UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number: 811-06071
Deutsche DWS Institutional Funds
(Exact Name of Registrant as Specified in Charter)
345 Park Avenue
New York, NY 10154-0004
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code:(212) 250-2500
Diane Kenneally
One International Place
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 6/30/2019 |
ITEM 1. | REPORT TO STOCKHOLDERS |
Table of Contents
June 30, 2019
Semiannual Report
to Shareholders
DWS S&P 500 Index Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s Web site (dws.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank), or if you are a direct investor, by calling (800) 728-3337 or sending an email request to service@dws.com.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call (800) 728-3337 or send an email request to service@dws.com to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with DWS if you invest directly with the Fund.
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| Deutsche DWS Equity 500 Index Portfolio | |||
24 | Investment Portfolio | |||
41 | Statement of Assets and Liabilities | |||
42 | Statement of Operations | |||
43 | Statements of Changes in Net Assets | |||
44 | Financial Highlights | |||
45 | Notes to Financial Statements | |||
52 | Advisory Agreement Board Considerations and Fee Evaluation | |||
57 | Account Management Resources | |||
59 | Privacy Statement |
This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the Fund’s objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the Fund. Please read the prospectus carefully before you invest.
Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Various factors, including costs, cash flows and security selection, may cause the fund’s performance to differ from that of the index. The Fund may lend securities to approved institutions. Stocks may decline in value. Please read the prospectus for details.
This Fund is not sponsored, endorsed, sold, nor promoted by Standard & Poor’s®, and Standard & Poor’s makes no representation regarding the advisability of investing in the portfolio.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Dear Shareholder:
Despite shifting political sands — most notably the trade negotiations between China and the United States (the “U.S.”) — the economy continues to be resilient. A robust labor market, strong home sales, consumer confidence and other key metrics indicate that the underpinnings of the economy remain intact.
Looking ahead, while our Americas Chief Investment Officer (“CIO”) believes the U.S.-China trade conflict mayde-escalate over the coming months, he notes that it is most likely to weigh on manufacturing activity. Since certain aspects of the conflict, such as intellectual property protection and other China reforms, will not happen quickly, the conflict could prolong into the second half of the year. In any event, uncertainty may well lead to continued market volatility. Against this backdrop, we see little near-term impetus for a resurgence in growth in the emerging markets beyond the stimulus efforts that are already underway in China.
Of course, these issues and their potential implications around the world bear close watching. Our CIO Office and global network of analysts diligently monitor these matters to determine when and what, if any, strategic or tactical adjustments are warranted. We invite you to access these views often to understand the changing landscape and, most important, what it may mean for you.
While our diverse expertise in Active, Passive and Alternatives asset management — as well as our deep environmental, social and governance focus — complement each other when creating targeted investment strategies for our clients, theon-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach. We are local while being one global team with approximately 3,600 employees in offices all over the world. As always, we urge you to visit the “Insights” section of our Web site, dws.com, to review our most current market and economic perspectives.
Best regards,
Hepsen Uzcan
President, DWS Funds |
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. There is no assurance provided that any investment objective will be achieved.
DWS S&P 500 Index Fund | | | 3 |
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Performance Summary | June 30, 2019 (Unaudited) |
Class A | 6-Month‡ | 1-Year | 5-Year | 10-Year | ||||||||||||
Average Annual Total Returnsas of 6/30/19 | ||||||||||||||||
Unadjusted for Sales Charge | 18.21% | 10.25% | 10.12% | 14.04% | ||||||||||||
Adjusted for the Maximum Sales Charge (max 4.50% load) | 12.89% | 5.29% | 9.11% | 13.52% | ||||||||||||
S&P 500® Index† | 18.54% | 10.42% | 10.71% | 14.70% | ||||||||||||
Class C | 6-Month‡ | 1-Year | 5-Year | 10-Year | ||||||||||||
Average Annual Total Returnsas of 6/30/19 | ||||||||||||||||
Unadjusted for Sales Charge | 17.79% | 9.45% | 9.35% | 13.24% | ||||||||||||
Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | 16.79% | 9.45% | 9.35% | 13.24% | ||||||||||||
S&P 500® Index† | 18.54% | 10.42% | 10.71% | 14.70% | ||||||||||||
Class R6 | 6-Month‡ | 1-Year | Life of Class* | |||||||||||||
Average Annual Total Returnsas of 6/30/19 | ||||||||||||||||
No Sales Charges | 18.41% | 10.57% | 12.37% | |||||||||||||
S&P 500® Index† | 18.54% | 10.42% | 12.32% | |||||||||||||
Class S | 6-Month‡ | 1-Year | 5-Year | 10-Year | ||||||||||||
Average Annual Total Returnsas of 6/30/19 | ||||||||||||||||
No Sales Charges | 18.40% | 10.52% | 10.42% | 14.37% | ||||||||||||
S&P 500® Index† | 18.54% | 10.42% | 10.71% | 14.70% |
Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Fund’s most recentmonth-end performance. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.
The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated May 1, 2019 are 0.57%, 1.28%, 0.24% and 0.32% for Class A, Class C, Class R6 and Class S shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.
Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) |
The Fund’s growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 4.50%. This results in a net initial investment of $9,550.
The growth of $10,000 is cumulative.
Performance of other share classes will vary based on the sales charges and the fee structure of those classes.
* | Class R6 shares commenced operations on March 31, 2017. |
† | The Standard & Poor’s 500 (S&P 500) Index is an unmanaged,capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. “Standard & Poor’s,” “S&P 500,” “Standard & Poor’s 500” and “500” are trademarks of TheMcGraw-Hill Companies Inc., and have been licensed for use by the Fund’s investment advisor. |
‡ | Total returns shown for periods less than one year are not annualized. |
DWS S&P 500 Index Fund | | | 5 |
Table of Contents
Brent Reeder. Senior Vice President of Northern Trust Investments, Inc.
Portfolio Manager of the Fund. Began managing the Fund in 2007.
— | Joined Northern Trust Investments, Inc. in 1993 and is responsible for the management of quantitative equity portfolios. |
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Ten Largest Equity Holdings at June 30, 2019 (22.4% of Net Assets) | ||||||
1 | Microsoft Corp. | 4.1% | ||||
Develops, manufactures, licenses, sells and supports software products | ||||||
2 | Apple, Inc. | 3.5% | ||||
Designs, manufactures and markets personal computers and related computingand mobile communication devices | ||||||
3 | Amazon.com, Inc. | 3.1% | ||||
Online retailer offering a wide range of products | ||||||
4 | Alphabet, Inc. | 2.6% | ||||
Holding company with subsidiaries that provide web-based search, hardware products and various software applications | ||||||
5 | Facebook, Inc. | 1.9% | ||||
Operates a social networking web site | ||||||
6 | Berkshire Hathaway, Inc. | 1.7% | ||||
Holding company of insurance business and a variety of other businesses | ||||||
7 | Johnson & Johnson | 1.5% | ||||
Provider of health care products | ||||||
8 | JPMorgan Chase & Co. | 1.5% | ||||
Provider of global financial services | ||||||
9 | Exxon Mobil Corp. | 1.3% | ||||
Explorer and producer of oil and gas | ||||||
10 | Visa, Inc. | 1.2% | ||||
Operates a retail electronic payments network and manages global financial services |
Portfolio holdings and characteristics are subject to change.
DWS S&P 500 Index Fund (the “Fund”) is a feeder fund that invests substantially all of its assets in a “master portfolio,” the Deutsche DWS Equity 500 Index Portfolio (the “Portfolio”), and owns a pro rata interest in the Portfolio’s net assets. The Asset Allocation, Sector Diversification and Ten Largest Equity Holdings at June 30, 2019 are based on the holdings of Deutsche DWS Equity 500 Index Portfolio.
