UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-07507
DWS Investments VIT Funds
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (201) 593-6408
Paul Schubert
100 Plaza One
Jersey City, NJ 07311
(Name and Address of Agent for Service)
| Date of fiscal year end: | 12/31 |
| Date of reporting period: | 6/30/2011 |
| ITEM 1. | REPORT TO STOCKHOLDERS |
JUNE 30, 2011
SEMIANNUAL REPORT
DWS INVESTMENTS VIT FUNDS
| DWS Equity 500 Index VIP |
Contents
3 Performance Summary 4 Information About Your Fund's Expenses 5 Portfolio Summary 6 Investment Portfolio 17 Statement of Assets and Liabilities 17 Statement of Operations 18 Statement of Changes in Net Assets 21 Financial Highlights 23 Notes to Financial Statements 27 Proxy Voting 28 Summary of Management Fee Evaluation by Independent Fee Consultant |
This report must be preceded or accompanied by a prospectus. To obtain an additional prospectus or summary prospectus, if available, call (800) 728-3337 or your financial representative. We advise you to consider the Fund's objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the Fund. Please read the prospectus carefully before you invest.
Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Various factors, including costs, cash flows and security selection, may cause the fund's performance to differ from that of the index. Any decline in value of a fund security that is out on loan by the portfolio will adversely affect performance. Financial failure of the borrower may mean a delay in recovery or loss of rights in the collateral. Stocks may decline in value. See the prospectus for details.
DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Fund performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when sold, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please contact your participating insurance company for the Fund's most recent month-end performance. Performance figures for Classes A, B and B2 differ because each class maintains a distinct expense structure. Performance doesn't reflect charges and fees ("contract charges") 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. These charges and fees will reduce returns.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated May 1, 2011 are 0.33%, 0.58% and 0.73% for Class A, Class B and Class B2 shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.
| Growth of an Assumed $10,000 Investment | ||
[] DWS Equity 500 Index VIP — Class A [] S&P 500® Index | The Standard & Poor's 500® (S&P 500) Index is an unmanaged, capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index. | |
 | ||
| Yearly periods ended June 30 | ||
| Comparative Results (as of June 30, 2011) | |||||||||||||||||||||
| DWS Equity 500 Index VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | ||||||||||||||||
| Class A | Growth of $10,000 | $ | 10,585 | $ | 13,028 | $ | 10,963 | $ | 11,433 | $ | 12,736 | ||||||||||
| Average annual total return | 5.85 | % | 30.28 | % | 3.11 | % | 2.71 | % | 2.45 | % | |||||||||||
| S&P 500 Index | Growth of $10,000 | $ | 10,602 | $ | 13,069 | $ | 11,035 | $ | 11,561 | $ | 13,076 | ||||||||||
| Average annual total return | 6.02 | % | 30.69 | % | 3.34 | % | 2.94 | % | 2.72 | % | |||||||||||
| DWS Equity 500 Index VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | Life of Class* | ||||||||||||||||
| Class B | Growth of $10,000 | $ | 10,566 | $ | 12,992 | $ | 10,880 | $ | 11,289 | $ | 14,040 | ||||||||||
| Average annual total return | 5.66 | % | 29.92 | % | 2.85 | % | 2.45 | % | 3.77 | % | |||||||||||
| S&P 500 Index | Growth of $10,000 | $ | 10,602 | $ | 13,069 | $ | 11,035 | $ | 11,561 | $ | 14,699 | ||||||||||
| Average annual total return | 6.02 | % | 30.69 | % | 3.34 | % | 2.94 | % | 4.29 | % | |||||||||||
| DWS Equity 500 Index VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | Life of Class** | ||||||||||||||||
| Class B2 | Growth of $10,000 | $ | 10,566 | $ | 12,973 | $ | 10,831 | $ | 11,221 | $ | 11,626 | ||||||||||
| Average annual total return | 5.66 | % | 29.73 | % | 2.70 | % | 2.33 | % | 2.64 | % | |||||||||||
| S&P 500 Index | Growth of $10,000 | $ | 10,602 | $ | 13,069 | $ | 11,035 | $ | 11,561 | $ | 12,121 | ||||||||||
| Average annual total return | 6.02 | % | 30.69 | % | 3.34 | % | 2.94 | % | 3.40 | % | |||||||||||
The growth of $10,000 is cumulative.
‡ Total returns shown for periods less than one year are not annualized.
* The Fund commenced offering Class B shares on April 30, 2002. Index returns began on April 30, 2002.
** The Fund commenced offering Class B2 shares on September 16, 2005. Index returns began on September 30, 2005.
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include contract charges, redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (January 1, 2011 to June 30, 2011).
The tables illustrate your Fund's expenses in two ways:
•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.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
Expenses and Value of a $1,000 Investment for the six months ended June 30, 2011 | ||||||||||||
| Actual Fund Return | Class A | Class B | Class B2 | |||||||||
| Beginning Account Value 1/1/11 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
| Ending Account Value 6/30/11 | $ | 1,058.50 | $ | 1,056.60 | $ | 1,056.60 | ||||||
| Expenses Paid per $1,000* | $ | 1.68 | $ | 2.96 | $ | 3.72 | ||||||
| Hypothetical 5% Fund Return | Class A | Class B | Class B2 | |||||||||
| Beginning Account Value 1/1/11 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||
| Ending Account Value 6/30/11 | $ | 1,023.16 | $ | 1,021.92 | $ | 1,021.17 | ||||||
Expenses Paid per $1,000* | $ | 1.66 | $ | 2.91 | $ | 3.66 | ||||||
* 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 the number of days in the most recent six-month period, then divided by 365.
| Annualized Expense Ratios | Class A | Class B | Class B2 | |||
| DWS Equity 500 Index VIP | .33% | .58% | .73% |
For more information, please refer to the Fund's prospectus.
These tables do not reflect charges and fees ("contract charges") 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.
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/11 | 12/31/10 |
| Common Stocks | 95% | 99% |
| Cash Equivalents* | 5% | 1% |
| 100% | 100% |
Sector Diversification (As a % of Common Stocks) | 6/30/11 | 12/31/10 |
| Information Technology | 18% | 19% |
| Financials | 15% | 16% |
| Energy | 13% | 12% |
| Health Care | 12% | 11% |
| Industrials | 11% | 11% |
| Consumer Discretionary | 11% | 10% |
| Consumer Staples | 11% | 11% |
| Materials | 3% | 4% |
| Utilities | 3% | 3% |
| Telecommunication Services | 3% | 3% |
| 100% | 100% |
Ten Largest Equity Holdings (18.1% of Net Assets) | |
1. Exxon Mobil Corp. Explorer and producer of oil and gas | 3.3% |
2. Apple, Inc. Manufacturer of personal computers and communication solutions | 2.5% |
3. International Business Machines Corp. Manufacturer of computers and provider of information processing services | 1.7% |
4. Chevron Corp. Operator of petroleum exploration, delivery and refining facilities | 1.7% |
5. General Electric Co. A diversified company provider of services to the technology, media and financial industries | 1.6% |
6. Microsoft Corp. Developer of computer software | 1.6% |
7. AT&T, Inc. Provider of communications services | 1.5% |
8. Johnson & Johnson Provider of health care products | 1.5% |
9. Procter & Gamble Co. Manufacturer of diversified consumer products | 1.4% |
10. JPMorgan Chase & Co. Provider of global financial services | 1.3% |
Asset allocation, sector diversification, and holdings are subject to change.
* In order to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the market, the Fund invests in futures contracts.
For more complete details about the Fund's investment portfolio, see page 6.
Following the Fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330. The Fund's portfolio holdings are also posted on www.dws-investments.com from time to time. Please see the Fund's current prospectus for more information.
