UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-05002
Deutsche DWS Variable Series II
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 6/30/2023 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) | |
Contents
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DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177img1d7540342.jpg)
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 3 |
Comparative Results | ||||||
DWS Alternative Asset Allocation VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $10,244 | $10,189 | $12,187 | $12,253 | $13,307 |
Average annual total return | 2.44% | 1.89% | 6.81% | 4.15% | 2.90% | |
MSCI World Index | Growth of $10,000 | $11,509 | $11,851 | $14,116 | $15,436 | $24,792 |
Average annual total return | 15.09% | 18.51% | 12.18% | 9.07% | 9.50% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $10,209 | $9,906 | $8,857 | $10,389 | $11,624 |
Average annual total return | 2.09% | –0.94% | –3.96% | 0.77% | 1.52% | |
Blended Index | Growth of $10,000 | $11,115 | $11,262 | $12,374 | $13,939 | $20,200 |
Average annual total return | 11.15% | 12.62% | 7.36% | 6.87% | 7.28% | |
DWS Alternative Asset Allocation VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $10,218 | $10,148 | $12,044 | $12,038 | $12,891 |
Average annual total return | 2.18% | 1.48% | 6.40% | 3.78% | 2.57% | |
MSCI World Index | Growth of $10,000 | $11,509 | $11,851 | $14,116 | $15,436 | $24,792 |
Average annual total return | 15.09% | 18.51% | 12.18% | 9.07% | 9.50% | |
Bloomberg U.S. Aggregate Bond Index | Growth of $10,000 | $10,209 | $9,906 | $8,857 | $10,389 | $11,624 |
Average annual total return | 2.09% | –0.94% | –3.96% | 0.77% | 1.52% | |
Blended Index | Growth of $10,000 | $11,115 | $11,262 | $12,374 | $13,939 | $20,200 |
Average annual total return | 11.15% | 12.62% | 7.36% | 6.87% | 7.28% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Portfolio Summary(Unaudited)
Asset Allocation* (As a % of Investment Portfolio) | 6/30/23 | 12/31/22 |
Real Asset | 38% | 38% |
DWS Enhanced Commodity Strategy Fund | 14% | 13% |
DWS RREEF Global Infrastructure Fund | 13% | 14% |
DWS RREEF Real Estate Securities Fund | 8% | 8% |
iShares Global Infrastructure ETF | 2% | 2% |
SPDR S&P Global Natural Resources ETF | 1% | 1% |
Alternative Fixed Income | 22% | 20% |
DWS Floating Rate Fund | 10% | 9% |
iShares JP Morgan USD Emerging Markets Bond ETF | 5% | 4% |
DWS Emerging Markets Fixed Income Fund | 4% | 4% |
SPDR Blackstone Senior Loan ETF | 3% | 3% |
Alternative Equity | 13% | 11% |
SPDR Bloomberg Convertible Securities ETF | 10% | 8% |
iShares Preferred & Income Securities ETF | 3% | 3% |
Absolute Return | 17% | 20% |
DWS ESG Liquidity Fund | 9% | 13% |
DWS Global Macro Fund | 8% | 7% |
Cash Equivalents | 10% | 11% |
DWS Central Cash Management Government Fund | 10% | 11% |
100% | 100% |
* | During the periods indicated, asset categories and investment strategies represented in the Fund’s portfolio fell into the following categories: Real Assets, Alternative Fixed Income, Alternative Equity, and Absolute Return. Real Asset investments have a tangible or physical aspect such as real estate or commodities. Alternative Fixed Income investments seek to offer exposure to categories generally not included in investors’ allocations and to foreign investments, many of which are not denominated in US dollars. Alternative Equity investments are investments primarily in convertible and preferred instruments that offer equity exposure. Absolute Return investments seek positive returns in all market environments or seek to increase the diversification or liquidity of the Fund’s portfolio. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 5 |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Mutual Funds 56.7% | |||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | 2,351,337 | 15,683,420 | |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | 10,460,873 | 59,522,365 | |
DWS Floating Rate Fund "Institutional" (a) | 5,462,663 | 41,406,982 | |
DWS Global Macro Fund "Institutional" (a) | 3,429,940 | 33,270,413 | |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | 3,923,609 | 57,912,463 | |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | 1,699,654 | 33,517,170 | |
Total Mutual Funds (Cost $266,429,488) | 241,312,813 | ||
Exchange-Traded Funds 23.9% | |||
iShares Global Infrastructure ETF | 141,313 | 6,634,646 | |
iShares JP Morgan USD Emerging Markets Bond ETF | 238,293 | 20,621,876 | |
iShares Preferred & Income Securities ETF | 459,281 | 14,205,561 |
Shares | Value ($) | ||
SPDR Blackstone Senior Loan ETF | 280,331 | 11,737,459 | |
SPDR Bloomberg Convertible Securities ETF | 635,878 | 44,479,666 | |
SPDR S&P Global Natural Resources ETF | 73,958 | 3,987,076 | |
Total Exchange-Traded Funds (Cost $97,007,958) | 101,666,284 | ||
Cash Equivalents 19.5% | |||
DWS Central Cash Management Government Fund, 5.13% (a) (b) | 44,175,111 | 44,175,111 | |
DWS ESG Liquidity Fund "Institutional", 5.23% (a) (b) | 38,635,941 | 38,624,350 | |
Total Cash Equivalents (Cost $82,801,449) | 82,799,461 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $446,238,895) | 100.1 | 425,778,558 | |
Other Assets and Liabilities, Net | (0.1 ) | (546,528 ) | |
Net Assets | 100.0 | 425,232,030 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Mutual Funds 56.7% | ||||||||
DWS Emerging Markets Fixed Income Fund "Institutional" (a) | ||||||||
15,307,718 | 503,716 | — | — | (128,014) | 503,716 | — | 2,351,337 | 15,683,420 |
DWS Enhanced Commodity Strategy Fund "Institutional" (a) | ||||||||
54,938,029 | 8,339,843 | — | — | (3,755,507) | 533,042 | — | 10,460,873 | 59,522,365 |
DWS Floating Rate Fund "Institutional" (a) | ||||||||
39,196,806 | 1,622,697 | — | — | 587,479 | 1,622,696 | — | 5,462,663 | 41,406,982 |
DWS Global Macro "Institutional" (a) | ||||||||
31,508,793 | 646,630 | — | — | 1,114,990 | 646,630 | — | 3,429,940 | 33,270,413 |
DWS RREEF Global Infrastructure Fund "Institutional" (a) | ||||||||
57,617,260 | 929,873 | — | — | (634,670) | 696,138 | 233,735 | 3,923,609 | 57,912,463 |
DWS RREEF Real Estate Securities Fund "Institutional" (a) | ||||||||
32,090,988 | 281,414 | — | — | 1,144,768 | 281,415 | — | 1,699,654 | 33,517,170 |
Cash Equivalents 19.5% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (a) (b) | ||||||||
48,680,508 | 22,291,061 | 26,796,458 | — | — | 1,087,319 | — | 44,175,111 | 44,175,111 |
DWS ESG Liquidity Fund, 5.23% (a) (b) | ||||||||
54,525,559 | 1,019,632 | 16,914,900 | 1,672 | (7,613) | 1,023,863 | — | 38,635,941 | 38,624,350 |
333,865,661 | 35,634,866 | 43,711,358 | 1,672 | (1,678,567) | 6,394,819 | 233,735 | 110,139,128 | 324,112,274 |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. |
6 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
(b) | The rate shown is the annualized seven-day yield at period end. |
S&P: Standard & Poor's |
SPDR: Standard & Poor's Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Mutual Funds | $241,312,813 | $— | $— | $241,312,813 |
Exchange-Traded Funds | 101,666,284 | — | — | 101,666,284 |
Short-Term Investments | 82,799,461 | — | — | 82,799,461 |
Total | $425,778,558 | $— | $— | $425,778,558 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 7 |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated Underlying Funds, at value (cost $97,007,958) | $101,666,284 |
Investments in affiliated Underlying Funds, at value (cost $349,230,937) | 324,112,274 |
Receivable for Fund shares sold | 4,581 |
Interest receivable | 169,375 |
Other assets | 2,664 |
Total assets | 425,955,178 |
Liabilities | |
Payable for Fund shares redeemed | 428,358 |
Accrued management fee | 35,360 |
Accrued Trustees' fees | 3,367 |
Other accrued expenses and payables | 256,063 |
Total liabilities | 723,148 |
Net assets, at value | $425,232,030 |
Net Assets Consist of | |
Distributable earnings (loss) | (18,241,795 ) |
Paid-in capital | 443,473,825 |
Net assets, at value | $425,232,030 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($48,834,374 ÷ 3,973,299 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.29 |
Class B | |
Net Asset Value, offering and redemption price per share ($376,397,656 ÷ 30,595,347 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.30 |
Investment Income | |
Income: | |
Dividends | $1,682,403 |
Income distributions from affiliated Underlying Funds | 6,394,819 |
Total income | 8,077,222 |
Expenses: | |
Management fee | 211,102 |
Administration fee | 204,769 |
Services to shareholders | 646 |
Record keeping fee (Class B) | 242,026 |
Distribution service fee (Class B) | 468,444 |
Custodian fee | 3,017 |
Professional fees | 37,590 |
Reports to shareholders | 13,693 |
Registration fees | 1 |
Trustees' fees and expenses | 9,745 |
Other | 6,031 |
Total expenses | 1,197,064 |
Net investment income | 6,880,158 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Sale of affiliated Underlying Funds | 1,672 |
Capital gain distributions from affiliated Underlying Funds | 233,735 |
235,407 | |
Change in net unrealized appreciation (depreciation) on: | |
Affiliated Underlying Funds | (1,678,567 ) |
Non-affiliated Underlying Funds | 3,981,583 |
2,303,016 | |
Net gain (loss) | 2,538,423 |
Net increase (decrease) in net assets resulting from operations | $9,418,581 |
8 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $6,880,158 | $26,459,643 |
Net realized gain (loss) | 235,407 | 5,513,392 |
Change in net unrealized appreciation (depreciation) | 2,303,016 | (68,849,097 ) |
Net increase (decrease) in net assets resulting from operations | 9,418,581 | (36,876,062 ) |
Distributions to shareholders: | ||
Class A | (3,667,936 ) | (3,486,882 ) |
Class B | (27,346,396 ) | (29,085,224 ) |
Total distributions | (31,014,332 ) | (32,572,106 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,521,795 | 8,154,196 |
Reinvestment of distributions | 3,667,936 | 3,486,882 |
Payments for shares redeemed | (1,035,754 ) | (5,596,341 ) |
Net increase (decrease) in net assets from Class A share transactions | 5,153,977 | 6,044,737 |
Class B | ||
Proceeds from shares sold | 5,288,568 | 17,581,298 |
Reinvestment of distributions | 27,346,396 | 29,085,224 |
Payments for shares redeemed | (13,484,459 ) | (55,362,431 ) |
Net increase (decrease) in net assets from Class B share transactions | 19,150,505 | (8,695,909 ) |
Increase (decrease) in net assets | 2,708,731 | (72,099,340 ) |
Net assets at beginning of period | 422,523,299 | 494,622,639 |
Net assets at end of period | $425,232,030 | $422,523,299 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 3,557,543 | 3,126,054 |
Shares sold | 196,465 | 590,731 |
Shares issued to shareholders in reinvestment of distributions | 300,404 | 250,494 |
Shares redeemed | (81,113 ) | (409,736 ) |
Net increase (decrease) in Class A shares | 415,756 | 431,489 |
Shares outstanding at end of period | 3,973,299 | 3,557,543 |
Class B | ||
Shares outstanding at beginning of period | 28,995,732 | 29,598,447 |
Shares sold | 419,326 | 1,281,615 |
Shares issued to shareholders in reinvestment of distributions | 2,236,010 | 2,086,458 |
Shares redeemed | (1,055,721 ) | (3,970,788 ) |
Net increase (decrease) in Class B shares | 1,599,615 | (602,715 ) |
Shares outstanding at end of period | 30,595,347 | 28,995,732 |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 9 |
Financial Highlights
DWS Alternative Asset Allocation VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.99 | $15.13 | $13.70 | $13.35 | $12.10 | $13.61 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .23 | .88 | 1.04 | .29 | .40 | .61 |
Net realized and unrealized gain (loss) | .08 | (1.93 ) | .69 | .40 | 1.35 | (1.84 ) |
Total from investment operations | .31 | (1.05 ) | 1.73 | .69 | 1.75 | (1.23 ) |
Less distributions from: | ||||||
Net investment income | (.89 ) | (1.08 ) | (.30 ) | (.34 ) | (.50 ) | (.28 ) |
Net realized gains | (.12 ) | (.01 ) | — | — | — | — |
Total distributions | (1.01 ) | (1.09 ) | (.30 ) | (.34 ) | (.50 ) | (.28 ) |
Net asset value, end of period | $12.29 | $12.99 | $15.13 | $13.70 | $13.35 | $12.10 |
Total Return (%)b | 2.44 * | (7.42 ) | 12.74 | 5.71 | 14.68 c | (9.14 )c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 49 | 46 | 47 | 37 | 34 | 26 |
Ratio of expenses before expense reductions (%)d,e | .23 ** | .23 | .23 | .23 | .56 | .73 |
Ratio of expenses after expense reductions (%)d,e | .23 ** | .23 | .23 | .23 | .23 | .16 |
Ratio of net investment income (%) | 3.61 ** | 6.44 | 7.13 | 2.29 | 3.09 | 4.78 |
Portfolio turnover rate (%) | 0 | 12 | 19 | 18 | 10 | 32 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
DWS Alternative Asset Allocation VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.98 | $15.11 | $13.68 | $13.34 | $12.09 | $13.59 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .20 | .80 | .93 | .24 | .37 | .62 |
Net realized and unrealized gain (loss) | .08 | (1.90 ) | .75 | .41 | 1.34 | (1.88 ) |
Total from investment operations | .28 | (1.10 ) | 1.68 | .65 | 1.71 | (1.26 ) |
Less distributions from: | ||||||
Net investment income | (.84 ) | (1.02 ) | (.25 ) | (.31 ) | (.46 ) | (.24 ) |
Net realized gains | (.12 ) | (.01 ) | — | — | — | — |
Total distributions | (.96 ) | (1.03 ) | (.25 ) | (.31 ) | (.46 ) | (.24 ) |
Net asset value, end of period | $12.30 | $12.98 | $15.11 | $13.68 | $13.34 | $12.09 |
Total Return (%)b | 2.18 * | (7.74 ) | 12.35 c | 5.32 c | 14.35 c | (9.35 )c |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 376 | 376 | 447 | 427 | 349 | 208 |
Ratio of expenses before expense reductions (%)d,e | .61 ** | .61 | .61 | .61 | .92 | 1.08 |
Ratio of expenses after expense reductions (%)d,e | .61 ** | .61 | .60 | .59 | .52 | .45 |
Ratio of net investment income (%) | 3.21 ** | 5.81 | 6.37 | 1.94 | 2.90 | 4.85 |
Portfolio turnover rate (%) | 0 | 12 | 19 | 18 | 10 | 32 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower if the Advisor had not reduced some Underlying DWS Funds’ expenses. |
c | Total return would have been lower had certain expenses not been reduced. |
d | The Fund invests in other Funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
e | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 13 |
On assets invested in exchange-traded funds and mutual funds | .10% |
On assets invested in all other assets not considered exchange-traded funds and mutual funds | 1.00% |
Class A | 1.00% | |
Class B | 1.39% |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $131 | $36 |
Class B | 183 | 64 |
$314 | $100 |
14 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 15 |
Other Information (Unaudited)
16 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,024.40 | $1,021.80 |
Expenses Paid per $1,000* | $1.15 | $3.06 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,023.65 | $1,021.77 |
Expenses Paid per $1,000* | $1.15 | $3.06 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios** | Class A | Class B |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | .23% | .61% |
** | The Fund invests in other funds and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 17 |
Liquidity Risk Management
18 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP |
Deutsche DWS Variable Series II — DWS Alternative Asset Allocation VIP | | 21 |
Contents
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DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177imgb9c2638a2.jpg)
Comparative Results | ||||||
DWS CROCI® U.S. VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,170 | $11,557 | $13,568 | $12,699 | $17,330 |
Average annual total return | 11.70% | 15.57% | 10.71% | 4.89% | 5.65% | |
Russell 1000® Value Index | Growth of $10,000 | $10,512 | $11,154 | $14,933 | $14,766 | $24,155 |
Average annual total return | 5.12% | 11.54% | 14.30% | 8.11% | 9.22% | |
DWS CROCI® U.S. VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $11,152 | $11,528 | $13,440 | $12,502 | $16,816 |
Average annual total return | 11.52% | 15.28% | 10.36% | 4.57% | 5.33% | |
Russell 1000® Value Index | Growth of $10,000 | $10,512 | $11,154 | $14,933 | $14,766 | $24,155 |
Average annual total return | 5.12% | 11.54% | 14.30% | 8.11% | 9.22% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 6/30/23 | 12/31/22 |
Common Stocks | 99% | 99% |
Cash Equivalents | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Cash Equivalents) | 6/30/23 | 12/31/22 |
Health Care | 25% | 23% |
Information Technology | 24% | 28% |
Communication Services | 12% | 8% |
Financials | 10% | 11% |
Consumer Discretionary | 10% | 10% |
Energy | 6% | 5% |
Industrials | 6% | 5% |
Materials | 5% | 6% |
Consumer Staples | 2% | 4% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Common Stocks 99.5% | |||
Communication Services 12.2% | |||
Entertainment 0.3% | |||
Warner Bros Discovery, Inc.* | 24,653 | 309,149 | |
Interactive Media & Services 7.7% | |||
Alphabet, Inc. "A"* | 49,362 | 5,908,631 | |
Meta Platforms, Inc. "A"* | 14,042 | 4,029,773 | |
9,938,404 | |||
Media 4.2% | |||
Comcast Corp. "A" | 14,374 | 597,240 | |
Fox Corp. "A" | 141,854 | 4,823,036 | |
5,420,276 | |||
Consumer Discretionary 9.7% | |||
Hotels, Restaurants & Leisure 1.5% | |||
Boyd Gaming Corp. | 27,077 | 1,878,332 | |
Household Durables 4.5% | |||
D.R. Horton, Inc. | 40,190 | 4,890,721 | |
Garmin Ltd. | 8,351 | 870,926 | |
5,761,647 | |||
Specialty Retail 2.7% | |||
AutoNation, Inc.* | 10,146 | 1,670,133 | |
Lowe's Companies, Inc. | 4,544 | 1,025,581 | |
Signet Jewelers Ltd. | 12,544 | 818,621 | |
3,514,335 | |||
Textiles, Apparel & Luxury Goods 1.0% | |||
Capri Holdings Ltd.* | 15,178 | 544,738 | |
Tapestry, Inc. | 18,285 | 782,598 | |
1,327,336 | |||
Consumer Staples 2.2% | |||
Consumer Staples Distribution & Retail 1.1% | |||
Dollar General Corp. | 1,423 | 241,597 | |
Kroger Co. | 24,216 | 1,138,152 | |
1,379,749 | |||
Tobacco 1.1% | |||
Altria Group, Inc. | 33,117 | 1,500,200 | |
Energy 5.8% | |||
Oil, Gas & Consumable Fuels | |||
ConocoPhillips | 5,008 | 518,879 | |
Coterra Energy, Inc. | 39,192 | 991,558 | |
Exxon Mobil Corp. | 17,821 | 1,911,302 | |
Marathon Petroleum Corp. | 10,704 | 1,248,086 | |
Phillips 66 | 5,024 | 479,189 | |
Pioneer Natural Resources Co. | 8,726 | 1,807,853 | |
Valero Energy Corp. | 3,967 | 465,329 | |
7,422,196 |
Shares | Value ($) | ||
Financials 10.3% | |||
Banks 2.5% | |||
Bank of America Corp. | 11,724 | 336,362 | |
Huntington Bancshares, Inc. | 59,745 | 644,051 | |
JPMorgan Chase & Co. | 15,774 | 2,294,170 | |
3,274,583 | |||
Capital Markets 0.7% | |||
State Street Corp. | 12,196 | 892,504 | |
Consumer Finance 6.7% | |||
Capital One Financial Corp. | 20,254 | 2,215,180 | |
Discover Financial Services | 33,468 | 3,910,736 | |
Synchrony Financial | 73,145 | 2,481,078 | |
8,606,994 | |||
Financial Services 0.4% | |||
Global Payments, Inc. | 4,842 | 477,034 | |
Health Care 25.1% | |||
Biotechnology 6.6% | |||
AbbVie, Inc. | 6,259 | 843,275 | |
Amgen, Inc. | 1,485 | 329,700 | |
Gilead Sciences, Inc. | 41,182 | 3,173,897 | |
Regeneron Pharmaceuticals, Inc.* | 3,619 | 2,600,396 | |
Vertex Pharmaceuticals, Inc.* | 4,377 | 1,540,310 | |
8,487,578 | |||
Health Care Equipment & Supplies 2.9% | |||
Hologic, Inc.* | 20,711 | 1,676,970 | |
Medtronic PLC | 22,942 | 2,021,190 | |
3,698,160 | |||
Health Care Providers & Services 1.8% | |||
HCA Healthcare, Inc. | 1,359 | 412,429 | |
Laboratory Corp. of America Holdings | 7,903 | 1,907,231 | |
2,319,660 | |||
Pharmaceuticals 13.8% | |||
Bristol-Myers Squibb Co. | 91,909 | 5,877,581 | |
Johnson & Johnson | 15,006 | 2,483,793 | |
Merck & Co., Inc. | 29,808 | 3,439,545 | |
Pfizer, Inc. | 137,109 | 5,029,158 | |
Viatris, Inc. | 91,743 | 915,595 | |
17,745,672 | |||
Industrials 5.6% | |||
Air Freight & Logistics 1.3% | |||
Expeditors International of Washington, Inc. | 14,073 | 1,704,662 | |
Machinery 0.8% | |||
Cummins, Inc. | 4,007 | 982,356 | |
Professional Services 3.5% | |||
ManpowerGroup, Inc. | 20,169 | 1,601,419 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 5 |
Shares | Value ($) | ||
Robert Half International, Inc. | 30,196 | 2,271,343 | |
SS&C Technologies Holdings, Inc. | 9,928 | 601,637 | |
4,474,399 | |||
Information Technology 23.6% | |||
Communications Equipment 2.3% | |||
Cisco Systems, Inc. | 57,218 | 2,960,459 | |
IT Services 3.4% | |||
Cognizant Technology Solutions Corp. "A" | 67,124 | 4,381,855 | |
Semiconductors & Semiconductor Equipment 8.2% | |||
Applied Materials, Inc. | 8,959 | 1,294,934 | |
Broadcom, Inc. | 1,163 | 1,008,821 | |
KLA Corp. | 3,724 | 1,806,214 | |
Lam Research Corp. | 1,351 | 868,504 | |
Microchip Technology, Inc. | 3,925 | 351,641 | |
QUALCOMM, Inc. | 34,091 | 4,058,193 | |
Skyworks Solutions, Inc. | 6,929 | 766,971 | |
Texas Instruments, Inc. | 2,319 | 417,466 | |
10,572,744 | |||
Software 3.9% | |||
Microsoft Corp. | 14,747 | 5,021,943 | |
Technology Hardware, Storage & Peripherals 5.8% | |||
Apple, Inc. | 22,432 | 4,351,135 |
Shares | Value ($) | ||
Dell Technologies, Inc. "C" | 14,138 | 765,007 | |
Hewlett Packard Enterprise Co. | 134,711 | 2,263,145 | |
7,379,287 | |||
Materials 5.0% | |||
Chemicals 3.4% | |||
LyondellBasell Industries NV "A" | 31,624 | 2,904,032 | |
Olin Corp. | 27,649 | 1,420,882 | |
4,324,914 | |||
Metals & Mining 1.6% | |||
Nucor Corp. | 12,747 | 2,090,253 | |
Total Common Stocks (Cost $114,995,669) | 127,846,681 | ||
Cash Equivalents 0.5% | |||
DWS Central Cash Management Government Fund, 5.13% (a) (Cost $709,644) | 709,644 | 709,644 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $115,705,313) | 100.0 | 128,556,325 | |
Other Assets and Liabilities, Net | (0.0 ) | (43,828 ) | |
Net Assets | 100.0 | 128,512,497 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Cash Equivalents 0.5% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (a) | ||||||||
1,132,870 | 3,563,297 | 3,986,523 | — | — | 25,666 | — | 709,644 | 709,644 |
* | Non-income producing security. |
(a) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
6 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $127,846,681 | $— | $— | $127,846,681 |
Short-Term Investments | 709,644 | — | — | 709,644 |
Total | $128,556,325 | $— | $— | $128,556,325 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 7 |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $114,995,669) | $127,846,681 |
Investment in DWS Central Cash Management Government Fund (cost $709,644) | 709,644 |
Dividends receivable | 117,998 |
Interest receivable | 3,448 |
Other assets | 1,228 |
Total assets | 128,678,999 |
Liabilities | |
Payable for Fund shares redeemed | 45,330 |
Accrued management fee | 54,208 |
Accrued Trustees' fees | 1,749 |
Other accrued expenses and payables | 65,215 |
Total liabilities | 166,502 |
Net assets, at value | $128,512,497 |
Net Assets Consist of | |
Distributable earnings (loss) | 8,949,166 |
Paid-in capital | 119,563,331 |