For more complete details about the Portfolio’s investment portfolio, see page 24. A quarterly Fact Sheet is available on dws.com or upon request. Please see the Account Management Resources section on page 57 for contact information.
DWS S&P 500 Index Fund | | | 7 |
Table of Contents
Statement of Assets and Liabilities
as of June 30, 2019 (Unaudited) | ||||
Assets | ||||
Investments in Deutsche DWS Equity 500 Index Portfolio, at value | $ | 1,005,938,729 | ||
Receivable for Fund shares sold | 2,240,581 | |||
Other assets | 34,273 | |||
Total assets | 1,008,213,583 | |||
Liabilities | ||||
Payable for Fund shares redeemed | 3,030,066 | |||
Accrued Trustees’ fees | 1,297 | |||
Other accrued expenses and payables | 456,743 | |||
Total liabilities | 3,488,106 | |||
Net assets, at value | $ | 1,004,725,477 | ||
Net Assets Consist of | ||||
Distributable earnings (loss) | 659,214,318 | |||
Paid-in capital | 345,511,159 | |||
Net assets, at value | $ | 1,004,725,477 | ||
Net Asset Value | ||||
Class A | ||||
Net Asset Value and redemption price per share ($184,940,267 ÷ 5,873,036 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ | 31.49 | ||
Maximum offering price per share (100 ÷ 95.50 of $31.49) | $ | 32.97 | ||
Class C | ||||
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($81,001,958 ÷ 2,578,272 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ | 31.42 | ||
Class R6 | ||||
Net Asset Value, offering and redemption price per share ($8,289,097 ÷ 262,629 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ | 31.56 | ||
Class S | ||||
Net Asset Value, offering and redemption price per share ($730,494,155 ÷ 23,148,979 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ | 31.56 |
The accompanying notes are an integral part of the financial statements.
8 | | | DWS S&P 500 Index Fund |
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for the six months ended June 30, 2019 (Unaudited) | ||||
Investment Income | ||||
Income and expenses allocated from Deutsche DWS Equity 500 Index Portfolio: | ||||
Dividends (net of foreign taxes withheld of $33,606) | $ | 9,790,920 | ||
Interest | 16,457 | |||
Income distributions — DWS Central Cash Management Government Fund | 119,841 | |||
Securities lending income, net of borrower rebates | 12,201 | |||
Expenses | (495,834 | ) | ||
Net investment income allocated from Deutsche DWS Equity 500 Index Portfolio | 9,443,585 | |||
Expenses: | ||||
Administration fee | 479,972 | |||
Services to shareholders | 510,397 | |||
Distribution and service fees | 601,199 | |||
Professional fees | 26,608 | |||
Reports to shareholders | 36,849 | |||
Registration fees | 29,204 | |||
Trustees’ fees and expenses | 2,897 | |||
Other | 6,872 | |||
Total expenses before expense reductions | 1,693,998 | |||
Expense reductions | (46,716 | ) | ||
Total expenses after expense reductions | 1,647,282 | |||
Net investment income (loss) | 7,796,303 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) allocated from Deutsche DWS Equity 500 Index Portfolio: | ||||
Investments | 23,311,201 | |||
Futures | 1,903,100 | |||
25,214,301 | ||||
Change in net unrealized appreciation (depreciation) allocated from Deutsche DWS Equity 500 Index Portfolio: | ||||
Investments | 126,286,075 | |||
Futures | (413,434 | ) | ||
125,872,641 | ||||
Net gain (loss) | 151,086,942 | |||
Net increase (decrease) in net assets resulting from operations | $ | 158,883,245 |
The accompanying notes are an integral part of the financial statements.
DWS S&P 500 Index Fund | | | 9 |
Table of Contents
Statements of Changes in Net Assets
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | ||||||
Operations: | ||||||||
Net investment income (loss) | $ | 7,796,303 | $ | 15,547,085 | ||||
Net realized gain (loss) | 25,214,301 | 105,217,038 | ||||||
Change in net unrealized appreciation (depreciation) | 125,872,641 | (158,559,244 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 158,883,245 | (37,795,121 | ) | |||||
Distributions to shareholders: | ||||||||
Class A | (2,790,986 | ) | (12,369,728 | ) | ||||
Class C | (917,554 | ) | (4,757,452 | ) | ||||
Class R6 | (135,466 | ) | (701,638 | ) | ||||
Class S | (11,678,358 | ) | (49,116,261 | ) | ||||
Total distributions | (15,522,364 | ) | (66,945,079 | ) | ||||
Fund share transactions: | ||||||||
Proceeds from shares sold | 36,435,196 | 96,400,855 | ||||||
Reinvestment of distributions | 14,566,516 | 62,779,041 | ||||||
Payments for shares redeemed | (67,795,999 | ) | (188,692,212 | ) | ||||
Net increase (decrease) in net assets from Fund share transactions | (16,794,287 | ) | (29,512,316 | ) | ||||
Increase (decrease) in net assets | 126,566,594 | (134,252,516 | ) | |||||
Net assets at beginning of period | 878,158,883 | 1,012,411,399 | ||||||
Net assets at end of period | $ | 1,004,725,477 | $ | 878,158,883 |
The accompanying notes are an integral part of the financial statements.
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Six Months Ended 6/30/19 | Years Ended December 31, | |||||||||||||||||||||||||
Class A | (Unaudited) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||||||||
Net asset value, beginning of period | $27.04 | $30.50 | $26.69 | $25.20 | $25.99 | $24.50 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment incomea | .22 | .45 | .42 | .42 | .38 | .36 | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 4.70 | (1.79 | )d | 5.16 | 2.39 | (.17 | ) | 2.73 | ||||||||||||||||||
Total from investment operations | 4.92 | (1.34 | ) | 5.58 | 2.81 | .21 | 3.09 | |||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (.20 | ) | (.40 | ) | (.43 | ) | (.42 | ) | (.27 | ) | (.38 | ) | ||||||||||||||
Net realized gains | (.27 | ) | (1.72 | ) | (1.34 | ) | (.90 | ) | (.73 | ) | (1.22 | ) | ||||||||||||||
Total distributions | (.47 | ) | (2.12 | ) | (1.77 | ) | (1.32 | ) | (1.00 | ) | (1.60 | ) | ||||||||||||||
Net asset value, end of period | $31.49 | $27.04 | $30.50 | $26.69 | $25.20 | $25.99 | ||||||||||||||||||||
Total Return (%)b | 18.21 | c** | (4.55 | )d | 21.09 | 11.18 | c | .82 | 12.91 | c | ||||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||||||||
Net assets, end of period ($ millions) | 185 | 166 | 199 | 192 | 219 | 233 | ||||||||||||||||||||
Ratio of expenses before expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .58 | * | .57 | .59 | .61 | .64 | .65 | |||||||||||||||||||
Ratio of expenses after expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .57 | * | .57 | .59 | .61 | .64 | .65 | |||||||||||||||||||
Ratio of net investment income (%) | 1.50 | * | 1.44 | 1.45 | 1.63 | 1.47 | 1.40 | |||||||||||||||||||
Portfolio turnover rate for Deutsche DWS Equity 500 Index Portfolio (%) | 1 | ** | 3 | 6 | 3 | 3 | 2 |
a | Based on average shares outstanding during the period. |
b | Total return does not reflect the effect of any sales charges. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Includes a reimbursement from the sub-advisor to reimburse the effect of a loss incurred as a result of an operational error. The impact of this reimbursement amounted to $0.09 per share. Excluding this reimbursement, total return would have been .30% lower. |
* | Annualized |
** | Not annualized |
The accompanying notes are an integral part of the financial statements.
