(Cost $385,205) | 766,715 | ||
Total Common Stocks (Cost $14,573,783) | 19,660,429 |
Shares | Value ($) | ||
Preferred Stocks 0.6% | |||
Germany | |||
Sartorius AG (Cost $78,503) | 336 | 123,943 | |
Securities Lending Collateral 0.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (e) (f) (Cost $56,350) | 56,350 | 56,350 | |
Cash Equivalents 2.2% | |||
DWS Central Cash Management Government Fund, 5.38% (e) (Cost $459,894) | 459,894 | 459,894 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $15,168,530) | 99.6 | 20,300,616 | |
Other Assets and Liabilities, Net | 0.4 | 77,458 | |
Net Assets | 100.0 | 20,378,074 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 0.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (e) (f) | ||||||||
58,500 | — | 2,150 (g) | — | — | 164 | — | 56,350 | 56,350 |
Cash Equivalents 2.2% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (e) | ||||||||
328,851 | 6,090,717 | 5,959,674 | — | — | 48,474 | — | 459,894 | 459,894 |
387,351 | 6,090,717 | 5,961,824 | — | — | 48,638 | — | 516,244 | 516,244 |
* | Non-income producing security. |
(a) | Listed on the NASDAQ Stock Market, Inc. |
(b) | Listed on the New York Stock Exchange. |
(c) | Investment was valued using significant unobservable inputs. |
8 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
(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, 2023 amounted to $54,145, which is 0.3% of net assets. |
(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, 2023. |
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 | $96,169 | $— | $— | $96,169 |
Canada | 1,853,449 | — | — | 1,853,449 |
China | — | 767,092 | — | 767,092 |
Denmark | — | 227,465 | — | 227,465 |
France | — | 2,760,850 | — | 2,760,850 |
Germany | — | 2,527,155 | — | 2,527,155 |
Hong Kong | — | 239,766 | — | 239,766 |
Ireland | 262,123 | 548,863 | — | 810,986 |
Israel | 124,859 | — | — | 124,859 |
Italy | 215,045 | — | — | 215,045 |
Japan | — | 1,382,099 | — | 1,382,099 |
Korea | — | 336,540 | — | 336,540 |
Netherlands | 107,950 | 1,271,513 | 117,466 | 1,496,929 |
Norway | — | 76,600 | — | 76,600 |
Singapore | 52,650 | 676,814 | — | 729,464 |
Sweden | 206,513 | 388,460 | — | 594,973 |
Switzerland | 60,598 | 1,515,017 | — | 1,575,615 |
Taiwan | — | 404,621 | — | 404,621 |
United Kingdom | 97,084 | 934,811 | — | 1,031,895 |
United States | 1,642,142 | — | — | 1,642,142 |
Uruguay | 766,715 | — | — | 766,715 |
Preferred Stocks | — | 123,943 | — | 123,943 |
Short-Term Investments (a) | 516,244 | — | — | 516,244 |
Total | $6,001,541 | $14,181,609 | $117,466 | $20,300,616 |
During the period ended December 31, 2023, the amount of transfers between Level 2 and Level 3 was $225,953. The investments were transferred from Level 2 to Level 3 due to the lack of observable market data due to a decrease in market activity. | ||||
Transfers between price levels are recognized at the beginning of the reporting period. |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 9 |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $14,652,286) — including $54,145 of securities loaned | $19,784,372 |
Investment in DWS Government & Agency Securities Portfolio (cost $56,350)* | 56,350 |
Investment in DWS Central Cash Management Government Fund (cost $459,894) | 459,894 |
Cash | 8 |
Foreign currency, at value (cost $153,356) | 153,982 |
Receivable for investments sold | 46,272 |
Receivable for Fund shares sold | 95 |
Dividends receivable | 5,149 |
Interest receivable | 3,098 |
Foreign taxes recoverable | 29,448 |
Other assets | 471 |
Total assets | 20,539,139 |
Liabilities | |
Payable upon return of securities loaned | 56,350 |
Payable for Fund shares redeemed | 17,477 |
Accrued management fee | 3,453 |
Accrued Trustees' fees | 914 |
Other accrued expenses and payables | 82,871 |
Total liabilities | 161,065 |
Net assets, at value | $20,378,074 |
Net Assets Consist of | |
Distributable earnings (loss) | 2,904,725 |
Paid-in capital | 17,473,349 |
Net assets, at value | $20,378,074 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($20,349,256 ÷ 1,346,396 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $15.11 |
Class B | |
Net Asset Value, offering and redemption price per share ($28,818 ÷ 1,903 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $15.15 |
* | 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. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $43,763) | $377,477 |
Income distributions — DWS Central Cash Management Government Fund | 48,474 |
Securities lending income, net of borrower rebates | 164 |
Total income | 426,115 |
Expenses: | |
Management fee | 122,372 |
Administration fee | 19,145 |
Services to shareholders | 737 |
Record keeping fee (Class B) | 15 |
Distribution service fee (Class B) | 70 |
Custodian fee | 8,651 |
Audit fee | 56,152 |
Legal fees | 14,035 |
Tax fees | 7,206 |
Reports to shareholders | 24,893 |
Registration fees | 667 |
Trustees' fees and expenses | 2,423 |
Other | 10,863 |
Total expenses before expense reductions | 267,229 |
Expense reductions | (91,816 ) |
Total expenses after expense reductions | 175,413 |
Net investment income | 250,702 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (958,595 ) |
Foreign currency | (3,664 ) |
(962,259 ) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 3,613,557 |
Foreign currency | 5,283 |
3,618,840 | |
Net gain (loss) | 2,656,581 |
Net increase (decrease) in net assets resulting from operations | $2,907,283 |
10 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $250,702 | $174,319 |
Net realized gain (loss) | (962,259 ) | (1,493,374 ) |
Change in net unrealized appreciation (depreciation) | 3,618,840 | (6,872,703 ) |
Net increase (decrease) in net assets resulting from operations | 2,907,283 | (8,191,758 ) |
Distributions to shareholders: | ||
Class A | (149,768 ) | (549,151 ) |
Class B | (139 ) | (1,661 ) |
Total distributions | (149,907 ) | (550,812 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 3,065,594 | 9,085,996 |
Reinvestment of distributions | 149,768 | 549,151 |
Payments for shares redeemed | (4,747,321 ) | (4,239,328 ) |
Net increase (decrease) in net assets from Class A share transactions | (1,531,959 ) | 5,395,819 |
Class B | ||
Proceeds from shares sold | 10,704 | 9,878 |
Reinvestment of distributions | 139 | 1,661 |