Net assets, at value | $128,512,497 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($125,845,226 ÷ 8,724,705 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $14.42 |
Class B | |
Net Asset Value, offering and redemption price per share ($2,667,271 ÷ 183,901 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $14.50 |
Investment Income | |
Income: | |
Dividends | $1,388,022 |
Income distributions — DWS Central Cash Management Government Fund | 25,666 |
Total income | 1,413,688 |
Expenses: | |
Management fee | 367,592 |
Administration fee | 59,427 |
Services to shareholders | 597 |
Record keeping fee (Class B) | 872 |
Distribution service fee (Class B) | 3,211 |
Custodian fee | 2,203 |
Audit fee | 24,814 |
Legal fees | 8,721 |
Tax fees | 3,603 |
Reports to shareholders | 13,968 |
Trustees' fees and expenses | 3,531 |
Other | 3,067 |
Total expenses before expense reductions | 491,606 |
Expense reductions | (76,910 ) |
Total expenses after expense reductions | 414,696 |
Net investment income | 998,992 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | (3,277,226 ) |
Change in net unrealized appreciation (depreciation) on investments | 16,018,952 |
Net gain (loss) | 12,741,726 |
Net increase (decrease) in net assets resulting from operations | $13,740,718 |
8 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $998,992 | $2,130,475 |
Net realized gain (loss) | (3,277,226 ) | (1,438,266 ) |
Change in net unrealized appreciation (depreciation) | 16,018,952 | (23,764,440 ) |
Net increase (decrease) in net assets resulting from operations | 13,740,718 | (23,072,231 ) |
Distributions to shareholders: | ||
Class A | (2,083,297 ) | (4,211,106 ) |
Class B | (36,527 ) | (84,944 ) |
Total distributions | (2,119,824 ) | (4,296,050 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 983,240 | 2,424,947 |
Reinvestment of distributions | 2,083,297 | 4,211,106 |
Payments for shares redeemed | (5,068,536 ) | (12,164,638 ) |
Net increase (decrease) in net assets from Class A share transactions | (2,001,999 ) | (5,528,585 ) |
Class B | ||
Proceeds from shares sold | 48,427 | 160,562 |
Reinvestment of distributions | 36,527 | 84,944 |
Payments for shares redeemed | (123,351 ) | (429,240 ) |
Net increase (decrease) in net assets from Class B share transactions | (38,397 ) | (183,734 ) |
Increase (decrease) in net assets | 9,580,498 | (33,080,600 ) |
Net assets at beginning of period | 118,931,999 | 152,012,599 |
Net assets at end of period | $128,512,497 | $118,931,999 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 8,866,757 | 9,269,906 |
Shares sold | 70,958 | 175,252 |
Shares issued to shareholders in reinvestment of distributions | 154,777 | 301,655 |
Shares redeemed | (367,787 ) | (880,056 ) |
Net increase (decrease) in Class A shares | (142,052 ) | (403,149 ) |
Shares outstanding at end of period | 8,724,705 | 8,866,757 |
Class B | ||
Shares outstanding at beginning of period | 186,623 | 201,242 |
Shares sold | 3,553 | 10,442 |
Shares issued to shareholders in reinvestment of distributions | 2,698 | 6,050 |
Shares redeemed | (8,973 ) | (31,111 ) |
Net increase (decrease) in Class B shares | (2,722 ) | (14,619 ) |
Shares outstanding at end of period | 183,901 | 186,623 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 9 |
Financial Highlights
DWS CROCI® U.S. VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.14 | $16.05 | $12.92 | $16.12 | $13.46 | $16.64 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .11 | .23 | .24 | .28 | .31 | .29 |
Net realized and unrealized gain (loss) | 1.41 | (2.68 ) | 3.17 | (2.47 ) | 3.92 | (1.89 ) |
Total from investment operations | 1.52 | (2.45 ) | 3.41 | (2.19 ) | 4.23 | (1.60 ) |
Less distributions from: | ||||||
Net investment income | (.24 ) | (.25 ) | (.28 ) | (.31 ) | (.30 ) | (.41 ) |
Net realized gains | — | (.21 ) | — | (.70 ) | (1.27 ) | (1.17 ) |
Total distributions | (.24 ) | (.46 ) | (.28 ) | (1.01 ) | (1.57 ) | (1.58 ) |
Net asset value, end of period | $14.42 | $13.14 | $16.05 | $12.92 | $16.12 | $13.46 |
Total Return (%)b | 11.70 * | (15.40 ) | 26.69 | (12.16 ) | 32.95 | (10.50 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 126 | 116 | 149 | 130 | 153 | 125 |
Ratio of expenses before expense reductions (%)c | .80 ** | .79 | .78 | .84 | .84 | .84 |
Ratio of expenses after expense reductions (%)c | .67 ** | .65 | .71 | .69 | .70 | .72 |
Ratio of net investment income (%) | 1.64 ** | 1.66 | 1.62 | 2.28 | 2.13 | 1.89 |
Portfolio turnover rate (%) | 30 * | 60 | 99 | 122 | 111 | 100 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
DWS CROCI® U.S. VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.19 | $16.11 | $12.97 | $16.17 | $13.50 | $16.67 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .09 | .19 | .19 | .24 | .27 | .24 |
Net realized and unrealized gain (loss) | 1.42 | (2.69 ) | 3.19 | (2.47 ) | 3.92 | (1.88 ) |
Total from investment operations | 1.51 | (2.50 ) | 3.38 | (2.23 ) | 4.19 | (1.64 ) |
Less distributions from: | ||||||
Net investment income | (.20 ) | (.21 ) | (.24 ) | (.27 ) | (.25 ) | (.36 ) |
Net realized gains | — | (.21 ) | — | (.70 ) | (1.27 ) | (1.17 ) |
Total distributions | (.20 ) | (.42 ) | (.24 ) | (.97 ) | (1.52 ) | (1.53 ) |
Net asset value, end of period | $14.50 | $13.19 | $16.11 | $12.97 | $16.17 | $13.50 |
Total Return (%)b | 11.52 * | (15.67 ) | 26.27 | (12.41 ) | 32.49 | (10.71 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 3 | 2 | 3 | 3 | 4 | 3 |
Ratio of expenses before expense reductions (%)c | 1.12 ** | 1.12 | 1.10 | 1.16 | 1.16 | 1.16 |
Ratio of expenses after expense reductions (%)c | .99 ** | .97 | 1.02 | 1.00 | 1.02 | 1.04 |
Ratio of net investment income (%) | 1.33 ** | 1.33 | 1.33 | 1.96 | 1.82 | 1.55 |
Portfolio turnover rate (%) | 30 * | 60 | 99 | 122 | 111 | 100 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 13 |
First $250 million of the Fund’s average daily net assets | .600% |
Next $750 million of such net assets | .575% |
Next $1.5 billion of such net assets | .550% |
Next $2.5 billion of such net assets | .525% |
Next $2.5 billion of such net assets | .500% |
Next $2.5 billion of such net assets | .475% |
Next $2.5 billion of such net assets | .450% |
Over $12.5 billion of such net assets | .425% |
14 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Class A | .65% |
Class B | .97% |
Class A | .71% | |
Class B | 1.02% |
Class A | $75,136 |
Class B | 1,774 |
$76,910 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $262 | $92 |
Class B | 154 | 54 |
$416 | $146 |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 17 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,117.00 | $1,115.20 |
Expenses Paid per $1,000* | $3.52 | $5.19 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,021.47 | $1,019.89 |
Expenses Paid per $1,000* | $3.36 | $4.96 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | .67% | .99% |
18 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 19 |
Advisory Agreement Board Considerations and Fee Evaluation
20 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS CROCI® U.S. VIP |
Contents
3 | |
5 | |
6 | |
7 | |
19 | |
20 | |
21 | |
22 | |
24 | |
32 | |
33 | |
34 | |
34 | |
35 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177imgd59c896f2.jpg)
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 3 |
Comparative Results | ||||||
DWS Global Income Builder VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $10,774 | $10,822 | $11,699 | $12,448 | $17,303 |
Average annual total return | 7.74% | 8.22% | 5.37% | 4.48% | 5.64% | |
MSCI All Country World Index | Growth of $10,000 | $11,393 | $11,653 | $13,672 | $14,763 | $23,147 |
Average annual total return | 13.93% | 16.53% | 10.99% | 8.10% | 8.75% | |
Blended Index 60/40 | Growth of $10,000 | $10,926 | $10,989 | $11,662 | $13,130 | $18,251 |
Average annual total return | 9.26% | 9.89% | 5.26% | 5.60% | 6.20% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $10,232 | $9,996 | $9,007 | $10,501 | $11,954 |
Average annual total return | 2.32% | –0.04% | –3.43% | 0.98% | 1.80% |
Comparative Results | ||||||
DWS Global Income Builder VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | Life of Class* | |
Class B | Growth of $10,000 | $10,761 | $10,788 | $11,585 | $12,280 | $12,280 |
Average annual total return | 7.61% | 7.88% | 5.03% | 4.19% | 4.06% | |
MSCI All Country World Index | Growth of $10,000 | $11,393 | $11,653 | $13,672 | $14,763 | $14,701 |
Average annual total return | 13.93% | 16.53% | 10.99% | 8.10% | 7.74% | |
Blended Index 60/40 | Growth of $10,000 | $10,926 | $10,989 | $11,662 | $13,130 | $13,121 |
Average annual total return | 9.26% | 9.89% | 5.26% | 5.60% | 10.38% | |
Bloomberg U.S. Universal Index | Growth of $10,000 | $10,232 | $9,996 | $9,007 | $10,501 | $10,543 |
Average annual total return | 2.32% | –0.04% | –3.43% | 0.98% | 1.03% | |
The growth of $10,000 is cumulative. |
* | Class B commenced operations on May 1, 2018. |
‡ | Total returns shown for periods less than one year are not annualized. |
4 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/23 | 12/31/22 |
Equity | 59% | 65% |
Common Stocks | 54% | 59% |
Exchange-Traded Funds | 3% | 3% |
Preferred Stocks | 2% | 3% |
Warrants | 0% | 0% |
Rights | 0% | — |
Fixed Income | 37% | 34% |
Corporate Bonds | 21% | 20% |
Asset-Backed | 6% | 5% |
Mortgage-Backed Securities Pass-Throughs | 5% | 0% |
Commercial Mortgage-Backed Securities | 2% | 2% |
Government & Agency Obligations | 2% | 5% |
Short-Term U.S. Treasury Obligation | 1% | 1% |
Collateralized Mortgage Obligations | 0% | 1% |
Cash Equivalents | 4% | 1% |
Cash Equivalents | 4% | 1% |
100% | 100% |
Sector Diversification (As a % of Equities, Preferred Securities, Rights, Warrants and Corporate Bonds) | 6/30/23 | 12/31/22 |
Financials | 23% | 22% |
Information Technology | 17% | 17% |
Communication Services | 11% | 8% |
Health Care | 9% | 10% |
Industrials | 9% | 8% |
Consumer Discretionary | 8% | 7% |
Consumer Staples | 6% | 8% |
Energy | 6% | 8% |
Utilities | 4% | 4% |
Materials | 4% | 4% |
Real Estate | 3% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
United States | 70% | 64% |
Canada | 4% | 3% |
Japan | 4% | 4% |
Cayman Islands | 3% | 3% |
Switzerland | 2% | 3% |
United Kingdom | 2% | 3% |
Taiwan | 2% | 1% |
France | 1% | 2% |
Netherlands | 1% | 2% |
Mexico | 0% | 2% |
Other | 11% | 13% |
100% | 100% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 5 |
Portfolio Management Team
6 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Common Stocks 55.9% | |||
Communication Services 6.4% | |||
Diversified Telecommunication Services 2.1% | |||
AT&T, Inc. | 6,701 | 106,881 | |
BCE, Inc. | 5,005 | 228,196 | |
HKT Trust & HKT Ltd. (Units) | 51,000 | 59,314 | |
Spark New Zealand Ltd. | 42,504 | 132,907 | |
Telefonica Deutschland Holding AG | 45,195 | 127,091 | |
Telefonica SA | 147,434 | 598,771 | |
Telenor ASA | 15,130 | 153,560 | |
Telkom Indonesia Persero Tbk PT (ADR) | 1,700 | 45,339 | |
Verizon Communications, Inc. | 19,399 | 721,449 | |
2,173,508 | |||
Entertainment 0.7% | |||
Capcom Co., Ltd. | 1,900 | 75,254 | |
NetEase, Inc. (ADR) | 2,545 | 246,076 | |
Netflix, Inc.* | 483 | 212,756 | |
Nintendo Co., Ltd. | 5,460 | 248,662 | |
782,748 | |||
Interactive Media & Services 2.5% | |||
Alphabet, Inc. "A"* | 6,544 | 783,317 | |
Alphabet, Inc. "C"* | 6,142 | 742,998 | |
Autohome, Inc. (ADR) | 1,023 | 29,830 | |
JOYY, Inc. (ADR) | 2,681 | 82,333 | |
Meta Platforms, Inc. "A"* | 2,602 | 746,722 | |
Tencent Holdings Ltd. (ADR) | 6,818 | 289,697 | |
2,674,897 | |||
Media 0.4% | |||
Interpublic Group of Companies, Inc. | 4,809 | 185,531 | |
Omnicom Group, Inc. | 1,728 | 164,419 | |
Trade Desk, Inc. "A"* | 897 | 69,267 | |
419,217 | |||
Wireless Telecommunication Services 0.7% | |||
KDDI Corp. | 3,700 | 114,296 | |
SoftBank Corp. | 54,801 | 585,816 | |
Tele2 AB "B" | 3,686 | 30,487 | |
730,599 | |||
Consumer Discretionary 5.0% | |||
Automobiles 1.0% | |||
Ferrari NV | 162 | 52,773 | |
Mercedes-Benz Group AG | 3,210 | 258,402 | |
Tesla, Inc.* | 2,828 | 740,285 | |
Volkswagen AG (Preference) | 278 | 37,326 | |
1,088,786 | |||
Broadline Retail 1.7% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,828 | 152,364 |
Shares | Value ($) | ||
Amazon.com, Inc.* | 8,222 | 1,071,820 | |
JD.com, Inc. (ADR) | 2,085 | 71,161 | |
PDD Holdings, Inc. (ADR)* | 470 | 32,496 | |
Prosus NV* | 539 | 39,520 | |
Wesfarmers Ltd. | 14,129 | 466,602 | |
1,833,963 | |||
Hotels, Restaurants & Leisure 0.7% | |||
Booking Holdings, Inc.* | 20 | 54,007 | |
Chipotle Mexican Grill, Inc.* | 16 | 34,224 | |
Darden Restaurants, Inc. | 1,602 | 267,662 | |
Evolution AB 144A | 555 | 70,306 | |
La Francaise des Jeux SAEM 144A | 1,893 | 74,385 | |
Marriott International, Inc. "A" | 200 | 36,738 | |
Restaurant Brands International, Inc. | 1,735 | 134,517 | |
Starbucks Corp. | 647 | 64,092 | |
735,931 | |||
Household Durables 0.2% | |||
Garmin Ltd. | 1,902 | 198,360 | |
Specialty Retail 0.8% | |||
Best Buy Co., Inc. | 3,598 | 294,856 | |
Home Depot, Inc. | 848 | 263,423 | |
Industria de Diseno Textil SA | 4,750 | 184,009 | |
TJX Companies, Inc. | 1,915 | 162,373 | |
904,661 | |||
Textiles, Apparel & Luxury Goods 0.6% | |||
Hermes International | 47 | 101,938 | |
LVMH Moet Hennessy Louis Vuitton SE | 356 | 335,451 | |
Moncler SpA | 825 | 57,038 | |
NIKE, Inc. "B" | 974 | 107,500 | |
601,927 | |||
Consumer Staples 4.5% | |||
Beverages 1.1% | |||
Ambev SA (ADR) | 101,241 | 321,946 | |
Coca-Cola Co. | 10,148 | 611,113 | |
Coca-Cola Femsa SAB de CV (ADR) | 362 | 30,158 | |
PepsiCo, Inc. | 955 | 176,885 | |
1,140,102 | |||
Consumer Staples Distribution & Retail 0.7% | |||
Costco Wholesale Corp. | 479 | 257,884 | |
Jeronimo Martins SGPS SA | 1,170 | 32,238 | |
Kesko Oyj "B" | 10,358 | 195,074 | |
Sysco Corp. | 1,566 | 116,197 | |
Target Corp. | 922 | 121,612 | |
723,005 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 7 |
Shares | Value ($) | ||
Food Products 0.3% | |||
Nestle SA (Registered) | 2,036 | 244,715 | |
Salmar ASA | 2,631 | 106,305 | |
351,020 | |||
Household Products 0.7% | |||
Clorox Co. | 370 | 58,845 | |
Procter & Gamble Co. | 4,790 | 726,835 | |
785,680 | |||
Personal Care Products 0.1% | |||
L'Oreal SA | 66 | 30,724 | |
Unilever PLC | 948 | 49,322 | |
80,046 | |||
Tobacco 1.6% | |||
Japan Tobacco, Inc. (a) | 56,000 | 1,227,442 | |
Philip Morris International, Inc. | 4,993 | 487,417 | |
1,714,859 | |||
Energy 2.6% | |||
Oil, Gas & Consumable Fuels | |||
Canadian Natural Resources Ltd. | 10,299 | 579,030 | |
Chevron Corp. | 623 | 98,029 | |
Coterra Energy, Inc. | 1,400 | 35,420 | |
Devon Energy Corp. | 2,500 | 120,850 | |
Enbridge, Inc. | 13,288 | 493,905 | |
Exxon Mobil Corp. | 1,963 | 210,532 | |
ONEOK, Inc. | 10,072 | 621,644 | |
Pioneer Natural Resources Co. | 1,900 | 393,642 | |
Williams Companies, Inc. | 5,265 | 171,797 | |
2,724,849 | |||
Financials 8.7% | |||
Banks 2.5% | |||
Banco Bradesco SA (ADR) | 44,900 | 155,354 | |
Banco Santander Chile (ADR) | 7,348 | 138,510 | |
Bank of Nova Scotia (a) | 5,380 | 269,173 | |
CaixaBank SA | 24,705 | 102,271 | |
Canadian Imperial Bank of Commerce | 1,953 | 83,383 | |
Commonwealth Bank of Australia | 2,315 | 155,264 | |
Erste Group Bank AG | 2,907 | 102,000 | |
Fifth Third Bancorp. | 10,502 | 275,257 | |
FinecoBank Banca Fineco SpA | 6,533 | 87,839 | |
First International Bank Of Israel Ltd. | 4,894 | 191,562 | |
Israel Discount Bank Ltd. "A" | 11,150 | 55,425 | |
JPMorgan Chase & Co. | 594 | 86,391 | |
KBC Group NV | 2,323 | 162,324 | |
Mizrahi Tefahot Bank Ltd. | 1,907 | 63,547 | |
Regions Financial Corp. | 6,441 | 114,779 | |
Royal Bank of Canada | 1,255 | 119,858 |
Shares | Value ($) | ||
Toronto-Dominion Bank | 4,337 | 268,814 | |
Truist Financial Corp. | 1,953 | 59,273 | |
U.S. Bancorp. | 930 | 30,727 | |
UniCredit SpA | 6,639 | 154,251 | |
2,676,002 | |||
Capital Markets 3.0% | |||
3i Group PLC | 1,929 | 47,778 | |
abrdn PLC | 62,940 | 174,458 | |
Amundi SA 144A | 2,212 | 130,569 | |
Ares Management Corp. "A" | 2,428 | 233,938 | |
BlackRock, Inc. | 323 | 223,238 | |
Blackstone, Inc. | 4,652 | 432,496 | |
Carlyle Group, Inc. | 2,623 | 83,805 | |
Hargreaves Lansdown PLC | 8,948 | 92,848 | |
Hong Kong Exchanges & Clearing Ltd. | 2,900 | 109,863 | |
Julius Baer Group Ltd. | 492 | 30,963 | |
Partners Group Holding AG | 325 | 306,136 | |
S&P Global, Inc. | 700 | 280,623 | |
SBI Holdings, Inc. | 13,700 | 263,830 | |
Singapore Exchange Ltd. | 6,700 | 47,720 | |
St. James's Place PLC | 18,631 | 257,218 | |
T. Rowe Price Group, Inc. | 3,942 | 441,583 | |
3,157,066 | |||
Consumer Finance 0.1% | |||
American Express Co. | 200 | 34,840 | |
Discover Financial Services | 300 | 35,055 | |
69,895 | |||
Financial Services 0.7% | |||
Mastercard, Inc. "A" | 743 | 292,222 | |
PayPal Holdings, Inc.* | 507 | 33,832 | |
Visa, Inc. "A" | 1,628 | 386,617 | |
712,671 | |||
Insurance 2.4% | |||
Allianz SE (Registered) | 673 | 156,740 | |
Assicurazioni Generali SpA | 10,065 | 204,641 | |
Erie Indemnity Co. "A" | 300 | 63,003 | |
Fidelity National Financial, Inc. | 12,428 | 447,408 | |
Gjensidige Forsikring ASA | 7,361 | 117,874 | |
Manulife Financial Corp. | 40,674 | 768,807 | |
Medibank Pvt Ltd. | 55,982 | 131,671 | |
Poste Italiane SpA 144A | 11,223 | 121,538 | |
Principal Financial Group, Inc. | 1,900 | 144,096 | |
Zurich Insurance Group AG | 900 | 427,862 | |
2,583,640 | |||
Health Care 6.2% | |||
Biotechnology 1.0% | |||
AbbVie, Inc. | 3,113 | 419,414 | |
Amgen, Inc. | 1,141 | 253,325 | |
Gilead Sciences, Inc. | 3,529 | 271,980 |
8 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Moderna, Inc.* | 383 | 46,535 | |
Regeneron Pharmaceuticals, Inc.* | 100 | 71,854 | |
1,063,108 | |||
Health Care Equipment & Supplies 0.7% | |||
Abbott Laboratories | 1,971 | 214,878 | |
Align Technology, Inc.* | 100 | 35,364 | |
Coloplast AS "B" | 309 | 38,624 | |
DexCom, Inc.* | 466 | 59,886 | |
Edwards Lifesciences Corp.* | 766 | 72,257 | |
Fisher & Paykel Healthcare Corp. Ltd. "C" | 3,293 | 49,475 | |
Hoya Corp. | 600 | 71,611 | |
Intuitive Surgical, Inc.* | 470 | 160,712 | |
702,807 | |||
Health Care Providers & Services 0.6% | |||
Cigna Group | 179 | 50,227 | |
Elevance Health, Inc. | 87 | 38,653 | |
UnitedHealth Group, Inc. | 1,143 | 549,372 | |
638,252 | |||
Life Sciences Tools & Services 0.0% | |||
West Pharmaceutical Services, Inc. | 100 | 38,247 | |
Pharmaceuticals 3.9% | |||
Chugai Pharmaceutical Co., Ltd. | 2,417 | 68,717 | |
Eli Lilly & Co. | 946 | 443,655 | |
GSK PLC | 9,669 | 171,200 | |
Hikma Pharmaceuticals PLC | 6,330 | 152,083 | |
Johnson & Johnson | 4,787 | 792,344 | |
Merck & Co., Inc. | 5,060 | 583,874 | |
Novartis AG (Registered) | 5,257 | 529,628 | |
Novo Nordisk AS "B" | 2,058 | 331,644 | |
Orion Oyj "B" | 839 | 34,808 | |
Pfizer, Inc. | 12,363 | 453,475 | |
Recordati Industria Chimica e Farmaceutica SpA | 1,900 | 90,728 | |
Roche Holding AG | 1,207 | 373,423 | |
Sanofi | 1,206 | 129,521 | |
4,155,100 | |||
Industrials 6.2% | |||
Aerospace & Defense 0.5% | |||
BAE Systems PLC | 13,697 | 161,471 | |
General Dynamics Corp. | 687 | 147,808 | |
Lockheed Martin Corp. | 383 | 176,325 | |
Northrop Grumman Corp. | 91 | 41,478 | |
527,082 | |||
Air Freight & Logistics 0.7% | |||
Deutsche Post AG (Registered) | 7,395 | 361,400 | |
United Parcel Service, Inc. "B" | 2,400 | 430,200 | |
791,600 |
Shares | Value ($) | ||
Commercial Services & Supplies 0.0% | |||
Quad Graphics, Inc.* | 2 | 8 | |
Electrical Equipment 0.3% | |||
Emerson Electric Co. | 2,453 | 221,727 | |
Rockwell Automation, Inc. | 287 | 94,552 | |
316,279 | |||
Ground Transportation 0.4% | |||
Aurizon Holdings Ltd. | 23,836 | 62,478 | |
Canadian National Railway Co. | 957 | 115,887 | |
Old Dominion Freight Line, Inc. | 191 | 70,622 | |
Union Pacific Corp. | 1,001 | 204,825 | |
453,812 | |||
Industrial Conglomerates 1.1% | |||
3M Co. | 8,029 | 803,623 | |
Honeywell International, Inc. | 965 | 200,237 | |
Siemens AG (Registered) | 659 | 109,652 | |
1,113,512 | |||
Machinery 1.5% | |||
Atlas Copco AB "A" | 21,408 | 308,870 | |
Atlas Copco AB "B" | 7,534 | 93,869 | |
Caterpillar, Inc. | 657 | 161,655 | |
Cummins, Inc. | 937 | 229,715 | |
Deere & Co. | 91 | 36,872 | |
Kone Oyj "B" | 4,822 | 251,593 | |
Metso Outotec Oyj | 3,785 | 45,663 | |
Snap-on, Inc. | 287 | 82,711 | |
Techtronic Industries Co., Ltd. | 7,000 | 76,614 | |
VAT Group AG 144A | 97 | 40,136 | |
Volvo AB "A" | 3,840 | 81,855 | |
Volvo AB "B" | 7,627 | 158,127 | |
1,567,680 | |||
Marine Transportation 0.3% | |||
Kuehne & Nagel International AG (Registered) | 599 | 177,253 | |
Maiden Holdings Ltd. | 4,500 | 108,163 | |
285,416 | |||
Professional Services 0.8% | |||
Automatic Data Processing, Inc. | 905 | 198,910 | |
Paychex, Inc. | 3,537 | 395,684 | |
Paycom Software, Inc. | 91 | 29,233 | |
Thomson Reuters Corp. | 1,862 | 251,446 | |
875,273 | |||
Trading Companies & Distributors 0.6% | |||
Fastenal Co. | 5,382 | 317,484 | |
ITOCHU Corp. | 2,300 | 91,312 | |
Marubeni Corp. | 10,600 | 180,510 | |
Mitsui & Co., Ltd. | 900 | 34,001 | |
United Rentals, Inc. | 100 | 44,537 | |
667,844 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 9 |
Shares | Value ($) | ||
Information Technology 12.3% | |||
Communications Equipment 0.8% | |||
Cisco Systems, Inc. | 14,959 | 773,978 | |
Telefonaktiebolaget LM Ericsson "B" | 5,939 | 32,229 | |
806,207 | |||
Electronic Equipment, Instruments & Components 0.1% | |||
Venture Corp., Ltd. | 11,100 | 121,174 | |
IT Services 0.8% | |||
Accenture PLC "A" | 874 | 269,699 | |
EPAM Systems, Inc.* | 91 | 20,452 | |
International Business Machines Corp. | 2,874 | 384,570 | |
MongoDB, Inc.* | 187 | 76,855 | |
Otsuka Corp. | 800 | 31,172 | |
Shopify, Inc. "A"* | 1,638 | 105,866 | |
888,614 | |||
Semiconductors & Semiconductor Equipment 4.5% | |||
Advanced Micro Devices, Inc.* | 1,162 | 132,364 | |
Applied Materials, Inc. | 500 | 72,270 | |
ASE Technology Holding Co., Ltd. (ADR) (a) | 94,002 | 732,276 | |
ASML Holding NV | 229 | 166,496 | |
Broadcom, Inc. | 717 | 621,947 | |
Enphase Energy, Inc.* | 144 | 24,117 | |
Intel Corp. | 3,409 | 113,997 | |
Lam Research Corp. | 149 | 95,786 | |
Monolithic Power Systems, Inc. | 191 | 103,184 | |
NVIDIA Corp. | 2,548 | 1,077,855 | |
QUALCOMM, Inc. | 504 | 59,996 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 5,010 | 505,609 | |
Texas Instruments, Inc. | 2,876 | 517,738 | |
Tokyo Electron Ltd. | 678 | 97,091 | |
United Microelectronics Corp. (ADR) (a) | 54,389 | 429,129 | |
4,749,855 | |||
Software 3.5% | |||
Adobe, Inc.* | 574 | 280,680 | |
Cadence Design Systems, Inc.* | 483 | 113,273 | |
Intuit, Inc. | 986 | 451,776 | |
Microsoft Corp. | 7,817 | 2,662,001 | |
ServiceNow, Inc.* | 143 | 80,362 | |
Synopsys, Inc.* | 200 | 87,082 | |
3,675,174 | |||
Technology Hardware, Storage & Peripherals 2.6% | |||
Apple, Inc. | 14,481 | 2,808,879 |
Shares | Value ($) | ||