| Shares | Value ($) | |||||||
| Common Stocks 98.3% | ||||||||
| Consumer Discretionary 10.5% | ||||||||
| Auto Components 0.3% | ||||||||
| Goodyear Tire & Rubber Co.* | 15,452 | 259,130 | ||||||
| Johnson Controls, Inc. | 44,399 | 1,849,662 | ||||||
| 2,108,792 | ||||||||
| Automobiles 0.5% | ||||||||
| Ford Motor Co.* | 248,165 | 3,422,196 | ||||||
| Harley-Davidson, Inc. | 14,961 | 612,952 | ||||||
| 4,035,148 | ||||||||
| Distributors 0.1% | ||||||||
| Genuine Parts Co. | 10,004 | 544,218 | ||||||
| Diversified Consumer Services 0.1% | ||||||||
| Apollo Group, Inc. "A"* | 7,967 | 347,999 | ||||||
| DeVry, Inc. | 3,933 | 232,558 | ||||||
| H&R Block, Inc. | 19,258 | 308,898 | ||||||
| 889,455 | ||||||||
| Hotels Restaurants & Leisure 1.8% | ||||||||
| Carnival Corp. (Units) | 28,749 | 1,081,825 | ||||||
| Chipotle Mexican Grill, Inc.* | 1,967 | 606,210 | ||||||
| Darden Restaurants, Inc. | 8,872 | 441,471 | ||||||
| International Game Technology | 19,020 | 334,372 | ||||||
| Marriott International, Inc. "A" | 18,460 | 655,145 | ||||||
| McDonald's Corp. | 67,835 | 5,719,847 | ||||||
| Starbucks Corp. | 49,057 | 1,937,261 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | 13,110 | 734,684 | ||||||
| Wyndham Worldwide Corp. | 11,116 | 374,053 | ||||||
| Wynn Resorts Ltd. | 4,817 | 691,432 | ||||||
| Yum! Brands, Inc. | 30,524 | 1,686,146 | ||||||
| 14,262,446 | ||||||||
| Household Durables 0.4% | ||||||||
| D.R. Horton, Inc. | 17,954 | 206,830 | ||||||
| Fortune Brands, Inc. | 10,485 | 668,628 | ||||||
| Harman International Industries, Inc. | 4,431 | 201,921 | ||||||
| Leggett & Platt, Inc. | 9,170 | 223,565 | ||||||
| Lennar Corp. "A" | 10,081 | 182,970 | ||||||
| Newell Rubbermaid, Inc. | 18,413 | 290,557 | ||||||
| Pulte Group, Inc.* | 21,117 | 161,756 | ||||||
| Stanley Black & Decker, Inc. | 11,329 | 816,255 | ||||||
| Whirlpool Corp. | 4,867 | 395,784 | ||||||
| 3,148,266 | ||||||||
| Internet & Catalog Retail 0.9% | ||||||||
| Amazon.com, Inc.* | 23,328 | 4,770,343 | ||||||
| Expedia, Inc. | 12,643 | 366,520 | ||||||
| Netflix, Inc.* | 2,782 | 730,804 | ||||||
| Priceline.com, Inc.* | 3,236 | 1,656,605 | ||||||
| 7,524,272 | ||||||||
| Leisure Equipment & Products 0.1% | ||||||||
| Hasbro, Inc. | 8,748 | 384,300 | ||||||
| Mattel, Inc. | 23,933 | 657,918 | ||||||
| 1,042,218 | ||||||||
| Media 3.2% | ||||||||
| Cablevision Systems Corp. (New York Group) "A" | 14,662 | 530,911 | ||||||
| CBS Corp. "B" | 44,474 | 1,267,064 | ||||||
| Comcast Corp. "A" | 180,719 | 4,579,419 | ||||||
| DIRECTV "A"* | 50,219 | 2,552,130 | ||||||
| Shares | Value ($) | |||||||
| Discovery Communications, Inc. "A"* | 17,870 | 731,955 | ||||||
| Gannett Co., Inc. | 15,090 | 216,089 | ||||||
| Interpublic Group of Companies, Inc. | 31,051 | 388,138 | ||||||
| McGraw-Hill Companies, Inc. | 19,609 | 821,813 | ||||||
| News Corp. "A" | 149,346 | 2,643,424 | ||||||
| Omnicom Group, Inc. | 18,013 | 867,506 | ||||||
| Scripps Networks Interactive "A" | 5,749 | 281,011 | ||||||
| Time Warner Cable, Inc. | 21,974 | 1,714,851 | ||||||
| Time Warner, Inc. | 69,964 | 2,544,591 | ||||||
| Viacom, Inc. "B" | 38,252 | 1,950,852 | ||||||
| Walt Disney Co. | 123,491 | 4,821,089 | ||||||
| Washington Post Co. "B" | 324 | 135,740 | ||||||
| 26,046,583 | ||||||||
| Multiline Retail 0.7% | ||||||||
| Big Lots, Inc.* | 4,795 | 158,954 | ||||||
| Family Dollar Stores, Inc. | 8,044 | 422,793 | ||||||
| JC Penney Co., Inc. | 13,708 | 473,474 | ||||||
| Kohl's Corp. | 18,479 | 924,135 | ||||||
| Macy's, Inc. | 28,615 | 836,703 | ||||||
| Nordstrom, Inc. | 10,621 | 498,550 | ||||||
| Sears Holdings Corp.* | 2,781 | 198,675 | ||||||
| Target Corp. | 45,038 | 2,112,732 | ||||||
| 5,626,016 | ||||||||
| Specialty Retail 1.8% | ||||||||
| Abercrombie & Fitch Co. "A" | 5,524 | 369,666 | ||||||
| AutoNation, Inc.* | 4,026 | 147,392 | ||||||
| AutoZone, Inc.* | 1,675 | 493,874 | ||||||
| Bed Bath & Beyond, Inc.* | 16,342 | 953,883 | ||||||
| Best Buy Co., Inc. | 20,825 | 654,113 | ||||||
| CarMax, Inc.* | 14,473 | 478,622 | ||||||
| GameStop Corp. "A"* | 8,935 | 238,296 | ||||||
| Home Depot, Inc. | 104,114 | 3,771,009 | ||||||
| Limited Brands, Inc. | 16,687 | 641,615 | ||||||
| Lowe's Companies, Inc. | 85,172 | 1,985,359 | ||||||
| O'Reilly Automotive, Inc.* | 8,957 | 586,773 | ||||||
| Ross Stores, Inc. | 7,558 | 605,547 | ||||||
| Staples, Inc. | 45,671 | 721,602 | ||||||
| The Gap, Inc. | 26,253 | 475,179 | ||||||
| Tiffany & Co. | 8,626 | 677,314 | ||||||
| TJX Companies, Inc. | 25,234 | 1,325,542 | ||||||
| Urban Outfitters, Inc.* | 7,966 | 224,243 | ||||||
| 14,350,029 | ||||||||
| Textiles, Apparel & Luxury Goods 0.6% | ||||||||
| Coach, Inc. | 19,584 | 1,252,005 | ||||||
| NIKE, Inc. "B" | 24,699 | 2,222,416 | ||||||
| Polo Ralph Lauren Corp. | 4,186 | 555,105 | ||||||
| VF Corp. | 5,953 | 646,258 | ||||||
| 4,675,784 | ||||||||
| Consumer Staples 10.5% | ||||||||
| Beverages 2.5% | ||||||||
| Brown-Forman Corp. "B" | 6,556 | 489,668 | ||||||
| Coca-Cola Co. | 149,454 | 10,056,760 | ||||||
| Coca-Cola Enterprises, Inc. | 20,934 | 610,854 | ||||||
| Constellation Brands, Inc. "A"* | 11,221 | 233,621 | ||||||
| Dr. Pepper Snapple Group, Inc. | 14,222 | 596,329 | ||||||
| Molson Coors Brewing Co. "B" | 11,107 | 496,927 | ||||||
| PepsiCo, Inc. | 103,187 | 7,267,460 | ||||||
| 19,751,619 | ||||||||
| Shares | Value ($) | |||||||
| Food & Staples Retailing 2.3% | ||||||||
| Costco Wholesale Corp. | 28,567 | 2,320,783 | ||||||
| CVS Caremark Corp. | 88,637 | 3,330,978 | ||||||
| Kroger Co. | 39,762 | 986,098 | ||||||
| Safeway, Inc. | 23,354 | 545,783 | ||||||
| SUPERVALU, Inc. | 13,849 | 130,319 | ||||||
| Sysco Corp. | 38,613 | 1,203,953 | ||||||
| Wal-Mart Stores, Inc. | 124,604 | 6,621,457 | ||||||
| Walgreen Co. | 59,892 | 2,543,014 | ||||||
| Whole Foods Market, Inc. | 10,140 | 643,383 | ||||||
| 18,325,768 | ||||||||
| Food Products 1.8% | ||||||||
| Archer-Daniels-Midland Co. | 44,883 | 1,353,222 | ||||||
| Campbell Soup Co. | 11,644 | 402,300 | ||||||
| ConAgra Foods, Inc. | 27,920 | 720,615 | ||||||
| Dean Foods Co.* | 11,939 | 146,492 | ||||||
| General Mills, Inc. | 41,644 | 1,549,990 | ||||||
| H.J. Heinz Co. | 21,336 | 1,136,782 | ||||||
| Hormel Foods Corp. | 8,691 | 259,079 | ||||||
| Kellogg Co. | 16,867 | 933,082 | ||||||
| Kraft Foods, Inc. "A" | 114,634 | 4,038,556 | ||||||
| McCormick & Co., Inc. | 8,435 | 418,123 | ||||||
| Mead Johnson Nutrition Co. | 13,720 | 926,786 | ||||||
| Sara Lee Corp. | 39,282 | 745,965 | ||||||
| The Hershey Co. | 9,751 | 554,344 | ||||||
| The JM Smucker Co. | 7,567 | 578,422 | ||||||
| Tyson Foods, Inc. "A" | 18,916 | 367,349 | ||||||
| 14,131,107 | ||||||||
| Household Products 2.1% | ||||||||
| Clorox Co. | 8,777 | 591,921 | ||||||
| Colgate-Palmolive Co. | 31,932 | 2,791,176 | ||||||
| Kimberly-Clark Corp. | 25,668 | 1,708,462 | ||||||
| Procter & Gamble Co. | 182,277 | 11,587,349 | ||||||
| 16,678,908 | ||||||||
| Personal Products 0.2% | ||||||||
| Avon Products, Inc. | 29,076 | 814,128 | ||||||
| Estee Lauder Companies, Inc. "A" | 7,261 | 763,785 | ||||||
| 1,577,913 | ||||||||
| Tobacco 1.6% | ||||||||
| Altria Group, Inc. | 136,324 | 3,600,317 | ||||||