Payments for shares redeemed | (11,645 ) | (63,096 ) |
Net increase (decrease) in net assets from Class B share transactions | (802 ) | (51,557 ) |
Increase (decrease) in net assets | 1,224,615 | (3,398,308 ) |
Net assets at beginning of period | 19,153,459 | 22,551,767 |
Net assets at end of period | $20,378,074 | $19,153,459 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,457,916 | 1,193,724 |
Shares sold | 213,239 | 536,046 |
Shares issued to shareholders in reinvestment of distributions | 10,430 | 38,864 |
Shares redeemed | (335,189 ) | (310,718 ) |
Net increase (decrease) in Class A shares | (111,520 ) | 264,192 |
Shares outstanding at end of period | 1,346,396 | 1,457,916 |
Class B | ||
Shares outstanding at beginning of period | 1,962 | 5,576 |
Shares sold | 758 | 712 |
Shares issued to shareholders in reinvestment of distributions | 10 | 117 |
Shares redeemed | (827 ) | (4,443 ) |
Net increase (decrease) in Class B shares | (59 ) | (3,614 ) |
Shares outstanding at end of period | 1,903 | 1,962 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 11 |
Financial Highlights
DWS International Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.12 | $18.80 | $17.65 | $14.64 | $11.47 |
Income (loss) from investment operations: | |||||
Net investment incomea | .18 | .11 | .08 | .06 | .22 |
Net realized and unrealized gain (loss) | 1.92 | (5.45 ) | 1.34 | 3.17 | 3.32 |
Total from investment operations | 2.10 | (5.34 ) | 1.42 | 3.23 | 3.54 |
Less distributions from: | |||||
Net investment income | (.11 ) | (.15 ) | (.06 ) | (.22 ) | (.17 ) |
Net realized gains | — | (.19 ) | (.21 ) | — | (.20 ) |
Total distributions | (.11 ) | (.34 ) | (.27 ) | (.22 ) | (.37 ) |
Net asset value, end of period | $15.11 | $13.12 | $18.80 | $17.65 | $14.64 |
Total Return (%)b | 16.04 | (28.51 ) | 8.11 | 22.69 | 31.22 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 20 | 19 | 22 | 19 | 18 |
Ratio of expenses before expense reductions (%)c | 1.35 | 1.32 | 1.33 | 1.50 | 1.64 |
Ratio of expenses after expense reductions (%)c | .89 | .92 | .90 | .87 | .86 |
Ratio of net investment income (%) | 1.27 | .78 | .41 | .42 | 1.63 |
Portfolio turnover rate (%) | 13 | 17 | 20 | 10 | 16 |
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, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $13.15 | $18.84 | $17.67 | $14.66 | $11.49 |
Income (loss) from investment operations: | |||||
Net investment incomea | .14 | .09 | .03 | .01 | .18 |
Net realized and unrealized gain (loss) | 1.93 | (5.48 ) | 1.36 | 3.18 | 3.33 |
Total from investment operations | 2.07 | (5.39 ) | 1.39 | 3.19 | 3.51 |
Less distributions from: | |||||
Net investment income | (.07 ) | (.11 ) | (.01 ) | (.18 ) | (.14 ) |
Net realized gains | — | (.19 ) | (.21 ) | — | (.20 ) |
Total distributions | (.07 ) | (.30 ) | (.22 ) | (.18 ) | (.34 ) |
Net asset value, end of period | $15.15 | $13.15 | $18.84 | $17.67 | $14.66 |
Total Return (%)b | 15.77 | (28.71 ) | 7.88 | 22.29 | 30.84 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | .03 | .03 | .1 | .1 | .2 |
Ratio of expenses before expense reductions (%)c | 1.82 | 1.66 | 1.62 | 1.81 | 1.95 |
Ratio of expenses after expense reductions (%)c | 1.16 | 1.18 | 1.17 | 1.18 | 1.16 |
Ratio of net investment income (%) | 1.01 | .64 | .18 | .07 | 1.31 |
Portfolio turnover rate (%) | 13 | 17 | 20 | 10 | 16 |
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* | $241,123 |
Capital loss carryforwards | $(2,356,459 ) |
Net unrealized appreciation (depreciation) on investments | $5,018,422 |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $149,907 | $246,866 |
Distributions from long-term capital gains | $— | $303,946 |
* | 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 | .91% |
Class B | 1.17% |
Class A | .82% | ||
Class B | 1.13% |
Class A | $91,632 |
Class B | 184 |
$91,816 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $321 | $54 |
Class B | 46 | 8 |
$367 | $62 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 17 |
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 |
Other Information (Unaudited)
20 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,024.40 | $1,023.60 |
Expenses Paid per $1,000* | $4.44 | $5.81 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,020.82 | $1,019.46 |
Expenses Paid per $1,000* | $4.43 | $5.80 |
* | 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 | .87% | 1.14% |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS International Growth VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 25 |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
26 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 27 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
28 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Contents
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4 | |
5 | |
6 | |
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10 | |
11 | |
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13 | |
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20 | |
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21 | |
24 |
2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Performance SummaryDecember 31, 2023 (Unaudited)
Comparative Results | |||||
DWS Small Mid Cap Growth VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,883 | $9,737 | $15,517 | $18,709 |
Average annual total return | 18.83% | –0.88% | 9.18% | 6.46% | |
Russell 2500 Growth Index | Growth of $10,000 | $11,893 | $9,218 | $17,178 | $23,194 |
Average annual total return | 18.93% | –2.68% | 11.43% | 8.78% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/23 | 12/31/22 |
Common Stocks | 98% | 96% |
Cash Equivalents | 2% | 4% |
Other Investments | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
Information Technology | 23% | 24% |
Industrials | 22% | 19% |
Health Care | 20% | 22% |
Consumer Discretionary | 12% | 12% |
Financials | 8% | 7% |
Materials | 5% | 4% |
Energy | 3% | 6% |
Consumer Staples | 3% | 2% |
Real Estate | 3% | 3% |
Communication Services | 1% | 1% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 5 |
Investment Portfolioas of December 31, 2023
Shares | Value ($) | ||
Common Stocks 98.2% | |||
Communication Services 1.2% | |||
Diversified Telecommunication Services 0.6% | |||