Materials 1.7% | |||
Chemicals 1.1% | |||
Air Products & Chemicals, Inc. | 467 | 139,881 | |
BASF SE | 1,015 | 49,276 | |
Dow, Inc. | 7,194 | 383,152 | |
EMS-Chemie Holding AG (Registered) | 84 | 63,701 | |
LyondellBasell Industries NV "A" | 3,370 | 309,467 | |
Shin-Etsu Chemical Co., Ltd. | 7,600 | 251,564 | |
1,197,041 | |||
Containers & Packaging 0.1% | |||
Amcor PLC | 5,577 | 55,658 | |
Metals & Mining 0.5% | |||
Anglo American PLC | 4,501 | 127,862 | |
Antofagasta PLC | 1,699 | 31,555 | |
Mineral Resources Ltd. | 3,054 | 146,385 | |
Nucor Corp. | 374 | 61,329 | |
Pilbara Minerals Ltd. | 9,871 | 32,620 | |
Sibanye Stillwater Ltd. (ADR) (a) | 25,400 | 158,496 | |
558,247 | |||
Real Estate 1.3% | |||
Real Estate Management & Development 0.1% | |||
Daito Trust Construction Co., Ltd. | 700 | 70,977 | |
Retail REITs 0.5% | |||
Simon Property Group, Inc. | 4,755 | 549,107 | |
Specialized REITs 0.7% | |||
Extra Space Storage, Inc. | 383 | 57,009 | |
Gaming and Leisure Properties, Inc. | 3,752 | 181,822 | |
Iron Mountain, Inc. | 3,151 | 179,040 | |
Public Storage | 1,200 | 350,256 | |
768,127 | |||
Utilities 1.0% | |||
Electric Utilities 0.8% | |||
CK Infrastructure Holdings Ltd. | 9,000 | 47,738 | |
Enel SpA | 17,159 | 115,573 | |
NRG Energy, Inc. | 2,400 | 89,736 | |
Power Assets Holdings Ltd. | 40,000 | 209,879 | |
SSE PLC | 14,649 | 343,131 | |
Verbund AG | 1,200 | 96,328 | |
902,385 | |||
Gas Utilities 0.0% | |||
UGI Corp. | 1,400 | 37,758 | |
Multi-Utilities 0.2% | |||
E.ON SE | 14,112 | 180,233 | |
Total Common Stocks (Cost $47,932,208) | 59,428,888 |
10 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Shares | Value ($) | ||
Preferred Stocks 2.5% | |||
Financials 1.7% | |||
AGNC Investment Corp., Series C, 10.371% | 14,427 | 368,321 | |
Fifth Third Bancorp., Series I, 6.625% | 10,000 | 250,300 | |
KeyCorp., Series E, 6.125% | 10,000 | 200,100 | |
Morgan Stanley, Series K, 5.85% | 10,000 | 235,100 | |
The Goldman Sachs Group, Inc., Series J, 8.977% | 17,000 | 433,670 | |
Wells Fargo & Co., Series Y, 5.625% | 15,000 | 346,800 | |
1,834,291 | |||
Real Estate 0.8% | |||
Kimco Realty Corp., Series L, 5.125% | 15,000 | 352,500 | |
Prologis, Inc., Series Q, 8.54% | 164 | 9,455 | |
Simon Property Group, Inc., Series J, 8.375% | 8,000 | 460,560 | |
822,515 | |||
Total Preferred Stocks (Cost $3,038,156) | 2,656,806 | ||
Rights 0.0% | |||
Health Care | |||
Contra Abiomed, Inc.,* (b) (Cost $204) | 200 | 204 | |
Warrants 0.0% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (b) (Cost $30,283) | 170 | 5,331 |
Principal Amount ($) (c) | Value ($) | ||
Corporate Bonds 21.8% | |||
Communication Services 2.1% | |||
AT&T, Inc.: | |||
2.25%, 2/1/2032 | 80,000 | 63,544 | |
3.65%, 6/1/2051 | 100,000 | 73,412 | |
CCO Holdings LLC, 144A, 5.125%, 5/1/2027 | 275,000 | 256,092 | |
Charter Communications Operating LLC: | |||
2.25%, 1/15/2029 | 120,000 | 99,922 | |
3.5%, 3/1/2042 | 57,000 | 38,127 | |
3.7%, 4/1/2051 | 34,000 | 21,484 | |
Comcast Corp., 5.5%, 5/15/2064 | 75,000 | 76,056 | |
Discovery Communications LLC, 4.0%, 9/15/2055 | 40,000 | 26,586 |
Principal Amount ($) (c) | Value ($) | ||
Grupo Televisa SAB, 5.25%, 5/24/2049 | 300,000 | 269,418 | |
Netflix, Inc., 5.875%, 11/15/2028 | 140,000 | 144,592 | |
Paramount Global, 4.2%, 5/19/2032 | 200,000 | 167,612 | |
Rogers Communications, Inc., 144A, 3.8%, 3/15/2032 | 145,000 | 126,748 | |
Sprint Capital Corp., 8.75%, GTY: Sprint Communications Inc, 3/15/2032 | 200,000 | 241,721 | |
Tencent Holdings Ltd., REG S, 2.39%, 6/3/2030 | 300,000 | 249,219 | |
T-Mobile U.S.A., Inc.: | |||
3.3%, 2/15/2051 | 125,000 | 87,686 | |
3.6%, 11/15/2060 | 25,000 | 17,546 | |
4.375%, 4/15/2040 | 60,000 | 52,986 | |
T-Mobile USA, Inc., 4.8%, 7/15/2028 | 80,000 | 78,347 | |
Verizon Communications, Inc.: | |||
2.65%, 11/20/2040 | 40,000 | 27,824 | |
3.7%, 3/22/2061 | 100,000 | 72,722 | |
2,191,644 | |||
Consumer Discretionary 1.3% | |||
Dollar General Corp., 5.45%, 7/5/2033 | 170,000 | 168,737 | |
Ford Motor Co., 3.25%, 2/12/2032 | 105,000 | 82,602 | |
Ford Motor Credit Co. LLC: | |||
2.7%, 8/10/2026 | 230,000 | 205,338 | |
2.9%, 2/16/2028 | 200,000 | 171,279 | |
General Motors Co., 5.6%, 10/15/2032 | 275,000 | 266,055 | |
General Motors Financial Co., Inc.: | |||
2.35%, 1/8/2031 | 80,000 | 62,668 | |
3.1%, 1/12/2032 | 90,000 | 72,792 | |
5.4%, 4/6/2026 | 70,000 | 69,199 | |
6.4%, 1/9/2033 | 140,000 | 142,302 | |
Lowe's Companies, Inc., 5.625%, 4/15/2053 | 50,000 | 49,970 | |
Warnermedia Holdings, Inc.: | |||
5.05%, 3/15/2042 | 50,000 | 42,143 | |
5.141%, 3/15/2052 | 100,000 | 81,425 | |
1,414,510 | |||
Consumer Staples 0.7% | |||
Anheuser-Busch Companies LLC, 4.9%, 2/1/2046 | 166,000 | 158,661 | |
JBS U.S.A. Lux SA, 144A, 2.5%, 1/15/2027 | 260,000 | 227,786 | |
Kraft Heinz Foods Co., 4.375%, 6/1/2046 | 100,000 | 84,986 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 11 |
Principal Amount ($) (c) | Value ($) | ||
Philip Morris International, Inc.: | |||
5.125%, 2/15/2030 | 150,000 | 148,311 | |
5.625%, 11/17/2029 | 60,000 | 61,136 | |
5.75%, 11/17/2032 | 50,000 | 51,204 | |
732,084 | |||
Energy 2.3% | |||
BP Capital Markets PLC, 4.375%, Perpetual (d) | 200,000 | 191,850 | |
Cheniere Corpus Christi Holdings LLC, 5.875%, 3/31/2025 | 200,000 | 199,040 | |
Cheniere Energy Partners LP: | |||
4.0%, 3/1/2031 | 250,000 | 220,123 | |
4.5%, 10/1/2029 | 175,000 | 160,607 | |
Ecopetrol SA, 6.875%, 4/29/2030 | 300,000 | 273,679 | |
Enbridge, Inc., 5.7%, 3/8/2033 | 70,000 | 70,961 | |
Energy Transfer LP, 5.0%, 5/15/2050 | 208,000 | 175,669 | |
Enterprise Products Operating LLC: | |||
3.3%, 2/15/2053 | 90,000 | 64,220 | |
4.2%, 1/31/2050 | 144,000 | 120,351 | |
Occidental Petroleum Corp., 8.875%, 7/15/2030 | 300,000 | 344,814 | |
ONEOK, Inc., 6.1%, 11/15/2032 | 40,000 | 40,694 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 50,000 | 44,364 | |
Targa Resources Corp., 6.5%, 2/15/2053 | 80,000 | 81,698 | |
Targa Resources Partners LP, 6.5%, 7/15/2027 | 300,000 | 297,827 | |
Williams Companies, Inc.: | |||
4.65%, 8/15/2032 | 120,000 | 113,642 | |
5.65%, 3/15/2033 | 90,000 | 91,193 | |
2,490,732 | |||
Financials 7.7% | |||
AerCap Ireland Capital DAC: | |||
1.75%, 1/30/2026 | 150,000 | 134,641 | |
3.4%, 10/29/2033 | 150,000 | 120,480 | |
Air Lease Corp., Series C, 4.125%, Perpetual (d) | 200,000 | 129,904 | |
Aircastle Ltd., Series A, 144A, 5.25%, Perpetual (d) | 130,000 | 90,727 | |
Ally Financial, Inc., Series B, 4.7%, Perpetual (d) | 500,000 | 352,500 | |
Ares Capital Corp., 2.875%, 6/15/2027 | 150,000 | 129,966 | |
Banco Nacional de Panama, 144A, 2.5%, 8/11/2030 | 200,000 | 156,939 | |
Bank of America Corp.: | |||
2.972%, 2/4/2033 | 200,000 | 166,725 |
Principal Amount ($) (c) | Value ($) | ||
Series RR, 4.375%, Perpetual (d) | 530,000 | 451,958 | |
Bank of New York Mellon Corp.: | |||
Series H, 3.7%, Perpetual (d) | 180,000 | 158,895 | |
Series I, 3.75%, Perpetual (d) | 345,000 | 283,331 | |
Blackstone Secured Lending Fund: | |||
2.85%, 9/30/2028 | 110,000 | 90,142 | |
3.625%, 1/15/2026 | 155,000 | 142,549 | |
Capital One Financial Corp., Series M, 3.95%, Perpetual (d) | 350,000 | 259,875 | |
Charles Schwab Corp.: | |||
5.643%, 5/19/2029 | 160,000 | 159,808 | |
5.853%, 5/19/2034 | 225,000 | 228,349 | |
Citigroup, Inc.: | |||
2.561%, 5/1/2032 | 40,000 | 32,661 | |
3.057%, 1/25/2033 | 70,000 | 58,441 | |
6.27%, 11/17/2033 | 130,000 | 137,984 | |
Enstar Finance LLC, 5.5%, 1/15/2042 | 200,000 | 149,200 | |
Five Corners Funding Trust III, 144A, 5.791%, 2/15/2033 | 100,000 | 101,351 | |
HSBC Holdings PLC, 7.39%, 11/3/2028 | 200,000 | 211,077 | |
KKR Group Finance Co., XII LLC, 144A, 4.85%, 5/17/2032 | 130,000 | 122,543 | |
Macquarie Group Ltd., 144A, 5.887%, 6/15/2034 | 170,000 | 167,020 | |
Mizuho Financial Group, Inc., 5.748%, 7/6/2034 (e) | 200,000 | 200,595 | |
Morgan Stanley: | |||
2.484%, 9/16/2036 | 141,000 | 106,982 | |
5.25%, 4/21/2034 | 130,000 | 128,368 | |
Nasdaq, Inc.: | |||
5.55%, 2/15/2034 | 30,000 | 30,118 | |
5.95%, 8/15/2053 | 60,000 | 61,433 | |
Natwest Group PLC, 6.016%, 3/2/2034 | 200,000 | 201,067 | |
PNC Financial Services Group, Inc.: | |||
Series T, 3.4%, Perpetual (d) | 320,000 | 236,000 | |
5.068%, 1/24/2034 | 70,000 | 67,127 | |
5.582%, 6/12/2029 | 80,000 | 79,624 | |
Series W, 6.25%, Perpetual (d) | 430,000 | 386,033 | |
Santander Holdings USA, Inc., 6.565%, 6/12/2029 | 115,000 | 112,768 | |
Societe Generale SA: | |||
144A, 5.375%, Perpetual (d) | 250,000 | 185,495 | |
144A, 6.221%, 6/15/2033 | 225,000 | 209,458 |
12 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
State Street Corp., 4.164%, 8/4/2033 | 130,000 | 120,356 | |
Synchrony Bank, 5.625%, 8/23/2027 | 250,000 | 234,567 | |
The Charles Schwab Corp., Series I, 4.0%, Perpetual (d) | 265,000 | 215,379 | |
The Goldman Sachs Group, Inc.: | |||
3.102%, 2/24/2033 | 150,000 | 126,713 | |
Series T, 3.8%, Perpetual (d) | 170,000 | 136,043 | |
Truist Financial Corp.: | |||
Series N, 4.8%, Perpetual (d) | 300,000 | 255,750 | |
5.122%, 1/26/2034 | 90,000 | 85,286 | |
5.867%, 6/8/2034 | 80,000 | 80,033 | |
U.S. Bancorp.: | |||
4.839%, 2/1/2034 | 120,000 | 112,083 | |
5.775%, 6/12/2029 | 250,000 | 249,925 | |
5.836%, 6/12/2034 | 110,000 | 110,796 | |
5.85%, 10/21/2033 | 60,000 | 60,080 | |
UBS Group AG, 144A, 4.375%, Perpetual (d) | 200,000 | 140,888 | |
Westpac Banking Corp., 5.0%, Perpetual (d) | 200,000 | 172,780 | |
8,142,813 | |||
Health Care 1.3% | |||
Amgen, Inc.: | |||
5.25%, 3/2/2033 | 80,000 | 80,102 | |
5.65%, 3/2/2053 | 80,000 | 81,017 | |
Centene Corp., 2.625%, 8/1/2031 | 130,000 | 103,594 | |
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 300,000 | 264,010 | |
CVS Health Corp., 5.05%, 3/25/2048 | 175,000 | 161,305 | |
Elevance Health, Inc., 6.1%, 10/15/2052 | 30,000 | 32,864 | |
Eli Lilly & Co., 4.875%, 2/27/2053 | 80,000 | 82,169 | |
HCA, Inc., 5.2%, 6/1/2028 | 90,000 | 89,268 | |
Humana, Inc., 5.875%, 3/1/2033 | 40,000 | 41,568 | |
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/1/2026 | 463,000 | 414,869 | |
1,350,766 | |||
Industrials 1.0% | |||
American Airlines, Inc., 144A, 5.5%, 4/20/2026 | 105,000 | 104,022 | |
Block, Inc., 2.75%, 6/1/2026 | 30,000 | 27,315 | |
Boeing Co., 5.805%, 5/1/2050 | 115,000 | 114,580 | |
Delta Air Lines, Inc., 3.75%, 10/28/2029 | 135,000 | 121,406 |
Principal Amount ($) (c) | Value ($) | ||
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 160,000 | 160,400 | |
Penske Truck Leasing Co. LP, 144A, 6.2%, 6/15/2030 | 80,000 | 80,418 | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | 200,000 | 198,350 | |
Raytheon Technologies Corp., 5.375%, 2/27/2053 | 60,000 | 62,304 | |
Republic Services, Inc., 5.0%, 4/1/2034 | 80,000 | 79,820 | |
United Rentals North America, Inc., 144A, 6.0%, 12/15/2029 | 110,000 | 109,729 | |
1,058,344 | |||
Information Technology 1.6% | |||
Broadcom, Inc.: | |||
144A, 2.6%, 2/15/2033 | 70,000 | 54,705 | |
144A, 4.15%, 4/15/2032 | 120,000 | 108,692 | |
Dell International LLC, 5.3%, 10/1/2029 | 85,000 | 84,380 | |
Hewlett Packard Enterprise Co., 5.9%, 10/1/2024 | 280,000 | 280,080 | |
HP, Inc., 5.5%, 1/15/2033 | 200,000 | 196,427 | |
Micron Technology, Inc., 6.75%, 11/1/2029 | 210,000 | 218,293 | |
MSCI, Inc., 144A, 3.625%, 9/1/2030 | 90,000 | 77,615 | |
NXP BV: | |||
2.65%, 2/15/2032 | 58,000 | 46,952 | |
3.125%, 2/15/2042 | 60,000 | 41,974 | |
Open Text Corp., 144A, 3.875%, 2/15/2028 | 175,000 | 154,112 | |
Oracle Corp.: | |||
3.6%, 4/1/2050 | 7,000 | 5,002 | |
3.65%, 3/25/2041 | 118,000 | 90,911 | |
5.55%, 2/6/2053 | 50,000 | 48,417 | |
6.9%, 11/9/2052 | 105,000 | 117,849 | |
SK Hynix, Inc., 144A, 1.5%, 1/19/2026 | 200,000 | 177,212 | |
1,702,621 | |||
Materials 1.5% | |||
AngloGold Ashanti Holdings PLC, 3.75%, 10/1/2030 | 200,000 | 171,673 | |
Berry Global, Inc., 1.65%, 1/15/2027 | 300,000 | 258,781 | |
Braskem Netherlands Finance BV, 144A, 7.25%, 2/13/2033 | 220,000 | 216,153 | |
Celanese U.S. Holdings LLC: | |||
5.9%, 7/5/2024 | 225,000 | 224,522 | |
6.165%, 7/15/2027 | 200,000 | 198,966 | |
Dow Chemical Co., 6.9%, 5/15/2053 | 50,000 | 56,463 | |
FMC Corp., 5.65%, 5/18/2033 | 150,000 | 146,699 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 13 |
Principal Amount ($) (c) | Value ($) | ||
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | 256,000 | 250,703 | |
Nutrien Ltd., 5.8%, 3/27/2053 | 40,000 | 40,135 | |
1,564,095 | |||
Real Estate 0.1% | |||
Boston Properties LP: | |||
(REIT), 2.55%, 4/1/2032 | 75,000 | 56,519 | |
(REIT), 6.75%, 12/1/2027 | 90,000 | 91,017 | |
147,536 | |||
Utilities 2.2% | |||
CMS Energy Corp., 3.75%, 12/1/2050 | 400,000 | 308,720 | |
Duke Energy Corp., 3.25%, 1/15/2082 | 250,000 | 185,632 | |
Eskom Holdings SOC Ltd., REG S, 6.35%, 8/10/2028 | 200,000 | 186,016 | |
NextEra Energy Operating Partners LP: | |||
144A, 3.875%, 10/15/2026 | 190,000 | 176,572 | |
144A, 4.25%, 7/15/2024 | 195,000 | 190,717 | |
NRG Energy, Inc., 144A, 2.45%, 12/2/2027 | 250,000 | 210,677 | |
Pacific Gas and Electric Co.: | |||
2.5%, 2/1/2031 | 20,000 | 15,658 | |
3.25%, 6/1/2031 | 80,000 | 65,053 | |
3.3%, 8/1/2040 | 70,000 | 47,160 | |
5.45%, 6/15/2027 | 90,000 | 87,526 | |
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, 144A, 2.875%, 10/25/2025 | EUR | 260,000 | 272,741 |
Sempra Energy, 4.125%, 4/1/2052 | 310,000 | 250,544 | |
Southern Co.: | |||
Series 21-A, 3.75%, 9/15/2051 | 215,000 | 182,965 | |
5.2%, 6/15/2033 | 160,000 | 158,697 | |
2,338,678 | |||
Total Corporate Bonds (Cost $25,856,610) | 23,133,823 | ||
Asset-Backed 6.2% | |||
Automobile Receivables 0.3% | |||
Hertz Vehicle Financing III LLC, “C”, Series 2023-1A, 144A, 6.91%, 6/25/2027 | 230,000 | 226,411 | |
JPMorgan Chase Bank NA, “E”, Series 2021-1, 144A, 2.365%, 9/25/2028 | 125,267 | 121,902 | |
348,313 | |||
Miscellaneous 5.9% | |||
CF Hippolyta Issuer LLC, “B1”, Series 2021-1A, 144A, 1.98%, 3/15/2061 | 520,231 | 440,218 |
Principal Amount ($) (c) | Value ($) | ||
DB Master Finance LLC, “A23”, Series 2021-1A, 144A, 2.791%, 11/20/2051 | 1,108,125 | 877,614 | |
Dell Equipment Finance Trust, “A1”, Series 2023-1, 144A, 5.456%, 3/22/2024 | 1,339,679 | 1,338,854 | |
Domino's Pizza Master Issuer LLC, “A23”, Series 2017-1A, 144A, 4.118%, 7/25/2047 | 322,150 | 296,495 | |
Madison Park Funding XXVI Ltd., “AR”, Series 2017- 26A, 144A, 3-month USD- LIBOR + 1.2%, 6.499% (f), 7/29/2030 | 1,086,596 | 1,080,462 | |
Mosaic Solar Loan Trust, “B”, Series 2023-1A, 144A, 6.92%, 6/20/2053 | 331,017 | 319,565 | |
Octagon Investment Partners 20-R Ltd., “A1R”, Series 2019-4A, 144A, 3-month USD-LIBOR + 1.15%, 6.492% (f), 5/12/2031 | 750,000 | 742,758 | |
Venture 37 CLO Ltd., “A1R”, Series 2019-37A, 144A, 3-month USD-LIBOR + 1.15%, 6.41% (f), 7/15/2032 | 800,000 | 783,993 | |
Wendy's Funding LLC, “A2II”, Series 2021-1A, 144A, 2.775%, 6/15/2051 | 413,560 | 330,393 | |
6,210,352 | |||
Total Asset-Backed (Cost $7,011,215) | 6,558,665 | ||
Mortgage-Backed Securities Pass- Throughs 5.0% | |||
Federal Home Loan Mortgage Corp., 6.0%, 3/1/2038 | 904 | 952 | |
Federal National Mortgage Association: | |||
2.0%, 7/1/2053 (e) | 1,300,000 | 1,059,265 | |
2.5%, 7/1/2053 (e) | 900,000 | 762,667 | |
4.5%, 9/1/2035 | 2,704 | 2,662 | |
5.0%, 7/1/2053 (e) | 2,000,000 | 1,959,036 | |
5.5%, 7/1/2053 (e) | 1,500,000 | 1,492,630 | |
6.0%, 1/1/2024 | 285 | 283 | |
Total Mortgage-Backed Securities Pass-Throughs (Cost $5,290,146) | 5,277,495 | ||
Commercial Mortgage-Backed Securities 1.9% | |||
Citigroup Commercial Mortgage Trust, “D”, Series 2019-PRM, 144A, 4.35%, 5/10/2036 | 500,000 | 494,911 |
14 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Principal Amount ($) (c) | Value ($) | ||
Credit Suisse Commercial Mortgage Trust, “B”, Series 2020-TMIC, 144A, 1-month USD-LIBOR + 5.5%, 10.693% (f), 12/15/2035 | 700,000 | 697,443 | |
Credit Suisse Mortgage Trust, “A”, Series 2020- TMIC, 144A, 1-month USD-LIBOR + 3.5%, 8.693% (f), 12/15/2035 | 700,000 | 698,494 | |
Freddie Mac Multifamily Structured Credit Risk, “M2”, Series 2021-MN1, 144A, 30-day average SOFR + 3.75%, 8.817% (f), 1/25/2051 | 194,000 | 174,732 | |
Total Commercial Mortgage-Backed Securities (Cost $2,110,968) | 2,065,580 | ||
Collateralized Mortgage Obligations 0.7% | |||
Connecticut Avenue Securities Trust: | |||
“1M2”, Series 2019-R03, 144A, 1-month USD- LIBOR + 2.15%, 7.3% (f), 9/25/2031 | 2,543 | 2,546 | |
“1M2”, Series 2019-R02, 144A, 1-month USD- LIBOR + 2.3%, 7.45% (f), 8/25/2031 | 2,101 | 2,100 | |
Federal National Mortgage Association, “I”, Series 2003-84, Interest Only, 6.0%, 9/25/2033 | 43,940 | 7,991 | |
Freddie Mac Structured Agency Credit Risk Debt Notes: | |||
“M2”, Series 2020-DNA2, 144A, 1-month USD- LIBOR + 1.85%, 7.0% (f), 2/25/2050 | 376,814 | 377,986 | |
“M2”, Series 2019-DNA2, 144A, 1-month USD- LIBOR + 2.45%, 7.6% (f), 3/25/2049 | 228,292 | 229,434 | |
JPMorgan Mortgage Trust, “AM”, Series 2016-3, 144A, 3.246% (f), 10/25/2046 | 122,043 | 109,266 | |
Total Collateralized Mortgage Obligations (Cost $734,040) | 729,323 |
Principal Amount ($) (c) | Value ($) | ||
Government & Agency Obligations 1.9% | |||
Sovereign Bonds 0.4% | |||
Brazilian Government International Bond, 3.875%, 6/12/2030 | 200,000 | 177,097 | |
Indonesia Government International Bond, 3.85%, 10/15/2030 | 300,000 | 279,350 | |
456,447 | |||
U.S. Treasury Obligations 1.5% | |||
U.S. Treasury Notes: | |||
2.75%, 5/31/2029 | 898,200 | 836,238 | |
3.5%, 2/15/2033 | 99,300 | 96,725 | |
4.125%, 11/15/2032 | 600,100 | 613,227 | |
1,546,190 | |||
Total Government & Agency Obligations (Cost $2,140,246) | 2,002,637 | ||
Short-Term U.S. Treasury Obligation 1.1% | |||
U.S. Treasury Bills, 4.747% (g), 10/5/2023 (h) (Cost $1,184,810) | 1,200,000 | 1,183,789 |
Shares | Value ($) | ||
Exchange-Traded Funds 2.9% | |||
SPDR Bloomberg Convertible Securities ETF (Cost $2,340,555) | 43,880 | 3,069,406 | |
Securities Lending Collateral 2.1% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (i) (j) (Cost $2,241,858) | 2,241,858 | 2,241,858 | |
Cash Equivalents 4.5% | |||
DWS Central Cash Management Government Fund, 5.13% (i) (Cost $4,782,626) | 4,782,626 | 4,782,626 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $104,693,925) | 106.5 | 113,136,431 | |
Other Assets and Liabilities, Net | (6.5 ) | (6,883,530 ) | |
Net Assets | 100.0 | 106,252,901 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 15 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Securities Lending Collateral 2.1% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (i) (j) | ||||||||
82,000 | 2,159,858 (k) | — | — | — | 8,324 | — | 2,241,858 | 2,241,858 |
Cash Equivalents 4.5% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (i) | ||||||||
1,133,981 | 23,945,953 | 20,297,308 | — | — | 90,423 | — | 4,782,626 | 4,782,626 |
1,215,981 | 26,105,811 | 20,297,308 | — | — | 98,747 | — | 7,024,484 | 7,024,484 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $2,095,775, which is 2.0% of net assets. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Principal amount stated in U.S. dollars unless otherwise noted. |
(d) | Perpetual, callable security with no stated maturity date. |
(e) | When-issued or delayed delivery securities included. |
(f) | Variable or floating rate security. These securities are shown at their current rate as of June 30, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(g) | Annualized yield at time of purchase; not a coupon rate. |
(h) | At June 30, 2023, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
(i) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(j) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(k) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2023. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
ADR: American Depositary Receipt |
CLO: Collateralized Loan Obligation |
Interest Only: Interest Only (IO) bonds represent the "interest only" portion of payments on a pool of underlying mortgages or mortgage-backed securities. IO securities are subject to prepayment risk of the pool of underlying mortgages. |
MSCI: Morgan Stanley Capital International |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
S&P: Standard & Poor's |
SOC: State Owned Company |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
16 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
MSCI Emerging Market Index | USD | 9/15/2023 | 73 | 3,718,366 | 3,642,335 | (76,031) |
TOPIX Index | JPY | 9/7/2023 | 14 | 2,138,899 | 2,219,897 | 80,998 |
Ultra Long U.S. Treasury Bond | USD | 9/20/2023 | 28 | 3,758,125 | 3,814,125 | 56,000 |
Total net unrealized appreciation | 60,967 |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
5 Year U.S. Treasury Note | USD | 9/29/2023 | 5 | 543,230 | 535,469 | 7,761 |
Euro Stoxx 50 Index | EUR | 9/15/2023 | 22 | 1,043,848 | 1,062,764 | (18,916) |
Euro-Schatz | EUR | 9/7/2023 | 21 | 2,418,781 | 2,402,659 | 16,122 |
S&P 500 E-Mini Index | USD | 9/15/2023 | 25 | 5,485,750 | 5,610,313 | (124,563) |
Ultra 10 Year U.S. Treasury Note | USD | 9/20/2023 | 4 | 476,114 | 473,750 | 2,364 |
Total net unrealized depreciation | (117,232) |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
USD | 3,725,467 | EUR | 3,465,804 | 9/7/2023 | 68,383 | Bank of America |
EUR | Euro |
JPY | Japanese Yen |
USD | United States Dollar |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 17 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Communication Services | $4,654,811 | $2,126,158 | $— | $6,780,969 |
Consumer Discretionary | 3,685,878 | 1,677,750 | — | 5,363,628 |
Consumer Staples | 2,908,892 | 1,885,820 | — | 4,794,712 |
Energy | 2,724,849 | — | — | 2,724,849 |
Financials | 5,503,082 | 3,696,192 | — | 9,199,274 |
Health Care | 4,556,052 | 2,041,462 | — | 6,597,514 |
Industrials | 4,255,539 | 2,342,967 | — | 6,598,506 |
Information Technology | 12,601,741 | 448,162 | — | 13,049,903 |
Materials | 1,107,983 | 702,963 | — | 1,810,946 |
Real Estate | 1,317,234 | 70,977 | — | 1,388,211 |
Utilities | 127,494 | 992,882 | — | 1,120,376 |
Preferred Stocks (a) | 2,656,806 | — | — | 2,656,806 |
Rights | — | — | 204 | 204 |
Warrants | — | — | 5,331 | 5,331 |
Corporate Bonds (a) | — | 23,133,823 | — | 23,133,823 |
Asset-Backed (a) | — | 6,558,665 | — | 6,558,665 |
Mortgage-Backed Securities Pass-Throughs | — | 5,277,495 | — | 5,277,495 |
Commercial Mortgage-Backed Securities | — | 2,065,580 | — | 2,065,580 |
Collateralized Mortgage Obligations | — | 729,323 | — | 729,323 |
Government & Agency Obligations (a) | — | 2,002,637 | — | 2,002,637 |
Short-Term U.S. Treasury Obligation | — | 1,183,789 | — | 1,183,789 |
Exchange-Traded Funds | 3,069,406 | — | — | 3,069,406 |
Short-Term Investments (a) | 7,024,484 | — | — | 7,024,484 |
Derivatives (b) | ||||
Futures Contracts | 163,245 | — | — | 163,245 |
Forward Foreign Currency Contracts | — | 68,383 | — | 68,383 |