DWS S&P 500 Index Fund | | | 11 |
Table of Contents
Six Months Ended 6/30/19 | Years Ended December 31, | |||||||||||||||||||||||||
Class C | (Unaudited) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||||||||
Net asset value, beginning of period | $26.98 | $30.43 | $26.64 | $25.15 | $25.95 | $24.47 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment incomea | .11 | .22 | .21 | .24 | .21 | .18 | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 4.69 | (1.77 | )c | 5.14 | 2.38 | (.18 | ) | 2.73 | ||||||||||||||||||
Total from investment operations | 4.80 | (1.55 | ) | 5.35 | 2.62 | .03 | 2.91 | |||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (.09 | ) | (.18 | ) | (.22 | ) | (.23 | ) | (.10 | ) | (.21 | ) | ||||||||||||||
Net realized gains | (.27 | ) | (1.72 | ) | (1.34 | ) | (.90 | ) | (.73 | ) | (1.22 | ) | ||||||||||||||
Total distributions | (.36 | ) | (1.90 | ) | (1.56 | ) | (1.13 | ) | (.83 | ) | (1.43 | ) | ||||||||||||||
Net asset value, end of period | $31.42 | $26.98 | $30.43 | $26.64 | $25.15 | $25.95 | ||||||||||||||||||||
Total Return (%)b | 17.79 | ** | (5.22 | )c | 20.20 | 10.44 | .10 | 12.13 | ||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||||||||
Net assets, end of period ($ millions) | 81 | 70 | 92 | 69 | 58 | 51 | ||||||||||||||||||||
Ratio of expenses including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | 1.32 | * | 1.28 | 1.30 | 1.31 | 1.32 | 1.33 | |||||||||||||||||||
Ratio of net investment income (%) | .75 | * | .72 | .74 | .93 | .79 | .72 | |||||||||||||||||||
Portfolio turnover rate for Deutsche DWS Equity 500 Index Portfolio (%) | 1 | ** | 3 | 6 | 3 | 3 | 2 |
a | Based on average shares outstanding during the period. |
b | Total return does not reflect the effect of any sales charges. |
c | Includes a reimbursement from the sub-advisor to reimburse the effect of a loss incurred as a result of an operational error. The impact of this reimbursement amounted to $0.09 per share. Excluding this reimbursement, total return would have been .30% lower. |
* | Annualized |
** | Not annualized |
The accompanying notes are an integral part of the financial statements.
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Six Months Ended 6/30/19 | Year Ended | Period Ended | ||||||||||||
Class R6 | (Unaudited) | 12/31/18 | 12/31/17a | |||||||||||
Selected Per Share Data | ||||||||||||||
Net asset value, beginning of period | $27.10 | $30.55 | $28.24 | |||||||||||
Income (loss) from investment operations: | ||||||||||||||
Net investment incomeb | .27 | .58 | .38 | |||||||||||
Net realized and unrealized gain | 4.71 | (1.81 | )e | 3.68 | ||||||||||
Total from investment operations | 4.98 | (1.23 | ) | 4.06 | ||||||||||
Less distributions from: | ||||||||||||||
Net investment income | (.25 | ) | (.50 | ) | (.41 | ) | ||||||||
Net realized gains | (.27 | ) | (1.72 | ) | (1.34 | ) | ||||||||
Total distributions | (.52 | ) | (2.22 | ) | (1.75 | ) | ||||||||
Net asset value, end of period | $31.56 | $27.10 | $30.55 | |||||||||||
Total Return (%) | 18.41 | ** | (4.22 | )e | 14.53 | c** | ||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||
Net assets, end of period ($ millions) | 8 | 11 | .05 | |||||||||||
Ratio of expenses before expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .24 | * | .24 | .40 | * | |||||||||
Ratio of expenses after expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .24 | * | .24 | .35 | * | |||||||||
Ratio of net investment income (%) | 1.82 | * | 1.83 | 1.67 | * | |||||||||
Portfolio turnover rate for Deutsche DWS Equity 500 Index Portfolio (%) | 1 | ** | 3 | 6 | d |
a | For the period from March 31, 2017 (commencement of operations) to December 31, 2017. |
b | Based on average shares outstanding during the period. |
c | Total return would have been lower had certain expenses not been reduced. |
d | Represents the Deutsche DWS Equity 500 Index Portfolio’s turnover rate for the year ended December 31, 2017. |
e | Includes a reimbursement from the sub-advisor to reimburse the effect of a loss incurred as a result of an operational error. The impact of this reimbursement amounted to $0.09 per share. Excluding this reimbursement, total return would have been .30% lower. |
* | Annualized |
** | Not annualized |
The accompanying notes are an integral part of the financial statements.
DWS S&P 500 Index Fund | | | 13 |
Table of Contents
Six Months Ended 6/30/19 | Years Ended December 31, | |||||||||||||||||||||||||
Class S | (Unaudited) | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Selected Per Share Data | ||||||||||||||||||||||||||
Net asset value, beginning of period | $27.09 | $30.56 | $26.75 | $25.25 | $26.05 | $24.56 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment incomea | .26 | .53 | .49 | .49 | .46 | .44 | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 4.72 | (1.80 | )b | 5.17 | 2.40 | (.18 | ) | 2.73 | ||||||||||||||||||
Total from investment operations | 4.98 | (1.27 | ) | 5.66 | 2.89 | .28 | 3.17 | |||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (.24 | ) | (.48 | ) | (.51 | ) | (.49 | ) | (.35 | ) | (.46 | ) | ||||||||||||||
Net realized gains | (.27 | ) | (1.72 | ) | (1.34 | ) | (.90 | ) | (.73 | ) | (1.22 | ) | ||||||||||||||
Total distributions | (.51 | ) | (2.20 | ) | (1.85 | ) | (1.39 | ) | (1.08 | ) | (1.68 | ) | ||||||||||||||
Net asset value, end of period | $31.56 | $27.09 | $30.56 | $26.75 | $25.25 | $26.05 | ||||||||||||||||||||
Total Return (%) | 18.40 | c** | (4.33 | )b | 21.38 | 11.52 | 1.09 | 13.25 | ||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||||||||
Net assets, end of period ($ millions) | 730 | 632 | 722 | 635 | 615 | 651 | ||||||||||||||||||||
Ratio of expenses before expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .33 | * | .32 | .34 | .33 | .34 | .34 | |||||||||||||||||||
Ratio of expenses after expense reductions, including expenses allocated from Deutsche DWS Equity 500 Index Portfolio (%) | .32 | * | .32 | .34 | .33 | .34 | .34 | |||||||||||||||||||
Ratio of net investment income (%) | 1.75 | * | 1.69 | 1.70 | 1.90 | 1.76 | 1.70 | |||||||||||||||||||
Portfolio turnover rate for Deutsche DWS Equity 500 Index Portfolio (%) | 1 | ** | 3 | 6 | 3 | 3 | 2 |
a | Based on average shares outstanding during the period. |
b | Includes a reimbursement from the sub-advisor to reimburse the effect of a loss incurred as a result of an operational error. The impact of this reimbursement amounted to $0.09 per share. Excluding this reimbursement, total return would have been .30% lower. |
c | Total return would have been lower had certain expenses not been reduced. |
* | Annualized |
** | Not annualized |
The accompanying notes are an integral part of the financial statements.
14 | | | DWS S&P 500 Index Fund |
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Notes to Financial Statements | (Unaudited) |
A. Organization and Significant Accounting Policies
DWS S&P 500 Index Fund (the “Fund”) is a diversified series of the Deutsche DWS Institutional Funds (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company organized as a Massachusetts business trust.