Iridium Communications, Inc. | 7,300 | 300,468 | |
Entertainment 0.6% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 349,905 | |
Consumer Discretionary 11.8% | |||
Automobile Components 0.7% | |||
Gentherm, Inc.* | 7,364 | 385,579 | |
Diversified Consumer Services 0.6% | |||
Bright Horizons Family Solutions, Inc.* | 3,398 | 320,227 | |
Hotels, Restaurants & Leisure 2.1% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 501,889 | |
Jack in the Box, Inc. | 7,229 | 590,103 | |
1,091,992 | |||
Household Durables 4.0% | |||
Helen of Troy Ltd.* | 1,963 | 237,150 | |
iRobot Corp.* | 1,573 | 60,875 | |
LGI Homes, Inc.* | 3,089 | 411,331 | |
TopBuild Corp.* | 3,773 | 1,412,083 | |
2,121,439 | |||
Leisure Products 1.5% | |||
YETI Holdings, Inc.* | 15,522 | 803,729 | |
Specialty Retail 2.9% | |||
Burlington Stores, Inc.* | 2,883 | 560,686 | |
Camping World Holdings, Inc. "A" | 22,907 | 601,538 | |
Valvoline, Inc.* | 9,900 | 372,042 | |
1,534,266 | |||
Consumer Staples 2.6% | |||
Consumer Staples Distribution & Retail 2.3% | |||
Casey's General Stores, Inc. | 4,371 | 1,200,889 | |
Household Products 0.3% | |||
Spectrum Brands Holdings, Inc. | 2,282 | 182,035 | |
Energy 3.3% | |||
Energy Equipment & Services 0.3% | |||
Liberty Energy, Inc. | 9,546 | 173,164 | |
Oil, Gas & Consumable Fuels 3.0% | |||
Crescent Energy Co. "A" | 6,384 | 84,333 | |
Kosmos Energy Ltd.* | 48,000 | 322,080 | |
Matador Resources Co. | 8,300 | 471,938 | |
Ovintiv, Inc. | 9,711 | 426,507 | |
Southwestern Energy Co.* | 43,176 | 282,803 | |
1,587,661 |
Shares | Value ($) | ||
Financials 8.1% | |||
Banks 2.3% | |||
Pinnacle Financial Partners, Inc. | 5,944 | 518,436 | |
SouthState Corp. | 2,804 | 236,798 | |
Synovus Financial Corp. | 11,493 | 432,711 | |
1,187,945 | |||
Capital Markets 3.6% | |||
FactSet Research Systems, Inc. | 1,036 | 494,224 | |
Lazard Ltd. "A" | 12,317 | 428,631 | |
LPL Financial Holdings, Inc. | 2,100 | 478,002 | |
Moelis & Co. "A" | 9,136 | 512,804 | |
1,913,661 | |||
Financial Services 1.0% | |||
WEX, Inc.* | 2,797 | 544,156 | |
Insurance 1.2% | |||
Kinsale Capital Group, Inc. | 1,900 | 636,329 | |
Health Care 19.7% | |||
Biotechnology 5.3% | |||
Apellis Pharmaceuticals, Inc.* | 3,951 | 236,507 | |
Beam Therapeutics, Inc.* | 1,593 | 43,361 | |
Biohaven Ltd.* | 1,787 | 76,484 | |
Blueprint Medicines Corp.* | 4,684 | 432,052 | |
Catalyst Pharmaceuticals, Inc.* | 7,600 | 127,756 | |
Halozyme Therapeutics, Inc.* | 3,100 | 114,576 | |
Insmed, Inc.* | 6,610 | 204,844 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 153,808 | |
Neurocrine Biosciences, Inc.* | 7,085 | 933,520 | |
Travere Therapeutics, Inc.* | 18,778 | 168,814 | |
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 146,186 | |
Vaxcyte, Inc.* | 3,200 | 200,960 | |
2,838,868 | |||
Health Care Equipment & Supplies 3.0% | |||
Alphatec Holdings, Inc.* | 7,420 | 112,116 | |
Axonics, Inc.* | 5,613 | 349,297 | |
Globus Medical, Inc. "A"* | 2,224 | 118,517 | |
Haemonetics Corp.* | 1,353 | 115,695 | |
Inari Medical, Inc.* | 2,000 | 129,840 | |
Inspire Medical Systems, Inc.* | 300 | 61,029 | |
Masimo Corp.* | 1,627 | 190,701 | |
Merit Medical Systems, Inc.* | 4,200 | 319,032 | |
Omnicell, Inc.* | 2,300 | 86,549 | |
Shockwave Medical, Inc.* | 500 | 95,280 | |
STAAR Surgical Co.* | 975 | 30,430 | |
1,608,486 | |||
Health Care Providers & Services 9.0% | |||
AMN Healthcare Services, Inc.* | 13,141 | 983,998 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
HealthEquity, Inc.* | 4,529 | 300,273 | |
ModivCare, Inc.* | 4,799 | 211,108 | |
Molina Healthcare, Inc.* | 2,619 | 946,271 | |
Option Care Health, Inc.* | 18,864 | 635,528 | |
Privia Health Group, Inc.* | 8,600 | 198,058 | |
RadNet, Inc.* | 42,777 | 1,487,356 | |
4,762,592 | |||
Life Sciences Tools & Services 0.2% | |||
OmniAb, Inc.* | 13,092 | 80,778 | |
Pharmaceuticals 2.2% | |||
Arvinas, Inc.* | 2,000 | 82,320 | |
Intra-Cellular Therapies, Inc.* | 7,000 | 501,340 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 190,834 | |
Pacira BioSciences, Inc.* | 11,807 | 398,368 | |
1,172,862 | |||
Industrials 21.4% | |||
Aerospace & Defense 1.4% | |||
HEICO Corp. | 4,176 | 746,961 | |
Building Products 6.2% | |||
Allegion PLC | 7,499 | 950,048 | |
Builders FirstSource, Inc.* | 11,006 | 1,837,342 | |
Masonite International Corp.* | 5,705 | 482,985 | |
3,270,375 | |||
Commercial Services & Supplies 3.8% | |||
MSA Safety, Inc. | 2,392 | 403,841 | |
Tetra Tech, Inc. | 3,819 | 637,506 | |
The Brink's Co. | 11,036 | 970,616 | |
2,011,963 | |||
Electrical Equipment 0.8% | |||
Atkore, Inc.* | 930 | 148,800 | |
Thermon Group Holdings, Inc.* | 9,149 | 297,983 | |
446,783 | |||
Machinery 0.7% | |||
IDEX Corp. | 1,802 | 391,232 | |
Professional Services 3.9% | |||
Broadridge Financial Solutions, Inc. | 2,782 | 572,397 | |
Kforce, Inc. | 11,225 | 758,361 | |
Maximus, Inc. | 8,556 | 717,506 | |
2,048,264 | |||
Trading Companies & Distributors 4.6% | |||
H&E Equipment Services, Inc. | 16,406 | 858,362 | |
Rush Enterprises, Inc. "A" | 24,885 | 1,251,716 | |
Titan Machinery, Inc.* | 11,743 | 339,138 | |
2,449,216 | |||
Information Technology 22.7% | |||
Communications Equipment 0.7% | |||
Calix, Inc.* | 8,844 | 386,395 |
Shares | Value ($) | ||
Electronic Equipment, Instruments & Components 3.6% | |||
Advanced Energy Industries, Inc. | 12,629 | 1,375,551 | |
Cognex Corp. | 7,873 | 328,619 | |
Fabrinet* | 900 | 171,297 | |
1,875,467 | |||
Semiconductors & Semiconductor Equipment 5.5% | |||
Entegris, Inc. | 6,121 | 733,418 | |
FormFactor, Inc.* | 7,627 | 318,122 | |
Impinj, Inc.* | 2,530 | 227,776 | |
Monolithic Power Systems, Inc. | 947 | 597,349 | |
Semtech Corp.* | 7,632 | 167,217 | |
SiTime Corp.* | 4,087 | 498,941 | |
Ultra Clean Holdings, Inc.* | 10,873 | 371,204 | |
2,914,027 | |||
Software 12.6% | |||
Aspen Technology, Inc.* | 3,737 | 822,701 | |
Dynatrace, Inc.* | 7,679 | 419,964 | |
Envestnet, Inc.* | 9,852 | 487,871 | |
Five9, Inc.* | 9,547 | 751,253 | |
Rapid7, Inc.* | 6,849 | 391,078 | |
Tenable Holdings, Inc.* | 12,141 | 559,214 | |
Tyler Technologies, Inc.* | 3,276 | 1,369,761 | |
Varonis Systems, Inc.* | 34,677 | 1,570,175 | |
Workiva, Inc.* | 3,058 | 310,479 | |
6,682,496 | |||
Technology Hardware, Storage & Peripherals 0.3% | |||
Super Micro Computer, Inc.* | 600 | 170,556 | |
Materials 5.0% | |||