Total | $56,357,496 | $57,005,028 | $5,535 | $113,368,059 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $(219,510 ) | $— | $— | $(219,510 ) |
Total | $(219,510 ) | $— | $— | $(219,510 ) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
18 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $97,669,441) — including $2,095,775 of securities loaned | $106,111,947 |
Investment in DWS Government & Agency Securities Portfolio (cost $2,241,858)* | 2,241,858 |
Investment in DWS Central Cash Management Government Fund (cost $4,782,626) | 4,782,626 |
Cash | 10,000 |
Foreign currency, at value (cost $113,711) | 114,287 |
Receivable for investments sold | 136,284 |
Receivable for Fund shares sold | 20,819 |
Dividends receivable | 175,755 |
Interest receivable | 375,891 |
Unrealized appreciation on forward foreign currency contracts | 68,383 |
Foreign taxes recoverable | 117,231 |
Other assets | 708 |
Total assets | 114,155,789 |
Liabilities | |
Payable upon return of securities loaned | 2,241,858 |
Payable for investments purchased — when-issued/delayed delivery securities | 5,494,114 |
Payable for Fund shares redeemed | 20,256 |
Payable for variation margin on futures contracts | 16,372 |
Accrued management fee | 32,068 |
Accrued Trustees' fees | 1,156 |
Other accrued expenses and payables | 97,064 |
Total liabilities | 7,902,888 |
Net assets, at value | $106,252,901 |
Net Assets Consist of | |
Distributable earnings (loss) | 6,784,244 |
Paid-in capital | 99,468,657 |
Net assets, at value | $106,252,901 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($106,240,622 ÷ 5,036,799 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $21.09 |
Class B | |
Net Asset Value, offering and redemption price per share ($12,279 ÷ 583 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized)** | $21.08 |
* | Represents collateral on securities loaned. |
** | Net asset value and redemption price per share may not recalculate due to rounding of net assets and/or shares outstanding. |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 19 |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $109,054) | $1,261,245 |
Interest | 872,954 |
Income distributions — DWS Central Cash Management Government Fund | 90,423 |
Securities lending income, net of borrower rebates | 8,324 |
Total income | 2,232,946 |
Expenses: | |
Management fee | 192,487 |
Administration fee | 50,463 |
Services to shareholders | 489 |
Distribution service fee (Class B) | 14 |
Custodian fee | 12,154 |
Audit fee | 35,336 |
Legal fees | 10,917 |
Tax fees | 4,846 |
Reports to shareholders | 22,477 |
Trustees' fees and expenses | 3,259 |
Other | 9,854 |
Total expenses before expense reductions | 342,296 |
Expense reductions | (10 ) |
Total expenses after expense reductions | 342,286 |
Net investment income | 1,890,660 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | 412,353 |
Swap contracts | 266,038 |
Futures | (40,149 ) |
Forward foreign currency contracts | 16,427 |
Foreign currency | (3,135 ) |
651,534 | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 5,958,104 |
Swap contracts | (243,549 ) |
Futures | (295,132 ) |
Forward foreign currency contracts | 13,299 |
Foreign currency | (132,377 ) |
5,300,345 | |
Net gain (loss) | 5,951,879 |
Net increase (decrease) in net assets resulting from operations | $7,842,539 |
20 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $1,890,660 | $3,146,492 |
Net realized gain (loss) | 651,534 | (3,479,034 ) |
Change in net unrealized appreciation (depreciation) | 5,300,345 | (18,974,528 ) |
Net increase (decrease) in net assets resulting from operations | 7,842,539 | (19,307,070 ) |
Distributions to shareholders: | ||
Class A | (3,321,406 ) | (12,945,935 ) |
Class B | (342 ) | (1,320 ) |
Total distributions | (3,321,748 ) | (12,947,255 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,218,849 | 4,686,710 |
Reinvestment of distributions | 3,321,406 | 12,945,935 |
Payments for shares redeemed | (6,477,469 ) | (14,102,685 ) |
Net increase (decrease) in net assets from Class A share transactions | (937,214 ) | 3,529,960 |
Class B | ||
Reinvestment of distributions | 342 | 1,320 |
Net increase (decrease) in net assets from Class B share transactions | 342 | 1,320 |
Increase (decrease) in net assets | 3,583,919 | (28,723,045 ) |
Net assets at beginning of period | 102,668,982 | 131,392,027 |
Net assets at end of period | $106,252,901 | $102,668,982 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,077,917 | 4,905,426 |
Shares sold | 106,943 | 215,723 |
Shares issued to shareholders in reinvestment of distributions | 162,814 | 602,697 |
Shares redeemed | (310,875 ) | (645,929 ) |
Net increase (decrease) in Class A shares | (41,118 ) | 172,491 |
Shares outstanding at end of period | 5,036,799 | 5,077,917 |
Class B | ||
Shares outstanding at beginning of period | 566 | 504 |
Shares issued to shareholders in reinvestment of distributions | 17 | 62 |
Net increase (decrease) in Class B shares | 17 | 62 |
Shares outstanding at end of period | 583 | 566 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 21 |
Financial Highlights
DWS Global Income Builder VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $20.22 | $26.78 | $25.07 | $24.63 | $21.33 | $26.56 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .37 | .61 | .62 | .57 | .69 | .80 |
Net realized and unrealized gain (loss) | 1.17 | (4.47 ) | 2.08 | 1.16 | 3.54 | (2.67 ) |
Total from investment operations | 1.54 | (3.86 ) | 2.70 | 1.73 | 4.23 | (1.87 ) |
Less distributions from: | ||||||
Net investment income | (.67 ) | (.69 ) | (.62 ) | (.74 ) | (.90 ) | (.98 ) |
Net realized gains | — | (2.01 ) | (.37 ) | (.55 ) | (.03 ) | (2.38 ) |
Total distributions | (.67 ) | (2.70 ) | (.99 ) | (1.29 ) | (.93 ) | (3.36 ) |
Net asset value, end of period | $21.09 | $20.22 | $26.78 | $25.07 | $24.63 | $21.33 |
Total Return (%) | 7.74 * | (14.98 ) | 10.95 | 8.28 | 20.16 | (7.66 )b |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 106 | 103 | 131 | 127 | 130 | 120 |
Ratio of expenses before expense reductions (%)c | .66 ** | .65 | .61 | .64 | .68 | .69 |
Ratio of expenses after expense reductions (%)c | .66 ** | .65 | .61 | .64 | .68 | .68 |
Ratio of net investment income (%) | 3.63 ** | 2.80 | 2.36 | 2.51 | 2.96 | 3.34 |
Portfolio turnover rate (%) | 68 * | 95 | 104 | 137 | 182 | 70 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
22 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
DWS Global Income Builder VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | Period Ended | ||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 12/31/18a | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $20.17 | $26.70 | $25.01 | $24.61 | $21.30 | $22.65 |
Income (loss) from investment operations: | ||||||
Net investment incomeb | .35 | .55 | .52 | .50 | .65 | .50 |
Net realized and unrealized gain (loss) | 1.16 | (4.46 ) | 2.08 | 1.15 | 3.55 | (1.85 ) |
Total from investment operations | 1.51 | (3.91 ) | 2.60 | 1.65 | 4.20 | (1.35 ) |
Less distributions from: | ||||||
Net investment income | (.60 ) | (.61 ) | (.54 ) | (.70 ) | (.86 ) | — |
Net realized gains | — | (2.01 ) | (.37 ) | (.55 ) | (.03 ) | — |
Total distributions | (.60 ) | (2.62 ) | (.91 ) | (1.25 ) | (.89 ) | — |
Net asset value, end of period | $21.08 | $20.17 | $26.70 | $25.01 | $24.61 | $21.30 |
Total Return (%)c | 7.61 * | (15.24 ) | 10.56 | 7.90 | 20.01 | (5.96 )* |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ thousands) | 12 | 11 | 13 | 12 | 11 | 9 |
Ratio of expenses before expense reductions (%)d | 1.12 ** | 1.12 | 1.05 | 1.10 | 1.10 | 1.15 ** |
Ratio of expenses after expense reductions (%)d | .96 ** | .96 | .96 | .93 | .86 | .86 ** |
Ratio of net investment income (%) | 3.37 ** | 2.49 | 1.99 | 2.20 | 2.77 | 3.30 ** |
Portfolio turnover rate (%) | 68 * | 95 | 104 | 137 | 182 | 70 e |
a | For the period from May 1, 2018 (commencement of operations) to December 31, 2018. |
b | Based on average shares outstanding during the period. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
e | Represents the Fund’s portfolio turnover rate for the year ended December 31, 2018. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 23 |
Notes to Financial Statements (Unaudited)
24 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 25 |
26 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 27 |
Assets Derivative | Forward Contracts | Futures Contracts | Total |
Equity Contracts (a) | $— | $80,998 | $80,998 |
Interest Rate Contracts (a) | — | 82,247 | 82,247 |
Foreign Exchange Contracts (b) | 68,383 | — | 68,383 |
$68,383 | $163,245 | $231,628 | |
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts: |
(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. |
(b) | Unrealized appreciation on forward foreign currency contracts |
Liability Derivative | Futures Contracts |
Equity Contracts (a) | $(219,510 ) |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Includes cumulative depreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
28 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Realized Gain (Loss) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $— | $— | $(34,873 ) | $(34,873 ) |
Interest Rate Contracts (a) | — | 266,038 | (5,276 ) | 260,762 |
Foreign Exchange Contracts (a) | 16,427 | — | — | 16,427 |
$16,427 | $266,038 | $(40,149 ) | $242,316 | |
Each of the above derivatives is located in the following Statement of Operations accounts: |
(a) | Net realized gain (loss) from forward foreign currency contracts, swap and futures contracts, respectively |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts | Swap Contracts | Futures Contracts | Total |
Equity Contracts (a) | $— | $— | $(431,085 ) | $(431,085 ) |
Interest Rate Contracts (a) | — | (243,549 ) | 135,953 | (107,596 ) |
Foreign Exchange Contracts (a) | 13,299 | — | — | 13,299 |
$13,299 | $(243,549 ) | $(295,132 ) | $(525,382 ) | |
Each of the above derivatives is located in the following Statement of Operations accounts: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts, swap and futures contracts, respectively |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
Bank of America | $68,383 | $— | $— | $68,383 |
Purchases | Sales | |
Non-U.S. Treasury Obligations | $66,026,732 | $64,036,728 |
U.S. Treasury Obligations | $2,979,230 | $5,953,514 |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 29 |
First $250 million of the Fund’s average daily net assets | .370% |
Next $750 million of such net assets | .345% |
Over $1 billion of such net assets | .310% |
Class A | .71% |
Class B | .96% |
Distribution Fee | Total Aggregated | Unpaid at June 30, 2023 |
Class B | $14 | $2 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $310 | $98 |
Class B | 13 | 4 |
$323 | $102 |
30 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 31 |
Other Information (Unaudited)
32 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,077.40 | $1,076.10 |
Expenses Paid per $1,000* | $3.40 | $4.94 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,021.52 | $1,020.03 |
Expenses Paid per $1,000* | $3.31 | $4.81 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | .66% | .96% |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 33 |
34 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 35 |
36 | | Deutsche DWS Variable Series II — DWS Global Income Builder VIP |
Deutsche DWS Variable Series II — DWS Global Income Builder VIP | | 37 |
Contents
3 | |
3 | |
4 | |
6 | |
6 | |
7 | |
8 | |
9 | |
12 | |
13 | |
14 | |
15 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio) | 6/30/23 | 12/31/22 |
Repurchase Agreements | 63% | 68% |
Government & Agency Obligations | 37% | 32% |
100% | 100% |
Weighted Average Maturity | 6/30/23 | 12/31/22 |
Deutsche DWS Variable Series II —DWS Government Money Market VIP | 21 days | 8 days |
iMoneyNet Money Fund AverageTM— Gov’t & Agency Retail* | 22 days | 15 days |
* | The Fund is compared to its respective iMoneyNet Money Fund Average category: Gov’t & Agency Retail — Category includes the most broadly based of the government retail funds. These funds may invest in U.S. Treasury securities, securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 3 |
Investment Portfolioas of June 30, 2023 (Unaudited)
Principal Amount ($) | Value ($) | ||
Government & Agency Obligations 37.4% | |||
U.S. Government Sponsored Agencies 16.9% | |||
Federal Home Loan Banks: | |||
4.779% (a), 8/4/2023 | 1,000,000 | 995,548 | |
5.009% (a), 7/25/2023 | 1,700,000 | 1,694,401 | |
5.039% (a), 11/17/2023 | 6,000,000 | 5,884,862 | |
SOFR + 0.02%, 5.08% (b), 9/18/2023 | 7,500,000 | 7,500,000 | |
SOFR + 0.03%, 5.09% (b), 11/10/2023 | 7,000,000 | 7,000,000 | |
SOFR + 0.07%, 5.13% (b), 11/27/2023 | 2,500,000 | 2,500,000 | |
SOFR + 0.09%, 5.15% (b), 12/1/2023 | 6,000,000 | 6,000,000 | |
31,574,811 | |||
U.S. Treasury Obligations 20.5% | |||
U.S. Treasury Bills: | |||
4.684% (a), 9/21/2023 | 6,000,000 | 5,936,860 | |
4.721% (a), 7/20/2023 | 1,000,000 | 997,543 | |
5.258% (a), 11/24/2023 | 3,000,000 | 2,936,904 | |
5.272% (a), 10/26/2023 | 9,000,000 | 8,847,841 | |
5.305% (a), 8/24/2023 | 3,000,000 | 2,976,454 | |
5.323% (a), 12/7/2023 | 220,000 | 214,899 | |
5.384% (a), 11/9/2023 | 3,000,000 | 2,942,032 | |
U.S. Treasury Floating Rate Notes: | |||
3-month U.S. Treasury Bill Money Market Yield minus 0.015%, 5.234% (b), 1/31/2024 | 3,000,000 | 3,001,189 | |
3-month U.S. Treasury Bill Money Market Yield + 0.029%, 5.278% (b), 7/31/2023 | 7,500,000 | 7,500,717 | |
3-month U.S. Treasury Bill Money Market Yield + 0.035%, 5.284% (b), 10/31/2023 | 3,000,000 | 3,001,342 | |
38,355,781 | |||
Total Government & Agency Obligations (Cost $69,930,592) | 69,930,592 |
Principal Amount ($) | Value ($) | ||
Repurchase Agreements 62.6% | |||
BNP Paribas, 5.05%, dated 6/30/2023, to be repurchased at $22,909,637 on 7/3/2023 (c) | 22,900,000 | 22,900,000 | |
Citigroup Global Markets, Inc., 5.05%, dated 6/30/2023, to be repurchased at $21,409,006 on 7/3/2023 (d) | 21,400,000 | 21,400,000 | |
JPMorgan Securities, Inc., 5.05%, dated 6/30/2023, to be repurchased at $27,291,480 on 7/3/2023 (e) | 27,280,000 | 27,280,000 | |
Royal Bank of Canada, 5.05%, dated 6/30/2023, to be repurchased at $22,209,343 on 7/3/2023 (f) | 22,200,000 | 22,200,000 | |
Wells Fargo Bank, 5.06%, dated 6/30/2023, to be repurchased at $23,399,863 on 7/3/2023 (g) | 23,390,000 | 23,390,000 | |
Total Repurchase Agreements (Cost $117,170,000) | 117,170,000 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $187,100,592) | 100.0 | 187,100,592 | |
Other Assets and Liabilities, Net | (0.0 ) | (22,425 ) | |
Net Assets | 100.0 | 187,078,167 |
(a) | Annualized yield at time of purchase; not a coupon rate. |
(b) | Floating rate security. These securities are shown at their current rate as of June 30, 2023. |
(c) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
23,849,300 | U.S. Treasury Bills | Zero Coupon | 7/5/2023–12/21/2023 | 23,358,030 |
4 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
(d) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
22,796,000 | U.S. Treasury Notes | 2.5–3.125 | 2/28/2026–8/31/2029 | 21,828,067 |
(e) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
27,892,000 | U.S. Treasury Bills | Zero Coupon | 7/20/2023 | 27,825,617 |
(f) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
24,042,500 | U.S. Treasury Notes | 2.625 | 5/31/2027 | 22,644,083 |
(g) | Collateralized by: |
Principal Amount ($) | Security | Rate (%) | Maturity Date | Collateral Value ($) |
24,168,192 | Federal National Mortgage Association | 1.5–7.0 | 9/1/2025–5/1/2058 | 23,857,800 |
SOFR: Secured Overnight Financing Rate |
Assets | Level 1 | Level 2 | Level 3 | Total |
Investments in Securities (a) | $— | $69,930,592 | $— | $69,930,592 |
Repurchase Agreements | — | 117,170,000 | — | 117,170,000 |
Total | $— | $187,100,592 | $— | $187,100,592 |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 5 |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in securities, valued at amortized cost | $69,930,592 |
Repurchase agreements, valued at amortized cost | 117,170,000 |
Cash | 43,449 |
Receivable for Fund shares sold | 225,674 |
Interest receivable | 242,025 |
Other assets | 1,952 |
Total assets | 187,613,692 |
Liabilities | |
Payable for Fund shares redeemed | 33,164 |
Distributions payable | 361,600 |
Accrued management fee | 36,098 |
Accrued Trustees' fees | 1,980 |
Other accrued expenses and payables | 102,683 |
Total liabilities | 535,525 |
Net assets, at value | $187,078,167 |
Net Assets Consist of | |
Distributable earnings (loss) | 7,353 |
Paid-in capital | 187,070,814 |
Net assets, at value | $187,078,167 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($187,078,167 ÷ 187,136,424 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $1.00 |
Investment Income | |
Income: | |
Interest | $4,414,962 |
Expenses: | |
Management fee | 218,583 |
Administration fee | 90,224 |
Services to shareholders | 1,467 |
Custodian fee | 3,136 |
Professional fees | 27,908 |
Reports to shareholders | 33,697 |
Trustees' fees and expenses | 4,647 |
Other | 5,445 |
Total expenses | 385,107 |
Net investment income | 4,029,855 |
Net realized gain (loss) from investments | 989 |
Net increase (decrease) in net assets resulting from operations | $4,030,844 |
6 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $4,029,855 | $2,385,589 |
Net realized gain (loss) | 989 | (119 ) |
Net increase (decrease) in net assets resulting from operations | 4,030,844 | 2,385,470 |
Distributions to shareholders: | ||
Class A | (4,029,855 ) | (2,385,590 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 55,534,285 | 174,719,180 |
Reinvestment of distributions | 3,982,397 | 2,068,026 |
Payments for shares redeemed | (58,986,274 ) | (186,972,657 ) |
Net increase (decrease) in net assets from Class A share transactions | 530,408 | (10,185,451 ) |
Increase (decrease) in net assets | 531,397 | (10,185,571 ) |
Net assets at beginning of period | 186,546,770 | 196,732,341 |
Net assets at end of period | $187,078,167 | $186,546,770 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 186,606,016 | 196,801,073 |
Shares sold | 55,534,285 | 174,709,574 |
Shares issued to shareholders in reinvestment of distributions | 3,982,397 | 2,068,026 |
Shares redeemed | (58,986,274 ) | (186,972,657 ) |
Net increase (decrease) in Class A shares | 530,408 | (10,195,057 ) |
Shares outstanding at end of period | 187,136,424 | 186,606,016 |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 7 |
Financial Highlights
DWS Government Money Market VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations: | ||||||
Net investment income | .021 | .013 | .000 * | .002 | .018 | .014 |
Net realized gain (loss) | .000 * | (.000 )* | (.000 )* | .000 * | .000 * | (.000 )* |
Total from investment operations | .021 | .013 | .000 * | .002 | .018 | .014 |
Less distributions from: | ||||||
Net investment income | (.021 ) | (.013 ) | (.000 )* | (.002 ) | (.018 ) | (.014 ) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total Return (%) | 2.17 ** | 1.29 a | .01 a | .24 a | 1.77 a | 1.39 a |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 187 | 187 | 197 | 153 | 122 | 107 |
Ratio of expenses before expense reductions (%)b | .41 *** | .40 | .42 | .42 | .47 | .50 |
Ratio of expenses after expense reductions (%)b | .41 *** | .32 | .06 | .23 | .47 | .50 |
Ratio of net investment income (%) | 4.33 *** | 1.25 | .01 | .20 | 1.74 | 1.37 |
a | Total return would have been lower had certain expenses not been reduced. |
b | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Amount is less than $.0005. |
** | Not annualized |
*** | Annualized |
8 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Notes to Financial Statements (Unaudited)
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 9 |
First $500 million of the Fund’s average daily net assets | .235% |
Next $500 million of such net assets | .220% |
Next $1.0 billion of such net assets | .205% |
Over $2.0 billion of such net assets | .190% |
10 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 11 |
Other Information (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 1/1/23 | $1,000.00 |
Ending Account Value 6/30/23 | $1,021.70 |
Expenses Paid per $1,000* | $2.06 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/23 | $1,000.00 |
Ending Account Value 6/30/23 | $1,022.76 |
Expenses Paid per $1,000* | $2.06 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | .41% |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 13 |
14 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS Government Money Market VIP |
Deutsche DWS Variable Series II — DWS Government Money Market VIP | | 17 |
Contents
3 | |
4 | |
4 | |
5 | |
13 | |
14 | |
15 | |
16 | |
18 | |
25 | |
26 | |
27 | |
27 | |
28 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177img974d1bf62.jpg)
Comparative Results | ||||||
DWS High Income VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $10,422 | $10,870 | $10,929 | $11,869 | $14,750 |
Average annual total return | 4.22% | 8.70% | 3.01% | 3.49% | 3.96% | |
ICE BofA US High Yield Index | Growth of $10,000 | $10,542 | $10,884 | $10,992 | $11,687 | $15,283 |
Average annual total return | 5.42% | 8.84% | 3.20% | 3.17% | 4.33% | |
DWS High Income VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $10,419 | $10,823 | $10,804 | $11,669 | $14,266 |
Average annual total return | 4.19% | 8.23% | 2.61% | 3.14% | 3.62% | |
ICE BofA US High Yield Index | Growth of $10,000 | $10,542 | $10,884 | $10,992 | $11,687 | $15,283 |
Average annual total return | 5.42% | 8.84% | 3.20% | 3.17% | 4.33% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/23 | 12/31/22 |
Corporate Bonds | 93% | 91% |
Exchange-Traded Funds | 4% | 2% |
Cash Equivalents | 2% | 4% |
Loan Participations and Assignments | 1% | 3% |
Warrants | 0% | 0% |
Common Stocks | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Exchange-Traded Funds, Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
Consumer Discretionary | 22% | 18% |
Communication Services | 17% | 19% |
Energy | 17% | 19% |
Industrials | 13% | 14% |
Materials | 10% | 9% |
Health Care | 9% | 8% |
Utilities | 4% | 4% |
Real Estate | 3% | 4% |
Information Technology | 2% | 1% |
Consumer Staples | 2% | 3% |
Financials | 1% | 1% |
100% | 100% |
Quality (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
BBB | 7% | 10% |
BB | 56% | 61% |
B | 30% | 25% |
CCC | 5% | 2% |
Not Rated | 2% | 2% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Principal Amount ($)(a) | Value ($) | ||
Corporate Bonds 92.1% | |||
Communication Services 15.2% | |||
Altice France Holding SA, 144A, 10.5%, 5/15/2027 | 200,000 | 121,106 | |
Altice France SA, 144A, 5.5%, 1/15/2028 | 200,000 | 151,021 | |
CCO Holdings LLC: | |||
144A, 4.5%, 8/15/2030 | 100,000 | 83,269 | |
4.5%, 5/1/2032 | 10,000 | 7,985 | |