| Lorillard, Inc. | 9,351 | 1,018,043 | ||||||
| Philip Morris International, Inc. | 116,021 | 7,746,722 | ||||||
| Reynolds American, Inc. | 22,839 | 846,185 | ||||||
| 13,211,267 | ||||||||
| Energy 12.5% | ||||||||
| Energy Equipment & Services 2.4% | ||||||||
| Baker Hughes, Inc. | 28,358 | 2,057,657 | ||||||
| Cameron International Corp.* | 16,556 | 832,601 | ||||||
| Diamond Offshore Drilling, Inc. | 4,390 | 309,100 | ||||||
| FMC Technologies, Inc.* | 16,380 | 733,660 | ||||||
| Halliburton Co. | 59,681 | 3,043,731 | ||||||
| Helmerich & Payne, Inc. | 7,453 | 492,792 | ||||||
| Nabors Industries Ltd.* | 18,018 | 443,964 | ||||||
| National Oilwell Varco, Inc. | 27,600 | 2,158,596 | ||||||
| Noble Corp. | 16,017 | 631,230 | ||||||
| Rowan Companies, Inc.* | 8,019 | 311,217 | ||||||
| Schlumberger Ltd. | 88,615 | 7,656,336 | ||||||
| 18,670,884 | ||||||||
| Oil, Gas & Consumable Fuels 10.1% | ||||||||
| Alpha Natural Resources, Inc.* | 14,377 | 653,291 | ||||||
| Anadarko Petroleum Corp. | 32,457 | 2,491,399 | ||||||
| Apache Corp. | 25,016 | 3,086,724 | ||||||
| Shares | Value ($) | |||||||
| Cabot Oil & Gas Corp. | 6,578 | 436,187 | ||||||
| Chesapeake Energy Corp. | 43,433 | 1,289,526 | ||||||
| Chevron Corp. | 131,165 | 13,489,009 | ||||||
| ConocoPhillips | 92,174 | 6,930,563 | ||||||
| CONSOL Energy, Inc. | 14,378 | 697,045 | ||||||
| Denbury Resources, Inc.* | 25,394 | 507,880 | ||||||
| Devon Energy Corp. | 27,576 | 2,173,265 | ||||||
| El Paso Corp. | 51,036 | 1,030,927 | ||||||
| EOG Resources, Inc. | 17,530 | 1,832,762 | ||||||
| EQT Corp. | 9,532 | 500,621 | ||||||
| Exxon Mobil Corp. | 321,646 | 26,175,551 | ||||||
| Hess Corp. | 19,739 | 1,475,688 | ||||||
| Marathon Oil Corp. | 46,341 | 2,441,244 | ||||||
| Murphy Oil Corp. | 13,000 | 853,580 | ||||||
| Newfield Exploration Co.* | 8,528 | 580,075 | ||||||
| Noble Energy, Inc. | 11,717 | 1,050,195 | ||||||
| Occidental Petroleum Corp. | 53,082 | 5,522,651 | ||||||
| Peabody Energy Corp. | 18,044 | 1,062,972 | ||||||
| Pioneer Natural Resources Co. | 7,953 | 712,350 | ||||||
| QEP Resources, Inc. | 11,243 | 470,295 | ||||||
| Range Resources Corp. | 11,066 | 614,163 | ||||||
| Southwestern Energy Co.* | 23,272 | 997,903 | ||||||
| Spectra Energy Corp. | 42,967 | 1,177,725 | ||||||
| Sunoco, Inc. | 7,685 | 320,541 | ||||||
| Tesoro Corp.* | 9,218 | 211,184 | ||||||
| Valero Energy Corp. | 38,110 | 974,473 | ||||||
| Williams Companies, Inc. | 38,898 | 1,176,665 | ||||||
| 80,936,454 | ||||||||
| Financials 14.9% | ||||||||
| Capital Markets 2.3% | ||||||||
| Ameriprise Financial, Inc. | 15,961 | 920,631 | ||||||
| Bank of New York Mellon Corp. | 81,357 | 2,084,366 | ||||||
| BlackRock, Inc. | 6,337 | 1,215,500 | ||||||
| Charles Schwab Corp. | 66,603 | 1,095,619 | ||||||
| E*TRADE Financial Corp.* | 16,189 | 223,408 | ||||||
| Federated Investors, Inc. "B" | 5,944 | 141,705 | ||||||
| Franklin Resources, Inc. | 9,214 | 1,209,706 | ||||||
| Invesco Ltd. | 29,445 | 689,013 | ||||||
| Janus Capital Group, Inc. | 12,271 | 115,838 | ||||||
| Legg Mason, Inc. | 9,690 | 317,445 | ||||||
| Morgan Stanley | 101,210 | 2,328,842 | ||||||
| Northern Trust Corp. | 15,757 | 724,192 | ||||||
| State Street Corp. | 33,167 | 1,495,500 | ||||||
| T. Rowe Price Group, Inc. | 17,312 | 1,044,606 | ||||||
| The Goldman Sachs Group, Inc. | 33,884 | 4,509,622 | ||||||
| 18,115,993 | ||||||||
| Commercial Banks 2.6% | ||||||||
| BB&T Corp. | 45,976 | 1,233,996 | ||||||
| Comerica, Inc. | 11,316 | 391,194 | ||||||
| Fifth Third Bancorp. | 62,156 | 792,489 | ||||||
| First Horizon National Corp. | 16,686 | 159,184 | ||||||
| Huntington Bancshares, Inc. | 54,953 | 360,492 | ||||||
| KeyCorp | 64,973 | 541,225 | ||||||
| M&T Bank Corp. | 8,262 | 726,643 | ||||||
| Marshall & Ilsley Corp. | 33,276 | 265,210 | ||||||
| PNC Financial Services Group, Inc. | 34,437 | 2,052,789 | ||||||
| Regions Financial Corp. | 80,768 | 500,762 | ||||||
| SunTrust Banks, Inc. | 35,523 | 916,493 | ||||||
| US Bancorp. | 125,931 | 3,212,500 | ||||||
| Wells Fargo & Co. | 345,549 | 9,696,105 | ||||||
| Zions Bancorp. | 11,519 | 276,571 | ||||||
| 21,125,653 | ||||||||
| Shares | Value ($) | |||||||
| Consumer Finance 0.8% | ||||||||
| American Express Co. | 68,344 | 3,533,385 | ||||||
| Capital One Financial Corp. | 29,997 | 1,549,945 | ||||||
| Discover Financial Services | 36,456 | 975,198 | ||||||
| SLM Corp. | 33,423 | 561,840 | ||||||
| 6,620,368 | ||||||||
| Diversified Financial Services 3.7% | ||||||||
| Bank of America Corp. | 662,143 | 7,257,087 | ||||||
| Citigroup, Inc. | 190,793 | 7,944,621 | ||||||
| CME Group, Inc. "A" | 4,443 | 1,295,534 | ||||||
| IntercontinentalExchange, Inc.* | 4,671 | 582,520 | ||||||
| JPMorgan Chase & Co. | 259,697 | 10,631,995 | ||||||
| Leucadia National Corp. | 12,678 | 432,320 | ||||||
| Moody's Corp. | 12,667 | 485,779 | ||||||
| NYSE Euronext | 16,613 | 569,328 | ||||||
| The NASDAQ OMX Group, Inc.* | 9,426 | 238,478 | ||||||
| 29,437,662 | ||||||||
| Insurance 3.7% | ||||||||
| ACE Ltd. | 22,144 | 1,457,518 | ||||||
| Aflac, Inc. | 30,873 | 1,441,152 | ||||||
| Allstate Corp. | 34,345 | 1,048,553 | ||||||
| American International Group, Inc.* | 29,373 | 861,216 | ||||||
| Aon Corp. | 21,148 | 1,084,892 | ||||||
| Assurant, Inc. | 6,266 | 227,268 | ||||||
| Berkshire Hathaway, Inc. "B"* | 113,162 | 8,757,607 | ||||||
| Chubb Corp. | 18,726 | 1,172,435 | ||||||
| Cincinnati Financial Corp. | 10,538 | 307,499 | ||||||
| Genworth Financial, Inc. "A"* | 31,472 | 323,532 | ||||||
| Hartford Financial Services Group, Inc. | 30,160 | 795,319 | ||||||
| Lincoln National Corp. | 20,025 | 570,512 | ||||||
| Loews Corp. | 19,975 | 840,748 | ||||||
| Marsh & McLennan Companies, Inc. | 36,170 | 1,128,142 | ||||||
| MetLife, Inc. | 69,160 | 3,034,049 | ||||||
| Principal Financial Group, Inc. | 20,402 | 620,629 | ||||||
| Progressive Corp. | 41,802 | 893,727 | ||||||
| Prudential Financial, Inc. | 31,993 | 2,034,435 | ||||||
| The Travelers Companies, Inc. | 27,488 | 1,604,749 | ||||||
| Torchmark Corp. | 4,905 | 314,607 | ||||||
| Unum Group | 19,656 | 500,835 | ||||||
| XL Group PLC | 19,865 | 436,633 | ||||||
| 29,456,057 | ||||||||
| Real Estate Investment Trusts 1.6% | ||||||||
| Apartment Investment & Management Co. "A" (REIT) | 7,725 | 197,219 | ||||||
| AvalonBay Communities, Inc. (REIT) | 5,811 | 746,133 | ||||||
| Boston Properties, Inc. (REIT) | 9,513 | 1,009,900 | ||||||
| Equity Residential (REIT) | 19,479 | 1,168,740 | ||||||
| HCP, Inc. (REIT) | 26,780 | 982,558 | ||||||
| Health Care REIT, Inc. (REIT) | 11,165 | 585,381 | ||||||
| Host Hotels & Resorts, Inc. (REIT) | 46,283 | 784,497 | ||||||
| Kimco Realty Corp. (REIT) | 25,625 | 477,650 | ||||||
| Plum Creek Timber Co., Inc. (REIT) | 10,354 | 419,751 | ||||||
| Prologis, Inc. (REIT) | 30,123 | 1,079,608 | ||||||
| Public Storage (REIT) | 9,300 | 1,060,293 | ||||||
| Simon Property Group, Inc. (REIT) | 18,875 | 2,193,841 | ||||||
| Ventas, Inc. (REIT) | 10,318 | 543,862 | ||||||
| Vornado Realty Trust (REIT) | 10,908 | 1,016,408 | ||||||
| Weyerhaeuser Co. (REIT) | 36,429 | 796,338 | ||||||
| 13,062,179 | ||||||||
| Real Estate Management & Development 0.1% | ||||||||