Construction Materials 2.3% | |||
Eagle Materials, Inc. | 5,901 | 1,196,959 | |
Containers & Packaging 0.7% | |||
Berry Global Group, Inc. | 5,228 | 352,315 | |
Metals & Mining 2.0% | |||
Arch Resources, Inc. | 2,200 | 365,068 | |
Cleveland-Cliffs, Inc.* | 34,787 | 710,350 | |
1,075,418 | |||
Real Estate 2.4% | |||
Diversified REITs 1.0% | |||
Essential Properties Realty Trust, Inc. | 20,278 | 518,306 | |
Industrial REITs 0.7% | |||
EastGroup Properties, Inc. | 2,208 | 405,256 | |
Specialized REITs 0.7% | |||
Four Corners Property Trust, Inc. | 13,954 | 353,036 | |
Total Common Stocks (Cost $29,935,927) | 52,092,056 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 7 |
Shares | Value ($) | ||
Other Investments 0.0% | |||
Health Care 0.0% | |||
Life Sciences Tools & Services 0.0% | |||
OmniAb, Inc. $12.50 Earnout* (a) (b) | 1,013 | 0 | |
OmniAb, Inc. $15.00 Earnout* (a) (b) | 1,013 | 0 | |
Total Other Investments (Cost $0) | 0 | ||
Cash Equivalents 1.9% | |||
DWS Central Cash Management Government Fund, 5.38% (c) (Cost $1,024,006) | 1,024,006 | 1,024,006 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $30,959,933) | 100.1 | 53,116,062 | |
Other Assets and Liabilities, Net | (0.1 ) | (75,686 ) | |
Net Assets | 100.0 | 53,040,376 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 0.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (c) (d) | ||||||||
735,203 | — | 735,203 (e) | — | — | 3,210 | — | — | — |
Cash Equivalents 1.9% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (c) | ||||||||
1,969,280 | 4,845,785 | 5,791,059 | — | — | 55,547 | — | 1,024,006 | 1,024,006 |
2,704,483 | 4,845,785 | 6,526,262 | — | — | 58,757 | — | 1,024,006 | 1,024,006 |
* | Non-income producing security. |
(a) | 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. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2023. |
REIT: Real Estate Investment Trust |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $52,092,056 | $— | $— | $52,092,056 |
Other Investments | — | — | 0 | 0 |
Short-Term Investments | 1,024,006 | — | — | 1,024,006 |
Total | $53,116,062 | $— | $0 | $53,116,062 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 9 |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $29,935,927) | $52,092,056 |
Investment in DWS Central Cash Management Government Fund (cost $1,024,006) | 1,024,006 |
Cash | 10,000 |
Dividends receivable | 22,413 |
Interest receivable | 3,141 |
Other assets | 1,261 |
Total assets | 53,152,877 |
Liabilities | |
Payable for Fund shares redeemed | 10,969 |
Accrued management fee | 25,628 |
Accrued Trustees' fees | 1,164 |
Other accrued expenses and payables | 74,740 |
Total liabilities | 112,501 |
Net assets, at value | $53,040,376 |
Net Assets Consist of | |
Distributable earnings (loss) | 22,548,903 |
Paid-in capital | 30,491,473 |
Net assets, at value | $53,040,376 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($53,040,376 ÷ 3,872,116 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $13.70 |
Investment Income | |
Income: | |
Dividends | $373,311 |
Income distributions — DWS Central Cash Management Government Fund | 55,547 |
Securities lending income, net of borrower rebates | 3,210 |
Total income | 432,068 |
Expenses: | |
Management fee | 274,455 |
Administration fee | 48,404 |
Services to shareholders | 737 |
Custodian fee | 1,367 |
Audit fee | 44,827 |
Legal fees | 13,496 |
Reports to shareholders | 28,807 |
Trustees' fees and expenses | 4,101 |
Other | 9,866 |
Total expenses before expense reductions | 426,060 |
Expense reductions | (4,579 ) |
Total expenses after expense reductions | 421,481 |
Net investment income | 10,587 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 473,551 |
Change in net unrealized appreciation (depreciation) on investments | 8,136,061 |
Net gain (loss) | 8,609,612 |
Net increase (decrease) in net assets resulting from operations | $8,620,199 |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income (loss) | $10,587 | $(9,665 ) |
Net realized gain (loss) | 473,551 | 1,787,100 |
Change in net unrealized appreciation (depreciation) | 8,136,061 | (22,497,726 ) |
Net increase (decrease) in net assets resulting from operations | 8,620,199 | (20,720,291 ) |
Distributions to shareholders: | ||
Class A | (1,775,349 ) | (7,059,397 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,188,136 | 1,256,254 |
Reinvestment of distributions | 1,775,349 | 7,059,397 |
Payments for shares redeemed | (6,768,236 ) | (5,846,309 ) |
Net increase (decrease) in net assets from Class A share transactions | (3,804,751 ) | 2,469,342 |
Increase (decrease) in net assets | 3,040,099 | (25,310,346 ) |
Net assets at beginning of period | 50,000,277 | 75,310,623 |
Net assets at end of period | $53,040,376 | $50,000,277 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,175,946 | 3,990,886 |
Shares sold | 93,580 | 83,425 |
Shares issued to shareholders in reinvestment of distributions | 152,522 | 527,214 |
Shares redeemed | (549,932 ) | (425,579 ) |
Net increase (decrease) in Class A shares | (303,830 ) | 185,060 |
Shares outstanding at end of period | 3,872,116 | 4,175,946 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 11 |
Financial Highlights
DWS Small Mid Cap Growth VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.97 | $18.87 | $17.43 | $13.66 | $12.68 |
Income (loss) from investment operations: | |||||
Net investment income (loss)a | .00 * | (.00 )* | (.06 ) | (.01 ) | .01 |
Net realized and unrealized gain (loss) | 2.17 | (5.10 ) | 2.43 | 4.00 | 2.73 |
Total from investment operations | 2.17 | (5.10 ) | 2.37 | 3.99 | 2.74 |
Less distributions from: | |||||
Net investment income | (.00 )* | — | (.01 ) | (.01 ) | — |
Net realized gains | (.44 ) | (1.80 ) | (.92 ) | (.21 ) | (1.76 ) |
Total distributions | (.44 ) | (1.80 ) | (.93 ) | (.22 ) | (1.76 ) |
Net asset value, end of period | $13.70 | $11.97 | $18.87 | $17.43 | $13.66 |
Total Return (%) | 18.83 b | (28.02 )b | 13.84 | 30.18 b | 22.41 b |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 53 | 50 | 75 | 73 | 64 |
Ratio of expenses before expense reductions (%)c | .85 | .83 | .78 | .82 | .82 |
Ratio of expenses after expense reductions (%)c | .84 | .81 | .78 | .81 | .81 |
Ratio of net investment income (loss) (%) | .02 | (.02 ) | (.33 ) | (.05 ) | .11 |