144A, 4.75%, 3/1/2030 | 140,000 | 119,712 | |
144A, 5.0%, 2/1/2028 | 250,000 | 227,772 | |
144A, 5.125%, 5/1/2027 | 375,000 | 349,217 | |
144A, 5.375%, 6/1/2029 | 350,000 | 316,433 | |
Clear Channel Outdoor Holdings, Inc.: | |||
144A, 5.125%, 8/15/2027 | 320,000 | 290,526 | |
144A, 7.5%, 6/1/2029 | 55,000 | 40,699 | |
144A, 7.75%, 4/15/2028 | 155,000 | 121,675 | |
CommScope Technologies LLC: | |||
144A, 5.0%, 3/15/2027 | 65,000 | 45,244 | |
144A, 6.0%, 6/15/2025 | 75,000 | 69,905 | |
CSC Holdings LLC: | |||
144A, 4.125%, 12/1/2030 | 200,000 | 139,905 | |
144A, 5.0%, 11/15/2031 | 280,000 | 130,398 | |
144A, 6.5%, 2/1/2029 | 400,000 | 323,214 | |
DirecTV Financing LLC, 144A, 5.875%, 8/15/2027 | 45,000 | 40,754 | |
DISH DBS Corp.: | |||
144A, 5.25%, 12/1/2026 | 140,000 | 112,304 | |
144A, 5.75%, 12/1/2028 | 125,000 | 92,973 | |
5.875%, 11/15/2024 | 86,000 | 75,217 | |
7.75%, 7/1/2026 | 210,000 | 128,723 | |
DISH Network Corp., 144A, 11.75%, 11/15/2027 | 75,000 | 73,193 | |
Frontier Communications Holdings LLC: | |||
144A, 5.0%, 5/1/2028 | 150,000 | 129,422 | |
5.875%, 11/1/2029 | 75,000 | 54,750 | |
Gen Digital, Inc.: | |||
144A, 6.75%, 9/30/2027 | 100,000 | 99,718 | |
144A, 7.125%, 9/30/2030 | 70,000 | 70,117 | |
Iliad Holding SASU, 144A, 6.5%, 10/15/2026 | 200,000 | 188,765 | |
LCPR Senior Secured Financing DAC, 144A, 6.75%, 10/15/2027 | 189,000 | 177,141 | |
Level 3 Financing, Inc.: | |||
144A, 3.4%, 3/1/2027 | 150,000 | 127,275 | |
144A, 4.625%, 9/15/2027 | 100,000 | 69,580 | |
144A, 10.5%, 5/15/2030 | 78,000 | 79,141 | |
Lumen Technologies, Inc., 144A, 4.0%, 2/15/2027 | 60,000 | 44,713 |
Principal Amount ($)(a) | Value ($) | ||
Outfront Media Capital LLC: | |||
144A, 4.25%, 1/15/2029 | 70,000 | 58,825 | |
144A, 5.0%, 8/15/2027 | 140,000 | 127,078 | |
Sirius XM Radio, Inc.: | |||
144A, 3.125%, 9/1/2026 | 110,000 | 98,477 | |
144A, 4.0%, 7/15/2028 | 75,000 | 65,165 | |
Sprint LLC, 7.625%, 3/1/2026 | 245,000 | 254,500 | |
Telecom Italia Capital SA, 6.375%, 11/15/2033 | 305,000 | 258,735 | |
Telenet Finance Luxembourg Notes Sarl, 144A, 5.5%, 3/1/2028 | 200,000 | 183,400 | |
Uber Technologies, Inc., 144A, 6.25%, 1/15/2028 | 25,000 | 24,876 | |
ViaSat, Inc., 144A, 5.625%, 9/15/2025 | 136,000 | 131,783 | |
Virgin Media Finance PLC, 144A, 5.0%, 7/15/2030 | 200,000 | 159,219 | |
Virgin Media Secured Finance PLC, 144A, 5.5%, 5/15/2029 | 345,000 | 312,071 | |
Vodafone Group PLC, 7.0%, 4/4/2079 | 265,000 | 271,718 | |
Ziggo Bond Co. BV, 144A, 3.375%, 2/28/2030 | EUR | 270,000 | 216,230 |
Ziggo BV, 144A, 4.875%, 1/15/2030 | 290,000 | 240,679 | |
6,504,623 | |||
Consumer Discretionary 20.3% | |||
Affinity Interactive, 144A, 6.875%, 12/15/2027 | 160,000 | 140,800 | |
Avis Budget Car Rental LLC, 144A, 5.375%, 3/1/2029 | 100,000 | 92,756 | |
Bath & Body Works, Inc.: | |||
144A, 6.625%, 10/1/2030 | 70,000 | 67,577 | |
6.875%, 11/1/2035 | 100,000 | 91,499 | |
144A, 9.375%, 7/1/2025 | 35,000 | 37,153 | |
Beacon Roofing Supply, Inc., 144A, 4.125%, 5/15/2029 | 100,000 | 88,500 | |
Boyd Gaming Corp., 144A, 4.75%, 6/15/2031 | 100,000 | 89,335 | |
Caesars Entertainment, Inc.: | |||
144A, 4.625%, 10/15/2029 | 210,000 | 183,374 | |
144A, 6.25%, 7/1/2025 | 270,000 | 268,750 | |
144A, 8.125%, 7/1/2027 | 410,000 | 419,622 | |
Carnival Corp.: | |||
144A, 5.75%, 3/1/2027 | 330,000 | 303,795 | |
144A, 6.0%, 5/1/2029 | 195,000 | 174,103 | |
144A, 7.625%, 3/1/2026 | 95,000 | 93,043 | |
REG S, 10.125%, 2/1/2026 | EUR | 100,000 | 114,412 |
144A, 10.5%, 2/1/2026 | 80,000 | 84,097 | |
Cinemark USA, Inc., 144A, 5.875%, 3/15/2026 | 55,000 | 52,181 | |
Clarios Global LP: | |||
144A, 4.375%, 5/15/2026 | EUR | 100,000 | 103,838 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 5 |
Principal Amount ($)(a) | Value ($) | ||
REG S, 4.375%, 5/15/2026 | EUR | 200,000 | 207,676 |
Crocs, Inc., 144A, 4.125%, 8/15/2031 | 100,000 | 80,750 | |
Ford Motor Co., 6.1%, 8/19/2032 | 225,000 | 218,060 | |
Ford Motor Credit Co. LLC: | |||
3.375%, 11/13/2025 | 209,000 | 194,344 | |
3.625%, 6/17/2031 | 240,000 | 196,710 | |
4.95%, 5/28/2027 | 200,000 | 188,657 | |
5.113%, 5/3/2029 | 200,000 | 185,482 | |
5.125%, 6/16/2025 | 230,000 | 223,682 | |
7.2%, 6/10/2030 | 200,000 | 201,842 | |
Hanesbrands, Inc., 144A, 9.0%, 2/15/2031 | 70,000 | 70,551 | |
Jaguar Land Rover Automotive PLC: | |||
144A, 5.875%, 1/15/2028 | 200,000 | 184,588 | |
144A, 7.75%, 10/15/2025 | 200,000 | 200,800 | |
Macy's Retail Holdings LLC, 144A, 5.875%, 3/15/2030 | 76,000 | 67,724 | |
Marriott Ownership Resorts, Inc., 144A, 4.5%, 6/15/2029 | 125,000 | 107,883 | |
Melco Resorts Finance Ltd., 144A, 5.375%, 12/4/2029 | 200,000 | 165,266 | |
Meritage Homes Corp., 6.0%, 6/1/2025 | 90,000 | 89,859 | |
Midwest Gaming Borrower LLC, 144A, 4.875%, 5/1/2029 | 100,000 | 88,305 | |
NCL Corp. Ltd.: | |||
144A, 3.625%, 12/15/2024 | 100,000 | 96,228 | |
144A, 5.875%, 3/15/2026 | 130,000 | 121,623 | |
144A, 8.375%, 2/1/2028 | 110,000 | 114,944 | |
NCL Finance Ltd., 144A, 6.125%, 3/15/2028 | 60,000 | 54,001 | |
Newell Brands, Inc., 4.7%, 4/1/2026 | 160,000 | 150,296 | |
PetSmart, Inc., 144A, 7.75%, 2/15/2029 | 250,000 | 248,395 | |
Raptor Acquisition Corp., 144A, 4.875%, 11/1/2026 | 170,000 | 160,225 | |
Ritchie Bros Holdings, Inc.: | |||
144A, 6.75%, 3/15/2028 | 30,000 | 30,238 | |
144A, 7.75%, 3/15/2031 | 85,000 | 88,181 | |
Royal Caribbean Cruises Ltd.: | |||
3.7%, 3/15/2028 | 110,000 | 95,601 | |
144A, 4.25%, 7/1/2026 | 75,000 | 68,846 | |
144A, 5.375%, 7/15/2027 | 126,000 | 117,817 | |
144A, 7.25%, 1/15/2030 | 20,000 | 20,257 | |
144A, 9.25%, 1/15/2029 | 340,000 | 362,240 | |
144A, 11.5%, 6/1/2025 | 22,000 | 23,342 | |
144A, 11.625%, 8/15/2027 | 210,000 | 228,362 | |
Sands China Ltd., 4.875%, 6/18/2030 | 200,000 | 178,014 | |
Scientific Games International, Inc., 144A, 7.0%, 5/15/2028 | 110,000 | 109,413 | |
SRS Distribution, Inc.: | |||
144A, 4.625%, 7/1/2028 | 50,000 | 44,639 |
Principal Amount ($)(a) | Value ($) | ||
144A, 6.0%, 12/1/2029 | 100,000 | 86,305 | |
Staples, Inc., 144A, 7.5%, 4/15/2026 | 240,000 | 198,219 | |
Travel & Leisure Co., 144A, 6.625%, 7/31/2026 | 120,000 | 119,088 | |
Viking Cruises Ltd.: | |||
144A, 5.875%, 9/15/2027 | 105,000 | 96,508 | |
144A, 7.0%, 2/15/2029 | 90,000 | 83,700 | |
Viking Ocean Cruises Ship VII Ltd., 144A, 5.625%, 2/15/2029 | 15,000 | 13,725 | |
Windsor Holdings III LLC, 144A, 8.5%, 6/15/2030 (b) | 60,000 | 59,719 | |
Wynn Macau Ltd., 144A, 5.125%, 12/15/2029 | 200,000 | 168,012 | |
Wynn Resorts Finance LLC: | |||
144A, 5.125%, 10/1/2029 | 105,000 | 94,100 | |
144A, 7.125%, 2/15/2031 | 85,000 | 84,485 | |
Yum Brands, Inc., 5.375%, 4/1/2032 | 100,000 | 95,046 | |
ZF North America Capital, Inc., 144A, 7.125%, 4/14/2030 | 150,000 | 152,558 | |
8,641,141 | |||
Consumer Staples 1.6% | |||
Albertsons Companies, Inc.: | |||
144A, 3.25%, 3/15/2026 | 75,000 | 69,268 | |
144A, 3.5%, 3/15/2029 | 100,000 | 86,564 | |
Coty, Inc., REG S, 3.875%, 4/15/2026 | EUR | 100,000 | 105,574 |
Pilgrim's Pride Corp.: | |||
4.25%, 4/15/2031 | 245,000 | 210,100 | |
144A, 5.875%, 9/30/2027 | 230,000 | 227,240 | |
698,746 | |||
Energy 15.6% | |||
Antero Midstream Partners LP: | |||
144A, 5.375%, 6/15/2029 | 70,000 | 65,043 | |
144A, 5.75%, 3/1/2027 | 130,000 | 125,377 | |
144A, 5.75%, 1/15/2028 | 90,000 | 85,796 | |
144A, 7.875%, 5/15/2026 | 156,000 | 158,212 | |
Apache Corp., 5.1%, 9/1/2040 | 57,000 | 46,313 | |
Archrock Partners LP, 144A, 6.875%, 4/1/2027 | 110,000 | 105,600 | |
Ascent Resources Utica Holdings LLC: | |||
144A, 5.875%, 6/30/2029 | 130,000 | 115,978 | |
144A, 8.25%, 12/31/2028 | 150,000 | 147,511 | |
Buckeye Partners LP, 144A, 4.5%, 3/1/2028 | 80,000 | 71,678 | |
Chesapeake Energy Corp.: | |||
144A, 5.875%, 2/1/2029 | 75,000 | 71,240 | |
144A, 6.75%, 4/15/2029 | 170,000 | 168,680 | |
Chord Energy Corp., 144A, 6.375%, 6/1/2026 | 40,000 | 39,655 | |
Civitas Resources, Inc.: | |||
144A, 8.375%, 7/1/2028 | 20,000 | 20,226 | |
144A, 8.75%, 7/1/2031 | 40,000 | 40,552 |
6 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
CNX Resources Corp.: | |||
144A, 6.0%, 1/15/2029 | 135,000 | 125,132 | |
144A, 7.25%, 3/14/2027 | 10,000 | 9,896 | |
144A, 7.375%, 1/15/2031 | 70,000 | 68,106 | |
Comstock Resources, Inc., 144A, 5.875%, 1/15/2030 | 30,000 | 26,045 | |
DCP Midstream Operating LP, 5.375%, 7/15/2025 | 527,000 | 521,730 | |
DT Midstream, Inc.: | |||
144A, 4.125%, 6/15/2029 | 155,000 | 136,024 | |
144A, 4.375%, 6/15/2031 | 30,000 | 25,838 | |
Endeavor Energy Resources LP, 144A, 5.75%, 1/30/2028 | 145,000 | 141,836 | |
EnLink Midstream LLC, 144A, 6.5%, 9/1/2030 | 75,000 | 74,909 | |
EQM Midstream Partners LP: | |||
4.125%, 12/1/2026 | 100,000 | 93,003 | |
144A, 4.5%, 1/15/2029 | 25,000 | 22,297 | |
144A, 6.5%, 7/1/2027 | 80,000 | 78,902 | |
Genesis Energy LP: | |||
6.5%, 10/1/2025 | 90,000 | 88,631 | |
7.75%, 2/1/2028 | 75,000 | 71,335 | |
8.875%, 4/15/2030 | 170,000 | 166,089 | |
Harvest Midstream I LP, 144A, 7.5%, 9/1/2028 | 155,000 | 153,673 | |
Hess Midstream Operations LP: | |||
144A, 4.25%, 2/15/2030 | 110,000 | 95,975 | |
144A, 5.125%, 6/15/2028 | 75,000 | 70,192 | |
Hilcorp Energy I LP: | |||
144A, 5.75%, 2/1/2029 | 155,000 | 140,351 | |
144A, 6.0%, 2/1/2031 | 110,000 | 98,051 | |
144A, 6.25%, 11/1/2028 | 125,000 | 117,663 | |
Howard Midstream Energy Partners LLC: | |||
144A, 6.75%, 1/15/2027 | 40,000 | 38,100 | |
144A, 8.875%, 7/15/2028 (b) | 85,000 | 85,425 | |
Kinetik Holdings LP, 144A, 5.875%, 6/15/2030 | 85,000 | 80,792 | |
Murphy Oil U.S.A., Inc., 4.75%, 9/15/2029 | 55,000 | 50,494 | |
Nabors Industries, Inc.: | |||
5.75%, 2/1/2025 | 105,000 | 101,611 | |
144A, 7.375%, 5/15/2027 | 150,000 | 142,729 | |
Northern Oil & Gas, Inc., 144A, 8.75%, 6/15/2031 | 40,000 | 39,300 | |
NuStar Logistics LP, 5.75%, 10/1/2025 | 80,000 | 77,996 | |
Parkland Corp., 144A, 5.875%, 7/15/2027 | 80,000 | 77,185 | |
Pdc Energy, Inc., 5.75%, 5/15/2026 | 105,000 | 104,580 | |
Permian Resources Operating LLC, 144A, 5.875%, 7/1/2029 | 225,000 | 211,952 | |
Precision Drilling Corp., 144A, 6.875%, 1/15/2029 | 30,000 | 27,106 |
Principal Amount ($)(a) | Value ($) | ||
Range Resources Corp., 8.25%, 1/15/2029 | 280,000 | 291,536 | |
Rockcliff Energy II LLC, 144A, 5.5%, 10/15/2029 | 30,000 | 27,674 | |
SM Energy Co., 6.5%, 7/15/2028 | 80,000 | 76,800 | |
Southwestern Energy Co.: | |||
4.75%, 2/1/2032 | 150,000 | 132,200 | |
5.375%, 2/1/2029 | 155,000 | 145,958 | |
8.375%, 9/15/2028 | 50,000 | 52,052 | |
TransAlta Corp., 7.75%, 11/15/2029 | 85,000 | 87,507 | |
Transocean Poseidon Ltd., 144A, 6.875%, 2/1/2027 | 166,563 | 164,272 | |
Transocean Titan Financing Ltd., 144A, 8.375%, 2/1/2028 | 90,000 | 91,912 | |
Transocean, Inc.: | |||
144A, 7.5%, 1/15/2026 | 160,000 | 152,000 | |
144A, 8.75%, 2/15/2030 | 110,000 | 111,650 | |
USA Compression Partners LP, 6.875%, 4/1/2026 | 142,000 | 139,102 | |
Venture Global Calcasieu Pass LLC: | |||
144A, 4.125%, 8/15/2031 | 30,000 | 25,799 | |
144A, 6.25%, 1/15/2030 | 50,000 | 49,597 | |
Venture Global LNG, Inc.: | |||
144A, 8.125%, 6/1/2028 | 90,000 | 91,407 | |
144A, 8.375%, 6/1/2031 | 110,000 | 110,898 | |
Weatherford International Ltd., 144A, 8.625%, 4/30/2030 | 272,000 | 276,146 | |
6,651,319 | |||
Financials 1.1% | |||
HUB International Ltd., 144A, 7.25%, 6/15/2030 | 20,000 | 20,652 | |
Macquarie Airfinance Holdings Ltd., 144A, 8.375%, 5/1/2028 | 50,000 | 50,697 | |
Navient Corp., 6.125%, 3/25/2024 | 393,000 | 389,925 | |
461,274 | |||
Health Care 7.8% | |||
1375209 BC Ltd., 144A, 9.0%, 1/30/2028 | 125,000 | 125,313 | |
Acadia Healthcare Co., Inc., 144A, 5.0%, 4/15/2029 | 250,000 | 230,525 | |
Avantor Funding, Inc., REG S, 3.875%, 7/15/2028 | EUR | 100,000 | 99,779 |
Bausch Health Companies, Inc.: | |||
144A, 5.5%, 11/1/2025 | 51,000 | 45,063 | |
144A, 6.125%, 2/1/2027 | 250,000 | 160,050 | |
Catalent Pharma Solutions, Inc.: | |||
REG S, 2.375%, 3/1/2028 | EUR | 100,000 | 87,717 |
144A, 5.0%, 7/15/2027 | 125,000 | 114,674 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 7 |
Principal Amount ($)(a) | Value ($) | ||
Charles River Laboratories International, Inc., 144A, 3.75%, 3/15/2029 | 65,000 | 57,202 | |
Community Health Systems, Inc.: | |||
144A, 4.75%, 2/15/2031 | 115,000 | 86,915 | |
144A, 5.25%, 5/15/2030 | 90,000 | 70,895 | |
144A, 5.625%, 3/15/2027 | 135,000 | 118,967 | |
144A, 6.0%, 1/15/2029 | 35,000 | 29,444 | |
144A, 6.125%, 4/1/2030 | 50,000 | 29,786 | |
Encompass Health Corp.: | |||
4.5%, 2/1/2028 | 45,000 | 41,866 | |
4.75%, 2/1/2030 | 137,000 | 124,739 | |
Fortrea Holdings, Inc., 144A, 7.5%, 7/1/2030 | 65,000 | 66,558 | |
Legacy LifePoint Health LLC, 144A, 4.375%, 2/15/2027 | 75,000 | 58,032 | |
LifePoint Health, Inc., 144A, 5.375%, 1/15/2029 | 115,000 | 67,925 | |
Medline Borrower LP, 144A, 5.25%, 10/1/2029 | 120,000 | 104,124 | |
Molina Healthcare, Inc., 144A, 3.875%, 11/15/2030 | 100,000 | 85,916 | |
Owens & Minor, Inc.: | |||
144A, 4.5%, 3/31/2029 | 55,000 | 45,671 | |
144A, 6.625%, 4/1/2030 | 50,000 | 45,363 | |
Select Medical Corp., 144A, 6.25%, 8/15/2026 | 125,000 | 122,853 | |
Tenet Healthcare Corp.: | |||
4.875%, 1/1/2026 | 250,000 | 243,497 | |
5.125%, 11/1/2027 | 150,000 | 143,202 | |
6.125%, 10/1/2028 | 185,000 | 178,100 | |
6.125%, 6/15/2030 | 215,000 | 211,926 | |
144A, 6.75%, 5/15/2031 | 65,000 | 65,158 | |
Teva Pharmaceutical Finance Netherlands II BV, 4.375%, 5/9/2030 | EUR | 100,000 | 92,924 |
Teva Pharmaceutical Finance Netherlands III BV: | |||
5.125%, 5/9/2029 | 200,000 | 181,420 | |
8.125%, 9/15/2031 | 200,000 | 209,616 | |
3,345,220 | |||
Industrials 12.4% | |||
ADT Security Corp., 144A, 4.875%, 7/15/2032 | 50,000 | 42,750 | |
Advanced Drainage Systems, Inc., 144A, 6.375%, 6/15/2030 | 90,000 | 89,034 | |
Allied Universal Holdco LLC: | |||
144A, 6.0%, 6/1/2029 | 200,000 | 147,581 | |
144A, 6.625%, 7/15/2026 | 90,000 | 85,405 | |
American Airlines, Inc.: | |||
144A, 5.5%, 4/20/2026 | 275,000 | 272,440 | |
144A, 5.75%, 4/20/2029 | 135,000 | 131,082 | |
144A, 7.25%, 2/15/2028 | 90,000 | 89,464 | |
144A, 11.75%, 7/15/2025 | 120,000 | 131,583 |
Principal Amount ($)(a) | Value ($) | ||
ATS Corp., 144A, 4.125%, 12/15/2028 | 30,000 | 26,851 | |
Bombardier, Inc.: | |||
144A, 6.0%, 2/15/2028 | 135,000 | 127,589 | |
144A, 7.5%, 2/1/2029 | 140,000 | 138,368 | |
Builders FirstSource, Inc., 144A, 4.25%, 2/1/2032 | 105,000 | 91,366 | |
Cargo Aircraft Management, Inc., 144A, 4.75%, 2/1/2028 | 45,000 | 39,423 | |
Chart Industries, Inc.: | |||
144A, 7.5%, 1/1/2030 | 110,000 | 112,228 | |
144A, 9.5%, 1/1/2031 | 40,000 | 42,441 | |
Clean Harbors, Inc.: | |||
144A, 5.125%, 7/15/2029 | 45,000 | 42,575 | |
144A, 6.375%, 2/1/2031 | 110,000 | 110,689 | |
Emerald Debt Merger Sub LLC, 144A, 6.625%, 12/15/2030 | 130,000 | 128,862 | |
Fortress Transportation & Infrastructure Investors LLC, 144A, 6.5%, 10/1/2025 | 80,000 | 78,813 | |
Garda World Security Corp., 144A, 7.75%, 2/15/2028 | 30,000 | 29,779 | |
GFL Environmental, Inc.: | |||
144A, 3.75%, 8/1/2025 | 80,000 | 76,110 | |
144A, 4.0%, 8/1/2028 | 250,000 | 223,513 | |
144A, 5.125%, 12/15/2026 | 50,000 | 48,239 | |
Hawaiian Brand Intellectual Property Ltd., 144A, 5.75%, 1/20/2026 | 100,000 | 94,654 | |
Hertz Corp.: | |||
144A, 4.625%, 12/1/2026 | 160,000 | 144,400 | |
144A, 5.0%, 12/1/2029 | 80,000 | 66,131 | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | 140,000 | 142,226 | |
International Consolidated Airlines Group SA, REG S, 3.75%, 3/25/2029 | EUR | 100,000 | 95,071 |
LABL, Inc., 144A, 9.5%, 11/1/2028 | 20,000 | 20,348 | |
Madison IAQ LLC, 144A, 5.875%, 6/30/2029 | 80,000 | 64,793 | |
Masonite International Corp., 144A, 5.375%, 2/1/2028 | 74,000 | 70,538 | |
Mileage Plus Holdings LLC, 144A, 6.5%, 6/20/2027 | 104,000 | 104,260 | |
Moog, Inc., 144A, 4.25%, 12/15/2027 | 160,000 | 148,061 | |
NESCO Holdings II, Inc., 144A, 5.5%, 4/15/2029 | 95,000 | 85,025 | |
Prime Security Services Borrower LLC: | |||
144A, 3.375%, 8/31/2027 | 65,000 | 57,328 | |
144A, 6.25%, 1/15/2028 | 135,000 | 126,468 | |
Signature Aviation U.S. Holdings, Inc., 144A, 4.0%, 3/1/2028 | 155,000 | 139,508 | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | 219,000 | 220,652 |
8 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Principal Amount ($)(a) | Value ($) | ||
Summit Materials LLC, 144A, 5.25%, 1/15/2029 | 54,000 | 51,018 | |
TK Elevator Holdco GmbH, REG S, 6.625%, 7/15/2028 | EUR | 180,000 | 166,973 |
TK Elevator U.S. Newco, Inc., 144A, 5.25%, 7/15/2027 | 200,000 | 184,775 | |
TransDigm, Inc.: | |||
4.625%, 1/15/2029 | 205,000 | 182,359 | |
5.5%, 11/15/2027 | 115,000 | 108,468 | |
144A, 6.75%, 8/15/2028 | 90,000 | 90,341 | |
Triumph Group, Inc., 144A, 9.0%, 3/15/2028 | 85,000 | 86,788 | |
United Airlines, Inc., 144A, 4.375%, 4/15/2026 | 160,000 | 152,017 | |
United Rentals North America, Inc.: | |||
4.875%, 1/15/2028 | 90,000 | 85,643 | |
5.25%, 1/15/2030 | 80,000 | 76,362 | |
144A, 6.0%, 12/15/2029 | 200,000 | 199,508 | |
5,269,900 | |||
Information Technology 1.9% | |||
AthenaHealth Group, Inc., 144A, 6.5%, 2/15/2030 | 125,000 | 105,205 | |
Capstone Borrower, Inc., 144A, 8.0%, 6/15/2030 | 30,000 | 29,625 | |
Cloud Software Group, Inc., 144A, 9.0%, 9/30/2029 | 255,000 | 222,726 | |
McAfee Corp., 144A, 7.375%, 2/15/2030 | 215,000 | 186,947 | |
NCR Corp., 144A, 5.75%, 9/1/2027 | 30,000 | 29,992 | |
Open Text Corp., 144A, 6.9%, 12/1/2027 | 30,000 | 30,541 | |
Playtika Holding Corp., 144A, 4.25%, 3/15/2029 | 110,000 | 97,625 | |
Presidio Holdings, Inc., 144A, 8.25%, 2/1/2028 | 120,000 | 114,257 | |
816,918 | |||
Materials 9.6% | |||
Arconic Corp., 144A, 6.125%, 2/15/2028 | 185,000 | 187,295 | |
Ardagh Packaging Finance PLC, 144A, 5.25%, 8/15/2027 | 200,000 | 169,416 | |
Chemours Co.: | |||
4.0%, 5/15/2026 | EUR | 100,000 | 100,936 |
144A, 4.625%, 11/15/2029 | 100,000 | 84,512 | |
5.375%, 5/15/2027 | 95,000 | 89,490 | |
144A, 5.75%, 11/15/2028 | 290,000 | 266,478 | |
Clearwater Paper Corp., 144A, 4.75%, 8/15/2028 | 155,000 | 136,425 | |
Cleveland-Cliffs, Inc.: | |||
144A, 4.875%, 3/1/2031 | 46,000 | 40,428 | |
144A, 6.75%, 4/15/2030 | 160,000 | 154,152 | |
Consolidated Energy Finance SA, 144A, 5.625%, 10/15/2028 | 150,000 | 127,530 |
Principal Amount ($)(a) | Value ($) | ||
Constellium SE, 144A, 3.75%, 4/15/2029 | 250,000 | 212,689 | |
First Quantum Minerals Ltd.: | |||
144A, 6.875%, 3/1/2026 | 200,000 | 196,881 | |
144A, 6.875%, 10/15/2027 | 300,000 | 292,650 | |
FMG Resources August 2006 Pty Ltd., 144A, 4.375%, 4/1/2031 | 100,000 | 85,381 | |
Hudbay Minerals, Inc.: | |||
144A, 4.5%, 4/1/2026 | 60,000 | 55,868 | |
144A, 6.125%, 4/1/2029 | 100,000 | 92,077 | |
Mauser Packaging Solutions Holding Co., 144A, 7.875%, 8/15/2026 | 155,000 | 153,994 | |
Methanex Corp., 5.25%, 12/15/2029 | 220,000 | 201,023 | |
Novelis Corp.: | |||
144A, 3.25%, 11/15/2026 | 195,000 | 176,508 | |
144A, 4.75%, 1/30/2030 | 375,000 | 333,265 | |
Olympus Water U.S. Holding Corp., 144A, 6.25%, 10/1/2029 | 200,000 | 144,660 | |
Roller Bearing Co. of America, Inc., 144A, 4.375%, 10/15/2029 | 80,000 | 71,673 | |
SCIL IV LLC, 144A, 5.375%, 11/1/2026 | 200,000 | 182,328 | |
Sealed Air Corp., 144A, 6.125%, 2/1/2028 | 20,000 | 19,852 | |
SK Invictus Intermediate II Sarl, 144A, 5.0%, 10/30/2029 | 155,000 | 123,168 | |
Taseko Mines Ltd., 144A, 7.0%, 2/15/2026 | 125,000 | 113,930 | |
Trident TPI Holdings, Inc., 144A, 12.75%, 12/31/2028 | 20,000 | 20,740 | |
Tronox, Inc., 144A, 4.625%, 3/15/2029 | 205,000 | 170,362 | |
WR Grace Holdings LLC, 144A, 7.375%, 3/1/2031 | 85,000 | 83,298 | |
4,087,009 | |||
Real Estate 2.5% | |||
Iron Mountain, Inc.: | |||
144A, (REIT), 4.875%, 9/15/2027 | 100,000 | 94,461 | |
144A, (REIT), 4.875%, 9/15/2029 | 60,000 | 53,708 | |
144A, (REIT), 5.0%, 7/15/2028 | 75,000 | 69,493 | |
144A, (REIT), 5.25%, 3/15/2028 | 145,000 | 135,569 | |
144A, (REIT), 5.25%, 7/15/2030 | 100,000 | 90,105 | |
MPT Operating Partnership LP: | |||
(REIT), 3.325%, 3/24/2025 | EUR | 100,000 | 97,631 |
(REIT), 3.5%, 3/15/2031 | 105,000 | 72,347 | |
(REIT), 4.625%, 8/1/2029 | 140,000 | 105,834 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 9 |
Principal Amount ($)(a) | Value ($) | ||
RHP Hotel Properties LP, 144A, (REIT), 7.25%, 7/15/2028 | 50,000 | 50,512 | |
SBA Communications Corp., (REIT), 3.125%, 2/1/2029 | 60,000 | 50,859 | |
Uniti Group LP, 144A, (REIT), 6.0%, 1/15/2030 | 40,000 | 27,100 | |
VICI Properties LP, 144A, (REIT), 4.625%, 6/15/2025 | 233,000 | 225,135 | |
1,072,754 | |||
Utilities 4.1% | |||
AmeriGas Partners LP: | |||
5.5%, 5/20/2025 | 205,000 | 197,867 | |
5.75%, 5/20/2027 | 110,000 | 101,115 | |
Calpine Corp.: | |||
144A, 4.5%, 2/15/2028 | 200,000 | 181,066 | |
144A, 4.625%, 2/1/2029 | 30,000 | 25,310 | |
144A, 5.125%, 3/15/2028 | 50,000 | 44,620 | |
Clearway Energy Operating LLC, 144A, 4.75%, 3/15/2028 | 115,000 | 106,101 | |
Electricite de France SA, REG S, 3.375%, Perpetual (c) | EUR | 200,000 | 167,124 |
FirstEnergy Corp., Series B, 4.15%, 7/15/2027 | 90,000 | 85,485 | |
NRG Energy, Inc.: | |||
144A, 3.625%, 2/15/2031 | 145,000 | 113,194 | |
144A, 5.25%, 6/15/2029 | 157,000 | 140,394 | |
5.75%, 1/15/2028 | 200,000 | 189,530 | |
Pattern Energy Operations LP, 144A, 4.5%, 8/15/2028 | 90,000 | 82,200 | |
PG&E Corp., 5.25%, 7/1/2030 | 135,000 | 121,000 | |
Talen Energy Supply LLC, 144A, 8.625%, 6/1/2030 | 70,000 | 72,450 | |
Vistra Operations Co. LLC, 144A, 4.375%, 5/1/2029 | 135,000 | 118,246 | |
1,745,702 | |||
Total Corporate Bonds (Cost $41,581,598) | 39,294,606 | ||
Loan Participations and Assignments 1.1% | |||
Senior Loans (d) | |||
Athenahealth Group, Inc., Term Loan B, 30-day average SOFR + 3.5%, 8.589%, 2/15/2029 | 66,193 | 63,876 | |
Clear Channel Outdoor Holdings, Inc., Term Loan B, 90-day average SOFR + 3.5%, 8.807%, 8/21/2026 | 196,931 | 188,455 | |
Frontier Communications Corp., First Lien Term Loan, 1-month USD-LIBOR + 3.75%, 9.0%, 5/1/2028 | 67,937 | 66,017 |
Principal Amount ($)(a) | Value ($) | ||
Naked Juice LLC, Term Loan, 30-day average SOFR + 3.25%, 90-day average SOFR + 3.25%, 8.452% - 8.592%, 1/24/2029 | 22,770 | 21,264 | |
Outfront Media Capital LLC, Term Loan B, 11/18/2026 (e) | 110,000 | 108,568 | |
Total Loan Participations and Assignments (Cost $459,171) | 448,180 |
Shares | Value ($) | ||
Exchange-Traded Funds 3.4% | |||
iShares Broad USD High Yield Corporate Bond ETF | 9,720 | 343,116 | |
iShares iBoxx High Yield Corporate Bond ETF (f) | 6,800 | 510,476 | |
SPDR Bloomberg High Yield Bond ETF | 6,600 | 607,398 | |
Total Exchange-Traded Funds (Cost $1,563,497) | 1,460,990 | ||
Common Stocks 0.0% | |||
Industrials | |||
Quad Graphics, Inc.* (Cost $0) | 287 | 1,079 | |
Warrants 0.1% | |||
Materials | |||
Hercules Trust II, Expiration Date 3/31/2029* (g) (Cost $244,286) | 1,100 | 34,497 | |
Securities Lending Collateral 1.2% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (h) (i) (Cost $510,875) | 510,875 | 510,875 | |
Cash Equivalents 2.2% | |||