| CB Richard Ellis Group, Inc. "A"* | 18,620 | 467,548 | ||||||
| Shares | Value ($) | |||||||
| Thrifts & Mortgage Finance 0.1% | ||||||||
| Hudson City Bancorp., Inc. | 33,890 | 277,559 | ||||||
| People's United Financial, Inc. | 22,923 | 308,085 | ||||||
| 585,644 | ||||||||
| Health Care 11.5% | ||||||||
| Biotechnology 1.2% | ||||||||
| Amgen, Inc.* | 60,837 | 3,549,839 | ||||||
| Biogen Idec, Inc.* | 15,799 | 1,689,229 | ||||||
| Celgene Corp.* | 30,322 | 1,829,023 | ||||||
| Cephalon, Inc.* | 4,808 | 384,159 | ||||||
| Gilead Sciences, Inc.* | 51,526 | 2,133,692 | ||||||
| 9,585,942 | ||||||||
| Health Care Equipment & Supplies 1.9% | ||||||||
| Baxter International, Inc. | 37,224 | 2,221,901 | ||||||
| Becton, Dickinson & Co. | 14,021 | 1,208,190 | ||||||
| Boston Scientific Corp.* | 104,190 | 719,953 | ||||||
| C.R. Bard, Inc. | 5,850 | 642,681 | ||||||
| CareFusion Corp.* | 14,138 | 384,129 | ||||||
| Covidien PLC | 32,344 | 1,721,671 | ||||||
| DENTSPLY International, Inc. | 9,040 | 344,243 | ||||||
| Edwards Lifesciences Corp.* | 7,287 | 635,281 | ||||||
| Intuitive Surgical, Inc.* | 2,603 | 968,602 | ||||||
| Medtronic, Inc. | 69,865 | 2,691,898 | ||||||
| St. Jude Medical, Inc. | 21,700 | 1,034,656 | ||||||
| Stryker Corp. | 22,209 | 1,303,446 | ||||||
| Varian Medical Systems, Inc.* | 7,555 | 529,001 | ||||||
| Zimmer Holdings, Inc.* | 12,999 | 821,537 | ||||||
| 15,227,189 | ||||||||
| Health Care Providers & Services 2.2% | ||||||||
| Aetna, Inc. | 24,386 | 1,075,179 | ||||||
| AmerisourceBergen Corp. | 18,577 | 769,088 | ||||||
| Cardinal Health, Inc. | 23,304 | 1,058,468 | ||||||
| CIGNA Corp. | 18,158 | 933,866 | ||||||
| Coventry Health Care, Inc.* | 9,515 | 347,012 | ||||||
| DaVita, Inc.* | 6,111 | 529,274 | ||||||
| Express Scripts, Inc.* | 34,586 | 1,866,952 | ||||||
| Humana, Inc. | 11,300 | 910,102 | ||||||
| Laboratory Corp. of America Holdings* | 6,345 | 614,132 | ||||||
| McKesson Corp. | 16,401 | 1,371,943 | ||||||
| Medco Health Solutions, Inc.* | 26,101 | 1,475,228 | ||||||
| Patterson Companies, Inc. | 6,085 | 200,136 | ||||||
| Quest Diagnostics, Inc. | 10,748 | 635,207 | ||||||
| Tenet Healthcare Corp.* | 30,725 | 191,724 | ||||||
| UnitedHealth Group, Inc. | 70,715 | 3,647,480 | ||||||
| WellPoint, Inc. | 23,919 | 1,884,099 | ||||||
| 17,509,890 | ||||||||
| Health Care Technology 0.1% | ||||||||
| Cerner Corp.* | 9,190 | 561,601 | ||||||
| Life Sciences Tools & Services 0.5% | ||||||||
| Agilent Technologies, Inc.* | 22,890 | 1,169,908 | ||||||
| Life Technologies Corp.* | 11,424 | 594,848 | ||||||
| PerkinElmer, Inc. | 7,110 | 191,330 | ||||||
| Thermo Fisher Scientific, Inc.* | 25,039 | 1,612,261 | ||||||
| Waters Corp.* | 5,781 | 553,473 | ||||||
| 4,121,820 | ||||||||
| Pharmaceuticals 5.6% | ||||||||
| Abbott Laboratories | 101,437 | 5,337,615 | ||||||
| Allergan, Inc. | 19,996 | 1,664,667 | ||||||
| Bristol-Myers Squibb Co. | 110,961 | 3,213,431 | ||||||
| Eli Lilly & Co. | 66,182 | 2,483,810 | ||||||
| Forest Laboratories, Inc.* | 19,414 | 763,747 | ||||||
| Shares | Value ($) | |||||||
| Hospira, Inc.* | 10,623 | 601,899 | ||||||
| Johnson & Johnson | 179,008 | 11,907,612 | ||||||
| Merck & Co., Inc. | 201,375 | 7,106,524 | ||||||
| Mylan, Inc.* | 29,937 | 738,546 | ||||||
| Pfizer, Inc. | 515,720 | 10,623,832 | ||||||
| Watson Pharmaceuticals, Inc.* | 7,992 | 549,290 | ||||||
| 44,990,973 | ||||||||
| Industrials 11.0% | ||||||||
| Aerospace & Defense 2.8% | ||||||||
| Boeing Co. | 48,098 | 3,555,885 | ||||||
| General Dynamics Corp. | 24,322 | 1,812,475 | ||||||
| Goodrich Corp. | 7,975 | 761,613 | ||||||
| Honeywell International, Inc. | 51,395 | 3,062,628 | ||||||
| ITT Corp. | 12,527 | 738,216 | ||||||
| L-3 Communications Holdings, Inc. | 6,880 | 601,656 | ||||||
| Lockheed Martin Corp. | 18,814 | 1,523,370 | ||||||
| Northrop Grumman Corp. | 19,212 | 1,332,352 | ||||||
| Precision Castparts Corp. | 9,413 | 1,549,850 | ||||||
| Raytheon Co. | 23,850 | 1,188,923 | ||||||
| Rockwell Collins, Inc. | 9,866 | 608,634 | ||||||
| Textron, Inc. | 17,618 | 415,961 | ||||||
| United Technologies Corp. | 59,738 | 5,287,410 | ||||||
| 22,438,973 | ||||||||
| Air Freight & Logistics 1.0% | ||||||||
| C.H. Robinson Worldwide, Inc. | 10,538 | 830,816 | ||||||
| Expeditors International of Washington, Inc. | 14,478 | 741,129 | ||||||
| FedEx Corp. | 20,609 | 1,954,763 | ||||||
| United Parcel Service, Inc. "B" | 64,413 | 4,697,640 | ||||||
| 8,224,348 | ||||||||
| Airlines 0.1% | ||||||||
| Southwest Airlines Co. | 52,642 | 601,172 | ||||||
| Building Products 0.0% | ||||||||
| Masco Corp. | 22,862 | 275,030 | ||||||
| Commercial Services & Supplies 0.5% | ||||||||
| Avery Dennison Corp. | 6,807 | 262,955 | ||||||
| Cintas Corp. | 7,834 | 258,757 | ||||||
| Iron Mountain, Inc. | 12,775 | 435,500 | ||||||
| Pitney Bowes, Inc. | 12,894 | 296,433 | ||||||
| R.R. Donnelley & Sons Co. | 13,003 | 254,989 | ||||||
| Republic Services, Inc. | 19,571 | 603,765 | ||||||
| Stericycle, Inc.* | 5,410 | 482,139 | ||||||
| Waste Management, Inc. | 31,563 | 1,176,353 | ||||||
| 3,770,891 | ||||||||
| Construction & Engineering 0.2% | ||||||||
| Fluor Corp. | 11,983 | 774,821 | ||||||
| Jacobs Engineering Group, Inc.* | 8,022 | 346,951 | ||||||
| Quanta Services, Inc.* | 13,679 | 276,316 | ||||||
| 1,398,088 | ||||||||
| Electrical Equipment 0.5% | ||||||||
| Emerson Electric Co. | 49,208 | 2,767,950 | ||||||
| Rockwell Automation, Inc. | 9,561 | 829,512 | ||||||
| Roper Industries, Inc. | 6,610 | 550,613 | ||||||
| 4,148,075 | ||||||||
| Industrial Conglomerates 2.4% | ||||||||
| 3M Co. | 46,443 | 4,405,118 | ||||||
| General Electric Co. | 693,094 | 13,071,753 | ||||||
| Tyco International Ltd. | 30,609 | 1,513,003 | ||||||
| 18,989,874 | ||||||||
| Machinery 2.3% | ||||||||
| Caterpillar, Inc. | 42,135 | 4,485,692 | ||||||
| Cummins, Inc. | 13,044 | 1,349,923 | ||||||
| Shares | Value ($) | |||||||
| Danaher Corp. | 35,580 | 1,885,384 | ||||||
| Deere & Co. | 27,493 | 2,266,798 | ||||||
| Dover Corp. | 12,589 | 853,534 | ||||||
| Eaton Corp. | 22,599 | 1,162,718 | ||||||
| Flowserve Corp. | 3,513 | 386,044 | ||||||
| Illinois Tool Works, Inc. | 32,743 | 1,849,652 | ||||||
| Ingersoll-Rand PLC | 22,036 | 1,000,655 | ||||||
| Joy Global, Inc. | 6,628 | 631,251 | ||||||
| PACCAR, Inc. | 24,186 | 1,235,663 | ||||||
| Pall Corp. | 7,377 | 414,809 | ||||||
| Parker Hannifin Corp. | 10,835 | 972,333 | ||||||
| Snap-on, Inc. | 3,679 | 229,864 | ||||||
| 18,724,320 | ||||||||
| Professional Services 0.1% | ||||||||
| Dun & Bradstreet Corp. | 3,116 | 235,383 | ||||||
| Equifax, Inc. | 7,761 | 269,462 | ||||||
| Robert Half International, Inc. | 9,140 | 247,054 | ||||||
| 751,899 | ||||||||
| Road & Rail 0.9% | ||||||||
| CSX Corp. | 72,408 | 1,898,538 | ||||||
| Norfolk Southern Corp. | 23,067 | 1,728,410 | ||||||
| Ryder System, Inc. | 3,274 | 186,127 | ||||||
| Union Pacific Corp. | 32,008 | 3,341,635 | ||||||
| 7,154,710 | ||||||||
| Trading Companies & Distributors 0.2% | ||||||||
| Fastenal Co. | 20,111 | 723,795 | ||||||
| W.W. Grainger, Inc. | 3,694 | 567,583 | ||||||
| 1,291,378 | ||||||||
| Information Technology 17.5% | ||||||||
| Communications Equipment 2.0% | ||||||||