Portfolio turnover rate (%) | 4 | 11 | 16 | 12 | 10 |
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. |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Notes to Financial Statements
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 13 |
Undistributed ordinary income* | $21,135 |
Undistributed long-term capital gains | $469,407 |
Net unrealized appreciation (depreciation) on investments | $22,052,978 |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $12,764 | $— |
Distributions from long-term capital gains | $1,762,585 | $7,059,397 |
* | 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% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Report of Independent Registered Public Accounting Firm
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 17 |
Other Information (Unaudited)
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 7/1/23 | $1,000.00 |
Ending Account Value 12/31/23 | $1,067.00 |
Expenses Paid per $1,000* | $4.38 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 7/1/23 | $1,000.00 |
Ending Account Value 12/31/23 | $1,020.97 |
Expenses Paid per $1,000* | $4.28 |
* | 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 | .84% |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
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 |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
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 |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 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
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2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Performance SummaryDecember 31, 2023 (Unaudited)
Comparative Results | |||||
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,495 | $12,630 | $15,225 | $17,098 |
Average annual total return | 14.95% | 8.09% | 8.77% | 5.51% | |
Russell 2500 Value Index | Growth of $10,000 | $11,598 | $12,881 | $16,693 | $20,463 |
Average annual total return | 15.98% | 8.81% | 10.79% | 7.42% | |
DWS Small Mid Cap Value VIP | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $11,459 | $12,496 | $14,952 | $16,492 |
Average annual total return | 14.59% | 7.71% | 8.38% | 5.13% | |
Russell 2500 Value Index | Growth of $10,000 | $11,598 | $12,881 | $16,693 | $20,463 |
Average annual total return | 15.98% | 8.81% | 10.79% | 7.42% | |
The growth of $10,000 is cumulative. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 3 |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 5 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 12/31/23 | 12/31/22 |
Common Stocks | 98% | 100% |
Cash Equivalents | 2% | — |
Other Investments | 0% | — |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 12/31/23 | 12/31/22 |
Financials | 23% | 21% |
Industrials | 20% | 17% |
Consumer Discretionary | 11% | 12% |
Real Estate | 10% | 12% |
Health Care | 8% | 7% |
Information Technology | 8% | 8% |
Materials | 6% | 6% |
Energy | 5% | 5% |
Utilities | 3% | 5% |
Consumer Staples | 3% | 3% |
Communication Services | 3% | 4% |
100% | 100% |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Investment Portfolioas of December 31, 2023
Shares | Value ($) | ||
Common Stocks 98.5% | |||
Communication Services 2.6% | |||
Diversified Telecommunication Services 0.7% | |||
Liberty Latin America Ltd. "A"* | 83,215 | 608,302 | |
Media 1.9% | |||
Gray Television, Inc. | 29,449 | 263,863 | |
Interpublic Group of Companies, Inc. | 39,760 | 1,297,766 | |
1,561,629 | |||
Consumer Discretionary 11.4% | |||
Automobile Components 2.3% | |||
American Axle & Manufacturing Holdings, Inc.* | 63,862 | 562,624 | |
Lear Corp. | 9,816 | 1,386,117 | |
1,948,741 | |||
Diversified Consumer Services 0.3% | |||
WW International, Inc.* | 28,115 | 246,006 | |
Hotels, Restaurants & Leisure 1.9% | |||
International Game Technology PLC | 9,069 | 248,581 | |
Mondee Holdings, Inc.* (a) | 42,840 | 118,239 | |
Wynn Resorts Ltd. | 13,366 | 1,217,776 | |
1,584,596 | |||
Household Durables 4.0% | |||
Mohawk Industries, Inc.* | 3,523 | 364,631 | |
PulteGroup, Inc. | 23,182 | 2,392,846 | |
Worthington Enterprises, Inc. | 10,255 | 590,175 | |
3,347,652 | |||
Specialty Retail 2.0% | |||
Foot Locker, Inc. | 10,718 | 333,866 | |
Gap, Inc. | 18,240 | 381,398 | |
RH* | 3,239 | 944,104 | |
1,659,368 | |||
Textiles, Apparel & Luxury Goods 0.9% | |||
Columbia Sportswear Co. | 10,018 | 796,832 | |
Consumer Staples 2.7% | |||
Consumer Staples Distribution & Retail 0.5% | |||
Performance Food Group Co.* | 6,533 | 451,757 | |
Food Products 1.7% | |||
B&G Foods, Inc. (a) | 38,062 | 399,651 | |
Cal-Maine Foods, Inc. | 14,699 | 843,575 | |
Darling Ingredients, Inc.* | 4,220 | 210,325 | |
1,453,551 | |||
Household Products 0.5% | |||
Central Garden & Pet Co.* | 7,995 | 400,630 |
Shares | Value ($) | ||
Energy 5.0% | |||
Energy Equipment & Services 1.0% | |||
Helmerich & Payne, Inc. | 9,786 | 354,449 | |
Nabors Industries Ltd.* | 2,550 | 208,156 | |
Patterson-UTI Energy, Inc. | 24,307 | 262,516 | |
825,121 | |||
Oil, Gas & Consumable Fuels 4.0% | |||
HF Sinclair Corp. | 12,253 | 680,899 | |
Kinetik Holdings, Inc. | 12,422 | 414,895 | |
Permian Resources Corp. | 56,091 | 762,838 | |
Range Resources Corp. | 35,424 | 1,078,307 | |
Targa Resources Corp. | 5,097 | 442,776 | |
3,379,715 | |||
Financials 22.4% | |||
Banks 10.7% | |||
Associated Banc-Corp. | 50,702 | 1,084,516 | |
BankUnited, Inc. | 15,271 | 495,239 | |
Columbia Banking System, Inc. | 13,657 | 364,369 | |
Eagle Bancorp., Inc. | 21,907 | 660,277 | |
Eastern Bankshares, Inc. | 61,996 | 880,343 | |
First BanCorp. | 73,164 | 1,203,548 | |
First Financial Corp. | 10,968 | 471,953 | |
Fulton Financial Corp. | 21,539 | 354,532 | |
Hancock Whitney Corp. | 23,244 | 1,129,426 | |
Hilltop Holdings, Inc. | 15,601 | 549,311 | |
Simmons First National Corp. "A" | 30,569 | 606,489 | |
UMB Financial Corp. | 14,217 | 1,187,830 | |
8,987,833 | |||
Capital Markets 1.9% | |||
Evercore, Inc. "A" | 3,114 | 532,650 | |
Invesco Ltd. | 23,343 | 416,439 | |
Robinhood Markets, Inc. "A"* | 47,820 | 609,227 | |
1,558,316 | |||
Consumer Finance 0.9% | |||
Credit Acceptance Corp.* | 1,410 | 751,149 | |
Financial Services 3.6% | |||
Affirm Holdings, Inc.* | 9,981 | 490,466 | |
AvidXchange Holdings, Inc.* | 71,323 | 883,692 | |
