UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-02021
Deutsche DWS Securities Trust
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 6/30/2021 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | |
2 | | DWS Communications Fund |
DWS Communications Fund | | 3 |
Performance Summary | June 30, 2021 (Unaudited) |
Class A | 6-Month ‡ | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 6/30/21 | ||||
Unadjusted for Sales Charge | 15.49% | 41.55% | 12.49% | 10.75% |
Adjusted for the Maximum Sales Charge (max 5.75% load) | 8.85% | 33.41% | 11.16% | 10.10% |
MSCI World Index† | 13.05% | 39.04% | 14.83% | 10.65% |
MSCI World Communication Services Index†† | 16.67% | 46.06% | 10.81% | 9.22% |
Class C | 6-Month ‡ | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 6/30/21 | ||||
Unadjusted for Sales Charge | 15.07% | 40.46% | 11.64% | 9.92% |
Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | 14.07% | 40.46% | 11.64% | 9.92% |
MSCI World Index† | 13.05% | 39.04% | 14.83% | 10.65% |
MSCI World Communication Services Index†† | 16.67% | 46.06% | 10.81% | 9.22% |
Institutional Class | 6-Month ‡ | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 6/30/21 | ||||
No Sales Charges | 15.66% | 41.88% | 12.77% | 11.01% |
MSCI World Index† | 13.05% | 39.04% | 14.83% | 10.65% |
MSCI World Communication Services Index†† | 16.67% | 46.06% | 10.81% | 9.22% |
4 | | DWS Communications Fund |
† | The Morgan Stanley Capital International (MSCI) World Index is an unmanaged index representing large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country. |
†† | MSCI World Communication Services Index (formerly known as MSCI World Telecommunication Services Index) is an unmanaged index designed to capture the large and mid capitalization segments across 23 developed markets countries. All securities in the index are classified in the Communication Services sector as per the Global Industry Classification Standard (GICS®). |
‡ | Total returns shown for periods less than one year are not annualized. |
Class A | Class C | Institutional Class | |
Net Asset Value | |||
6/30/21 | $37.51 | $33.36 | $38.55 |
12/31/20 | $32.48 | $28.99 | $33.33 |
DWS Communications Fund | | 5 |
6 | | DWS Communications Fund |
Portfolio Summary | (Unaudited) |
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/21 | 12/31/20 |
Common Stocks | 96% | 94% |
Convertible Bonds | 3% | 3% |
Corporate Bond | 1% | 1% |
Cash Equivalents | 0% | 2% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
Interactive Media & Services | 46% | 39% |
Entertainment | 19% | 21% |
Media | 12% | 13% |
Diversified Telecommunication Services | 9% | 12% |
Wireless Telecommunication Services | 5% | 6% |
Equity Real Estate Investment Trusts | 3% | 2% |
Software | 2% | 1% |
IT Services | 1% | 4% |
Commercial Services & Supplies | 1% | — |
Professional Services | 1% | 0% |
Communications Equipment | 1% | 1% |
Hotels, Restaurants & Leisure | 0% | — |
Internet & Direct Marketing Retail | 0% | 0% |
Electronic Equipment, Instruments & Components | — | 1% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/21 | 12/31/20 |
United States | 89% | 86% |
Sweden | 3% | 2% |
United Kingdom | 2% | 1% |
Japan | 2% | 5% |
Germany | 1% | 1% |
Canada | 1% | 1% |
France | 1% | 1% |
Spain | — | 1% |
Singapore | — | 1% |
Other | 1% | 2% |
100% | 100% |
DWS Communications Fund | | 7 |
Ten Largest Holdings at June 30, 2021 (71.1% of Net Assets) | Country | Percent |
1 Alphabet, Inc. | United States | 24.0% |
Holding company with subsidiaries that provide Web-based search, maps, hardware products and various software applications | ||
2 Facebook, Inc. | United States | 16.2% |
Operator of social networking Web site | ||
3 Walt Disney Co. | United States | 7.0% |
Operator of media networks, theme parks and motion pictures | ||
4 Netflix, Inc. | United States | 4.9% |
Creator of an online source for movie recommendations | ||
5 Charter Communications, Inc. | United States | 3.7% |
Operates as a cable telecommunications company | ||