The Fund, a feeder fund, seeks to achieve its investment objective by investing all of its investable assets in a master portfolio, Deutsche DWS Equity 500 Index Portfolio (the “Portfolio”), a diversifiedopen-end management investment company registered under the 1940 Act and organized as a New York trust advised by DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”). A master/feeder fund structure is one in which a fund (a “feeder fund”), instead of investing directly in a portfolio of securities, invests most or all of its investment assets in a separate registered investment company (the “master fund”) with substantially the same investment objective and policies as the feeder fund. Such a structure permits the pooling of assets of two or more feeder funds, preserving separate identities or distribution channels at the feeder fund level. On June 30, 2019, the Fund owned approximately 62% of the Portfolio.
The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are subject to an initial sales charge. Class C shares are not subject to an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class C shares automatically convert to Class A shares in the same fund after 10 years, provided that the fund or the financial intermediary through which the shareholder purchased the Class C shares has records verifying that the Class C shares have been held for at least 10 years. Class R6 shares are not subject to initial or contingent deferred sales charges and are generally available only to certain retirement plans. Class S shares are not subject to initial or contingent deferred sales charges and are only available to a limited group of investors.
Investment income, realized and unrealized gains and losses and certainfund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and services fees, services to shareholders and certain otherclass-specific expenses. Differences inclass-level expenses may
DWS S&P 500 Index Fund | | | 15 |
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result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject toclass-specific arrangements.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements. The financial statements of the Portfolio, including the Investment Portfolio, are contained elsewhere in this report and should be read in conjunction with the Fund’s financial statements.
Security Valuation. The Fund records its investment in the Portfolio at value, which reflects its proportionate interest in the net assets of the Portfolio and is categorized as Level 1. Valuation of the securities held by the Portfolio is discussed in the notes to the Portfolio’s financial statements included elsewhere in this report.
Disclosure about the classification of fair value measurements is included in a table following the Portfolio’s Investment Portfolio.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
The Fund has reviewed the tax positions for the open tax years as of December 31, 2018, and has determined that no provision for income tax and/or uncertain tax provisions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income and Gains. Distributions from net investment income of the Fund are declared and distributed to shareholders quarterly. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The Fund may also make additional distributions for tax purposes if necessary.
The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in futures contracts and certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss)
16 | | | DWS S&P 500 Index Fund |
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on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
Other. The Fund receives a daily allocation of the Portfolio’s income, expenses and net realized and unrealized gains and losses in proportion to its investment in the Portfolio. Expenses directly attributed to a fund are charged to that fund, while expenses which are attributable to the Trust are allocated among the funds in the Trust on the basis of relative net assets.
B. Related Parties
Management Agreement. Under its Investment Management Agreement with the Fund, the Advisor serves as investment manager to the Fund. The Advisor receives a management fee from the Portfolio pursuant to the master/feeder structure noted above in Note A.
Pursuant to the Investment Management Agreement, the Fund pays no management fee to the Advisor so long as the Fund is a feeder fund that invests substantially all of its assets in the Portfolio. In the event the Board of Trustees determines it is in the best interests of the Fund to withdraw its investment from the Portfolio, the Advisor may become responsible for directly managing the assets of the Fund under the Investment Management Agreement. In such event, the Fund would pay the Advisor an annual fee (exclusive of any applicable waivers/reimbursements) of 0.15% of the Fund’s average daily net assets, accrued daily and payable monthly.
For the period January 1, 2019 through April 30, 2020, the Advisor has contractually agreed to waive its fees and/or reimburse fund expenses, including expenses of the Portfolio allocated to the Fund, to the extent necessary to maintain the total annual operating expenses (excluding
DWS S&P 500 Index Fund | | | 17 |
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certain expenses such as extraordinary expenses, taxes, brokerage and interest expense) of each class as follows:
Class A | .57% | |||
Class C | 1.32% | |||
Class R6 | .32% | |||
Class S | .32% |
For the six months ended June 30, 2019, fees waived and/or expenses reimbursed for each class are as follows:
Class A | $ | 8,193 | ||
Class S | 38,523 | |||
$ | 46,716 |
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2019, the Administration Fee was $479,972, of which $81,173 is unpaid.
Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent,dividend-paying agent and shareholder service agent of the Fund. Pursuant to asub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent,dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended June 30, 2019, the amounts charged to the Fund by DSC were as follows:
Services to Shareholders | Total Aggregated | Unpaid at June 30, 2019 | ||||||
Class A | $ | 16,698 | $ | 5,447 | ||||
Class C | 2,217 | 465 | ||||||
Class R6 | 199 | 72 | ||||||
Class S | 165,217 | 55,076 | ||||||
$ | 184,331 | $ | 61,060 |
In addition, for the six months ended June 30, 2019, the amounts charged to the Fund for recordkeeping and other administrative services provided
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by unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
Sub-Recordkeeping | Total Aggregated | |||
Class A | $ | 74,027 | ||
Class C | 29,040 | |||
Class S | 156,067 | |||
$ | 259,134 |
Distribution and Service Agreement. Under the Fund’s Class C12b-1 Plan, DWS Distributors, Inc. (“DDI”), a subsidiary of the Advisor, receives a fee (“Distribution Fee”) of 0.75% of average daily net assets of Class C shares. In accordance with the Fund’s Underwriting and Distribution Services Agreement, DDI enters into related selling group agreements with various firms at various rates for sales of Class C shares. For the six months ended June 30, 2019, the Distribution Fee was as follows:
Distribution Fee | Total Aggregated | Unpaid at June 30, 2019 | ||||||
Class C | $ | 288,332 | $ | 49,041 |
In addition, DDI provides information and administrative services for a fee (“Service Fee”) to Class A and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended June 30, 2019, the Service Fee was as follows:
Service Fee | Total Aggregated | Unpaid at June 30, 2019 | Annualized Rate | |||||||||
Class A | $ | 216,949 | $ | 72,854 | .24 | % | ||||||
Class C | 95,918 | 32,275 | .25 | % | ||||||||
$ | 312,867 | $ | 105,129 |
Underwriting Agreement and Contingent Deferred Sales Charge. DDI is the principal underwriter for the Fund. Underwriting commissions paid to DDI in connection with the distribution of Class A shares for the six months ended June 30, 2019 aggregated $6,170.
In addition, DDI receives any contingent deferred sales charge (“CDSC”) from Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is 1% of the value of the shares redeemed for Class C. For the six months ended June 30, 2019, the CDSC for Class C shares aggregated $6,556. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the six months ended June 30, 2019, DDl received $198 for Class A shares.
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Typesetting and Filing Service Fees. Under an agreement with the Fund, DIMA is compensated for providing certainpre-press and regulatory filing services to the Fund. For the six months ended June 30, 2019, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” aggregated $11,676, all of which is unpaid.