NCR Atleos Corp.* | 24,829 | 603,097 | |
Voya Financial, Inc. | 14,340 | 1,046,246 | |
3,023,501 | |||
Insurance 4.3% | |||
Assurant, Inc. | 9,089 | 1,531,405 | |
Brown & Brown, Inc. | 10,415 | 740,611 | |
Everest Group Ltd. | 3,840 | 1,357,747 | |
3,629,763 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 7 |
Shares | Value ($) | ||
Mortgage Real Estate Investment Trusts (REITs) 1.0% | |||
Rithm Capital Corp. | 74,134 | 791,751 | |
Health Care 7.9% | |||
Biotechnology 2.6% | |||
Kiniksa Pharmaceuticals Ltd. "A"* | 17,369 | 304,652 | |
REVOLUTION Medicines, Inc.* | 23,957 | 687,087 | |
Sana Biotechnology, Inc.* | 76,915 | 313,813 | |
Twist Bioscience Corp.* | 22,683 | 836,095 | |
2,141,647 | |||
Health Care Equipment & Supplies 0.6% | |||
Merit Medical Systems, Inc.* | 6,876 | 522,301 | |
Health Care Providers & Services 2.1% | |||
NeoGenomics, Inc.* | 35,864 | 580,280 | |
Owens & Minor, Inc.* | 60,723 | 1,170,132 | |
1,750,412 | |||
Pharmaceuticals 2.6% | |||
Jazz Pharmaceuticals PLC* | 8,638 | 1,062,474 | |
Ligand Pharmaceuticals, Inc.* | 15,833 | 1,130,793 | |
2,193,267 | |||
Industrials 19.7% | |||
Aerospace & Defense 2.4% | |||
Huntington Ingalls Industries, Inc. | 7,735 | 2,008,316 | |
Air Freight & Logistics 0.4% | |||
GXO Logistics, Inc.* | 5,515 | 337,298 | |
Building Products 4.4% | |||
Carlisle Companies, Inc. | 6,936 | 2,167,014 | |
Owens Corning | 10,059 | 1,491,046 | |
3,658,060 | |||
Construction & Engineering 1.8% | |||
API Group Corp.* | 31,269 | 1,081,907 | |
MasTec, Inc.* | 5,526 | 418,429 | |
1,500,336 | |||
Electrical Equipment 3.5% | |||
Encore Wire Corp. | 6,162 | 1,316,203 | |
EnerSys | 15,947 | 1,610,009 | |
2,926,212 | |||
Ground Transportation 1.0% | |||
Knight-Swift Transportation Holdings, Inc. | 7,574 | 436,641 | |
RXO, Inc.* | 18,131 | 421,727 | |
858,368 | |||
Machinery 3.0% | |||
Hillenbrand, Inc. | 37,312 | 1,785,379 | |
The Manitowoc Co., Inc.* | 42,427 | 708,107 | |
2,493,486 |
Shares | Value ($) | ||
Professional Services 2.0% | |||
Jacobs Solutions, Inc. | 10,424 | 1,353,035 | |
TrueBlue, Inc.* | 21,709 | 333,016 | |
1,686,051 | |||
Trading Companies & Distributors 1.2% | |||
NOW, Inc.* | 88,894 | 1,006,280 | |
Information Technology 7.6% | |||
Communications Equipment 0.4% | |||
Ciena Corp.* | 7,945 | 357,605 | |
Electronic Equipment, Instruments & Components 3.4% | |||
Avnet, Inc. | 33,437 | 1,685,225 | |
Itron, Inc.* | 9,376 | 707,982 | |
TD SYNNEX Corp. | 3,829 | 412,038 | |
2,805,245 | |||
Semiconductors & Semiconductor Equipment 2.2% | |||
Cirrus Logic, Inc.* | 11,969 | 995,701 | |
Photronics, Inc.* | 26,946 | 845,296 | |
1,840,997 | |||
Software 1.6% | |||
Adeia, Inc. | 33,819 | 419,017 | |
NCR Voyix Corp.* | 12,880 | 217,801 | |
Verint Systems, Inc.* | 26,229 | 708,970 | |
1,345,788 | |||
Materials 6.0% | |||
Chemicals 1.5% | |||
Avient Corp. | 7,871 | 327,197 | |
Chemours Co. | 20,651 | 651,333 | |
Sensient Technologies Corp. | 3,558 | 234,828 | |
1,213,358 | |||
Containers & Packaging 1.0% | |||
Graphic Packaging Holding Co. | 33,885 | 835,265 | |
Metals & Mining 3.5% | |||
Cleveland-Cliffs, Inc.* | 22,180 | 452,916 | |
Commercial Metals Co. | 3,564 | 178,343 | |
Reliance Steel & Aluminum Co. | 2,189 | 612,219 | |
Steel Dynamics, Inc. | 11,714 | 1,383,423 | |
Worthington Steel, Inc.* | 11,178 | 314,102 | |
2,941,003 | |||
Real Estate 9.6% | |||
Diversified REITs 2.0% | |||
Alpine Income Property Trust, Inc. | 23,402 | 395,728 | |
Global Net Lease, Inc. | 125,295 | 1,246,685 | |
1,642,413 | |||
Industrial REITs 2.7% | |||
LXP Industrial Trust | 55,263 | 548,209 |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
Prologis, Inc. | 2,509 | 334,450 | |
STAG Industrial, Inc. | 34,180 | 1,341,907 | |
2,224,566 | |||
Office REITs 0.7% | |||
Highwoods Properties, Inc. | 27,146 | 623,272 | |
Residential REITs 0.8% | |||
BRT Apartments Corp. | 38,543 | 716,514 | |
Retail REITs 1.1% | |||
Kite Realty Group Trust | 17,722 | 405,125 | |
SITE Centers Corp. | 38,592 | 526,009 | |
931,134 | |||
Specialized REITs 2.3% | |||
Gaming and Leisure Properties, Inc. | 32,113 | 1,584,776 | |
Safehold, Inc. | 14,037 | 328,466 | |
1,913,242 | |||
Utilities 3.6% | |||
Electric Utilities 2.6% | |||
IDACORP, Inc. | 15,434 | 1,517,471 | |
Otter Tail Corp. | 8,068 | 685,538 | |
2,203,009 | |||
Gas Utilities 0.6% | |||
UGI Corp. | 20,014 | 492,344 | |
Independent Power & Renewable Electricity Producers 0.4% | |||
Sunnova Energy International, Inc.* (a) | 19,009 | 289,887 | |
Total Common Stocks (Cost $67,382,895) | 82,463,889 |
Shares | Value ($) | ||
Other Investments 0.0% | |||
Communication Services 0.0% | |||
Diversified Telecommunication Services 0.0% | |||
GCI Liberty, Inc. (Escrow Shares)* (b) (Cost $0) | 3,095 | 0 | |
Total Other Investments (Cost $0) | 0 | ||
Securities Lending Collateral 1.0% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (c) (d) (Cost $855,150) | 855,150 | 855,150 | |
Cash Equivalents 1.6% | |||
DWS Central Cash Management Government Fund, 5.38% (c) (Cost $1,309,604) | 1,309,604 | 1,309,604 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $69,547,649) | 101.1 | 84,628,643 | |
Other Assets and Liabilities, Net | (1.1 ) | (885,187 ) | |
Net Assets | 100.0 | 83,743,456 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 12/31/2023 | Value ($) at 12/31/2023 |
Securities Lending Collateral 1.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.27% (c) (d) | ||||||||
2,566,790 | — | 1,711,640 (e) | — | — | 24,061 | — | 855,150 | 855,150 |
Cash Equivalents 1.6% | ||||||||
DWS Central Cash Management Government Fund, 5.38% (c) | ||||||||
— | 11,124,903 | 9,815,299 | — | — | 41,137 | — | 1,309,604 | 1,309,604 |
2,566,790 | 11,124,903 | 11,526,939 | — | — | 65,198 | — | 2,164,754 | 2,164,754 |
* | 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, 2023 amounted to $806,878, which is 1.0% of net assets. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended December 31, 2023. |
REIT: Real Estate Investment Trust |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 9 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $82,463,889 | $— | $— | $82,463,889 |
Other Investments | — | — | 0 | 0 |
Short-Term Investments (a) | 2,164,754 | — | — | 2,164,754 |
Total | $84,628,643 | $— | $0 | $84,628,643 |