6 Verizon Communications, Inc. | United States | 3.6% |
Provider of advanced communication and information technology services | ||
7 Comcast Corp. | United States | 3.4% |
Developer, manager and operator of hybrid fiber-coaxial broadband cable communications networks | ||
8 T-Mobile U.S., Inc. | United States | 3.4% |
Provider of mobile telecommunication services | ||
9 Snap, Inc. | United States | 2.6% |
Provider of technology and social media services | ||
10 Match Group, Inc. | United States | 2.3% |
Provider of internet media and services |
8 | | DWS Communications Fund |
Investment Portfolio | as of June 30, 2021 (Unaudited) |
Shares | Value ($) | ||
Common Stocks 96.3% | |||
Communications Equipment 0.6% | |||
Telefonaktiebolaget LM Ericsson (ADR) | 53,776 | 676,502 | |
Diversified Telecommunication Services 8.6% | |||
AT&T, Inc. | 48,524 | 1,396,521 | |
Bandwidth, Inc. “A” * | 4,724 | 651,534 | |
Deutsche Telekom AG (Registered) | 48,021 | 1,014,231 | |
Frontier Communications Parent, Inc.* | 24,450 | 645,480 | |
Hellenic Telecommunications Organization SA | 32,912 | 552,209 | |
Liberty Global plc “A” * | 37,234 | 1,011,275 | |
Orange SA | 84,039 | 958,128 | |
Verizon Communications, Inc. | 78,253 | 4,384,516 | |
10,613,894 | |||
Entertainment 18.9% | |||
Activision Blizzard, Inc. | 26,637 | 2,542,235 | |
IMAX Corp.* | 53,127 | 1,142,231 | |
Live Nation Entertainment, Inc.* | 11,221 | 982,847 | |
Netflix, Inc.* | 11,372 | 6,006,804 | |
ROBLOX Corp. “A” * | 6,696 | 602,506 | |
Spotify Technology SA* | 6,678 | 1,840,390 | |
Tencent Music Entertainment Group (ADR)* | 27,783 | 430,081 | |
Walt Disney Co.* | 49,322 | 8,669,328 | |
Zynga, Inc. “A” * | 106,561 | 1,132,744 | |
23,349,166 | |||
Equity Real Estate Investment Trusts (REITs) 2.6% | |||
American Tower Corp. | 3,132 | 846,078 | |
Crown Castle International Corp. | 8,446 | 1,647,815 | |
QTS Realty Trust, Inc. “A” | 9,651 | 746,022 | |
3,239,915 | |||
Hotels, Restaurants & Leisure 0.5% | |||
DraftKings, Inc. “A” * (a) | 11,453 | 597,503 | |
Interactive Media & Services 45.5% | |||
Alphabet, Inc. “A” * | 5,939 | 14,501,791 | |
Alphabet, Inc. “C” * | 5,989 | 15,010,350 | |
Facebook, Inc. “A” * | 57,451 | 19,976,287 | |
Genius Sports Ltd.* | 19,195 | 360,290 | |
Match Group, Inc.* | 17,426 | 2,809,943 |
DWS Communications Fund | | 9 |
Shares | Value ($) | ||
Snap, Inc. “A” * | 47,355 | 3,226,770 | |
Spark Networks SE (ADR)* | 35,036 | 181,486 | |
56,066,917 | |||
Internet & Direct Marketing Retail 0.3% | |||
PubMatic, Inc. “A” * | 9,642 | 376,713 | |
IT Services 1.5% | |||
Akamai Technologies, Inc.* | 6,321 | 737,029 | |
GDS Holdings Ltd. (ADR)* | 14,612 | 1,146,896 | |
1,883,925 | |||
Media 11.0% | |||
Cable One, Inc. | 588 | 1,124,732 | |
Charter Communications, Inc. “A” * | 6,258 | 4,514,834 | |
Comcast Corp. “A” | 74,322 | 4,237,841 | |
Liberty Media Corp. “A” * | 18,768 | 874,214 | |
New York Times Co. “A” | 29,648 | 1,291,170 | |
Nordic Entertainment Group AB “B” * | 17,632 | 776,722 | |
Sirius XM Holdings, Inc. (a) | 109,606 | 716,823 | |
13,536,336 | |||
Professional Services 0.6% | |||
RELX PLC | 29,135 | 773,404 | |
Software 0.7% | |||
Dolby Laboratories, Inc. “A” | 8,515 | 836,939 | |
Wireless Telecommunication Services 5.5% | |||
KDDI Corp. | 64,600 | 2,014,843 | |
T-Mobile U.S., Inc.* | 28,748 | 4,163,573 | |
Vodafone Group PLC | 353,194 | 592,835 | |
6,771,251 | |||
Total Common Stocks (Cost $72,699,176) | 118,722,465 |
Principal Amount ($) | Value ($) | ||
Corporate Bonds 0.7% | |||
Media | |||
Discovery Communications LLC, 5.0%, 9/20/2037 (Cost $773,224) | 768,000 | 931,910 |
Convertible Bonds 2.6% | |||
Commercial Services & Supplies 0.7% | |||
Chegg, Inc., 144A, Zero Coupon, 9/1/2026 | 841,000 | 873,799 |
10 | | DWS Communications Fund |
Media 0.5% | |||
Dish Network Corp., 144A, Zero Coupon, 12/15/2025 | 498,000 | 579,921 | |
Software 1.4% | |||
Five9, Inc., 144A, 0.5%, 6/1/2025 | 424,000 | 626,725 | |
RingCentral, Inc., Zero Coupon, 3/1/2025 | 440,000 | 485,925 | |