DWS Central Cash Management Government Fund, 5.13% (h) (Cost $942,173) | 942,173 | 942,173 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $45,301,600) | 100.1 | 42,692,400 | |
Other Assets and Liabilities, Net | (0.1 ) | (23,030 ) | |
Net Assets | 100.0 | 42,669,370 |
10 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Securities Lending Collateral 1.2% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (h) (i) | ||||||||
1,212,645 | — | 701,770 (j) | — | — | 5,006 | — | 510,875 | 510,875 |
Cash Equivalents 2.2% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (h) | ||||||||
1,468,062 | 6,684,339 | 7,210,228 | — | — | 26,046 | — | 942,173 | 942,173 |
2,680,707 | 6,684,339 | 7,911,998 | — | — | 31,052 | — | 1,453,048 | 1,453,048 |
* | Non-income producing security. |
(a) | Principal amount stated in U.S. dollars unless otherwise noted. |
(b) | When-issued security. |
(c) | Perpetual, callable security with no stated maturity date. |
(d) | Variable or floating rate security. These securities are shown at their current rate as of June 30, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(e) | All or a portion of the security represents unsettled loan commitments at June 30, 2023 where the rate will be determined at the time of settlement. |
(f) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $502,969, which is 1.2% of net assets. |
(g) | Investment was valued using significant unobservable inputs. |
(h) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(i) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(j) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2023. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
SOFR: Secured Overnight Financing Rate |
SPDR: Standard & Poor's Depositary Receipt |
Borrower | Unfunded Loan Commitments ($) | Value ($) | Unrealized Appreciation ($) |
Athenahealth Group, Inc., Delayed Draw Term Loan, 2/15/2029 | 7,852 | 7,867 | 15 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 11 |
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation ($) | Counterparty | ||
EUR | 1,557,151 | USD | 1,707,752 | 7/31/2023 | 5,840 | JPMorgan Chase Bank N.A. |
EUR | Euro |
USD | United States Dollar |
Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds (a) | $— | $39,294,606 | $— | $39,294,606 |
Loan Participations and Assignments | — | 448,180 | — | 448,180 |
Exchange-Traded Funds | 1,460,990 | — | — | 1,460,990 |
Common Stocks | 1,079 | — | — | 1,079 |
Warrants | — | — | 34,497 | 34,497 |
Short-Term Investments (a) | 1,453,048 | — | — | 1,453,048 |
Unfunded Loan Commitment (b) | — | 15 | — | 15 |
Derivatives (c) | ||||
Forward Foreign Currency Contracts | — | 5,840 | — | 5,840 |
Total | $2,915,117 | $39,748,641 | $34,497 | $42,698,255 |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Includes appreciation on unfunded loan commitments. |
(c) | Derivatives include unrealized appreciation (depreciation) on open forward foreign currency contracts. |
12 | | Deutsche DWS Variable Series II — DWS High Income VIP |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $43,848,552) — including $502,969 of securities loaned | $41,239,352 |
Investment in DWS Government & Agency Securities Portfolio (cost $510,875)* | 510,875 |
Investment in DWS Central Cash Management Government Fund (cost $942,173) | 942,173 |
Cash | 2,471 |
Foreign currency, at value (cost $10,160) | 10,154 |
Receivable for investments sold | 75,375 |
Receivable for Fund shares sold | 19,457 |
Interest receivable | 730,565 |
Unrealized appreciation on unfunded commitments | 15 |
Unrealized appreciation on forward foreign currency contracts | 5,840 |
Other assets | 474 |
Total assets | 43,536,751 |
Liabilities | |
Payable upon return of securities loaned | 510,875 |
Payable for investments purchased | 108,515 |
Payable for investments purchased — when-issued securities | 145,000 |
Payable for Fund shares redeemed | 19,511 |
Accrued management fee | 9,890 |
Accrued Trustees' fees | 894 |
Other accrued expenses and payables | 72,696 |
Total liabilities | 867,381 |
Net assets, at value | $42,669,370 |
Net Assets Consist of | |
Distributable earnings (loss) | (9,886,927 ) |
Paid-in capital | 52,556,297 |
Net assets, at value | $42,669,370 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($41,919,970 ÷ 7,954,572 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $5.27 |
Class B | |
Net Asset Value, offering and redemption price per share ($749,400 ÷ 141,449 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $5.30 |
* | Represents collateral on securities loaned. |
Deutsche DWS Variable Series II — DWS High Income VIP | | 13 |
Investment Income | |
Income: | |
Interest | $1,324,672 |
Dividends | 28,966 |
Income distributions — DWS Central Cash Management Government Fund | 26,046 |
Securities lending income, net of borrower rebates | 5,006 |
Total income | 1,384,690 |
Expenses: | |
Management fee | 105,449 |
Administration fee | 20,457 |
Services to shareholders | 424 |
Record keeping fee (Class B) | 654 |
Distribution service fee (Class B) | 1,091 |
Custodian fee | 3,047 |
Audit fee | 33,110 |
Legal fees | 6,539 |
Tax fees | 3,603 |
Reports to shareholders | 15,660 |
Trustees' fees and expenses | 1,871 |
Other | 4,022 |
Total expenses before expense reductions | 195,927 |
Expense reductions | (46,547 ) |
Total expenses after expense reductions | 149,380 |
Net investment income | 1,235,310 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (540,723 ) |
Forward foreign currency contracts | (36,546 ) |
Foreign currency | 262 |
(577,007 ) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 1,098,096 |
Unfunded loan commitments | 608 |
Forward foreign currency contracts | 30,150 |
Foreign currency | (1,437 ) |
1,127,417 | |
Net gain (loss) | 550,410 |
Net increase (decrease) in net assets resulting from operations | $1,785,720 |
14 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $1,235,310 | $2,172,053 |
Net realized gain (loss) | (577,007 ) | (1,507,696 ) |
Change in net unrealized appreciation (depreciation) | 1,127,417 | (5,225,122 ) |
Net increase (decrease) in net assets resulting from operations | 1,785,720 | (4,560,765 ) |
Distributions to shareholders: | ||
Class A | (2,221,545 ) | (2,374,887 ) |
Class B | (49,689 ) | (28,302 ) |
Total distributions | (2,271,234 ) | (2,403,189 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,102,648 | 2,744,738 |
Reinvestment of distributions | 2,221,545 | 2,374,887 |
Payments for shares redeemed | (2,174,201 ) | (8,372,146 ) |
Net increase (decrease) in net assets from Class A share transactions | 1,149,992 | (3,252,521 ) |
Class B | ||
Proceeds from shares sold | 369,911 | 385,798 |
Reinvestment of distributions | 49,689 | 28,302 |
Payments for shares redeemed | (326,854 ) | (269,273 ) |
Net increase (decrease) in net assets from Class B share transactions | 92,746 | 144,827 |
Increase (decrease) in net assets | 757,224 | (10,071,648 ) |
Net assets at beginning of period | 41,912,146 | 51,983,794 |
Net assets at end of period | $42,669,370 | $41,912,146 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 7,728,847 | 8,311,044 |
Shares sold | 206,370 | 498,999 |
Shares issued to shareholders in reinvestment of distributions | 423,959 | 431,798 |
Shares redeemed | (404,604 ) | (1,512,994 ) |
Net increase (decrease) in Class A shares | 225,725 | (582,197 ) |
Shares outstanding at end of period | 7,954,572 | 7,728,847 |
Class B | ||
Shares outstanding at beginning of period | 125,968 | 100,035 |
Shares sold | 67,839 | 69,817 |
Shares issued to shareholders in reinvestment of distributions | 9,429 | 5,118 |
Shares redeemed | (61,787 ) | (49,002 ) |
Net increase (decrease) in Class B shares | 15,481 | 25,933 |
Shares outstanding at end of period | 141,449 | 125,968 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 15 |
Financial Highlights
DWS High Income VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $5.34 | $6.18 | $6.23 | $6.23 | $5.71 | $6.36 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .16 | .27 | .27 | .29 | .31 | .33 |
Net realized and unrealized gain (loss) | .06 | (.81 ) | (.03 ) | .04 | .56 | (.48 ) |
Total from investment operations | .22 | (.54 ) | .24 | .33 | .87 | (.15 ) |
Less distributions from: | ||||||
Net investment income | (.29 ) | (.30 ) | (.29 ) | (.33 ) | (.35 ) | (.50 ) |
Net asset value, end of period | $5.27 | $5.34 | $6.18 | $6.23 | $6.23 | $5.71 |
Total Return (%)b | 4.22 * | (8.88 ) | 4.00 | 6.24 | 15.69 | (2.52 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 42 | 41 | 51 | 54 | 56 | 52 |
Ratio of expenses before expense reductions (%)c | .92 ** | .90 | .84 | .87 | .96 | .94 |
Ratio of expenses after expense reductions (%)c | .70 ** | .71 | .71 | .70 | .68 | .69 |
Ratio of net investment income (%) | 5.87 ** | 4.82 | 4.32 | 4.86 | 5.09 | 5.41 |
Portfolio turnover rate (%) | 26 * | 45 | 56 | 94 | 82 | 62 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
16 | | Deutsche DWS Variable Series II — DWS High Income VIP |
DWS High Income VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $5.35 | $6.20 | $6.24 | $6.25 | $5.73 | $6.38 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .15 | .25 | .24 | .27 | .29 | .31 |
Net realized and unrealized gain (loss) | .07 | (.82 ) | (.01 ) | .04 | .57 | (.48 ) |
Total from investment operations | .22 | (.57 ) | .23 | .31 | .86 | (.17 ) |
Less distributions from: | ||||||
Net investment income | (.27 ) | (.28 ) | (.27 ) | (.32 ) | (.34 ) | (.48 ) |
Net asset value, end of period | $5.30 | $5.35 | $6.20 | $6.24 | $6.25 | $5.73 |
Total Return (%)b | 4.19 * | (9.38 ) | 3.79 | 5.77 | 15.33 | (2.76 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .7 | .7 | .6 | .1 | .2 | .1 |
Ratio of expenses before expense reductions (%)c | 1.33 ** | 1.31 | 1.27 | 1.30 | 1.40 | 1.34 |
Ratio of expenses after expense reductions (%)c | 1.09 ** | 1.10 | 1.10 | 1.05 | .94 | .96 |
Ratio of net investment income (%) | 5.49 ** | 4.47 | 3.86 | 4.52 | 4.82 | 5.14 |
Portfolio turnover rate (%) | 26 * | 45 | 56 | 94 | 82 | 62 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS High Income VIP | | 17 |
Notes to Financial Statements (Unaudited)
18 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Assets Derivative | Forward Contracts |
Foreign Exchange Contracts (a) | $5,840 |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Unrealized appreciation on forward foreign currency contracts |
Realized Gain (Loss) | Forward Contracts |
Foreign Exchange Contracts (a) | $(36,546 ) |
The above derivative is located in the following Statement of Operations account: |
(a) | Net realized gain (loss) from forward foreign currency contracts |
Change in Net Unrealized Appreciation (Depreciation) | Forward Contracts |
Foreign Exchange Contracts (a) | $30,150 |
The above derivative is located in the following Statement of Operations account: |
(a) | Change in net unrealized appreciation (depreciation) on forward foreign currency contracts |
Deutsche DWS Variable Series II — DWS High Income VIP | | 21 |
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Received | Net Amount of Derivative Assets |
JPMorgan Chase Bank N.A. | $5,840 | $— | $— | $5,840 |
First $250 million of the Fund’s average daily net assets | .500% |
Next $750 million of such net assets | .470% |
Next $1.5 billion of such net assets | .450% |
Next $2.5 billion of such net assets | .430% |
Next $2.5 billion of such net assets | .400% |
Next $2.5 billion of such net assets | .380% |
Next $2.5 billion of such net assets | .360% |
Over $12.5 billion of such net assets | .340% |
Class A | .70% | |
Class B | 1.09% |
Class A | $45,499 |
Class B | 1,048 |
$46,547 |
22 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $195 | $67 |
Class B | 48 | 21 |
$243 | $88 |
Deutsche DWS Variable Series II — DWS High Income VIP | | 23 |
24 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS High Income VIP | | 25 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,042.20 | $1,041.90 |
Expenses Paid per $1,000* | $3.54 | $5.52 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,021.32 | $1,019.39 |
Expenses Paid per $1,000* | $3.51 | $5.46 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS High Income VIP | .70% | 1.09% |
26 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS High Income VIP | | 27 |
Advisory Agreement Board Considerations and Fee Evaluation
28 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Deutsche DWS Variable Series II — DWS High Income VIP | | 29 |
30 | | Deutsche DWS Variable Series II — DWS High Income VIP |
Contents
3 | |
4 | |
4 | |
5 | |
8 | |
8 | |
9 | |
10 | |
12 | |
17 | |
18 | |
19 | |
19 | |
20 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177img5f11f09f2.jpg)
Comparative Results | ||||||
DWS International Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,328 | $11,584 | $10,828 | $12,047 | $17,629 |
Average annual total return | 13.28% | 15.84% | 2.69% | 3.79% | 5.83% | |
MSCI All Country World ex USA Index | Growth of $10,000 | $10,947 | $11,272 | $12,327 | $11,886 | $15,902 |
Average annual total return | 9.47% | 12.72% | 7.22% | 3.52% | 4.75% | |
DWS International Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $11,310 | $11,547 | $10,734 | $11,871 | $17,117 |
Average annual total return | 13.10% | 15.47% | 2.39% | 3.49% | 5.52% | |
MSCI All Country World ex USA Index | Growth of $10,000 | $10,947 | $11,272 | $12,327 | $11,886 | $15,902 |
Average annual total return | 9.47% | 12.72% | 7.22% | 3.52% | 4.75% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/23 | 12/31/22 |
Common Stocks | 92% | 97% |
Cash Equivalents | 7% | 2% |
Preferred Stocks | 1% | 1% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
Information Technology | 21% | 21% |
Financials | 20% | 18% |
Industrials | 18% | 19% |
Health Care | 15% | 13% |
Consumer Discretionary | 8% | 8% |
Consumer Staples | 7% | 7% |
Communication Services | 5% | 5% |
Energy | 4% | 5% |
Materials | 2% | 4% |
100% | 100% |
Geographical Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
France | 13% | 14% |
Germany | 13% | 15% |
Switzerland | 10% | 9% |
Japan | 9% | 9% |
United States | 8% | 8% |
Netherlands | 8% | 6% |
Canada | 8% | 9% |
United Kingdom | 6% | 4% |
China | 5% | 6% |
Ireland | 4% | 4% |
Singapore | 3% | 4% |
Uruguay | 3% | 3% |
Sweden | 3% | 2% |
Taiwan | 3% | 2% |
Korea | 2% | 1% |
Hong Kong | 1% | 2% |
Other | 1% | 2% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Common Stocks 91.5% | |||
Brazil 0.4% | |||
Pagseguro Digital Ltd. "A"* (Cost $200,174) | 7,712 | 72,801 | |
Canada 7.1% | |||
Agnico Eagle Mines Ltd. | 2,798 | 139,715 | |
Alimentation Couche-Tard, Inc. | 6,678 | 342,432 | |
Brookfield Asset Management Ltd. "A" | 4,472 | 145,967 | |
Brookfield Corp. | 19,169 | 645,357 | |
Canadian National Railway Co. | 1,630 | 197,384 | |
(Cost $792,083) | 1,470,855 | ||
China 4.7% | |||
Alibaba Group Holding Ltd. (ADR)* | 1,801 | 150,113 | |
ANTA Sports Products Ltd. | 9,200 | 94,352 | |
Meituan "B", 144A* | 830 | 13,008 | |
Minth Group Ltd. | 20,870 | 57,462 | |
Ping An Insurance Group Co. of China Ltd. "H" | 51,500 | 328,645 | |
Tencent Holdings Ltd. | 7,700 | 327,484 | |
(Cost $1,107,646) | 971,064 | ||
Denmark 0.9% | |||
Novo Nordisk AS "B" (Cost $139,596) | 1,100 | 177,264 | |
France 12.0% | |||
Airbus SE | 1,437 | 207,490 | |
Capgemini SE | 1,626 | 307,779 | |
Cie de Saint-Gobain | 2,358 | 143,394 | |
LVMH Moet Hennessy Louis Vuitton SE | 425 | 400,467 | |
Schneider Electric SE | 1,291 | 234,712 | |
Teleperformance | 1,350 | 226,212 | |
TotalEnergies SE | 8,636 | 497,511 | |
Vinci SA | 3,950 | 459,314 | |
(Cost $1,860,826) | 2,476,879 | ||
Germany 11.4% | |||
adidas AG | 320 | 62,204 | |
Allianz SE (Registered) | 2,037 | 474,412 | |
Auto1 Group SE 144A* | 2,864 | 26,535 | |
Brenntag SE | 1,870 | 145,937 | |
Deutsche Boerse AG | 2,728 | 503,382 | |
Deutsche Post AG (Registered) | 3,078 | 150,424 | |
Deutsche Telekom AG (Registered) | 8,479 | 184,949 | |
Evonik Industries AG | 2,854 | 54,324 | |
Evotec SE* | 5,475 | 123,283 | |
SAP SE | 2,320 | 317,401 | |
Siemens Healthineers AG 144A | 2,039 | 115,586 | |
TeamViewer SE 144A* | 6,350 | 102,149 |
Shares | Value ($) | ||
Wacker Chemie AG | 391 | 53,684 | |
Zalando SE 144A* | 1,585 | 45,672 | |
(Cost $2,460,159) | 2,359,942 | ||
Hong Kong 1.1% | |||
Techtronic Industries Co., Ltd. (Cost $106,056) | 20,097 | 219,959 | |
Ireland 3.9% | |||
Experian PLC | 7,635 | 292,714 | |
ICON PLC* (a) | 926 | 231,685 | |
Kerry Group PLC "A" | 2,776 | 271,191 | |
(Cost $602,483) | 795,590 | ||
Japan 8.2% | |||
Anycolor, Inc.* | 400 | 21,644 | |
Daikin Industries Ltd. | 1,500 | 306,557 | |
Fast Retailing Co., Ltd. | 990 | 254,290 | |
Hoya Corp. | 2,400 | 286,446 | |
Keyence Corp. | 700 | 332,657 | |
Lasertec Corp. | 400 | 60,308 | |
MISUMI Group, Inc. | 5,611 | 112,589 | |
Shimadzu Corp. | 6,200 | 191,679 | |
Shiseido Co., Ltd. | 2,900 | 131,232 | |
(Cost $1,172,057) | 1,697,402 | ||
Korea 1.5% | |||
Samsung Electronics Co., Ltd. (Cost $237,051) | 5,537 | 305,267 | |
Netherlands 7.1% | |||
Adyen NV 144A* | 84 | 145,538 | |
ASML Holding NV | 719 | 522,755 | |
ING Groep NV | 18,600 | 251,067 | |
Koninklijke DSM NV (b) | 1,139 | 122,573 | |
NXP Semiconductors NV (a) | 573 | 117,282 | |
Prosus NV* | 1,926 | 141,218 | |
Universal Music Group NV | 7,899 | 175,440 | |
(Cost $1,202,327) | 1,475,873 | ||
Norway 0.3% | |||
Mowi ASA (Cost $96,834) | 4,273 | 67,802 | |
Singapore 3.0% | |||
DBS Group Holdings Ltd. (Cost $498,959) | 26,800 | 626,269 | |
Sweden 2.6% | |||
Assa Abloy AB "B" | 8,559 | 205,735 | |
Hexagon AB "B" | 11,804 | 145,498 | |
Spotify Technology SA* (c) | 1,099 | 176,445 | |
(Cost $496,588) | 527,678 | ||
Switzerland 9.2% | |||
Alcon, Inc. | 2,555 | 210,679 | |
Lonza Group AG (Registered) | 1,155 | 688,505 | |
Nestle SA (Registered) | 4,937 | 593,398 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 5 |
Shares | Value ($) | ||
Roche Holding AG (Genusschein) | 1,072 | 326,828 | |
Sportradar Holding AG "A"* (a) | 5,484 | 70,744 | |
(Cost $1,367,061) | 1,890,154 | ||
Taiwan 2.2% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (Cost $227,486) | 25,000 | 464,028 | |
United Kingdom 5.5% | |||
AstraZeneca PLC | 2,670 | 381,956 | |
Farfetch Ltd. "A"* (c) | 6,137 | 37,067 | |
Halma PLC | 4,777 | 138,103 | |
Rentokil Initial PLC | 71,195 | 557,000 | |
VTEX "A"* (c) | 2,886 | 13,853 | |
(Cost $1,072,289) | 1,127,979 | ||
United States 7.6% | |||
EPAM Systems, Inc.* | 215 | 48,321 | |
Marsh & McLennan Companies, Inc. | 1,977 | 371,834 | |
Mastercard, Inc. "A" | 614 | 241,486 | |
NVIDIA Corp. | 1,041 | 440,364 | |
Schlumberger NV | 5,900 | 289,808 | |
Thermo Fisher Scientific, Inc. | 345 | 180,004 | |
(Cost $572,450) | 1,571,817 | ||
Uruguay 2.8% | |||
Globant SA* | 2,568 | 461,521 | |
MercadoLibre, Inc.* | 99 | 117,275 | |
(Cost $385,205) | 578,796 | ||
Total Common Stocks (Cost $14,597,330) | 18,877,419 |
Shares | Value ($) | ||
Preferred Stocks 0.6% | |||
Germany | |||
Sartorius AG (d) (Cost $78,503) | 336 | 116,170 | |
Securities Lending Collateral 0.5% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (e) (f) (Cost $115,595) | 115,595 | 115,595 | |
Cash Equivalents 7.2% | |||
DWS Central Cash Management Government Fund, 5.13% (e) (Cost $1,485,365) | 1,485,365 | 1,485,365 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $16,276,793) | 99.8 | 20,594,549 | |
Other Assets and Liabilities, Net | 0.2 | 43,856 | |
Net Assets | 100.0 | 20,638,405 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Securities Lending Collateral 0.5% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (e) (f) | ||||||||
58,500 | 57,095 (g) | — | — | — | 47 | — | 115,595 | 115,595 |
Cash Equivalents 7.2% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (e) | ||||||||
328,851 | 4,601,867 | 3,445,353 | — | — | 25,028 | — | 1,485,365 | 1,485,365 |
387,351 | 4,658,962 | 3,445,353 | — | — | 25,075 | — | 1,600,960 | 1,600,960 |
* | Non-income producing security. |
(a) | Listed on the NASDAQ Stock Market, Inc. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | Listed on the New York Stock Exchange. |
(d) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $113,058, which is 0.5% of net assets. |
(e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
6 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
(g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2023. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
ADR: American Depositary Receipt |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | ||||
Brazil | $72,801 | $— | $— | $72,801 |
Canada | 1,470,855 | — | — | 1,470,855 |
China | 150,113 | 820,951 | — | 971,064 |
Denmark | — | 177,264 | — | 177,264 |
France | — | 2,476,879 | — | 2,476,879 |
Germany | — | 2,359,942 | — | 2,359,942 |
Hong Kong | — | 219,959 | — | 219,959 |
Ireland | 231,685 | 563,905 | — | 795,590 |
Japan | — | 1,697,402 | — | 1,697,402 |
Korea | — | 305,267 | — | 305,267 |
Netherlands | 117,282 | 1,236,018 | 122,573 | 1,475,873 |
Norway | — | 67,802 | — | 67,802 |
Singapore | — | 626,269 | — | 626,269 |
Sweden | 176,445 | 351,233 | — | 527,678 |
Switzerland | 70,744 | 1,819,410 | — | 1,890,154 |
Taiwan | — | 464,028 | — | 464,028 |
United Kingdom | 50,920 | 1,077,059 | — | 1,127,979 |
United States | 1,571,817 | — | — | 1,571,817 |
Uruguay | 578,796 | — | — | 578,796 |
Preferred Stocks | — | 116,170 | — | 116,170 |
Short-Term Investments (a) | 1,600,960 | — | — | 1,600,960 |
Total | $6,092,418 | $14,379,558 | $122,573 | $20,594,549 |
During the period ended June 30, 2023, the amount of transfers between Level 2 and Level 3 was $225,953. The investments were transferred from Level 2 to Level 3 due to the lack of observable market data due to a decrease in market activity. | ||||
Transfers between price levels are recognized at the beginning of the reporting period. |
(a) | See Investment Portfolio for additional detailed categorizations. |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 7 |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $14,675,833) — including $113,058 of securities loaned | $18,993,589 |
Investment in DWS Government & Agency Securities Portfolio (cost $115,595)* | 115,595 |
Investment in DWS Central Cash Management Government Fund (cost $1,485,365) | 1,485,365 |
Cash | 1 |
Foreign currency, at value (cost $132,790) | 129,405 |
Receivable for Fund shares sold | 842 |
Dividends receivable | 48,857 |
Interest receivable | 5,662 |
Foreign taxes recoverable | 40,732 |
Other assets | 198 |
Total assets | 20,820,246 |
Liabilities | |
Payable upon return of securities loaned | 115,595 |
Payable for Fund shares redeemed | 8,211 |
Accrued management fee | 1,683 |
Accrued Trustees' fees | 613 |
Other accrued expenses and payables | 55,739 |
Total liabilities | 181,841 |
Net assets, at value | $20,638,405 |
Net Assets Consist of | |