| Cisco Systems, Inc. | 359,375 | 5,609,844 | ||||||
| F5 Networks, Inc.* | 5,130 | 565,582 | ||||||
| Harris Corp. | 8,185 | 368,816 | ||||||
| JDS Uniphase Corp.* | 14,116 | 235,173 | ||||||
| Juniper Networks, Inc.* | 35,574 | 1,120,581 | ||||||
| Motorola Mobility Holdings, Inc.* | 18,628 | 410,561 | ||||||
| Motorola Solutions, Inc.* | 22,471 | 1,034,565 | ||||||
| QUALCOMM, Inc. | 109,095 | 6,195,505 | ||||||
| Tellabs, Inc. | 22,327 | 102,927 | ||||||
| 15,643,554 | ||||||||
| Computers & Peripherals 4.2% | ||||||||
| Apple, Inc.* | 60,416 | 20,279,839 | ||||||
| Dell, Inc.* | 107,278 | 1,788,324 | ||||||
| EMC Corp.* | 134,341 | 3,701,094 | ||||||
| Hewlett-Packard Co. | 135,537 | 4,933,547 | ||||||
| Lexmark International, Inc. "A"* | 4,849 | 141,882 | ||||||
| NetApp, Inc.* | 24,351 | 1,285,246 | ||||||
| SanDisk Corp.* | 16,268 | 675,122 | ||||||
| Western Digital Corp.* | 14,821 | 539,188 | ||||||
| 33,344,242 | ||||||||
| Electronic Equipment, Instruments & Components 0.4% | ||||||||
| Amphenol Corp. "A" | 11,170 | 603,068 | ||||||
| Corning, Inc. | 102,606 | 1,862,299 | ||||||
| FLIR Systems, Inc. | 10,143 | 341,920 | ||||||
| Jabil Circuit, Inc. | 12,484 | 252,177 | ||||||
| Molex, Inc. | 8,810 | 227,034 | ||||||
| 3,286,498 | ||||||||
| Internet Software & Services 1.6% | ||||||||
| Akamai Technologies, Inc.* | 11,908 | 374,745 | ||||||
| eBay, Inc.* | 74,638 | 2,408,568 | ||||||
| Google, Inc. "A"* | 16,425 | 8,317,292 | ||||||
| Monster Worldwide, Inc.* | 8,070 | 118,306 | ||||||
| Shares | Value ($) | |||||||
| VeriSign, Inc. | 11,037 | 369,298 | ||||||
| Yahoo!, Inc.* | 86,507 | 1,301,065 | ||||||
| 12,889,274 | ||||||||
| IT Services 3.2% | ||||||||
| Automatic Data Processing, Inc. | 32,936 | 1,735,068 | ||||||
| Cognizant Technology Solutions Corp. "A"* | 19,979 | 1,465,260 | ||||||
| Computer Sciences Corp. | 9,926 | 376,791 | ||||||
| Fidelity National Information Services, Inc. | 18,475 | 568,845 | ||||||
| Fiserv, Inc.* | 9,329 | 584,275 | ||||||
| International Business Machines Corp. | 79,147 | 13,577,668 | ||||||
| MasterCard, Inc. "A" | 6,155 | 1,854,748 | ||||||
| Paychex, Inc. | 20,441 | 627,947 | ||||||
| SAIC, Inc.* | 18,530 | 311,675 | ||||||
| Teradata Corp.* | 11,474 | 690,735 | ||||||
| Total System Services, Inc. | 10,303 | 191,430 | ||||||
| Visa, Inc. "A" | 31,326 | 2,639,529 | ||||||
| Western Union Co. | 41,545 | 832,146 | ||||||
| 25,456,117 | ||||||||
| Office Electronics 0.1% | ||||||||
| Xerox Corp. | 93,727 | 975,698 | ||||||
| Semiconductors & Semiconductor Equipment 2.4% | ||||||||
| Advanced Micro Devices, Inc.* | 36,689 | 256,456 | ||||||
| Altera Corp. | 21,416 | 992,632 | ||||||
| Analog Devices, Inc. | 19,046 | 745,460 | ||||||
| Applied Materials, Inc. | 87,729 | 1,141,354 | ||||||
| Broadcom Corp. "A"* | 31,762 | 1,068,474 | ||||||
| First Solar, Inc.* | 3,414 | 451,570 | ||||||
| Intel Corp. | 346,340 | 7,674,894 | ||||||
| KLA-Tencor Corp. | 10,737 | 434,634 | ||||||
| Linear Technology Corp. | 14,415 | 475,983 | ||||||
| LSI Corp.* | 38,905 | 277,004 | ||||||
| MEMC Electronic Materials, Inc.* | 14,237 | 121,442 | ||||||
| Microchip Technology, Inc. | 13,200 | 500,412 | ||||||
| Micron Technology, Inc.* | 54,487 | 407,563 | ||||||
| National Semiconductor Corp. | 15,095 | 371,488 | ||||||
| Novellus Systems, Inc.* | 5,741 | 207,480 | ||||||
| NVIDIA Corp.* | 40,085 | 638,754 | ||||||
| Teradyne, Inc.* | 11,515 | 170,422 | ||||||
| Texas Instruments, Inc. | 75,772 | 2,487,595 | ||||||
| Xilinx, Inc. | 17,875 | 651,901 | ||||||
| 19,075,518 | ||||||||
| Software 3.6% | ||||||||
| Adobe Systems, Inc.* | 33,751 | 1,061,469 | ||||||
| Autodesk, Inc.* | 15,830 | 611,038 | ||||||
| BMC Software, Inc.* | 11,284 | 617,235 | ||||||
| CA, Inc. | 24,285 | 554,669 | ||||||
| Citrix Systems, Inc.* | 12,530 | 1,002,400 | ||||||
| Compuware Corp.* | 13,935 | 136,006 | ||||||
| Electronic Arts, Inc.* | 21,226 | 500,933 | ||||||
| Intuit, Inc.* | 18,238 | 945,823 | ||||||
| Microsoft Corp. | 484,956 | 12,608,856 | ||||||
| Oracle Corp. | 254,585 | 8,378,392 | ||||||
| Red Hat, Inc.* | 12,282 | 563,744 | ||||||
| Salesforce.com, Inc.* | 7,866 | 1,171,877 | ||||||
| Symantec Corp.* | 49,479 | 975,726 | ||||||
| 29,128,168 | ||||||||
| Materials 3.6% | ||||||||
| Chemicals 2.1% | ||||||||
| Air Products & Chemicals, Inc. | 13,904 | 1,328,944 | ||||||
| Airgas, Inc. | 4,746 | 332,410 | ||||||
| Shares | Value ($) | |||||||
| CF Industries Holdings, Inc. | 4,855 | 687,808 | ||||||
| Dow Chemical Co. | 76,808 | 2,765,088 | ||||||
| E.I. du Pont de Nemours & Co. | 60,677 | 3,279,592 | ||||||
| Eastman Chemical Co. | 4,493 | 458,601 | ||||||
| Ecolab, Inc. | 15,647 | 882,178 | ||||||
| FMC Corp. | 4,513 | 388,208 | ||||||
| International Flavors & Fragrances, Inc. | 5,109 | 328,202 | ||||||
| Monsanto Co. | 35,034 | 2,541,366 | ||||||
| PPG Industries, Inc. | 10,164 | 922,790 | ||||||
| Praxair, Inc. | 19,915 | 2,158,587 | ||||||
| Sigma-Aldrich Corp. | 7,749 | 568,622 | ||||||
| The Sherwin-Williams Co. | 5,674 | 475,878 | ||||||
| 17,118,274 | ||||||||
| Construction Materials 0.0% | ||||||||
| Vulcan Materials Co. | 8,170 | 314,790 | ||||||
| Containers & Packaging 0.2% | ||||||||
| Ball Corp. | 10,764 | 413,984 | ||||||
| Bemis Co., Inc. | 6,762 | 228,420 | ||||||
| Owens-Illinois, Inc.* | 10,444 | 269,560 | ||||||
| Sealed Air Corp. | 10,109 | 240,493 | ||||||
| 1,152,457 | ||||||||
| Metals & Mining 1.1% | ||||||||
| AK Steel Holding Corp. | 7,385 | 116,387 | ||||||
| Alcoa, Inc. | 70,709 | 1,121,445 | ||||||
| Allegheny Technologies, Inc. | 7,031 | 446,257 | ||||||
| Cliffs Natural Resources, Inc. | 9,717 | 898,337 | ||||||
| Freeport-McMoRan Copper & Gold, Inc. | 61,883 | 3,273,611 | ||||||
| Newmont Mining Corp. | 32,300 | 1,743,231 | ||||||
| Nucor Corp. | 20,132 | 829,841 | ||||||
| Titanium Metals Corp. | 6,057 | 110,964 | ||||||
| United States Steel Corp. | 9,072 | 417,675 | ||||||
| 8,957,748 | ||||||||
| Paper & Forest Products 0.2% | ||||||||
| International Paper Co. | 29,771 | 887,771 | ||||||
| MeadWestvaco Corp. | 10,649 | 354,718 | ||||||
| 1,242,489 | ||||||||
| Telecommunication Services 3.0% | ||||||||
| Diversified Telecommunication Services 2.7% | ||||||||
| AT&T, Inc. | 387,003 | 12,155,764 | ||||||
| CenturyLink, Inc. | 39,698 | 1,604,990 | ||||||
| Frontier Communications Corp. | 63,119 | 509,371 | ||||||
| Verizon Communications, Inc. | 184,792 | 6,879,806 | ||||||
| Windstream Corp. | 31,856 | 412,854 | ||||||
| 21,562,785 | ||||||||
| Wireless Telecommunication Services 0.3% | ||||||||
| American Tower Corp. "A"* | 26,172 | 1,369,581 | ||||||
| MetroPCS Communications, Inc.* | 16,760 | 288,439 | ||||||
| Sprint Nextel Corp.* | 199,653 | 1,076,130 | ||||||
| 2,734,150 | ||||||||
| Utilities 3.3% | ||||||||
| Electric Utilities 1.8% | ||||||||
| American Electric Power Co., Inc. | 31,817 | 1,198,865 | ||||||
| Duke Energy Corp. | 87,010 | 1,638,398 | ||||||
| Edison International | 21,954 | 850,718 | ||||||
| Entergy Corp. | 12,091 | 825,573 | ||||||
| Exelon Corp. | 43,131 | 1,847,732 | ||||||
| FirstEnergy Corp. | 27,655 | 1,220,968 | ||||||
| NextEra Energy, Inc. | 27,561 | 1,583,655 | ||||||
| Northeast Utilities | 11,254 | 395,803 | ||||||