Zynga, Inc., 144A, Zero Coupon, 12/15/2026 | 561,000 | 598,166 | |
1,710,816 | |||
Total Convertible Bonds (Cost $2,969,015) | 3,164,536 |
Shares | Value ($) | ||
Securities Lending Collateral 1.0% | |||
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 0.01% (b) (c) (Cost $1,309,295) | 1,309,295 | 1,309,295 | |
Cash Equivalents 0.4% | |||
DWS Central Cash Management Government Fund, 0.02% (b) (Cost $446,253) | 446,253 | 446,253 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $78,196,963) | 101.0 | 124,574,459 | |
Other Assets and Liabilities, Net | (1.0) | (1,264,514) | |
Net Assets | 100.0 | 123,309,945 |
DWS Communications Fund | | 11 |
Value ($) at 12/31/2020 | Pur- chases Cost ($) | Sales Proceeds ($) | Net Real- ized Gain/ (Loss) ($) | Net Change in Unreal- ized Appreci- ation (Depreci- ation) ($) | Income ($) | Capital Gain Distri- butions ($) | Number of Shares at 6/30/2021 | Value ($) at 6/30/2021 |
Securities Lending Collateral 1.0% | ||||||||
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 0.01% (b) (c) | ||||||||
2,855,569 | — | 1,546,274 (d) | — | — | 10,901 | — | 1,309,295 | 1,309,295 |
Cash Equivalents 0.4% | ||||||||
DWS Central Cash Management Government Fund, 0.02% (b) | ||||||||
2,396,597 | 10,218,068 | 12,168,412 | — | — | 171 | — | 446,253 | 446,253 |
5,252,166 | 10,218,068 | 13,714,686 | — | — | 11,072 | — | 1,755,548 | 1,755,548 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, “Other Assets and Liabilities, Net” may include pending sales that are also on loan. The value of securities loaned at June 30, 2021 amounted to $1,275,165, which is 1.0% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2021. |
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 |
12 | | DWS Communications Fund |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $118,722,465 | $ — | $— | $118,722,465 |
Corporate Bond | — | 931,910 | — | 931,910 |
Convertible Bonds (a) | — | 3,164,536 | — | 3,164,536 |
Short-Term Investments (a) | 1,755,548 | — | — | 1,755,548 |
Total | $120,478,013 | $4,096,446 | $ — | $124,574,459 |
(a) | See Investment Portfolio for additional detailed categorizations. |
DWS Communications Fund | | 13 |
Assets | |
Investments in non-affiliated securities, at value (cost $76,441,415) — including $1,275,165 of securities loaned | $ 122,818,911 |
Investment in DWS Government & Agency Securities Portfolio (cost $1,309,295)* | 1,309,295 |
Investment in DWS Central Cash Management Government Fund (cost $446,253) | 446,253 |
Cash | 10,000 |
Foreign currency, at value (cost $136,295) | 139,430 |
Receivable for Fund shares sold | 27,020 |
Dividends receivable | 54,704 |
Interest receivable | 15,632 |
Foreign taxes recoverable | 4,949 |
Other assets | 30,466 |
Total assets | 124,856,660 |
Liabilities | |
Payable upon return of securities loaned | 1,309,295 |
Payable for Fund shares redeemed | 15,012 |
Accrued management fee | 98,070 |
Accrued Trustees' fees | 1,515 |
Other accrued expenses and payables | 122,823 |
Total liabilities | 1,546,715 |
Net assets, at value | $ 123,309,945 |
Net Assets Consist of | |
Distributable earnings (loss) | 47,086,391 |
Paid-in capital | 76,223,554 |
Net assets, at value | $ 123,309,945 |
* | Represents collateral on securities loaned. |
14 | | DWS Communications Fund |
Net Asset Value | |
Class A | |
Net Asset Value and redemption price per share ($111,589,387 ÷ 2,974,561 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 37.51 |
Maximum offering price per share (100 ÷ 94.25 of $37.51) | $ 39.80 |
Class C | |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($1,341,343 ÷ 40,211 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 33.36 |
Institutional Class | |
Net Asset Value, offering and redemption price per share ($10,379,215 ÷ 269,259 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 38.55 |
DWS Communications Fund | | 15 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $16,350) | $ 486,585 |
Interest | 27,690 |
Income distributions — DWS Central Cash Management Government Fund | 171 |