(a) | See Investment Portfolio for additional detailed categorizations. |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
as of December 31, 2023
Assets | |
Investments in non-affiliated securities, at value (cost $67,382,895) — including $806,878 of securities loaned | $82,463,889 |
Investment in DWS Government & Agency Securities Portfolio (cost $855,150)* | 855,150 |
Investment in DWS Central Cash Management Government Fund (cost $1,309,604) | 1,309,604 |
Cash | 10,000 |
Receivable for Fund shares sold | 24,277 |
Dividends receivable | 103,240 |
Interest receivable | 3,893 |
Other assets | 1,865 |
Total assets | 84,771,918 |
Liabilities | |
Payable upon return of securities loaned | 855,150 |
Payable for Fund shares redeemed | 47,159 |
Accrued management fee | 45,607 |
Accrued Trustees' fees | 1,748 |
Other accrued expenses and payables | 78,798 |
Total liabilities | 1,028,462 |
Net assets, at value | $83,743,456 |
Net Assets Consist of | |
Distributable earnings (loss) | 19,882,423 |
Paid-in capital | 63,861,033 |
Net assets, at value | $83,743,456 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($66,962,402 ÷ 4,830,766 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $13.86 |
Class B | |
Net Asset Value, offering and redemption price per share ($16,781,054 ÷ 1,210,975 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $13.86 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $2,975) | $1,337,549 |
Non cash dividends | 150,875 |
Income distributions — DWS Central Cash Management Government Fund | 41,137 |
Securities lending income, net of borrower rebates | 24,061 |
Total income | 1,553,622 |
Expenses: | |
Management fee | 513,263 |
Administration fee | 76,595 |
Services to shareholders | 2,280 |
Record keeping fee (Class B) | 17,927 |
Distribution service fee (Class B) | 39,106 |
Custodian fee | 1,617 |
Professional fees | 51,110 |
Reports to shareholders | 26,210 |
Trustees' fees and expenses | 4,625 |
Other | 11,565 |
Total expenses before expense reductions | 744,298 |
Expense reductions | (47,202 ) |
Total expenses after expense reductions | 697,096 |
Net investment income | 856,526 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 4,071,094 |
Change in net unrealized appreciation (depreciation) on investments | 6,158,094 |
Net gain (loss) | 10,229,188 |
Net increase (decrease) in net assets resulting from operations | $11,085,714 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 11 |
Years Ended December 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $856,526 | $936,675 |
Net realized gain (loss) | 4,071,094 | 3,139,256 |
Change in net unrealized appreciation (depreciation) | 6,158,094 | (20,152,339 ) |
Net increase (decrease) in net assets resulting from operations | 11,085,714 | (16,076,408 ) |
Distributions to shareholders: | ||
Class A | (3,252,643 ) | (1,631,110 ) |
Class B | (744,290 ) | (353,137 ) |
Total distributions | (3,996,933 ) | (1,984,247 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,899,779 | 3,556,679 |
Reinvestment of distributions | 3,252,643 | 1,631,110 |
Payments for shares redeemed | (8,462,077 ) | (8,973,908 ) |
Net increase (decrease) in net assets from Class A share transactions | (2,309,655 ) | (3,786,119 ) |
Class B | ||
Proceeds from shares sold | 1,723,459 | 1,142,137 |
Reinvestment of distributions | 744,290 | 353,137 |
Payments for shares redeemed | (2,740,877 ) | (3,381,561 ) |
Net increase (decrease) in net assets from Class B share transactions | (273,128 ) | (1,886,287 ) |
Increase (decrease) in net assets | 4,505,998 | (23,733,061 ) |
Net assets at beginning of period | 79,237,458 | 102,970,519 |
Net assets at end of period | $83,743,456 | $79,237,458 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,000,004 | 5,282,801 |
Shares sold | 224,586 | 260,559 |
Shares issued to shareholders in reinvestment of distributions | 271,506 | 119,671 |
Shares redeemed | (665,330 ) | (663,027 ) |
Net increase (decrease) in Class A shares | (169,238 ) | (282,797 ) |
Shares outstanding at end of period | 4,830,766 | 5,000,004 |
Class B | ||
Shares outstanding at beginning of period | 1,226,929 | 1,372,395 |
Shares sold | 137,071 | 83,227 |
Shares issued to shareholders in reinvestment of distributions | 61,972 | 25,852 |
Shares redeemed | (214,997 ) | (254,545 ) |
Net increase (decrease) in Class B shares | (15,954 ) | (145,466 ) |
Shares outstanding at end of period | 1,210,975 | 1,226,929 |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Financial Highlights
DWS Small Mid Cap Value VIP — Class A | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.73 | $15.47 | $12.00 | $13.83 | $12.21 |
Income (loss) from investment operations: | |||||
Net investment incomea | .15 | .15 | .11 | .16 | .18 |
Net realized and unrealized gain (loss) | 1.64 | (2.57 ) | 3.54 | (.90 ) | 2.53 b |
Total from investment operations | 1.79 | (2.42 ) | 3.65 | (.74 ) | 2.71 |
Less distributions from: | |||||
Net investment income | (.15 ) | (.12 ) | (.18 ) | (.16 ) | (.10 ) |
Net realized gains | (.51 ) | (.20 ) | — | (.93 ) | (.99 ) |
Total distributions | (.66 ) | (.32 ) | (.18 ) | (1.09 ) | (1.09 ) |
Net asset value, end of period | $13.86 | $12.73 | $15.47 | $12.00 | $13.83 |
Total Return (%)c | 14.95 | (15.80 ) | 30.50 | (1.80 ) | 22.76 b |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 67 | 64 | 82 | 70 | 78 |
Ratio of expenses before expense reductions (%)d | .87 | .87 | .85 | .88 | .88 |
Ratio of expenses after expense reductions (%)d | .81 | .83 | .83 | .82 | .83 |
Ratio of net investment income (%) | 1.16 | 1.14 | .76 | 1.57 | 1.35 |
Portfolio turnover rate (%) | 28 | 33 | 32 | 43 | 55 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 13 |
DWS Small Mid Cap Value VIP — Class B | |||||
Years Ended December 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $12.72 | $15.46 | $11.99 | $13.82 | $12.20 |
Income (loss) from investment operations: | |||||
Net investment incomea | .10 | .10 | .06 | .13 | .13 |
Net realized and unrealized gain (loss) | 1.66 | (2.58 ) | 3.53 | (.90 ) | 2.53 b |
Total from investment operations | 1.76 | (2.48 ) | 3.59 | (.77 ) | 2.66 |
Less distributions from: | |||||
Net investment income | (.11 ) | (.06 ) | (.12 ) | (.13 ) | (.05 ) |
Net realized gains | (.51 ) | (.20 ) | — | (.93 ) | (.99 ) |