| Pepco Holdings, Inc. | 14,360 | 281,887 | ||||||
| Shares | Value ($) | |||||||
| Pinnacle West Capital Corp. | 6,854 | 305,551 | ||||||
| PPL Corp. | 37,566 | 1,045,462 | ||||||
| Progress Energy, Inc. | 19,666 | 944,165 | ||||||
| Southern Co. | 55,027 | 2,221,990 | ||||||
| 14,360,767 | ||||||||
| Gas Utilities 0.1% | ||||||||
| Nicor, Inc. | 2,902 | 158,855 | ||||||
| ONEOK, Inc. | 7,388 | 546,786 | ||||||
| 705,641 | ||||||||
| Independent Power Producers & Energy Traders 0.2% | ||||||||
| AES Corp.* | 42,440 | 540,686 | ||||||
| Constellation Energy Group, Inc. | 12,778 | 485,053 | ||||||
| NRG Energy, Inc.* | 15,647 | 384,603 | ||||||
| 1,410,342 | ||||||||
| Multi-Utilities 1.2% | ||||||||
| Ameren Corp. | 15,196 | 438,253 | ||||||
| CenterPoint Energy, Inc. | 27,107 | 524,521 | ||||||
| CMS Energy Corp. | 16,007 | 315,178 | ||||||
| Consolidated Edison, Inc. | 19,460 | 1,036,050 | ||||||
| Dominion Resources, Inc. | 37,282 | 1,799,602 | ||||||
| DTE Energy Co. | 10,758 | 538,115 | ||||||
| Integrys Energy Group, Inc. | 4,986 | 258,474 | ||||||
| NiSource, Inc. | 17,699 | 358,405 | ||||||
| PG&E Corp. | 26,346 | 1,107,322 | ||||||
| Public Service Enterprise Group, Inc. | 33,639 | 1,097,977 | ||||||
| SCANA Corp. | 7,226 | 284,488 | ||||||
| Shares | Value ($) | |||||||
| Sempra Energy | 16,180 | 855,598 | ||||||
| TECO Energy, Inc. | 13,649 | 257,830 | ||||||
| Wisconsin Energy Corp. | 14,715 | 461,315 | ||||||
| Xcel Energy, Inc. | 32,671 | 793,905 | ||||||
| 10,127,033 | ||||||||
Total Common Stocks (Cost $679,810,802) | 785,659,969 | |||||||
Principal Amount ($) | Value ($) | |||||||
| Government & Agency Obligation 0.2% | ||||||||
| US Treasury Obligation | ||||||||
| US Treasury Bill, 0.07%**, 11/17/2011 (b) (Cost $1,139,753) | 1,140,000 | 1,139,759 | ||||||
| Shares | Value ($) | |||||||
| Cash Equivalents 4.7% | ||||||||
| Central Cash Management Fund, 0.11% (a) (Cost $37,828,143) | 37,828,143 | 37,828,143 | ||||||
| % of Net Assets | Value ($) | |||||||
Total Investment Portfolio (Cost $718,778,698)+ | 103.2 | 824,627,871 | ||||||
| Other Assets and Liabilities, Net | (3.2 | ) | (25,369,598 | ) | ||||
| Net Assets | 100.0 | 799,258,273 | ||||||
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
+ The cost for federal income tax purposes was $747,391,360. At June 30, 2011, net unrealized appreciation for all securities based on tax cost was $77,236,511. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $194,242,119 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $117,005,608.
(a) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
(b) At June 30, 2011, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
REIT: Real Estate Investment Trust
At June 30, 2011, open futures contracts purchased were as follows:
| Futures | Currency | Expiration Date | Contracts | Notional Value ($) | Unrealized Appreciation ($) | |||||||||
| S&P 500 Index | USD | 9/15/2011 | 43 | 14,141,625 | 433,924 | |||||||||
| Currency Abbreviation |
| USD United States Dollar |
For information on the Fund's policy and additional disclosures regarding futures contracts, please refer to Note B in the accompanying Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of June 30, 2011 in valuing the Fund's investments. For information on the Fund's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (c) | $ | 785,659,969 | $ | — | $ | — | $ | 785,659,969 | ||||||||
| Government & Agency Obligation (c) | — | 1,139,759 | — | 1,139,759 | ||||||||||||
| Short-Term Investments (c) | 37,828,143 | — | — | 37,828,143 | ||||||||||||
| Derivatives (d) | 433,924 | — | — | 433,924 | ||||||||||||
| Total | $ | 823,922,036 | $ | 1,139,759 | $ | — | $ | 825,061,795 | ||||||||
There have been no transfers in and out of Level 1 and Level 2 fair value measurements during the period ended June 30, 2011.
(c) See Investment Portfolio for additional detailed categorizations.
(d) Derivatives include unrealized appreciation (depreciation) on open futures contracts.
The accompanying notes are an integral part of the financial statements.
| as of June 30, 2011 (Unaudited) | ||||
| Assets | ||||
Investments: Investments in non-affiliated securities, at value (cost $680,950,555) | $ | 786,799,728 | ||
| Investment in Central Cash Management Fund (cost $37,828,143) | 37,828,143 | |||
| Total investments in securities, at value (cost $718,778,698) | 824,627,871 | |||
| Cash | 10,000 | |||
| Receivable for investments sold | 89,854 | |||
| Receivable for Fund shares sold | 89,977 | |||
| Dividends receivable | 970,678 | |||
| Interest receivable | 1,056 | |||
| Receivable for daily variation margin on futures contracts | 120,411 | |||
| Other assets | 8,837 | |||
| Total assets | 825,918,684 | |||
| Liabilities | ||||
| Payable for investments purchased | 25,949,384 | |||
| Payable for Fund shares redeemed | 439,826 | |||
| Accrued management fee | 124,363 | |||
| Other accrued expenses and payables | 146,838 | |||
| Total liabilities | 26,660,411 | |||
| Net assets, at value | $ | 799,258,273 | ||
| Net Assets Consist of | ||||
| Undistributed net investment income | 6,093,559 | |||
Net unrealized appreciation (depreciation) on: Investments | 105,849,173 | |||
| Futures | 433,924 | |||
| Accumulated net realized gain (loss) | (32,116,163 | ) | ||
| Paid-in capital | 718,997,780 | |||
| Net assets, at value | $ | 799,258,273 | ||
Class A Net Asset Value, offering and redemption price per share ($729,065,363 ÷ 53,128,853 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ | 13.72 | ||
Class B Net Asset Value, offering and redemption price per share ($50,193,292 ÷ 3,655,091 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ | 13.73 | ||
Class B2 Net Asset Value, offering and redemption price per share ($19,999,618 ÷ 1,456,505 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ | 13.73 | ||
Statement of Operations
| for the six months ended June 30, 2011 (Unaudited) | ||||
| Investment Income | ||||
Income: Dividends | $ | 7,619,265 | ||
| Interest | 936 | |||
| Income distributions — Central Cash Management Fund | 4,281 | |||
| Securities lending income, including income from Daily Assets Fund Institutional, net of borrower rebates | 9,110 | |||
| Total income | 7,633,592 | |||
Expenses: Management fee | 777,780 | |||
| Administration fee | 389,552 | |||
| Custodian fee | 14,842 | |||
| Distribution service fees (Class B and Class B2) | 91,561 | |||
| Recordkeeping fee (Class B2) | 15,238 | |||
| Services to shareholders | 5,966 | |||
| Professional fees | 32,718 | |||
| Trustees' fees and expenses | 12,983 | |||
| Reports to shareholders | 24,251 | |||
| Other | 26,333 | |||
| Total expenses | 1,391,224 | |||
| Net investment income (loss) | 6,242,368 | |||
| Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: Investments | 8,081,838 | |||
| Futures | 308,094 | |||
| 8,389,932 | ||||
Change in net unrealized appreciation (depreciation) on: Investments | 29,919,707 | |||
| Futures | 104,831 | |||
| 30,024,538 | ||||
| Net gain (loss) | 38,414,470 | |||
| Net increase (decrease) in net assets resulting from operations | $ | 44,656,838 | ||
The accompanying notes are an integral part of the financial statements.