Securities lending income, net of borrower rebates | 10,901 |
Total income | 525,347 |
Expenses: | |
Management fee | 563,925 |
Administration fee | 55,434 |
Services to shareholders | 68,027 |
Distribution and service fees | 120,547 |
Custodian fee | 1,810 |
Professional fees | 35,779 |
Reports to shareholders | 20,526 |
Registration fees | 22,664 |
Trustees' fees and expenses | 4,364 |
Other | 7,212 |
Total expenses before expense reductions | 900,288 |
Expense reductions | (27) |
Total expenses after expense reductions | 900,261 |
Net investment income (loss) | (374,914) |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 5,685,397 |
Foreign currency | 107 |
5,685,504 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 11,268,609 |
Foreign currency | (4,980) |
11,263,629 | |
Net gain (loss) | 16,949,133 |
Net increase (decrease) in net assets resulting from operations | $ 16,574,219 |
16 | | DWS Communications Fund |
Six Months Ended June 30, 2021 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2020 |
Operations: | ||
Net investment income (loss) | $ (374,914) | $ (402,476) |
Net realized gain (loss) | 5,685,504 | 929,339 |
Change in net unrealized appreciation (depreciation) | 11,263,629 | 21,261,479 |
Net increase (decrease) in net assets resulting from operations | 16,574,219 | 21,788,342 |
Fund share transactions: | ||
Proceeds from shares sold | 4,451,603 | 11,707,936 |
Payments for shares redeemed | (6,735,736) | (15,089,606) |
Net increase (decrease) in net assets from Fund share transactions | (2,284,133) | (3,381,670) |
Increase (decrease) in net assets | 14,290,086 | 18,406,672 |
Net assets at beginning of period | 109,019,859 | 90,613,187 |
Net assets at end of period | $123,309,945 | $109,019,859 |
DWS Communications Fund | | 17 |
DWS Communications Fund — Class A | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $32.48 | $25.79 | $20.47 | $26.96 | $25.27 | $23.99 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.12) | (.12) | .01 | .51 | .48 | .50 |
Net realized and unrealized gain (loss) | 5.15 | 6.81 | 5.33 | (3.33) | 1.62 | 1.87 b |
Total from investment operations | 5.03 | 6.69 | 5.34 | (2.82) | 2.10 | 2.37 |
Less distributions from: | ||||||
Net investment income | — | — | (.02) | (.46) | (.41) | (.65) |
Net realized gains | — | — | — | (3.21) | — | — |
Return of capital | — | — | — | — | — | (.44) |
Total distributions | — | — | (.02) | (3.67) | (.41) | (1.09) |
Redemption fees | — | — | — | — | .00 * | .00 * |
Net asset value, end of period | $37.51 | $32.48 | $25.79 | $20.47 | $26.96 | $25.27 |
Total Return (%)c | 15.49 ** | 25.94 d | 26.06 d | (10.62) d | 8.32 d | 9.89 b,d |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 112 | 100 | 85 | 75 | 95 | 100 |
Ratio of expenses before expense reductions (%) | 1.59 *** | 1.66 | 1.69 | 1.70 | 1.70 | 1.81 |
Ratio of expenses after expense reductions (%) | 1.59 *** | 1.63 | 1.60 | 1.55 | 1.60 | 1.61 |
Ratio of net investment income (loss) (%) | (.67) *** | (.43) | .05 | 1.97 | 1.83 | 1.98 |
Portfolio turnover rate (%) | 15 ** | 19 | 22 | 70 | 70 | 13 |
a | Based on average shares outstanding during the period. |
b | During the year ended December 31, 2016, the Fund benefitted from the receipt of partial and final distributions of a claim for which Lehman Brothers was the counterparty that was higher than the estimated recovery value. The impact of this claim amounted to $.86 per share. Excluding the distribution, total return would have been 3.42% lower. |
c | Total return does not reflect the effect of any sales charges. |
d | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
18 | | DWS Communications Fund |
DWS Communications Fund — Class C | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $28.99 | $23.19 | $18.54 | $24.77 | $23.21 | $22.03 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.22) | (.27) | (.15) | .34 | .26 | .29 |
Net realized and unrealized gain (loss) | 4.59 | 6.07 | 4.80 | (3.10) | 1.49 | 1.71 b |
Total from investment operations | 4.37 | 5.80 | 4.65 | (2.76) | 1.75 | 2.00 |