Trustees’ Fees and Expenses. The Fund paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
C. Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Shares sold |
| |||||||||||||||
Class A | 386,120 | $ | 11,584,299 | 1,221,814 | $ | 37,455,439 | ||||||||||
Class C | 200,409 | 5,973,465 | 370,977 | 11,513,683 | ||||||||||||
Class R6 | 27,098 | 812,231 | 388,295 | 12,083,581 | ||||||||||||
Class S | 593,388 | 18,065,201 | 1,131,032 | 35,348,152 | ||||||||||||
$ | 36,435,196 | $ | 96,400,855 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
Class A | 82,003 | $ | 2,564,330 | 402,732 | $ | 11,291,397 | ||||||||||
Class C | 28,547 | 894,122 | 166,132 | 4,612,453 | ||||||||||||
Class R6 | 4,327 | 135,466 | 25,144 | 701,638 | ||||||||||||
Class S | 350,403 | 10,972,598 | 1,638,577 | 46,173,553 | ||||||||||||
$ | 14,566,516 | $ | 62,779,041 | |||||||||||||
Shares redeemed |
| |||||||||||||||
Class A | (733,948 | ) | $ | (22,236,301 | ) | (2,001,472 | ) | $ | (61,718,983 | ) | ||||||
Class C | (242,582 | ) | (7,297,147 | ) | (966,805 | ) | (30,252,168 | ) | ||||||||
Class R6 | (158,958 | ) | (4,522,203 | ) | (24,998 | ) | (796,784 | ) | ||||||||
Class S | (1,110,505 | ) | (33,740,348 | ) | (3,068,411 | ) | (95,924,277 | ) | ||||||||
$ | (67,795,999 | ) | $ | (188,692,212 | ) | |||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Net Increase (decrease) |
| |||||||||||||||
Class A | (265,825 | ) | $ | (8,087,672 | ) | (376,926 | ) | $ | (12,972,147 | ) | ||||||
Class C | (13,626 | ) | (429,560 | ) | (429,696 | ) | (14,126,032 | ) | ||||||||
Class R6 | (127,533 | ) | (3,574,506 | ) | 388,441 | 11,988,435 | ||||||||||
Class S | (166,714 | ) | (4,702,549 | ) | (298,802 | ) | (14,402,572 | ) | ||||||||
$ | (16,794,287 | ) | $ | (29,512,316 | ) |
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Information About Your Fund’s Expenses
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service(12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads) and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six months period, the Fund limited these expense for Class A and Class S; had they not done so expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of thesix-month period and held for the entire period (January 1, 2019 to June 30, 2019).
The tables illustrate your Fund’s expenses in two ways:
– | Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold. |
– | Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. |
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Classes A, C and S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of expenses paid for Classes A, C and S shares during the period would be higher, and account value during the period would be lower, by this amount.
DWS S&P 500 Index Fund | | | 21 |
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Expenses and Value of a $1,000 Investment for the six months ended June 30, 2019 (Unaudited) | ||||||||||||||||
Actual Fund Return* | Class A | Class C | Class R6 | Class S | ||||||||||||
Beginning Account Value 1/1/19 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 6/30/19 | $ | 1,182.10 | $ | 1,177.90 | $ | 1,184.10 | $ | 1,184.00 | ||||||||
Expenses Paid per $1,000** | $ | 3.08 | $ | 7.13 | $ | 1.30 | $ | 1.73 | ||||||||
Hypothetical 5% Fund Return | Class A | Class C | Class R6 | Class S | ||||||||||||
Beginning Account Value 1/1/19 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||
Ending Account Value 6/30/19 | $ | 1,021.97 | $ | 1,018.25 | $ | 1,023.60 | $ | 1,023.21 | ||||||||
Expenses Paid per $1,000** | $ | 2.86 | $ | 6.61 | $ | 1.20 | $ | 1.61 |
* | Expenses include amounts allocated proportionally from the master portfolio. |
** | 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 recentsix-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class C | Class R6 | Class S | ||||||||||||
DWS S&P 500 Index Fund | .57 | % | 1.32 | % | .24 | % | .32 | % |
For more information, please refer to the Fund’s prospectuses.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
22 | | | DWS S&P 500 Index Fund |
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(The following financial statements of the
Deutsche DWS Equity 500 Index Portfolio should be read in
conjunction with the Fund’s financial statements.)
Deutsche DWS Equity 500 Index Portfolio | | | 23 |
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Investment Portfolio | as of June 30, 2019 (Unaudited) |
Shares | Value ($) | |||||||
Common Stocks 98.2% | ||||||||
Communication Services 10.0% | ||||||||
Diversified Telecommunication Services 2.0% | ||||||||
AT&T, Inc. | 478,078 | 16,020,394 | ||||||
CenturyLink, Inc. | 63,470 | 746,407 | ||||||
Verizon Communications, Inc. | 270,926 | 15,478,002 | ||||||
|
| |||||||
32,244,803 | ||||||||
Entertainment 2.0% | ||||||||
Activision Blizzard, Inc. | 50,198 | 2,369,346 | ||||||
Electronic Arts, Inc.* | 19,442 | 1,968,697 | ||||||
Netflix, Inc.* | 28,646 | 10,522,249 | ||||||
Take-Two Interactive Software, Inc.* | 7,474 | 848,523 | ||||||
Viacom, Inc. “B” | 23,128 | 690,833 | ||||||
Walt Disney Co. | 114,357 | 15,968,811 | ||||||
|
| |||||||
32,368,459 | ||||||||
Interactive Media & Services 4.6% | ||||||||
Alphabet, Inc. “A”* | 19,618 | 21,242,371 | ||||||
Alphabet, Inc. “C”* | 20,079 | 21,703,592 | ||||||
Facebook, Inc. “A”* | 157,406 | 30,379,358 | ||||||
TripAdvisor, Inc.* | 6,877 | 318,336 | ||||||
Twitter, Inc.* | 47,768 | 1,667,103 | ||||||
|
| |||||||
75,310,760 | ||||||||
Media 1.4% | ||||||||
CBS Corp. “B” | 23,078 | 1,151,592 | ||||||
Charter Communications, Inc. “A”* | 11,268 | 4,452,888 | ||||||
Comcast Corp. “A” | 296,698 | 12,544,392 | ||||||
Discovery, Inc. “C”* | 23,286 | 662,487 | ||||||
Discovery, Inc. “A”* | 10,392 | 319,034 | ||||||
DISH Network Corp. “A”* | 14,901 | 572,347 | ||||||
Fox Corp. “A” | 23,394 | 857,156 | ||||||
Fox Corp. “B” | 10,837 | 395,876 | ||||||
Interpublic Group of Companies, Inc. | 25,820 | 583,274 | ||||||
News Corp. “A” | 25,299 | 341,284 | ||||||
News Corp. “B” | 8,422 | 117,571 | ||||||
Omnicom Group, Inc. | 14,417 | 1,181,473 | ||||||
|
| |||||||
23,179,374 | ||||||||
Consumer Discretionary 10.0% | ||||||||
Auto Components 0.1% | ||||||||
Aptiv PLC | 16,964 | 1,371,200 | ||||||
BorgWarner, Inc. | 13,410 | 562,952 | ||||||
|
| |||||||
1,934,152 |
The accompanying notes are an integral part of the financial statements.