| Increase (Decrease) in Net Assets | Six Months Ended June 30, 2011 (Unaudited) | Year Ended December 31, 2010 | ||||||
Operations: Net investment income (loss) | $ | 6,242,368 | $ | 12,547,750 | ||||
| Net realized gain (loss) | 8,389,932 | 11,576,199 | ||||||
| Change in net unrealized appreciation (depreciation) | 30,024,538 | 78,148,670 | ||||||
| Net increase (decrease) in net assets resulting from operations | 44,656,838 | 102,272,619 | ||||||
Distributions to shareholders from: Net investment income: Class A | (11,499,201 | ) | (12,705,478 | ) | ||||
| Class B | (693,566 | ) | (822,134 | ) | ||||
| Class B2 | (248,318 | ) | (300,774 | ) | ||||
| Total distributions | (12,441,085 | ) | (13,828,386 | ) | ||||
Fund share transactions: Class A Proceeds from shares sold | 42,549,750 | 34,225,993 | ||||||
| Reinvestment of distributions | 11,499,201 | 12,705,478 | ||||||
| Payments for shares redeemed | (53,432,957 | ) | (105,618,602 | ) | ||||
| Net increase (decrease) in net assets from Class A share transactions | 615,994 | (58,687,131 | ) | |||||
Class B Proceeds from shares sold | 2,625,562 | 3,731,491 | ||||||
| Reinvestment of distributions | 693,566 | 822,134 | ||||||
| Payments for shares redeemed | (8,897,601 | ) | (6,731,217 | ) | ||||
| Net increase (decrease) in net assets from Class B share transactions | (5,578,473 | ) | (2,177,592 | ) | ||||
Class B2 Proceeds from shares sold | 33,241 | 559,322 | ||||||
| Reinvestment of distributions | 248,318 | 300,774 | ||||||
| Cost of shares redeemed | (1,384,448 | ) | (3,426,496 | ) | ||||
| Net increase (decrease) in net assets from Class B2 share transactions | (1,102,889 | ) | (2,566,400 | ) | ||||
| Increase (decrease) in net assets | 26,150,385 | 25,013,110 | ||||||
| Net assets at beginning of period | 773,107,888 | 748,094,778 | ||||||
| Net assets at end of period (including undistributed net investment income of $6,093,559 and $12,292,276, respectively) | $ | 799,258,273 | $ | 773,107,888 | ||||
| Increase (Decrease) in Net Assets | Six Months Ended June 30, 2011 (Unaudited) | Year Ended December 31, 2010 | ||||||
Class A Shares outstanding at beginning of period | 53,096,781 | 58,025,792 | ||||||
| Shares sold | 3,122,656 | 2,918,830 | ||||||
| Shares issued to shareholders in reinvestment of distributions | 819,032 | 1,017,252 | ||||||
| Shares redeemed | (3,909,616 | ) | (8,865,093 | ) | ||||
| Net increase (decrease) in Class A shares | 32,072 | (4,929,011 | ) | |||||
| Shares outstanding at end of period | 53,128,853 | 53,096,781 | ||||||
Class B Shares outstanding at beginning of period | 4,060,194 | 4,245,476 | ||||||
| Shares sold | 191,937 | 314,546 | ||||||
| Shares issued to shareholders in reinvestment of distributions | 49,329 | 65,771 | ||||||
| Shares redeemed | (646,369 | ) | (565,599 | ) | ||||
| Net increase (decrease) in Class B shares | (405,103 | ) | (185,282 | ) | ||||
| Shares outstanding at end of period | 3,655,091 | 4,060,194 | ||||||
Class B2 Shares outstanding at beginning of period | 1,536,957 | 1,758,162 | ||||||
| Shares sold | 2,456 | 46,908 | ||||||
| Shares issued to shareholders in reinvestment of distributions | 17,661 | 24,042 | ||||||
| Shares redeemed | (100,569 | ) | (292,155 | ) | ||||
| Net increase (decrease) in Class B2 shares | (80,452 | ) | (221,205 | ) | ||||
| Shares outstanding at end of period | 1,456,505 | 1,536,957 | ||||||
The accompanying notes are an integral part of the financial statements.
| Years Ended December 31, | |||||||||||||||||||||||||
| Class A | Six Months Ended 6/30/11 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Selected Per Share Data | |||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.17 | $ | 11.68 | $ | 9.55 | $ | 15.53 | $ | 14.97 | $ | 13.11 | |||||||||||||
Income (loss) from investment operations: Net investment income (loss)a | .11 | .21 | .21 | .27 | .27 | .24 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | .67 | 1.51 | 2.20 | (5.93 | ) | .52 | 1.78 | ||||||||||||||||||
| Total from investment operations | .78 | 1.72 | 2.41 | (5.66 | ) | .79 | 2.02 | ||||||||||||||||||
Less distributions from: Net investment income | (.23 | ) | (.23 | ) | (.28 | ) | (.32 | ) | (.23 | ) | (.16 | ) | |||||||||||||
| Net asset value, end of period | $ | 13.72 | $ | 13.17 | $ | 11.68 | $ | 9.55 | $ | 15.53 | $ | 14.97 | |||||||||||||
| Total Return (%) | 5.85 | ** | 14.70 | 26.32 | b | (37.15 | )b | 5.30 | b | 15.52 | b | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data | |||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 729 | 699 | 678 | 584 | 1,046 | 1,412 | |||||||||||||||||||
| Ratio of expenses before expense reductions (%) | .33 | * | .33 | .34 | .33 | .33 | .28 | ||||||||||||||||||
| Ratio of expenses after expense reductions (%) | .33 | * | .33 | .32 | .28 | .30 | .27 | ||||||||||||||||||
| Ratio of net investment income (loss) (%) | 1.63 | * | 1.74 | 2.10 | 2.07 | 1.71 | 1.73 | ||||||||||||||||||
| Portfolio turnover rate (%) | 4 | ** | 5 | 8 | 6 | 7 | c | 9 | |||||||||||||||||
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Excludes portfolio securities delivered as a result of processing redemption in-kind transactions. * Annualized ** Not annualized | |||||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||
| Class B | Six Months Ended 6/30/11 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Selected Per Share Data | |||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.17 | $ | 11.68 | $ | 9.54 | $ | 15.52 | $ | 14.96 | $ | 13.10 | |||||||||||||
Income (loss) from investment operations: Net investment income (loss)a | .09 | .18 | .18 | .24 | .23 | .21 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | .66 | 1.51 | 2.22 | (5.94 | ) | .52 | 1.78 | ||||||||||||||||||
| Total from investment operations | .75 | 1.69 | 2.40 | (5.70 | ) | .75 | 1.99 | ||||||||||||||||||
Less distributions from: Net investment income | (.19 | ) | (.20 | ) | (.26 | ) | (.28 | ) | (.19 | ) | (.13 | ) | |||||||||||||
| Net asset value, end of period | $ | 13.73 | $ | 13.17 | $ | 11.68 | $ | 9.54 | $ | 15.52 | $ | 14.96 | |||||||||||||
| Total Return (%) | 5.66 | ** | 14.52 | 26.03 | b | (37.34 | )b | 5.03 | b | 15.24 | b | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data | |||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 50 | 53 | 50 | 40 | 65 | 84 | |||||||||||||||||||
| Ratio of expenses before expense reductions (%) | .58 | * | .58 | .59 | .58 | .58 | .53 | ||||||||||||||||||
| Ratio of expenses after expense reductions (%) | .58 | * | .58 | .57 | .53 | .55 | .52 | ||||||||||||||||||
| Ratio of net investment income (loss) (%) | 1.38 | * | 1.49 | 1.85 | 1.82 | 1.46 | 1.48 | ||||||||||||||||||
| Portfolio turnover rate (%) | 4 | ** | 5 | 8 | 6 | 7 | c | 9 | |||||||||||||||||
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Excludes portfolio securities delivered as a result of processing redemption in-kind transactions. * Annualized ** Not annualized | |||||||||||||||||||||||||
| Years Ended December 31, | |||||||||||||||||||||||||
| Class B2 | Six Months Ended 6/30/11 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Selected Per Share Data | |||||||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.15 | $ | 11.67 | $ | 9.54 | $ | 15.51 | $ | 14.96 | $ | 13.09 | |||||||||||||
Income (loss) from investment operations: Net investment income (loss)a | .08 | .16 | .17 | .22 | .21 | .19 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | .67 | 1.50 | 2.21 | (5.93 | ) | .52 | 1.79 | ||||||||||||||||||
| Total from investment operations | .75 | 1.66 | 2.38 | (5.71 | ) | .73 | 1.98 | ||||||||||||||||||
Less distributions from: Net investment income | (.17 | ) | (.18 | ) | (.25 | ) | (.26 | ) | (.18 | ) | (.11 | ) | |||||||||||||
| Net asset value, end of period | $ | 13.73 | $ | 13.15 | $ | 11.67 | $ | 9.54 | $ | 15.51 | $ | 14.96 | |||||||||||||
| Total Return (%) | 5.66 | ** | 14.29 | 25.79 | b | (37.36 | )b | 4.85 | b | 15.20 | b | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data | |||||||||||||||||||||||||
| Net assets, end of period ($ millions) | 20 | 20 | 21 | 19 | 48 | 57 | |||||||||||||||||||
| Ratio of expenses before expense reductions (%) | .73 | * | .73 | .74 | .72 | .72 | .67 | ||||||||||||||||||
| Ratio of expenses after expense reductions (%) | .73 | * | .73 | .70 | .63 | .65 | .63 | ||||||||||||||||||
| Ratio of net investment income (loss) (%) | 1.23 | * | 1.34 | 1.72 | 1.72 | 1.36 | 1.37 | ||||||||||||||||||
| Portfolio turnover rate (%) | 4 | ** | 5 | 8 | 6 | 7 | c | 9 | |||||||||||||||||
a Based on average shares outstanding during the period. b Total return would have been lower had certain expenses not been reduced. c Excludes portfolio securities delivered as a result of processing redemption in-kind transactions. * Annualized ** Not annualized | |||||||||||||||||||||||||
A. Organization and Significant Accounting Policies
DWS Investments VIT Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. The Trust is comprised of two series. DWS Equity 500 Index VIP (the "Fund") is a diversified series of the Trust offered to investors. The Fund is an underlying investment vehicle for variable annuity contracts and variable life insurance policies to be offered by the separate accounts of certain life insurance companies ("Participating Insurance Companies").