Less distributions from: | ||||||
Net investment income | — | — | — | (.26) | (.19) | (.38) |
Net realized gains | — | — | — | (3.21) | — | — |
Return of capital | — | — | — | — | — | (.44) |
Total distributions | — | — | — | (3.47) | (.19) | (.82) |
Redemption fees | — | — | — | — | .00 * | .00 * |
Net asset value, end of period | $33.36 | $28.99 | $23.19 | $18.54 | $24.77 | $23.21 |
Total Return (%)c,d | 15.07 ** | 25.01 | 25.08 | (11.32) | 7.53 | 9.09 b |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 1 | 1 | 2 | 2 | 4 | 5 |
Ratio of expenses before expense reductions (%) | 2.38 *** | 2.43 | 2.46 | 2.48 | 2.53 | 2.62 |
Ratio of expenses after expense reductions (%) | 2.38 *** | 2.39 | 2.35 | 2.30 | 2.35 | 2.36 |
Ratio of net investment income (loss) (%) | (1.45) *** | (1.12) | (.68) | 1.41 | 1.07 | 1.27 |
Portfolio turnover rate (%) | 15 ** | 19 | 22 | 70 | 70 | 13 |
a | Based on average shares outstanding during the period. |
b | During the year ended December 31, 2016, the Fund benefitted from the receipt of partial and final distributions of a claim for which Lehman Brothers was the counterparty that was higher than the estimated recovery value. The impact of this claim amounted to $.86 per share. Excluding the distribution, total return would have been 3.42% lower. |
c | Total return does not reflect the effect of any sales charges. |
d | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
DWS Communications Fund | | 19 |
DWS Communications Fund — Institutional Class | ||||||
Six Months Ended 6/30/21 | Years Ended December 31, | |||||
(Unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $33.33 | $26.41 | $20.96 | $27.52 | $25.80 | $24.48 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | (.07) | (.06) | .07 | .59 | .56 | .58 |
Net realized and unrealized gain (loss) | 5.29 | 6.98 | 5.46 | (3.40) | 1.65 | 1.92 b |
Total from investment operations | 5.22 | 6.92 | 5.53 | (2.81) | 2.21 | 2.50 |
Less distributions from: | ||||||
Net investment income | — | — | (.08) | (.54) | (.49) | (.74) |
Net realized gains | — | — | — | (3.21) | — | — |
Return of capital | — | — | — | — | — | (.44) |
Total distributions | — | — | (.08) | (3.75) | (.49) | (1.18) |
Redemption fees | — | — | — | — | .00 * | .00 * |
Net asset value, end of period | $38.55 | $33.33 | $26.41 | $20.96 | $27.52 | $25.80 |
Total Return (%) | 15.66 ** | 26.20 c | 26.39 c | (10.41) c | 8.58 c | 10.22 b,c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 10 | 8 | 4 | 2 | 2 | 2 |
Ratio of expenses before expense reductions (%) | 1.34 *** | 1.41 | 1.44 | 1.45 | 1.47 | 1.57 |
Ratio of expenses after expense reductions (%) | 1.34 *** | 1.39 | 1.36 | 1.30 | 1.35 | 1.36 |
Ratio of net investment income (loss) (%) | (.39) *** | (.22) | .27 | 2.23 | 2.07 | 2.23 |
Portfolio turnover rate (%) | 15 ** | 19 | 22 | 70 | 70 | 13 |
a | Based on average shares outstanding during the period. |
b | During the year ended December 31, 2016, the Fund benefitted from the receipt of partial and final distributions of a claim for which Lehman Brothers was the counterparty that was higher than the estimated recovery value. The impact of this claim amounted to $.86 per share. Excluding the distribution, total return would have been 3.42% lower. |
c | Total return would have been lower had certain expenses not been reduced. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
20 | | DWS Communications Fund |
Notes to Financial Statements | (Unaudited) |
A. | Organization and Significant Accounting Policies |
DWS Communications Fund | | 21 |
22 | | DWS Communications Fund |
DWS Communications Fund | | 23 |
24 | | DWS Communications Fund |
DWS Communications Fund | | 25 |
B. | Purchases and Sales of Securities |
C. | Related Parties |
First $100 million of the Fund’s average daily net assets | 1.00% |
Next $100 million of such net assets | .90% |
Next $100 million of such net assets | .85% |
Next $200 million of such net assets | .80% |
Next $500 million of such net assets | .73% |