Distributable earnings (loss) | 2,386,827 |
Paid-in capital | 18,251,578 |
Net assets, at value | $20,638,405 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($20,609,601 ÷ 1,397,585 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $14.75 |
Class B | |
Net Asset Value, offering and redemption price per share ($28,804 ÷ 1,946 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $14.80 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $34,207) | $265,960 |
Non cash dividends | 20,062 |
Income distributions — DWS Central Cash Management Government Fund | 25,028 |
Securities lending income, net of borrower rebates | 47 |
Total income | 311,097 |
Expenses: | |
Management fee | 61,105 |
Administration fee | 9,560 |
Services to shareholders | 365 |
Record keeping fee (Class B) | 8 |
Distribution service fee (Class B) | 35 |
Custodian fee | 5,824 |
Audit fee | 27,861 |
Legal fees | 8,118 |
Tax fees | 3,603 |
Reports to shareholders | 12,730 |
Registration fees | 667 |
Trustees' fees and expenses | 1,358 |
Other | 6,568 |
Total expenses before expense reductions | 137,802 |
Expense reductions | (47,993 ) |
Total expenses after expense reductions | 89,809 |
Net investment income | 221,288 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (628,991 ) |
Foreign currency | (2,012 ) |
(631,003 ) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | 2,799,227 |
Foreign currency | (127 ) |
2,799,100 | |
Net gain (loss) | 2,168,097 |
Net increase (decrease) in net assets resulting from operations | $2,389,385 |
8 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $221,288 | $174,319 |
Net realized gain (loss) | (631,003 ) | (1,493,374 ) |
Change in net unrealized appreciation (depreciation) | 2,799,100 | (6,872,703 ) |
Net increase (decrease) in net assets resulting from operations | 2,389,385 | (8,191,758 ) |
Distributions to shareholders: | ||
Class A | (149,768 ) | (549,151 ) |
Class B | (139 ) | (1,661 ) |
Total distributions | (149,907 ) | (550,812 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 2,071,953 | 9,085,996 |
Reinvestment of distributions | 149,768 | 549,151 |
Payments for shares redeemed | (2,976,078 ) | (4,239,328 ) |
Net increase (decrease) in net assets from Class A share transactions | (754,357 ) | 5,395,819 |
Class B | ||
Proceeds from shares sold | 10,209 | 9,878 |
Reinvestment of distributions | 139 | 1,661 |
Payments for shares redeemed | (10,523 ) | (63,096 ) |
Net increase (decrease) in net assets from Class B share transactions | (175 ) | (51,557 ) |
Increase (decrease) in net assets | 1,484,946 | (3,398,308 ) |
Net assets at beginning of period | 19,153,459 | 22,551,767 |
Net assets at end of period | $20,638,405 | $19,153,459 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 1,457,916 | 1,193,724 |
Shares sold | 142,465 | 536,046 |
Shares issued to shareholders in reinvestment of distributions | 10,430 | 38,864 |
Shares redeemed | (213,226 ) | (310,718 ) |
Net increase (decrease) in Class A shares | (60,331 ) | 264,192 |
Shares outstanding at end of period | 1,397,585 | 1,457,916 |
Class B | ||
Shares outstanding at beginning of period | 1,962 | 5,576 |
Shares sold | 723 | 712 |
Shares issued to shareholders in reinvestment of distributions | 10 | 117 |
Shares redeemed | (749 ) | (4,443 ) |
Net increase (decrease) in Class B shares | (16 ) | (3,614 ) |
Shares outstanding at end of period | 1,946 | 1,962 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 9 |
Financial Highlights
DWS International Growth VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.12 | $18.80 | $17.65 | $14.64 | $11.47 | $13.90 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .16 | .11 | .08 | .06 | .22 | .16 |
Net realized and unrealized gain (loss) | 1.58 | (5.45 ) | 1.34 | 3.17 | 3.32 | (2.46 ) |
Total from investment operations | 1.74 | (5.34 ) | 1.42 | 3.23 | 3.54 | (2.30 ) |
Less distributions from: | ||||||
Net investment income | (.11 ) | (.15 ) | (.06 ) | (.22 ) | (.17 ) | (.13 ) |
Net realized gains | — | (.19 ) | (.21 ) | — | (.20 ) | — |
Total distributions | (.11 ) | (.34 ) | (.27 ) | (.22 ) | (.37 ) | (.13 ) |
Net asset value, end of period | $14.75 | $13.12 | $18.80 | $17.65 | $14.64 | $11.47 |
Total Return (%)b | 13.28 * | (28.51 ) | 8.11 | 22.69 | 31.22 | (16.69 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 21 | 19 | 22 | 19 | 18 | 14 |
Ratio of expenses before expense reductions (%)c | 1.40 ** | 1.32 | 1.33 | 1.50 | 1.64 | 1.72 |
Ratio of expenses after expense reductions (%)c | .91 ** | .92 | .90 | .87 | .86 | .81 |
Ratio of net investment income (%) | 2.25 ** | .78 | .41 | .42 | 1.63 | 1.21 |
Portfolio turnover rate (%) | 7 * | 17 | 20 | 10 | 16 | 38 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
10 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
DWS International Growth VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $13.15 | $18.84 | $17.67 | $14.66 | $11.49 | $13.93 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .14 | .09 | .03 | .01 | .18 | .12 |
Net realized and unrealized gain (loss) | 1.58 | (5.48 ) | 1.36 | 3.18 | 3.33 | (2.46 ) |
Total from investment operations | 1.72 | (5.39 ) | 1.39 | 3.19 | 3.51 | (2.34 ) |
Less distributions from: | ||||||
Net investment income | (.07 ) | (.11 ) | (.01 ) | (.18 ) | (.14 ) | (.10 ) |
Net realized gains | — | (.19 ) | (.21 ) | — | (.20 ) | — |
Total distributions | (.07 ) | (.30 ) | (.22 ) | (.18 ) | (.34 ) | (.10 ) |
Net asset value, end of period | $14.80 | $13.15 | $18.84 | $17.67 | $14.66 | $11.49 |
Total Return (%)b | 13.10 * | (28.71 ) | 7.88 | 22.29 | 30.84 | (16.92 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | .03 | .03 | .1 | .1 | .2 | .2 |
Ratio of expenses before expense reductions (%)c | 1.86 ** | 1.66 | 1.62 | 1.81 | 1.95 | 2.07 |
Ratio of expenses after expense reductions (%)c | 1.17 ** | 1.18 | 1.17 | 1.18 | 1.16 | 1.06 |
Ratio of net investment income (%) | 1.98 ** | .64 | .18 | .07 | 1.31 | .92 |
Portfolio turnover rate (%) | 7 * | 17 | 20 | 10 | 16 | 38 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 13 |
14 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Class A | .91% | ||
Class B | 1.17% |
Class A | $47,897 |
Class B | 96 |
$47,993 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $162 | $56 |
Class B | 22 | 7 |
$184 | $63 |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 15 |
16 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Other Information (Unaudited)
Deutsche DWS Variable Series II — DWS International Growth VIP | | 17 |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,132.80 | $1,131.00 |
Expenses Paid per $1,000* | $4.81 | $6.18 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,020.28 | $1,018.99 |
Expenses Paid per $1,000* | $4.56 | $5.86 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS International Growth VIP | .91% | 1.17% |
18 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Liquidity Risk Management
Deutsche DWS Variable Series II — DWS International Growth VIP | | 19 |
Advisory Agreement Board Considerations and Fee Evaluation
20 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Deutsche DWS Variable Series II — DWS International Growth VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS International Growth VIP |
Contents
3 | |
4 | |
4 | |
5 | |
9 | |
9 | |
10 | |
11 | |
12 | |
16 | |
17 | |
18 | |
18 | |
19 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177img837c098e2.jpg)
Comparative Results | ||||||
DWS Small Mid Cap Growth VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $11,137 | $11,278 | $12,408 | $11,874 | $22,023 |
Average annual total return | 11.37% | 12.78% | 7.46% | 3.50% | 8.21% | |
Russell 2500 Growth Index | Growth of $10,000 | $11,338 | $11,858 | $12,100 | $14,026 | $26,852 |
Average annual total return | 13.38% | 18.58% | 6.56% | 7.00% | 10.38% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/23 | 12/31/22 |
Common Stocks | 98% | 96% |
Cash Equivalents | 2% | 4% |
Other Investments | 0% | 0% |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
Industrials | 23% | 19% |
Information Technology | 22% | 24% |
Health Care | 21% | 22% |
Consumer Discretionary | 12% | 12% |
Financials | 7% | 7% |
Energy | 5% | 6% |
Materials | 4% | 4% |
Real Estate | 2% | 3% |
Consumer Staples | 2% | 2% |
Communication Services | 2% | 1% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Common Stocks 98.4% | |||
Communication Services 1.5% | |||
Diversified Telecommunication Services 0.9% | |||
Iridium Communications, Inc. | 7,300 | 453,476 | |
Entertainment 0.6% | |||
Take-Two Interactive Software, Inc.* | 2,174 | 319,926 | |
Consumer Discretionary 11.9% | |||
Automobile Components 0.8% | |||
Gentherm, Inc.* | 7,364 | 416,140 | |
Diversified Consumer Services 0.6% | |||
Bright Horizons Family Solutions, Inc.* | 3,398 | 314,145 | |
Hotels, Restaurants & Leisure 2.4% | |||
Hilton Grand Vacations, Inc.* | 12,491 | 567,591 | |
Jack in the Box, Inc. | 7,229 | 705,044 | |
1,272,635 | |||
Household Durables 3.5% | |||
Helen of Troy Ltd.* | 2,963 | 320,063 | |
iRobot Corp.* | 1,573 | 71,178 | |
LGI Homes, Inc.* | 3,089 | 416,675 | |
TopBuild Corp.* | 3,773 | 1,003,694 | |
1,811,610 | |||
Leisure Products 1.1% | |||
YETI Holdings, Inc.* | 15,522 | 602,875 | |
Specialty Retail 3.5% | |||
Burlington Stores, Inc.* | 2,883 | 453,755 | |
Camping World Holdings, Inc. "A" (a) | 22,907 | 689,501 | |
National Vision Holdings, Inc.* | 7,865 | 191,041 | |
The Children's Place, Inc.* | 4,788 | 111,129 | |
Valvoline, Inc. | 9,900 | 371,349 | |
1,816,775 | |||
Consumer Staples 2.4% | |||
Consumer Staples Distribution & Retail 2.1% | |||
Casey's General Stores, Inc. | 4,371 | 1,066,000 | |
Household Products 0.3% | |||
Spectrum Brands Holdings, Inc. | 2,282 | 178,110 | |
Energy 4.6% | |||
Oil, Gas & Consumable Fuels | |||
Arch Resources, Inc. | 2,200 | 248,072 | |
Crescent Energy Co. "A" (a) | 6,384 | 66,521 | |
Denbury, Inc.* | 7,100 | 612,446 | |
Kosmos Energy Ltd.* | 48,000 | 287,520 | |
Matador Resources Co. | 8,300 | 434,256 | |
Ovintiv, Inc. | 9,711 | 369,698 | |
Southwestern Energy Co.* | 67,176 | 403,728 | |
2,422,241 |
Shares | Value ($) | ||
Financials 7.3% | |||
Banks 1.7% | |||
Pinnacle Financial Partners, Inc. | 5,944 | 336,728 | |
South State Corp. | 3,504 | 230,563 | |
Synovus Financial Corp. | 11,493 | 347,663 | |
914,954 | |||
Capital Markets 3.2% | |||
FactSet Research Systems, Inc. | 1,036 | 415,074 | |
Lazard Ltd. "A" | 12,317 | 394,144 | |
LPL Financial Holdings, Inc. | 2,100 | 456,603 | |
Moelis & Co. "A" | 9,136 | 414,226 | |
1,680,047 | |||
Financial Services 1.0% | |||
WEX, Inc.* | 2,797 | 509,250 | |
Insurance 1.4% | |||
Kinsale Capital Group, Inc. | 1,900 | 710,980 | |
Health Care 20.5% | |||
Biotechnology 4.5% | |||
Apellis Pharmaceuticals, Inc.* | 3,951 | 359,936 | |
Beam Therapeutics, Inc.* | 1,593 | 50,864 | |
Biohaven, Ltd.* | 1,787 | 42,745 | |
Blueprint Medicines Corp.* | 4,684 | 296,029 | |
Catalyst Pharmaceuticals, Inc.* | 7,600 | 102,144 | |
Halozyme Therapeutics, Inc.* | 3,100 | 111,817 | |
Insmed, Inc.* | 6,610 | 139,471 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 8,769 | 123,468 | |
Neurocrine Biosciences, Inc.* | 7,085 | 668,116 | |
Travere Therapeutics, Inc.* | 18,778 | 288,430 | |
Ultragenyx Pharmaceutical, Inc.* | 3,057 | 141,019 | |
2,324,039 | |||
Health Care Equipment & Supplies 3.7% | |||
Axonics, Inc.* | 5,613 | 283,288 | |
Globus Medical, Inc. "A"* | 2,224 | 132,417 | |
Haemonetics Corp.* | 1,353 | 115,194 | |
Inari Medical, Inc.* | 1,600 | 93,024 | |
Inspire Medical Systems, Inc.* | 300 | 97,392 | |
Masimo Corp.* | 1,627 | 267,723 | |
Merit Medical Systems, Inc.* | 4,200 | 351,288 | |
Omnicell, Inc.* | 2,300 | 169,441 | |
Outset Medical, Inc.* | 10,674 | 233,440 | |
Shockwave Medical, Inc.* | 500 | 142,705 | |
STAAR Surgical Co.* | 975 | 51,256 | |
1,937,168 | |||
Health Care Providers & Services 9.6% | |||
AMN Healthcare Services, Inc.* | 13,141 | 1,433,946 | |
HealthEquity, Inc.* | 4,529 | 285,961 | |
ModivCare, Inc.* | 4,799 | 216,963 | |
Molina Healthcare, Inc.* | 2,619 | 788,947 | |
Option Care Health, Inc.* | 18,864 | 612,891 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 5 |
Shares | Value ($) | ||
Privia Health Group, Inc.* | 8,600 | 224,546 | |
RadNet, Inc.* | 44,177 | 1,441,054 | |
5,004,308 | |||
Life Sciences Tools & Services 0.5% | |||
BioLife Solutions, Inc.* | 8,451 | 186,767 | |
OmniAb, Inc.* | 13,092 | 65,853 | |
252,620 | |||
Pharmaceuticals 2.2% | |||
Arvinas, Inc.* | 2,000 | 49,640 | |
Intra-Cellular Therapies, Inc.* | 7,000 | 443,240 | |
Ligand Pharmaceuticals, Inc.* | 2,672 | 192,651 | |
Pacira BioSciences, Inc.* | 11,807 | 473,107 | |
1,158,638 | |||
Industrials 22.5% | |||
Aerospace & Defense 1.4% | |||
HEICO Corp. | 4,176 | 738,901 | |
Building Products 6.6% | |||
Allegion PLC | 7,499 | 900,030 | |
Builders FirstSource, Inc.* | 14,396 | 1,957,856 | |
Masonite International Corp.* | 5,705 | 584,420 | |
3,442,306 | |||
Commercial Services & Supplies 3.4% | |||
MSA Safety, Inc. | 2,392 | 416,112 | |
Tetra Tech, Inc. | 3,819 | 625,323 | |
The Brink's Co. | 11,036 | 748,571 | |
1,790,006 | |||
Construction & Engineering 0.7% | |||
MasTec, Inc.* | 3,160 | 372,785 | |
Electrical Equipment 0.9% | |||
Generac Holdings, Inc.* | 1,478 | 220,414 | |
Thermon Group Holdings, Inc.* | 9,149 | 243,364 | |
463,778 | |||
Machinery 0.8% | |||
IDEX Corp. | 1,802 | 387,898 | |
Professional Services 4.7% | |||
Broadridge Financial Solutions, Inc. | 3,982 | 659,539 | |
Kforce, Inc. | 16,725 | 1,047,988 | |
Maximus, Inc. | 8,556 | 723,068 | |
2,430,595 | |||
Trading Companies & Distributors 4.0% | |||
H&E Equipment Services, Inc. | 16,406 | 750,574 | |
Rush Enterprises, Inc. "A" | 16,590 | 1,007,677 | |
Titan Machinery, Inc.* | 11,743 | 346,419 | |
2,104,670 | |||
Information Technology 21.2% | |||
Communications Equipment 0.9% | |||
Calix, Inc.* | 8,844 | 441,404 |
Shares | Value ($) | ||
Electronic Equipment, Instruments & Components 3.5% | |||
Advanced Energy Industries, Inc. | 12,629 | 1,407,502 | |
Cognex Corp. | 7,873 | 441,046 | |
1,848,548 | |||
Semiconductors & Semiconductor Equipment 5.3% | |||
Entegris, Inc. | 6,121 | 678,329 | |
FormFactor, Inc.* | 7,627 | 260,996 | |
Impinj, Inc.* | 2,530 | 226,814 | |
Monolithic Power Systems, Inc. | 947 | 511,598 | |
Semtech Corp.* | 7,632 | 194,311 | |
SiTime Corp.* | 4,087 | 482,143 | |
Ultra Clean Holdings, Inc.* | 10,873 | 418,176 | |
2,772,367 | |||
Software 11.2% | |||
Aspen Technology, Inc.* | 3,737 | 626,359 | |
Dynatrace, Inc.* | 7,679 | 395,238 | |
Envestnet, Inc.* | 9,852 | 584,716 | |
Five9, Inc.* | 9,547 | 787,150 | |
Rapid7, Inc.* | 6,849 | 310,123 | |
Tenable Holdings, Inc.* | 12,141 | 528,740 | |
Tyler Technologies, Inc.* | 3,276 | 1,364,356 | |
Varonis Systems, Inc.* | 35,677 | 950,792 | |
Workiva, Inc.* | 3,058 | 310,876 | |
5,858,350 | |||
Technology Hardware, Storage & Peripherals 0.3% | |||
Super Micro Computer, Inc.* | 600 | 149,550 | |
Materials 4.1% | |||
Construction Materials 2.1% | |||
Eagle Materials, Inc. | 5,901 | 1,100,064 | |
Containers & Packaging 0.9% | |||
Berry Global Group, Inc. | 6,828 | 439,314 | |
Metals & Mining 1.1% | |||
Cleveland-Cliffs, Inc.* | 34,787 | 583,030 | |
Real Estate 2.4% | |||
Diversified REITs 1.0% | |||
Essential Properties Realty Trust, Inc. | 21,678 | 510,300 | |
Industrial REITs 0.7% | |||
EastGroup Properties, Inc. | 2,208 | 383,309 | |
Specialized REITs 0.7% | |||
Four Corners Property Trust, Inc. | 13,954 | 354,432 | |
Total Common Stocks (Cost $32,078,632) | 51,337,544 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Shares | Value ($) | ||
Other Investments 0.0% | |||
Health Care 0.0% | |||
Life Sciences Tools & Services 0.0% | |||
OmniAb, Inc. $12.50 Earnout* (b) (c) | 1,013 | 0 | |
OmniAb, Inc. $15.00 Earnout* (b) (c) | 1,013 | 0 | |
Total Other Investments (Cost $0) | 0 | ||
Securities Lending Collateral 0.3% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (d) (e) (Cost $157,800) | 157,800 | 157,800 |
Shares | Value ($) | ||
Cash Equivalents 1.7% | |||
DWS Central Cash Management Government Fund, 5.13% (d) (Cost $867,964) | 867,964 | 867,964 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $33,104,396) | 100.4 | 52,363,308 | |
Other Assets and Liabilities, Net | (0.4 ) | (220,359 ) | |
Net Assets | 100.0 | 52,142,949 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Securities Lending Collateral 0.3% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (d) (e) | ||||||||
735,203 | — | 577,403 (f) | — | — | 3,192 | — | 157,800 | 157,800 |
Cash Equivalents 1.7% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (d) | ||||||||
1,969,280 | 2,100,894 | 3,202,210 | — | — | 26,996 | — | 867,964 | 867,964 |
2,704,483 | 2,100,894 | 3,779,613 | — | — | 30,188 | — | 1,025,764 | 1,025,764 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $155,946, which is 0.3% of net assets. |
(b) | Earnout Shares: Will vest based upon the achievement of certain volume-weighted average trading prices (VWAP) for shares of OmniAb Inc. Earnout Shares are not transferrable until the vesting condition for the applicable tranche of Earnout Shares has been achieved. |
(c) | Investment was valued using significant unobservable inputs. |
(d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2023. |
REIT: Real Estate Investment Trust |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 7 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $51,337,544 | $— | $— | $51,337,544 |
Other Investments | — | — | 0 | 0 |
Short-Term Investments (a) | 1,025,764 | — | — | 1,025,764 |
Total | $52,363,308 | $— | $0 | $52,363,308 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $32,078,632) — including $155,946 of securities loaned | $51,337,544 |
Investment in DWS Government & Agency Securities Portfolio (cost $157,800)* | 157,800 |
Investment in DWS Central Cash Management Government Fund (cost $867,964) | 867,964 |
Cash | 10,000 |
Receivable for Fund shares sold | 130 |
Dividends receivable | 24,248 |
Interest receivable | 3,366 |
Other assets | 218 |
Total assets | 52,401,270 |
Liabilities | |
Payable upon return of securities loaned | 157,800 |
Payable for Fund shares redeemed | 23,057 |
Accrued management fee | 21,809 |
Accrued Trustees' fees | 411 |
Other accrued expenses and payables | 55,244 |
Total liabilities | 258,321 |
Net assets, at value | $52,142,949 |
Net Assets Consist of | |
Distributable earnings (loss) | 19,406,591 |
Paid-in capital | 32,736,358 |
Net assets, at value | $52,142,949 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($52,142,949 ÷ 4,060,065 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.84 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends | $197,957 |
Income distributions — DWS Central Cash Management Government Fund | 26,996 |
Securities lending income, net of borrower rebates | 3,192 |
Total income | 228,145 |
Expenses: | |
Management fee | 136,929 |
Administration fee | 24,149 |
Services to shareholders | 347 |
Custodian fee | 1,026 |
Audit fee | 18,105 |
Legal fees | 7,786 |
Tax fees | 4,158 |
Reports to shareholders | 15,268 |
Trustees' fees and expenses | 2,172 |
Other | 3,700 |
Total expenses before expense reductions | 213,640 |
Expense reductions | (2,022 ) |
Total expenses after expense reductions | 211,618 |
Net investment income | 16,527 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 222,515 |
Change in net unrealized appreciation (depreciation) on investments | 5,238,844 |
Net gain (loss) | 5,461,359 |
Net increase (decrease) in net assets resulting from operations | $5,477,886 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 9 |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income (loss) | $16,527 | $(9,665 ) |
Net realized gain (loss) | 222,515 | 1,787,100 |
Change in net unrealized appreciation (depreciation) | 5,238,844 | (22,497,726 ) |
Net increase (decrease) in net assets resulting from operations | 5,477,886 | (20,720,291 ) |
Distributions to shareholders: | ||
Class A | (1,775,349 ) | (7,059,397 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 418,128 | 1,256,254 |
Reinvestment of distributions | 1,775,349 | 7,059,397 |
Payments for shares redeemed | (3,753,342 ) | (5,846,309 ) |
Net increase (decrease) in net assets from Class A share transactions | (1,559,865 ) | 2,469,342 |
Increase (decrease) in net assets | 2,142,672 | (25,310,346 ) |
Net assets at beginning of period | 50,000,277 | 75,310,623 |
Net assets at end of period | $52,142,949 | $50,000,277 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 4,175,946 | 3,990,886 |
Shares sold | 34,326 | 83,425 |
Shares issued to shareholders in reinvestment of distributions | 152,521 | 527,214 |
Shares redeemed | (302,728 ) | (425,579 ) |
Net increase (decrease) in Class A shares | (115,881 ) | 185,060 |
Shares outstanding at end of period | 4,060,065 | 4,175,946 |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Financial Highlights
DWS Small Mid Cap Growth VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $11.97 | $18.87 | $17.43 | $13.66 | $12.68 | $21.94 |
Income (loss) from investment operations: | ||||||
Net investment income (loss)a | .00 * | (.00 )* | (.06 ) | (.01 ) | .01 | (.01 ) |
Net realized and unrealized gain (loss) | 1.31 | (5.10 ) | 2.43 | 4.00 | 2.73 | (1.92 ) |
Total from investment operations | 1.31 | (5.10 ) | 2.37 | 3.99 | 2.74 | (1.93 ) |
Less distributions from: | ||||||
Net investment income | (.00 )* | — | (.01 ) | (.01 ) | — | — |
Net realized gains | (.44 ) | (1.80 ) | (.92 ) | (.21 ) | (1.76 ) | (7.33 ) |
Total distributions | (.44 ) | (1.80 ) | (.93 ) | (.22 ) | (1.76 ) | (7.33 ) |
Net asset value, end of period | $12.84 | $11.97 | $18.87 | $17.43 | $13.66 | $12.68 |
Total Return (%) | 11.37 b** | (28.02 )b | 13.84 | 30.18 b | 22.41 b | (13.59 )b |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 52 | 50 | 75 | 73 | 64 | 64 |
Ratio of expenses before expense reductions (%)c | .86 *** | .83 | .78 | .82 | .82 | .81 |
Ratio of expenses after expense reductions (%)c | .85 *** | .81 | .78 | .81 | .81 | .80 |
Ratio of net investment income (loss) (%) | .07 *** | (.02 ) | (.33 ) | (.05 ) | .11 | (.06 ) |
Portfolio turnover rate (%) | 3 ** | 11 | 16 | 12 | 10 | 32 |
a | Based on average shares outstanding during the period. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Amount is less than $.005. |
** | Not annualized |
*** | Annualized |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 11 |
Notes to Financial Statements (Unaudited)
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 13 |
First $250 million of the Fund's average daily net assets | .550% |
Next $750 million of such net assets | .525% |
Over $1 billion of such net assets | .500% |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 15 |
Other Information (Unaudited)