Multiple Classes of Shares of Beneficial Interest. The Fund offers three classes of shares to investors: Class A shares, Class B shares and Class B2 shares. Class B and Class B2 shares are subject to Rule 12b-1 distribution fees under the 1940 Act and recordkeeping fees equal to an annual rate up to 0.25% and 0.15%, respectively, of Class B and Class B2 shares average daily net assets. Class A shares are not subject to such fees.
Investment income, realized and unrealized gains and losses, and certain Fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class (including the applicable 12b-1 distribution fees and recordkeeping fees). Differences in class-level expenses may result in payment of different per share dividends by class. All shares have equal rights with respect to voting subject to class-specific arrangements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (US or foreign) or over-the-counter market on which they trade and are categorized as Level 1 securities. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation.
Debt securities are valued by independent pricing services approved by the Fund's Board. If the pricing services are unable to provide valuations, securities are valued at the most recent bid quotation or evaluated price, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. These securities are generally categorized as Level 2.
Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost, which approximates value, and are categorized as Level 2. Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security's disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company's or issuer's financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities; the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Disclosure about the classification of fair value measurements is included in a table following the Fund's Investment Portfolio.
Securities Lending. The Fund lends securities to certain financial institutions. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The Fund may invest the cash collateral into a joint trading account in an affiliated money market fund pursuant to Exemptive Orders issued by the SEC. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. The Fund is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments. The Fund had no securities on loan at June 30, 2011.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable and tax-exempt income to its shareholders.
At December 31, 2010, the Fund had a net tax basis capital loss carryforward of approximately $11,647,000, including $1,072,000 inherited from its merger with an affiliated fund in fiscal year 2005, which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2012 ($1,072,000) and December 31, 2017 ($10,575,000), the respective expiration dates, whichever occurs first, subject to certain limitations under Sections 382-384 of the Internal Revenue Code.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted. Under the Act, net capital losses may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. As a result of this ordering rule, pre-enactment capital loss carryforwards may expire unused, whereas under the previous rules these losses may have been utilized. This change is effective for fiscal years beginning after the date of enactment.
The Fund has reviewed the tax positions for the open tax years as of December 31, 2010 and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income and Gains. Net investment income of the Fund, if any, is declared and distributed to shareholders annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in futures contracts and certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Expenses. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset valuation calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are recorded on an identified cost basis and may include proceeds from litigation.
B. Derivative Instruments
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). For the six months ended June 30, 2011, the Fund invested in futures to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the stock market.
Futures contracts are valued at the most recent settlement price. Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary cash or securities ("initial margin") in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default. Upon a futures contract close out or expiration, realized gain or loss is recognized.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Fund's ability to close out a futures contract prior to the settlement date and the risk that the futures contract is not well correlated with the security, index or currency to which it relates. Risk of loss may exceed amounts recognized in the Statement of Assets and Liabilities.
A summary of the open futures contracts as of June 30, 2011 is included in a table following the Fund's Investment Portfolio. For the six months ended June 30, 2011, the investment in futures contracts purchased had a total notional value generally indicative of a range from approximately $11,559,000 to $14,142,000.
The following tables summarize the value of the Fund's derivative instruments held as of June 30, 2011 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivative | Futures Contracts | |||
| Equity Contracts (a) | $ | 433,924 | ||
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.
Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Fund earnings during the six months ended June 30, 2011 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| Realized Gain (Loss) | Futures Contracts | |||
| Equity Contracts (a) | $ | 308,094 | ||
The above derivative is located in the following Statement of Operations account:
(a) Net realized gain (loss) from futures
| Change in Net Unrealized Appreciation (Depreciation) | Futures Contracts | |||
| Equity Contracts (a) | $ | 104,831 | ||
The above derivative is located in the following Statement of Operations account:
(a) Change in net unrealized appreciation (depreciation) on futures
C. Purchases and Sales of Securities
During the six months ended June 30, 2011, purchases and sales of investment securities (excluding short-term investments) aggregated $35,023,148 and $49,346,598, respectively.
D. Related Parties
Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold, or entered into by the Fund or delegates such responsibility to the Fund's sub-advisor. Pursuant to the Investment Management Agreement with the Advisor, the Fund pays an annual management fee based on the Fund's average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:
| First $1 billion of the Fund's average daily net assets | .200 | % | ||
| Next $1 billion of such net assets | .175 | % | ||
| Over $2 billion of such net assets | .150 | % |
Accordingly, for the six months ended June 30, 2011, the fee pursuant to the management agreement was equivalent to an annualized effective rate of 0.20% of the Fund's average daily net assets.
Northern Trust Investments, Inc. ("NTI") serves as subadvisor. As a subadvisor to the Fund, NTI makes investment decisions and buys and sells securities for the Fund. NTI is paid by the Advisor for the services NTI provides to the Fund.
Administration Fee. Pursuant to the Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays DIMA an annual fee ("Administration Fee") of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2011, the Administration Fee was $389,552, of which $62,181 is unpaid.
Distribution Service Agreement. DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, is the Fund's distributor. In accordance with the Distribution Plan, DIDI receives 12b-1 fees of 0.25% of average daily net assets of Class B and B2 shares. For the six months ended June 30, 2011, the Distribution Service Fees were as follows:
| Distribution Service Fees | Total Aggregated | Unpaid at June 30, 2011 | ||||||
| Class B | $ | 66,164 | $ | 10,088 | ||||
| Class B2 | 25,397 | 4,021 | ||||||
| $ | 91,561 | $ | 14,109 | |||||
Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Fund. Pursuant to a sub-transfer agency agreement among DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee they receive from the Fund. For the six months ended June 30, 2011, the amounts charged to the Fund by DISC were as follows:
| Services to Shareholders | Total Aggregated | Unpaid at June 30, 2011 | ||||||
| Class A | $ | 313 | $ | 220 | ||||
| Class B | 44 | 31 | ||||||
| Class B2 | 22 | 15 | ||||||
| $ | 379 | $ | 266 | |||||
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended June 30, 2011, the amount charged to the Fund by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $8,121, of which $311 is unpaid.
Trustees' Fees and Expenses. The Fund paid each Trustee not affiliated with the Advisor retainer fees plus specified amounts for various committee services and for the Board Chairperson.
Affiliated Cash Management Vehicle. The Fund may invest uninvested cash balances in Central Cash Management Fund, which is managed by the Advisor. The Fund indirectly bears its proportionate share of the expenses of Central Cash Management Fund. Central Cash Management Fund does not pay the Advisor an investment management fee. Central Cash Management Fund seeks a high level of current income consistent with liquidity and the preservation of capital.
E. Line of Credit
The Fund and other affiliated funds (the "Participants") share in a $450 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at June 30, 2011.
F. Ownership of the Fund
At June 30, 2011, two participating insurance companies were beneficial owners of record of 10% or more of the total outstanding Class A shares of the Fund, each owning 62% and 11%, respectively. At June 30, 2011, one participating insurance company was a beneficial owner of record of 10% or more of the total outstanding Class B shares of the Fund, owning 88%. At June 30, 2011, one participating insurance company was a beneficial owner of record of 100% of the total outstanding Class B2 shares of the Fund.
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 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting" at the bottom of the page) — or on the SEC's Web site — www.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.
October 3, 2010
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2010, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007, 2008, and 2009.
Qualifications
For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds and have served in various leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 118 publicly offered Fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).
In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.
Fees and Expenses Compared with Other Funds
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.
DeAM's Fees for Similar Services to Others
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.
Costs and Profit Margins
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.
Economies of Scale
Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.
How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.
Quality of Service — Performance
The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.
In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.
Complex-Level Considerations
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.
I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.
Findings
Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.
Thomas H. Mack
Notes
DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606
(800) 621-1148
vit-equ500-3 (R-023161-1 8/11)
| 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 Paul K. Freeman, Independent Chairman, DWS Funds, P.O. Box 101833, Denver, CO 80250-1833. | ||
| 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 second fiscal quarter of 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. | EXHIBITS | |
| (a)(1) | 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. | |
Form N-CSRS Item F
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 Equity 500 Index VIP, a series of DWS Investments VIT Funds |
| By: | /s/W. Douglas Beck W. Douglas Beck President |
| Date: | August 18, 2011 |
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/W. Douglas Beck W. Douglas Beck President |
| Date: | August 18, 2011 |
| By: | /s/Paul Schubert Paul Schubert Chief Financial Officer and Treasurer |
| Date: | August 18, 2011 |