Next $500 million of such net assets | .68% |
Over $1.5 billion of such net assets | .65% |
Class A | 1.63% |
Class C | 2.38% |
Institutional Class | 1.38% |
26 | | DWS Communications Fund |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2021 |
Class A | $ 22,322 | $ 7,530 |
Class C | 294 | 102 |
Institutional Class | 160 | 55 |
$ 22,776 | $ 7,687 |
Sub-Recordkeeping | Total Aggregated |
Class A | $ 33,621 |
Class C | 595 |
Institutional Class | 3,148 |
$ 37,364 |
DWS Communications Fund | | 27 |
Distribution Fee | Total Aggregated | Unpaid at June 30, 2021 |
Class C | $ 4,638 | $ 820 |
Service Fee | Total Aggregated | Unpaid at June 30, 2021 | Annualized Rate |
Class A | $ 114,476 | $ 40,922 | .22% |
Class C | 1,433 | 731 | .23% |
$ 115,909 | $ 41,653 |
28 | | DWS Communications Fund |
D. | Line of Credit |
E. | Fund Share Transactions |
Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||
Shares | Dollars | Shares | Dollars | |
Shares sold | ||||
Class A | 36,706 | $ 1,288,397 | 200,019 | $ 5,212,176 |
Class C | 15,522 | 477,210 | 9,599 | 232,301 |
Institutional Class | 75,427 | 2,685,996 | 216,920 | 6,263,459 |
$ 4,451,603 | $ 11,707,936 |
DWS Communications Fund | | 29 |
Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||
Shares | Dollars | Shares | Dollars | |
Shares redeemed | ||||
Class A | (134,539) | $ (4,652,968) | (437,747) | $ (11,438,983) |
Class C | (13,470) | (413,676) | (43,248) | (1,072,672) |
Institutional Class | (50,087) | (1,669,092) | (108,500) | (2,577,951) |
$ (6,735,736) | $ (15,089,606) | |||
Net increase (decrease) | ||||
Class A | (97,833) | $ (3,364,571) | (237,728) | $ (6,226,807) |
Class C | 2,052 | 63,534 | (33,649) | (840,371) |
Institutional Class | 25,340 | 1,016,904 | 108,420 | 3,685,508 |
$ (2,284,133) | $ (3,381,670) |
F. | Other — COVID-19 Pandemic |
30 | | DWS Communications Fund |
— | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
— | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
DWS Communications Fund | | 31 |
Actual Fund Return | Class A | Class C | Institutional Class |
Beginning Account Value 1/1/21 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/21 | $1,154.90 | $1,150.70 | $1,156.60 |
Expenses Paid per $1,000* | $ 8.50 | $ 12.69 | $ 7.17 |
Hypothetical 5% Fund Return | Class A | Class C | Institutional Class |
Beginning Account Value 1/1/21 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/21 | $1,016.91 | $1,012.99 | $1,018.15 |
Expenses Paid per $1,000* | $ 7.95 | $ 11.88 | $ 6.71 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class C | Institutional Class |
DWS Communications Fund | 1.59% | 2.38% | 1.34% |
32 | | DWS Communications Fund |
DWS Communications Fund | | 33 |
— | During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees” ). |
— | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant” ). |
— | The Board also received extensive information throughout the year regarding performance of the Fund. |
— | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
— | In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
34 | | DWS Communications Fund |
DWS Communications Fund | | 35 |
36 | | DWS Communications Fund |
DWS Communications Fund | | 37 |
38 | | DWS Communications Fund |
For More Information | The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A and C also have the ability to purchase, exchange or redeem shares using this system. |
For more information, contact your financial representative. You may also access our automated telephone system or speak with a Shareholder Service representative by calling: (800) 728-3337 | |
Web Site | dws.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. |
Obtain prospectuses and applications, news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information. | |
Written Correspondence | DWSPO Box 219151 Kansas City, MO 64121-9151 |
Proxy Voting | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