Total distributions | (.62 ) | (.26 ) | (.12 ) | (1.06 ) | (1.04 ) |
Net asset value, end of period | $13.86 | $12.72 | $15.46 | $11.99 | $13.82 |
Total Return (%)c | 14.59 | (16.14 ) | 30.04 | (2.18 ) | 22.32 b |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 17 | 16 | 21 | 17 | 17 |
Ratio of expenses before expense reductions (%)d | 1.24 | 1.24 | 1.22 | 1.25 | 1.25 |
Ratio of expenses after expense reductions (%)d | 1.18 | 1.20 | 1.20 | 1.19 | 1.19 |
Ratio of net investment income (%) | .79 | .77 | .40 | 1.21 | .99 |
Portfolio turnover rate (%) | 28 | 33 | 32 | 43 | 55 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Notes to Financial Statements
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 15 |
Undistributed ordinary income* | $1,649,969 |
Undistributed long-term capital gains | $3,236,745 |
Net unrealized appreciation (depreciation) on investments | $14,958,844 |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Years Ended December 31, | ||
2023 | 2022 | |
Distributions from ordinary income* | $872,630 | $684,433 |
Distributions from long-term capital gains | $3,124,303 | $1,299,814 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 17 |
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% |
Class A | .81% | |
Class B | 1.18% |
Class A | $37,832 |
Class B | 9,370 |
$47,202 |
Services to Shareholders | Total Aggregated | Unpaid at December 31, 2023 |
Class A | $902 | $151 |
Class B | 723 | 123 |
$1,625 | $274 |
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 19 |
Report of Independent Registered Public Accounting Firm
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 21 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,079.40 | $1,077.80 |
Expenses Paid per $1,000* | $4.25 | $6.18 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 7/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 12/31/23 | $1,021.12 | $1,019.26 |
Expenses Paid per $1,000* | $4.13 | $6.01 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 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 | .81% | 1.18% |
22 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 23 |
Advisory Agreement Board Considerations and Fee Evaluation
24 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 25 |
26 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
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); 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); Progressive International Corporation (kitchen goods designer and distributor) | 68 | — |
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 well-being 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. | 68 | — |
Mary Schmid Daugherty, NACD.DC, PHD, CFA (1958) Board Member or Advisory Board Member since 20233 | Senior Fellow in Applied Finance, Department of Finance, Opus College of Business at the University of St. Thomas (1987–present); Directorships: The Meritex Company (2017–present); Driessen Water, Inc. (2016–present); and The Hardenbergh Foundation (2021–present); Former Directorships: Mairs & Power Funds Trust (mutual funds) (2010–2022); and Crescent Electric Supply Company (2010–2019) | 214 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus 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) | 68 | — |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 27 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); 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 (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); 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) | 68 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); 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 | Directorships: Washington College (since July 2023); 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) | 68 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Advisory Board Member, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 68 | — |
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) | 68 | — |
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 | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Vice President, DWS Service Company (2018–present); 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); Vice President, DWS Investment Management Americas, Inc. (2023–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Assistant Secretary, DWS Distributors, Inc. (2018–2023); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–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) |
28 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–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) |
Yvonne Wong8 (1960) Assistant Treasurer, since December 1, 2023 | Fund Administration (Senior Analyst), DWS; Assistant Treasurer, DBX ETF Trust (since November 14, 2023) |
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) |
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, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry and Ms. Daugherty are each 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 and Ms. Daugherty are each a Board Member of each other Trust. |
4 | Mr. Perry and Ms. Daugherty each oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry and Ms. Daugherty are each an Advisory Board Member of various Trusts/Corporations comprised of 47 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, New York 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 29 |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including 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 |
Deutche 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 |
2023 | $387,811 | $0 | $50,727 | $0 |
2022 | $387,811 | $0 | $61,246 | $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 |
2023 | $0 | $424,143 | $0 |
2022 | $0 | $148,212 | $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) |
2023 | $50,727 | $424,143 | $0 | $474,870 |
2022 | $61,246 | $148,212 | $0 | $209,458 |
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 and (i) and (j) are not applicable.
***
In connection with the audit of the 2022 and 2023 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. | 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: | 2/15/2024 |
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: | 2/15/2024 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 2/15/2024 |