24 | | | Deutsche DWS Equity 500 Index Portfolio |
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Shares | Value ($) | |||||||
Automobiles 0.4% | ||||||||
Ford Motor Co. | 256,938 | 2,628,476 | ||||||
General Motors Co. | 86,402 | 3,329,069 | ||||||
Harley-Davidson, Inc. | 10,331 | 370,160 | ||||||
|
| |||||||
6,327,705 | ||||||||
Distributors 0.1% | ||||||||
Genuine Parts Co. | 9,673 | 1,001,929 | ||||||
LKQ Corp.* | 20,506 | 545,665 | ||||||
|
| |||||||
1,547,594 | ||||||||
Diversified Consumer Services 0.0% | ||||||||
H&R Block, Inc. | 13,181 | 386,203 | ||||||
Hotels, Restaurants & Leisure 1.9% | ||||||||
Carnival Corp. | 26,425 | 1,230,084 | ||||||
Chipotle Mexican Grill, Inc.* | 1,612 | 1,181,403 | ||||||
Darden Restaurants, Inc. | 8,043 | 979,074 | ||||||
Hilton Worldwide Holdings, Inc. | 19,053 | 1,862,240 | ||||||
Marriott International, Inc. “A” | 18,096 | 2,538,688 | ||||||
McDonald’s Corp. | 50,009 | 10,384,869 | ||||||
MGM Resorts International | 33,831 | 966,552 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 14,084 | 755,325 | ||||||
Royal Caribbean Cruises Ltd. | 11,254 | 1,364,097 | ||||||
Starbucks Corp. | 79,310 | 6,648,557 | ||||||
Wynn Resorts Ltd. | 6,394 | 792,792 | ||||||
Yum! Brands, Inc. | 20,015 | 2,215,060 | ||||||
|
| |||||||
30,918,741 | ||||||||
Household Durables 0.3% | ||||||||
D.R. Horton, Inc. | 22,502 | 970,511 | ||||||
Garmin Ltd. | 8,063 | 643,427 | ||||||
Leggett & Platt, Inc. | 8,592 | 329,675 | ||||||
Lennar Corp. “A” | 18,678 | 905,136 | ||||||
Mohawk Industries, Inc.* | 4,025 | 593,567 | ||||||
Newell Brands, Inc. | 25,886 | 399,162 | ||||||
PulteGroup, Inc. | 16,543 | 523,090 | ||||||
Whirlpool Corp. | 4,063 | 578,409 | ||||||
|
| |||||||
4,942,977 | ||||||||
Internet & Direct Marketing Retail 3.7% | ||||||||
Amazon.com, Inc.* | 27,094 | 51,306,011 | ||||||
Booking Holdings, Inc.* | 2,836 | 5,316,678 | ||||||
eBay, Inc. | 53,689 | 2,120,715 | ||||||
Expedia Group, Inc. | 7,741 | 1,029,785 | ||||||
|
| |||||||
59,773,189 | ||||||||
Leisure Products 0.0% | ||||||||
Hasbro, Inc. | 7,582 | 801,266 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 25 |
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Shares | Value ($) | |||||||
Multiline Retail 0.5% | ||||||||
Dollar General Corp. | 16,911 | 2,285,691 | ||||||
Dollar Tree, Inc.* | 15,478 | 1,662,183 | ||||||
Kohl’s Corp. | 10,584 | 503,269 | ||||||
Macy’s, Inc. | 20,452 | 438,900 | ||||||
Nordstrom, Inc. (a) | 7,113 | 226,620 | ||||||
Target Corp. | 33,558 | 2,906,458 | ||||||
|
| |||||||
8,023,121 | ||||||||
Specialty Retail 2.3% | ||||||||
Advance Auto Parts, Inc. | 4,767 | 734,785 | ||||||
AutoZone, Inc.* | 1,606 | 1,765,749 | ||||||
Best Buy Co., Inc. | 15,219 | 1,061,221 | ||||||
CarMax, Inc.* | 10,887 | 945,318 | ||||||
Foot Locker, Inc. | 7,341 | 307,735 | ||||||
Home Depot, Inc. | 72,077 | 14,989,854 | ||||||
L Brands, Inc. | 15,157 | 395,598 | ||||||
Lowe’s Companies, Inc. | 51,288 | 5,175,472 | ||||||
O’Reilly Automotive, Inc.* | 5,126 | 1,893,134 | ||||||
Ross Stores, Inc. | 24,064 | 2,385,223 | ||||||
The Gap, Inc. | 13,867 | 249,190 | ||||||
Tiffany & Co. | 7,122 | 666,904 | ||||||
TJX Companies, Inc. | 79,416 | 4,199,518 | ||||||
Tractor Supply Co. | 7,861 | 855,277 | ||||||
Ulta Salon, Cosmetics & Fragrance, Inc.* | 3,637 | 1,261,639 | ||||||
|
| |||||||
36,886,617 | ||||||||
Textiles, Apparel & Luxury Goods 0.7% | ||||||||
Capri Holdings Ltd.* | 9,599 | 332,893 | ||||||
Hanesbrands, Inc. | 23,714 | 408,355 | ||||||
NIKE, Inc. “B” | 82,375 | 6,915,381 | ||||||
PVH Corp. | 4,798 | 454,083 | ||||||
Ralph Lauren Corp. | 3,492 | 396,656 | ||||||
Tapestry, Inc. | 19,142 | 607,376 | ||||||
Under Armour, Inc. “A”* | 12,016 | 304,606 | ||||||
Under Armour, Inc. “C”* | 12,584 | 279,365 | ||||||
VF Corp. | 21,416 | 1,870,687 | ||||||
|
| |||||||
11,569,402 | ||||||||
Consumer Staples 7.1% | ||||||||
Beverages 1.8% | ||||||||
Brown-Forman Corp. “B” | 10,780 | 597,535 | ||||||
Coca-Cola Co. | 251,577 | 12,810,301 | ||||||
Constellation Brands, Inc. “A” | 10,961 | 2,158,659 | ||||||
Molson Coors Brewing Co. “B” | 12,440 | 696,640 | ||||||
Monster Beverage Corp.* | 25,517 | 1,628,750 | ||||||
PepsiCo, Inc. | 91,850 | 12,044,291 | ||||||
|
| |||||||
29,936,176 |
The accompanying notes are an integral part of the financial statements.
26 | | | Deutsche DWS Equity 500 Index Portfolio |
Table of Contents
Shares | Value ($) | |||||||
Food & Staples Retailing 1.5% | ||||||||
Costco Wholesale Corp. | 28,817 | 7,615,180 | ||||||
Kroger Co. | 52,642 | 1,142,858 | ||||||
Sysco Corp. | 30,862 | 2,182,561 | ||||||
Walgreens Boots Alliance, Inc. | 50,941 | 2,784,944 | ||||||
Walmart, Inc. | 91,648 | 10,126,188 | ||||||
|
| |||||||
23,851,731 | ||||||||
Food Products 1.1% | ||||||||
Archer-Daniels-Midland Co. | 36,414 | 1,485,691 | ||||||
Campbell Soup Co. | 12,362 | 495,345 | ||||||
Conagra Brands, Inc. | 31,815 | 843,734 | ||||||
General Mills, Inc. | 39,374 | 2,067,922 | ||||||
Hormel Foods Corp. (a) | 18,011 | 730,166 | ||||||
Kellogg Co. | 16,289 | 872,602 | ||||||
Kraft Heinz Co. | 41,063 | 1,274,596 | ||||||
Lamb Weston Holdings, Inc. | 9,641 | 610,854 | ||||||
McCormick & Co., Inc. | 8,003 | 1,240,545 | ||||||
Mondelez International, Inc. “A” | 94,350 | 5,085,465 | ||||||
The Hershey Co. | 9,126 | 1,223,158 | ||||||
The JM Smucker Co. | 7,428 | 855,631 | ||||||
Tyson Foods, Inc. “A” | 19,316 | 1,559,574 | ||||||
|
| |||||||
18,345,283 | ||||||||