Portfolio Holdings | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is posted on dws.com, and is available free of charge by contacting your financial intermediary, or if you are a direct investor, by calling (800) 728-3337. In addition, the portfolio holdings listing is filed with SEC on the Fund’s Form N-PORT and will be available on the SEC’s Web site at sec.gov. Additional portfolio holdings for the Fund are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. |
Principal Underwriter | If you have questions, comments or complaints, contact:DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 |
DWS Communications Fund | | 39 |
Investment Management | DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), which is part of the DWS Group GmbH & Co. KGaA (“DWS Group” ), is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of DWS Group. |
DWS Group is a global organization that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts and an office network that reaches the world’s major investment centers. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles. |
Class A | Class C | Institutional Class | |
Nasdaq Symbol | TISHX | FTICX | FLICX |
CUSIP Number | 25159L 729 | 25159L 695 | 25159L 687 |
Fund Number | 432 | 732 | 532 |
40 | | DWS Communications Fund |
FACTS | What Does DWS Do With Your Personal Information? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share can include: — Social Security number — Account balances — Purchase and transaction history — Bank account information — Contact information such as mailing address, e-mail address and telephone number |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons DWS chooses to share and whether you can limit this sharing. |
Reasons we can share your personal information | Does DWS share? | Can you limit this sharing? |
For our everyday business purposes —such as to process your transactions, maintain your account(s), respond to court orders or legal investigations | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We do not share |
For our affiliates’ everyday business purposes — information about your transactions and experiences | No | We do not share |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We do not share |
For non-affiliates to market to you | No | We do not share |
Questions? | Call (800) 728-3337 or e-mail us at service@dws.com |
DWS Communications Fund | | 41 |
Who we are | |
Who is providing this notice? | DWS Distributors, Inc; DWS Investment Management Americas, Inc.; DWS Trust Company; the DWS Funds |
What we do | |
How does DWS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards, secured files, and secured buildings. |
How does DWS collect my personal information? | We collect your personal information, for example, when you: — open an account — give us your contact information — provide bank account information for ACH or wire transactions — tell us where to send money — seek advice about your investments |
Why can’t I limit all sharing? | Federal law gives you the right to limit only — sharing for affiliates’ everyday business purposes — information about your creditworthiness — affiliates from using your information to market to you — sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank (“DB” ) name, such as DB AG Frankfurt. |
Non-affiliates | Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud. |
Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS does not jointly market. |
42 | | DWS Communications Fund |
(b) Not applicable | ||
ITEM 2. | CODE OF ETHICS | |
Not applicable. | ||
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT | |
Not applicable | ||
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | |
Not applicable | ||
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | SCHEDULE OF INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Not applicable | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | DWS Communications Fund, a series of Deutsche DWS Securities Trust |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/27/2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/27/2021 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 8/27/2021 |