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A |
Beginning Account Value 1/1/23 | $1,000.00 |
Ending Account Value 6/30/23 | $1,113.70 |
Expenses Paid per $1,000* | $4.45 |
Hypothetical 5% Fund Return | Class A |
Beginning Account Value 1/1/23 | $1,000.00 |
Ending Account Value 6/30/23 | $1,020.58 |
Expenses Paid per $1,000* | $4.26 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratio | Class A |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | .85% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 17 |
Liquidity Risk Management
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 19 |
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Growth VIP | | 21 |
Contents
3 | |
4 | |
4 | |
5 | |
9 | |
9 | |
10 | |
11 | |
13 | |
18 | |
19 | |
20 | |
20 | |
21 |
DWS Distributors, Inc., 222 South Riverside Plaza, Chicago, IL 60606, (800) 621-1148
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Performance SummaryJune 30, 2023 (Unaudited)
![](https://capedge.com/proxy/N-CSRS/0000088053-23-000514/g488177img77a8d0342.jpg)
Comparative Results | ||||||
DWS Small Mid Cap Value VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class A | Growth of $10,000 | $10,649 | $11,075 | $15,049 | $11,804 | $18,710 |
Average annual total return | 6.49% | 10.75% | 14.60% | 3.37% | 6.47% | |
Russell 2500 Value Index | Growth of $10,000 | $10,583 | $11,037 | $15,639 | $12,961 | $21,628 |
Average annual total return | 5.83% | 10.37% | 16.07% | 5.32% | 8.02% | |
DWS Small Mid Cap Value VIP | 6-Month‡ | 1-Year | 3-Year | 5-Year | 10-Year | |
Class B | Growth of $10,000 | $10,632 | $11,031 | $14,868 | $11,585 | $18,039 |
Average annual total return | 6.32% | 10.31% | 14.14% | 2.99% | 6.08% | |
Russell 2500 Value Index | Growth of $10,000 | $10,583 | $11,037 | $15,639 | $12,961 | $21,628 |
Average annual total return | 5.83% | 10.37% | 16.07% | 5.32% | 8.02% | |
The growth of $10,000 is cumulative. |
‡ | Total returns shown for periods less than one year are not annualized. |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 3 |
Portfolio Summary(Unaudited)
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 6/30/23 | 12/31/22 |
Common Stocks | 99% | 100% |
Cash Equivalents | 1% | — |
100% | 100% |
Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 6/30/23 | 12/31/22 |
Financials | 21% | 21% |
Industrials | 19% | 17% |
Consumer Discretionary | 12% | 12% |
Real Estate | 10% | 12% |
Health Care | 9% | 7% |
Information Technology | 9% | 8% |
Materials | 6% | 6% |
Energy | 4% | 5% |
Utilities | 4% | 5% |
Communication Services | 3% | 4% |
Consumer Staples | 3% | 3% |
100% | 100% |
4 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Investment Portfolioas of June 30, 2023 (Unaudited)
Shares | Value ($) | ||
Common Stocks 99.2% | |||
Communication Services 3.3% | |||
Diversified Telecommunication Services 0.9% | |||
Liberty Latin America Ltd. "A"* | 83,215 | 728,131 | |
Media 2.4% | |||
Interpublic Group of Companies, Inc. | 39,760 | 1,533,941 | |
Nexstar Media Group, Inc. | 2,193 | 365,244 | |
1,899,185 | |||
Consumer Discretionary 11.7% | |||
Automobile Components 2.5% | |||
American Axle & Manufacturing Holdings, Inc.* | 63,862 | 528,138 | |
Lear Corp. | 9,816 | 1,409,087 | |
1,937,225 | |||
Automobiles 0.6% | |||
Winnebago Industries, Inc. | 6,930 | 462,162 | |
Diversified Consumer Services 0.8% | |||
WW International, Inc.* | 97,318 | 653,977 | |
Hotels, Restaurants & Leisure 0.8% | |||
International Game Technology PLC | 19,871 | 633,686 | |
Household Durables 3.5% | |||
Mohawk Industries, Inc.* | 7,898 | 814,758 | |
PulteGroup, Inc. | 25,190 | 1,956,759 | |
2,771,517 | |||
Specialty Retail 1.7% | |||
Foot Locker, Inc. | 10,718 | 290,565 | |
RH* | 3,239 | 1,067,542 | |
1,358,107 | |||
Textiles, Apparel & Luxury Goods 1.8% | |||
Columbia Sportswear Co. | 18,579 | 1,435,042 | |
Consumer Staples 2.8% | |||
Consumer Staples Distribution & Retail 0.5% | |||
Performance Food Group Co.* | 6,533 | 393,548 | |
Food Products 1.9% | |||
B&G Foods, Inc. (a) | 38,062 | 529,823 | |
Cal-Maine Foods, Inc. | 6,988 | 314,460 | |
Darling Ingredients, Inc.* | 10,608 | 676,684 | |
1,520,967 | |||
Household Products 0.4% | |||
Central Garden & Pet Co.* | 7,995 | 309,966 |
Shares | Value ($) | ||
Energy 4.0% | |||
Energy Equipment & Services 0.7% | |||
Nabors Industries Ltd.* | 2,550 | 237,226 | |
NexTier Oilfield Solutions, Inc.* | 32,324 | 288,977 | |
526,203 | |||
Oil, Gas & Consumable Fuels 3.3% | |||
Devon Energy Corp. | 6,515 | 314,935 | |
HF Sinclair Corp. | 12,253 | 546,607 | |
Kinetik Holdings, Inc. (a) | 12,422 | 436,509 | |
PDC Energy, Inc. | 7,559 | 537,747 | |
Targa Resources Corp. | 6,942 | 528,286 | |
Vertex Energy, Inc.* (a) | 45,735 | 285,844 | |
2,649,928 | |||
Financials 20.9% | |||
Banks 9.6% | |||
Associated Banc-Corp. | 50,702 | 822,893 | |
BankUnited, Inc. | 15,271 | 329,090 | |
Columbia Banking System, Inc. | 13,657 | 276,964 | |
Eagle Bancorp., Inc. | 21,907 | 463,552 | |
Eastern Bankshares, Inc. | 61,996 | 760,691 | |
First BanCorp. | 73,164 | 894,064 | |
First Financial Corp. | 10,968 | 356,131 | |
First Horizon Corp. | 29,685 | 334,550 | |
Fulton Financial Corp. | 21,539 | 256,745 | |
Hancock Whitney Corp. | 23,244 | 892,105 | |
Hilltop Holdings, Inc. | 25,784 | 811,165 | |
Simmons First National Corp. "A" | 30,569 | 527,315 | |
UMB Financial Corp. | 14,217 | 865,815 | |
7,591,080 | |||
Capital Markets 1.2% | |||
Evercore, Inc. "A" | 3,114 | 384,859 | |
Invesco Ltd. | 23,343 | 392,396 | |
Robinhood Markets, Inc. "A"* | 20,979 | 209,370 | |
986,625 | |||
Consumer Finance 0.9% | |||
Credit Acceptance Corp.* (a) | 1,410 | 716,181 | |
Financial Services 3.2% | |||
A-Mark Precious Metals, Inc. | 19,638 | 735,149 | |
AvidXchange Holdings, Inc.* | 71,323 | 740,333 | |
Voya Financial, Inc. | 14,340 | 1,028,321 | |
2,503,803 | |||
Insurance 5.1% | |||
Assurant, Inc. | 9,089 | 1,142,669 | |
Brown & Brown, Inc. | 23,705 | 1,631,852 | |
Everest Re Group Ltd. | 3,840 | 1,312,743 | |
4,087,264 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 5 |
Shares | Value ($) | ||
Mortgage Real Estate Investment Trusts (REITs) 0.9% | |||
Rithm Capital Corp. | 74,134 | 693,153 | |
Health Care 9.1% | |||
Biotechnology 2.5% | |||
EQRx, Inc.* | 162,588 | 302,414 | |
Kiniksa Pharmaceuticals Ltd. "A"* | 17,369 | 244,556 | |
Sage Therapeutics, Inc.* | 10,224 | 480,732 | |
Sana Biotechnology, Inc.* (a) | 76,915 | 458,413 | |
Twist Bioscience Corp.* | 22,683 | 464,094 | |
1,950,209 | |||
Health Care Equipment & Supplies 1.7% | |||
Cue Health, Inc.* | 757,180 | 279,399 | |
ICU Medical, Inc.* | 1,845 | 328,761 | |
Merit Medical Systems, Inc.* | 9,064 | 758,113 | |
1,366,273 | |||
Health Care Providers & Services 2.6% | |||
Chemed Corp. | 1,231 | 666,796 | |
Molina Healthcare, Inc.* | 1,292 | 389,202 | |
NeoGenomics, Inc.* | 35,864 | 576,334 | |
Owens & Minor, Inc.* | 22,239 | 423,431 | |
2,055,763 | |||
Pharmaceuticals 2.3% | |||
Jazz Pharmaceuticals PLC* | 4,726 | 585,882 | |
Ligand Pharmaceuticals, Inc.* | 6,006 | 433,033 | |
Reata Pharmaceuticals, Inc. "A"* | 8,166 | 832,605 | |
1,851,520 | |||
Industrials 19.2% | |||
Aerospace & Defense 1.7% | |||
Huntington Ingalls Industries, Inc. | 5,832 | 1,327,363 | |
Air Freight & Logistics 0.4% | |||
GXO Logistics, Inc.* | 5,515 | 346,452 | |
Building Products 3.6% | |||
Carlisle Companies, Inc. | 6,936 | 1,779,292 | |
Owens Corning | 8,057 | 1,051,439 | |
2,830,731 | |||
Construction & Engineering 1.2% | |||
API Group Corp.* | 17,486 | 476,668 | |
MasTec, Inc.* | 4,377 | 516,355 | |
993,023 | |||
Electrical Equipment 3.8% | |||
Encore Wire Corp. | 6,753 | 1,255,585 | |
EnerSys | 15,947 | 1,730,569 | |
2,986,154 |
Shares | Value ($) | ||
Ground Transportation 1.3% | |||
Knight-Swift Transportation Holdings, Inc. | 10,885 | 604,770 | |
RXO, Inc.* | 18,131 | 411,030 | |
1,015,800 | |||
Machinery 3.6% | |||
Hillenbrand, Inc. | 40,752 | 2,089,763 | |
The Manitowoc Co., Inc.* | 42,427 | 798,900 | |
2,888,663 | |||
Professional Services 2.4% | |||
Jacobs Solutions, Inc. | 10,424 | 1,239,309 | |
ManpowerGroup, Inc. | 3,398 | 269,801 | |
TrueBlue, Inc.* | 21,709 | 384,467 | |
1,893,577 | |||
Trading Companies & Distributors 1.2% | |||
NOW, Inc.* | 92,675 | 960,113 | |
Information Technology 8.3% | |||
Communications Equipment 0.4% | |||
Ciena Corp.* | 7,945 | 337,583 | |
Electronic Equipment, Instruments & Components 3.4% | |||
Avnet, Inc. | 33,437 | 1,686,897 | |
Itron, Inc.* | 9,376 | 676,009 | |
TD SYNNEX Corp. | 3,829 | 359,926 | |
2,722,832 | |||
Semiconductors & Semiconductor Equipment 2.1% | |||
Cirrus Logic, Inc.* | 11,969 | 969,609 | |
Photronics, Inc.* | 26,946 | 694,937 | |
1,664,546 | |||
Software 2.4% | |||
Adeia, Inc. | 33,819 | 372,347 | |
NCR Corp.* | 12,880 | 324,576 | |
Porch Group, Inc.* (a) | 191,004 | 263,586 | |
Verint Systems, Inc.* | 26,229 | 919,589 | |
1,880,098 | |||
Materials 6.1% | |||
Chemicals 1.7% | |||
Avient Corp. | 7,871 | 321,924 | |
Chemours Co. | 20,651 | 761,815 | |
Sensient Technologies Corp. | 3,558 | 253,081 | |
1,336,820 | |||
Containers & Packaging 1.0% | |||
Graphic Packaging Holding Co. | 33,885 | 814,257 | |
Metals & Mining 3.4% | |||
Cleveland-Cliffs, Inc.* | 22,180 | 371,737 | |
Steel Dynamics, Inc. | 21,265 | 2,316,396 | |
2,688,133 |
6 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Shares | Value ($) | ||
Real Estate 9.8% | |||
Industrial REITs 3.0% | |||
LXP Industrial Trust | 55,263 | 538,814 | |
Prologis, Inc. | 4,142 | 507,934 | |
STAG Industrial, Inc. | 37,056 | 1,329,569 | |
2,376,317 | |||
Office REITs 0.8% | |||
Highwoods Properties, Inc. | 27,146 | 649,061 | |
Real Estate Management & Development 0.6% | |||
Kennedy-Wilson Holdings, Inc. | 28,877 | 471,562 | |
Residential REITs 1.0% | |||
BRT Apartments Corp. (a) | 38,543 | 763,151 | |
Retail REITs 1.5% | |||
Necessity Retail REIT, Inc. | 103,773 | 701,506 | |
SITE Centers Corp. | 38,592 | 510,186 | |
1,211,692 | |||
Specialized REITs 2.9% | |||
Gaming and Leisure Properties, Inc. | 32,113 | 1,556,196 | |
Iron Mountain, Inc. | 8,026 | 456,037 | |
Safehold, Inc. | 14,037 | 333,098 | |
2,345,331 | |||
Utilities 4.0% | |||
Electric Utilities 2.8% | |||
IDACORP, Inc. | 15,434 | 1,583,529 | |
Otter Tail Corp. | 8,068 | 637,049 | |
2,220,578 |
Shares | Value ($) | ||
Gas Utilities 1.2% | |||
Northwest Natural Holding Co. | 9,452 | 406,909 | |
UGI Corp. | 20,014 | 539,777 | |
946,686 | |||
Total Common Stocks (Cost $67,189,889) | 78,752,038 | ||
Securities Lending Collateral 3.0% | |||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (b) (c) (Cost $2,369,873) | 2,369,873 | 2,369,873 | |
Cash Equivalents 0.8% | |||
DWS Central Cash Management Government Fund, 5.13% (b) (Cost $625,967) | 625,967 | 625,967 |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $70,185,729) | 103.0 | 81,747,878 | |
Other Assets and Liabilities, Net | (3.0 ) | (2,361,059 ) | |
Net Assets | 100.0 | 79,386,819 |
Value ($) at 12/31/2022 | Purchases Cost ($) | Sales Proceeds ($) | Net Realized Gain/ (Loss) ($) | Net Change in Unrealized Appreciation (Depreciation) ($) | Income ($) | Capital Gain Distributions ($) | Number of Shares at 6/30/2023 | Value ($) at 6/30/2023 |
Securities Lending Collateral 3.0% | ||||||||
DWS Government & Agency Securities Portfolio "DWS Government Cash Institutional Shares", 5.03% (b) (c) | ||||||||
2,566,790 | — | 196,917 (d) | — | — | 15,935 | — | 2,369,873 | 2,369,873 |
Cash Equivalents 0.8% | ||||||||
DWS Central Cash Management Government Fund, 5.13% (b) | ||||||||
— | 6,566,523 | 5,940,556 | — | — | 20,366 | — | 625,967 | 625,967 |
2,566,790 | 6,566,523 | 6,137,473 | — | — | 36,301 | — | 2,995,840 | 2,995,840 |
* | Non-income producing security. |
(a) | All or a portion of these securities were on loan. In addition, "Other Assets and Liabilities, Net" may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $2,304,410, which is 2.9% of net assets. |
(b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
(c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2023. |
REIT: Real Estate Investment Trust |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 7 |
Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stocks (a) | $78,752,038 | $— | $— | $78,752,038 |
Short-Term Investments (a) | 2,995,840 | — | — | 2,995,840 |
Total | $81,747,878 | $— | $— | $81,747,878 |
(a) | See Investment Portfolio for additional detailed categorizations. |
8 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
as of June 30, 2023 (Unaudited)
Assets | |
Investments in non-affiliated securities, at value (cost $67,189,889) — including $2,304,410 of securities loaned | $78,752,038 |
Investment in DWS Government & Agency Securities Portfolio (cost $2,369,873)* | 2,369,873 |
Investment in DWS Central Cash Management Government Fund (cost $625,967) | 625,967 |
Receivable for Fund shares sold | 32,902 |
Dividends receivable | 117,492 |
Interest receivable | 3,165 |
Other assets | 832 |
Total assets | 81,902,269 |
Liabilities | |
Payable upon return of securities loaned | 2,369,873 |
Payable for Fund shares redeemed | 41,657 |
Accrued management fee | 37,368 |
Accrued Trustees' fees | 1,397 |
Other accrued expenses and payables | 65,155 |
Total liabilities | 2,515,450 |
Net assets, at value | $79,386,819 |
Net Assets Consist of | |
Distributable earnings (loss) | 13,781,689 |
Paid-in capital | 65,605,130 |
Net assets, at value | $79,386,819 |
Net Asset Value | |
Class A | |
Net Asset Value, offering and redemption price per share ($63,779,700 ÷ 4,965,473 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.84 |
Class B | |
Net Asset Value, offering and redemption price per share ($15,607,119 ÷ 1,213,181 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | $12.86 |
* | Represents collateral on securities loaned. |
Investment Income | |
Income: | |
Dividends (net of foreign taxes withheld of $926) | $812,714 |
Non cash dividends | 150,875 |
Income distributions — DWS Central Cash Management Government Fund | 20,366 |
Securities lending income, net of borrower rebates | 19,276 |
Total income | 1,003,231 |
Expenses: | |
Management fee | 258,733 |
Administration fee | 38,611 |
Services to shareholders | 1,160 |
Record keeping fee (Class B) | 8,813 |
Distribution service fee (Class B) | 19,614 |
Custodian fee | 1,328 |
Professional fees | 25,576 |
Reports to shareholders | 16,262 |
Trustees' fees and expenses | 2,716 |
Other | 5,027 |
Total expenses before expense reductions | 377,840 |
Expense reductions | (26,641 ) |
Total expenses after expense reductions | 351,199 |
Net investment income | 652,032 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from investments | 1,693,696 |
Change in net unrealized appreciation (depreciation) on investments | 2,639,249 |
Net gain (loss) | 4,332,945 |
Net increase (decrease) in net assets resulting from operations | $4,984,977 |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 9 |
Six Months Ended June 30, 2023 | Year Ended December 31, | |
Increase (Decrease) in Net Assets | (Unaudited) | 2022 |
Operations: | ||
Net investment income | $652,032 | $936,675 |
Net realized gain (loss) | 1,693,696 | 3,139,256 |
Change in net unrealized appreciation (depreciation) | 2,639,249 | (20,152,339 ) |
Net increase (decrease) in net assets resulting from operations | 4,984,977 | (16,076,408 ) |
Distributions to shareholders: | ||
Class A | (3,252,643 ) | (1,631,110 ) |
Class B | (744,290 ) | (353,137 ) |
Total distributions | (3,996,933 ) | (1,984,247 ) |
Fund share transactions: | ||
Class A | ||
Proceeds from shares sold | 1,171,673 | 3,556,679 |
Reinvestment of distributions | 3,252,643 | 1,631,110 |
Payments for shares redeemed | (5,051,375 ) | (8,973,908 ) |
Net increase (decrease) in net assets from Class A share transactions | (627,059 ) | (3,786,119 ) |
Class B | ||
Proceeds from shares sold | 549,324 | 1,142,137 |
Reinvestment of distributions | 744,290 | 353,137 |
Payments for shares redeemed | (1,505,238 ) | (3,381,561 ) |
Net increase (decrease) in net assets from Class B share transactions | (211,624 ) | (1,886,287 ) |
Increase (decrease) in net assets | 149,361 | (23,733,061 ) |
Net assets at beginning of period | 79,237,458 | 102,970,519 |
Net assets at end of period | $79,386,819 | $79,237,458 |
Other Information | ||
Class A | ||
Shares outstanding at beginning of period | 5,000,004 | 5,282,801 |
Shares sold | 90,557 | 260,559 |
Shares issued to shareholders in reinvestment of distributions | 271,506 | 119,671 |
Shares redeemed | (396,594 ) | (663,027 ) |
Net increase (decrease) in Class A shares | (34,531 ) | (282,797 ) |
Shares outstanding at end of period | 4,965,473 | 5,000,004 |
Class B | ||
Shares outstanding at beginning of period | 1,226,929 | 1,372,395 |
Shares sold | 42,514 | 83,227 |
Shares issued to shareholders in reinvestment of distributions | 61,972 | 25,852 |
Shares redeemed | (118,234 ) | (254,545 ) |
Net increase (decrease) in Class B shares | (13,748 ) | (145,466 ) |
Shares outstanding at end of period | 1,213,181 | 1,226,929 |
10 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Financial Highlights
DWS Small Mid Cap Value VIP — Class A | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.73 | $15.47 | $12.00 | $13.83 | $12.21 | $17.88 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .11 | .15 | .11 | .16 | .18 | .10 |
Net realized and unrealized gain (loss) | .66 | (2.57 ) | 3.54 | (.90 ) | 2.53 b | (2.47 ) |
Total from investment operations | .77 | (2.42 ) | 3.65 | (.74 ) | 2.71 | (2.37 ) |
Less distributions from: | ||||||
Net investment income | (.15 ) | (.12 ) | (.18 ) | (.16 ) | (.10 ) | (.24 ) |
Net realized gains | (.51 ) | (.20 ) | — | (.93 ) | (.99 ) | (3.06 ) |
Total distributions | (.66 ) | (.32 ) | (.18 ) | (1.09 ) | (1.09 ) | (3.30 ) |
Net asset value, end of period | $12.84 | $12.73 | $15.47 | $12.00 | $13.83 | $12.21 |
Total Return (%)c | 6.49 * | (15.80 ) | 30.50 | (1.80 ) | 22.76 b | (16.01 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 64 | 64 | 82 | 70 | 78 | 70 |
Ratio of expenses before expense reductions (%)d | .88 ** | .87 | .85 | .88 | .88 | .87 |
Ratio of expenses after expense reductions (%)d | .81 ** | .83 | .83 | .82 | .83 | .81 |
Ratio of net investment income (%) | 1.71 ** | 1.14 | .76 | 1.57 | 1.35 | .65 |
Portfolio turnover rate (%) | 13 * | 33 | 32 | 43 | 55 | 64 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 11 |
DWS Small Mid Cap Value VIP — Class B | ||||||
Six Months Ended 6/30/23 | Years Ended December 31, | |||||
(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $12.72 | $15.46 | $11.99 | $13.82 | $12.20 | $17.86 |
Income (loss) from investment operations: | ||||||
Net investment incomea | .09 | .10 | .06 | .13 | .13 | .05 |
Net realized and unrealized gain (loss) | .67 | (2.58 ) | 3.53 | (.90 ) | 2.53 b | (2.48 ) |
Total from investment operations | .76 | (2.48 ) | 3.59 | (.77 ) | 2.66 | (2.43 ) |
Less distributions from: | ||||||
Net investment income | (.11 ) | (.06 ) | (.12 ) | (.13 ) | (.05 ) | (.17 ) |
Net realized gains | (.51 ) | (.20 ) | — | (.93 ) | (.99 ) | (3.06 ) |
Total distributions | (.62 ) | (.26 ) | (.12 ) | (1.06 ) | (1.04 ) | (3.23 ) |
Net asset value, end of period | $12.86 | $12.72 | $15.46 | $11.99 | $13.82 | $12.20 |
Total Return (%)c | 6.32 * | (16.14 ) | 30.04 | (2.18 ) | 22.32 b | (16.32 ) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 16 | 16 | 21 | 17 | 17 | 15 |
Ratio of expenses before expense reductions (%)d | 1.24 ** | 1.24 | 1.22 | 1.25 | 1.25 | 1.24 |
Ratio of expenses after expense reductions (%)d | 1.18 ** | 1.20 | 1.20 | 1.19 | 1.19 | 1.16 |
Ratio of net investment income (%) | 1.35 ** | .77 | .40 | 1.21 | .99 | .30 |
Portfolio turnover rate (%) | 13 * | 33 | 32 | 43 | 55 | 64 |
a | Based on average shares outstanding during the period. |
b | Includes proceeds from a non-recurring litigation payment amounting to $0.14 per share and 1.07% of average daily net assets, for the year ended December 31, 2019. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Expense ratio does not reflect charges and fees associated with the separate account that invests in the Fund or any variable life insurance policy or variable annuity contract for which the Fund is an investment option. |
* | Not annualized |
** | Annualized |
12 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Notes to Financial Statements (Unaudited)
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 13 |
14 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
First $250 million of the Fund’s average daily net assets | .650% |
Next $750 million of such net assets | .620% |
Next $1.5 billion of such net assets | .600% |
Next $2.5 billion of such net assets | .580% |
Next $2.5 billion of such net assets | .550% |
Next $2.5 billion of such net assets | .540% |
Next $2.5 billion of such net assets | .530% |
Over $12.5 billion of such net assets | .520% |
Class A | .81% | |
Class B | 1.18% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 15 |
Class A | $21,478 |
Class B | 5,163 |
$26,641 |
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2023 |
Class A | $446 | $146 |
Class B | 352 | 120 |
$798 | $266 |
16 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 17 |
Other Information (Unaudited)
18 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Information About Your Fund’s Expenses (Unaudited)
Actual Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,064.90 | $1,063.20 |
Expenses Paid per $1,000* | $4.15 | $6.04 |
Hypothetical 5% Fund Return | Class A | Class B |
Beginning Account Value 1/1/23 | $1,000.00 | $1,000.00 |
Ending Account Value 6/30/23 | $1,020.78 | $1,018.94 |
Expenses Paid per $1,000* | $4.06 | $5.91 |
* | Expenses are equal to the Fund's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class B |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | .81% | 1.18% |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 19 |
Liquidity Risk Management
20 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Advisory Agreement Board Considerations and Fee Evaluation
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 21 |
22 | | Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP |
Deutsche DWS Variable Series II — DWS Small Mid Cap Value VIP | | 23 |
(b) Not applicable | ||
ITEM 2. | CODE OF ETHICS | |
Not applicable. | ||
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT | |
Not applicable | ||
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | |
Not applicable | ||
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Not applicable | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | Deutsche DWS Variable Series II |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/15/2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 8/15/2023 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 8/15/2023 |