Household Products 1.7% | ||||||||
Church & Dwight Co., Inc. | 16,263 | 1,188,175 | ||||||
Clorox Co. | 8,341 | 1,277,090 | ||||||
Colgate-Palmolive Co. | 56,227 | 4,029,789 | ||||||
Kimberly-Clark Corp. | 22,517 | 3,001,066 | ||||||
Procter & Gamble Co. | 164,304 | 18,015,933 | ||||||
|
| |||||||
27,512,053 | ||||||||
Personal Products 0.2% | ||||||||
Coty, Inc. “A” | 19,939 | 267,183 | ||||||
Estee Lauder Companies, Inc. “A” | 14,365 | 2,630,375 | ||||||
|
| |||||||
2,897,558 | ||||||||
Tobacco 0.8% | ||||||||
Altria Group, Inc. | 122,566 | 5,803,500 | ||||||
Philip Morris International, Inc. | 101,922 | 8,003,935 | ||||||
|
| |||||||
13,807,435 | ||||||||
Energy 5.0% | ||||||||
Energy Equipment & Services 0.5% | ||||||||
Baker Hughes a GE Co. | 33,738 | 830,967 | ||||||
Halliburton Co. | 56,810 | 1,291,860 | ||||||
Helmerich & Payne, Inc. | 7,270 | 368,007 | ||||||
National Oilwell Varco, Inc. | 25,832 | 574,245 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 27 |
Table of Contents
Shares | Value ($) | |||||||
Schlumberger Ltd. | 90,851 | 3,610,419 | ||||||
TechnipFMC PLC | 27,081 | 702,481 | ||||||
|
| |||||||
7,377,979 | ||||||||
Oil, Gas & Consumable Fuels 4.5% | ||||||||
Anadarko Petroleum Corp. | 32,893 | 2,320,930 | ||||||
Apache Corp. | 24,241 | 702,262 | ||||||
Cabot Oil & Gas Corp. | 28,035 | 643,684 | ||||||
Chevron Corp. | 124,784 | 15,528,121 | ||||||
Cimarex Energy Co. | 6,738 | 399,766 | ||||||
Concho Resources, Inc. | 13,221 | 1,364,143 | ||||||
ConocoPhillips | 74,026 | 4,515,586 | ||||||
Devon Energy Corp. | 27,552 | 785,783 | ||||||
Diamondback Energy, Inc. | 10,115 | 1,102,232 | ||||||
EOG Resources., Inc. | 38,016 | 3,541,571 | ||||||
Exxon Mobil Corp. | 277,164 | 21,239,077 | ||||||
Hess Corp. | 16,613 | 1,056,088 | ||||||
HollyFrontier Corp. | 10,494 | 485,662 | ||||||
Kinder Morgan, Inc. | 127,444 | 2,661,031 | ||||||
Marathon Oil Corp. | 52,756 | 749,663 | ||||||
Marathon Petroleum Corp. | 43,408 | 2,425,639 | ||||||
Noble Energy, Inc. | 31,571 | 707,190 | ||||||
Occidental Petroleum Corp. | 48,996 | 2,463,519 | ||||||
ONEOK, Inc. | 27,149 | 1,868,123 | ||||||
Phillips 66 | 27,356 | 2,558,880 | ||||||
Pioneer Natural Resources Co. | 11,089 | 1,706,153 | ||||||
Valero Energy Corp. | 27,333 | 2,339,978 | ||||||
Williams Companies, Inc. | 79,338 | 2,224,637 | ||||||
|
| |||||||
73,389,718 | ||||||||
Financials 12.9% | ||||||||
Banks 5.4% | ||||||||
Bank of America Corp. | 579,392 | 16,802,368 | ||||||
BB&T Corp. | 50,225 | 2,467,554 | ||||||
Citigroup, Inc. | 151,536 | 10,612,066 | ||||||
Citizens Financial Group, Inc. | 30,118 | 1,064,972 | ||||||
Comerica, Inc. | 10,090 | 732,938 | ||||||
Fifth Third Bancorp. | 47,740 | 1,331,946 | ||||||
First Republic Bank | 10,772 | 1,051,886 | ||||||
Huntington Bancshares, Inc. | 67,864 | 937,880 | ||||||
JPMorgan Chase & Co. | 212,544 | 23,762,419 | ||||||
KeyCorp | 65,489 | 1,162,430 | ||||||
M&T Bank Corp. | 8,969 | 1,525,358 | ||||||
People’s United Financial, Inc. | 26,089 | 437,773 | ||||||
PNC Financial Services Group, Inc. | 29,599 | 4,063,351 | ||||||
Regions Financial Corp. | 65,706 | 981,648 |
The accompanying notes are an integral part of the financial statements.
28 | | | Deutsche DWS Equity 500 Index Portfolio |
Table of Contents
Shares | Value ($) | |||||||
SunTrust Banks, Inc. | 28,911 | 1,817,056 | ||||||
SVB Financial Group* | 3,450 | 774,836 | ||||||
U.S. Bancorp. | 98,080 | 5,139,392 | ||||||
Wells Fargo & Co. | 265,021 | 12,540,794 | ||||||
Zions Bancorp. NA | 12,199 | 560,910 | ||||||
|
| |||||||
87,767,577 | ||||||||
Capital Markets 2.6% |
| |||||||
Affiliated Managers Group, Inc. | 3,279 | 302,127 | ||||||
Ameriprise Financial, Inc. | 8,784 | 1,275,085 | ||||||
Bank of New York Mellon Corp. | 57,679 | 2,546,528 | ||||||
BlackRock, Inc. | 7,797 | 3,659,132 | ||||||
Cboe Global Markets, Inc. | 7,321 | 758,675 | ||||||
Charles Schwab Corp. | 77,863 | 3,129,314 | ||||||
CME Group, Inc. | 23,450 | 4,551,879 | ||||||
E*TRADE Financial Corp. | 16,110 | 718,506 | ||||||
Franklin Resources., Inc. | 19,057 | 663,184 | ||||||
Intercontinental Exchange, Inc. | 36,939 | 3,174,538 | ||||||
Invesco Ltd. | 25,825 | 528,379 | ||||||
MarketAxess Holdings, Inc. | 2,469 | 793,586 | ||||||
Moody’s Corp. | 10,815 | 2,112,278 | ||||||
Morgan Stanley | 83,805 | 3,671,497 | ||||||
MSCI, Inc. | 5,596 | 1,336,269 | ||||||
Nasdaq, Inc. | 7,546 | 725,699 | ||||||
Northern Trust Corp. | 14,371 | 1,293,390 | ||||||
Raymond James Financial, Inc. | 8,382 | 708,698 | ||||||
S&P Global, Inc. | 16,128 | 3,673,797 | ||||||
State Street Corp. | 24,471 | 1,371,844 | ||||||
T. Rowe Price Group, Inc. | 15,432 | 1,693,045 | ||||||
The Goldman Sachs Group., Inc. | 22,298 | 4,562,171 | ||||||
|
| |||||||
43,249,621 | ||||||||
Consumer Finance 0.7% |
| |||||||
American Express Co. | 44,879 | 5,539,864 | ||||||
Capital One Financial Corp. | 30,705 | 2,786,171 | ||||||
Discover Financial Services | 21,264 | 1,649,874 | ||||||
Synchrony Financial | 41,591 | 1,441,960 | ||||||
|
| |||||||
11,417,869 | ||||||||
Diversified Financial Services 1.7% |
| |||||||
Berkshire Hathaway, Inc. “B”* | 126,948 | 27,061,505 | ||||||
Jefferies Financial Group, Inc. | 16,594 | 319,103 | ||||||
|
| |||||||
27,380,608 | ||||||||
Insurance 2.5% |
| |||||||
Aflac, Inc. | 48,832 | 2,676,482 | ||||||
Allstate Corp. | 21,763 | 2,213,079 | ||||||
American International Group, Inc. | 56,988 | 3,036,321 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 29 |
Table of Contents
Shares | Value ($) | |||||||
Aon PLC | 15,760 | 3,041,365 | ||||||
Arthur J. Gallagher & Co. | 12,096 | 1,059,489 | ||||||
Assurant, Inc. | 4,102 | 436,371 | ||||||
Chubb Ltd. | 29,994 | 4,417,816 | ||||||
Cincinnati Financial Corp. | 9,921 | 1,028,510 | ||||||
Everest Re Group Ltd. | 2,633 | 650,825 | ||||||
Hartford Financial Services Group, Inc. | 23,638 | 1,317,109 | ||||||
Lincoln National Corp. | 13,187 | 849,902 | ||||||
Loews Corp. | 17,603 | 962,356 | ||||||
Marsh & McLennan Companies, Inc. | 33,492 | 3,340,827 | ||||||
MetLife, Inc. | 62,283 | 3,093,596 | ||||||
Principal Financial Group, Inc. | 16,942 | 981,281 | ||||||
Progressive Corp. | 38,260 | 3,058,122 | ||||||
Prudential Financial, Inc. | 26,613 | 2,687,913 | ||||||
The Travelers Companies, Inc. | 17,159 | 2,565,614 | ||||||
Torchmark Corp. | 6,753 | 604,123 | ||||||
Unum Group | 14,087 | 472,619 | ||||||
Willis Towers Watson PLC | 8,435 | 1,615,640 | ||||||
|
| |||||||
40,109,360 | ||||||||
Health Care 13.9% |
| |||||||
Biotechnology 2.1% | ||||||||
AbbVie, Inc. | 96,867 | 7,044,168 | ||||||
Alexion Pharmaceuticals, Inc.* | 14,703 | 1,925,799 | ||||||
Amgen, Inc. | 39,976 | 7,366,777 | ||||||
Biogen., Inc.* | 12,711 | 2,972,722 | ||||||
Celgene Corp.* | 46,220 | 4,272,577 | ||||||
Gilead Sciences, Inc. | 83,338 | 5,630,315 | ||||||
Incyte Corp.* | 11,529 | 979,504 | ||||||
Regeneron Pharmaceuticals, Inc.* | 5,119 | 1,602,247 | ||||||
Vertex Pharmaceuticals, Inc.* | 16,792 | 3,079,317 | ||||||
|
| |||||||
34,873,426 | ||||||||
Health Care Equipment & Supplies 3.5% |
| |||||||
Abbott Laboratories | 115,570 | 9,719,437 | ||||||
ABIOMED, Inc.* | 2,973 | 774,437 | ||||||
Align Technology, Inc.* | 4,771 | 1,305,823 | ||||||
Baxter International, Inc. | 31,077 | 2,545,206 | ||||||
Becton, Dickinson & Co. | 17,671 | 4,453,269 | ||||||
Boston Scientific Corp.* | 91,107 | 3,915,779 | ||||||
Danaher Corp. | 41,270 | 5,898,308 | ||||||
DENTSPLY SIRONA, Inc. | 15,524 | 905,981 | ||||||
Edwards Lifesciences Corp.* | 13,661 | 2,523,733 | ||||||
Hologic, Inc.* | 17,416 | 836,316 | ||||||
IDEXX Laboratories, Inc.* | 5,660 | 1,558,368 | ||||||
Intuitive Surgical, Inc.* | 7,548 | 3,959,303 |
The accompanying notes are an integral part of the financial statements.
30 | | | Deutsche DWS Equity 500 Index Portfolio |
Table of Contents
Shares | Value ($) | |||||||
Medtronic PLC | 87,824 | 8,553,179 | ||||||
ResMed, Inc. | 9,395 | 1,146,472 | ||||||
Stryker Corp. | 20,287 | 4,170,601 | ||||||
Teleflex, Inc. | 3,019 | 999,742 | ||||||
The Cooper Companies, Inc. | 3,250 | 1,094,893 | ||||||
Varian Medical Systems, Inc.* | 6,030 | 820,864 | ||||||
Zimmer Biomet Holdings, Inc. | 13,416 | 1,579,600 | ||||||
|
| |||||||
56,761,311 | ||||||||
Health Care Providers & Services 2.6% |
| |||||||
AmerisourceBergen Corp. | 10,279 | 876,388 | ||||||
Anthem, Inc. | 16,850 | 4,755,238 | ||||||
Cardinal Health, Inc. | 19,630 | 924,573 | ||||||
Centene Corp.* | 27,078 | 1,419,970 | ||||||
Cigna Corp. | 24,862 | 3,917,008 | ||||||
CVS Health Corp. | 85,112 | 4,637,753 | ||||||
DaVita, Inc.* | 8,399 | 472,528 | ||||||
HCA Healthcare, Inc. | 17,497 | 2,365,069 | ||||||
Henry Schein, Inc.* | 9,620 | 672,438 | ||||||
Humana, Inc. | 8,848 | 2,347,374 | ||||||
Laboratory Corp. of America Holdings* | 6,455 | 1,116,069 | ||||||
McKesson Corp. | 12,448 | 1,672,887 | ||||||
Quest Diagnostics, Inc. | 8,769 | 892,772 | ||||||
UnitedHealth Group, Inc. | 62,261 | 15,192,307 | ||||||
Universal Health Services, Inc. “B” | 5,368 | 699,934 | ||||||
WellCare Health Plans, Inc.* | 3,304 | 941,871 | ||||||
|
| |||||||
42,904,179 | ||||||||
Health Care Technology 0.1% |
| |||||||
Cerner Corp. | 21,286 | 1,560,264 | ||||||
Life Sciences Tools & Services 1.1% |
| |||||||
Agilent Technologies, Inc. | 20,694 | 1,545,221 | ||||||
Illumina, Inc.* | 9,633 | 3,546,389 | ||||||
IQVIA Holdings, Inc.* | 10,283 | 1,654,535 | ||||||
Mettler-Toledo International, Inc.* | 1,639 | 1,376,760 | ||||||
PerkinElmer, Inc. | 7,193 | 692,973 | ||||||
Thermo Fisher Scientific, Inc. | 26,209 | 7,697,059 | ||||||
Waters Corp.* | 4,557 | 980,849 | ||||||
|
| |||||||
17,493,786 | ||||||||
Pharmaceuticals 4.5% |
| |||||||
Allergan PLC | 20,187 | 3,379,909 | ||||||
Bristol-Myers Squibb Co. | 107,170 | 4,860,160 | ||||||
Eli Lilly & Co. | 56,605 | 6,271,268 | ||||||
Johnson & Johnson | 173,941 | 24,226,503 | ||||||
Merck & Co., Inc. | 168,668 | 14,142,812 | ||||||
Mylan NV* | 34,069 | 648,674 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 31 |
Table of Contents
Shares | Value ($) | |||||||
Nektar Therapeutics* | 11,368 | 404,473 | ||||||
Perrigo Co. PLC | 8,236 | 392,198 | ||||||
Pfizer, Inc. | 363,713 | 15,756,047 | ||||||
Zoetis, Inc. | 31,363 | 3,559,387 | ||||||
|
| |||||||
73,641,431 | ||||||||
Industrials 9.2% |
| |||||||
Aerospace & Defense 2.5% | ||||||||
Arconic, Inc. | 25,744 | 664,710 | ||||||
Boeing Co. | 34,282 | 12,478,991 | ||||||
General Dynamics Corp. | 17,808 | 3,237,850 | ||||||
Huntington Ingalls Industries, Inc. | 2,705 | 607,922 | ||||||
L3 Technologies, Inc. | 5,175 | 1,268,755 | ||||||
L3Harris Technologies, Inc. | 7,744 | 1,464,623 | ||||||
Lockheed Martin Corp. | 16,113 | 5,857,720 | ||||||
Northrop Grumman Corp. | 11,130 | 3,596,214 | ||||||
Raytheon Co. | 18,261 | 3,175,223 | ||||||
Textron, Inc. | 15,485 | 821,324 | ||||||
TransDigm Group, Inc.* | 3,193 | 1,544,773 | ||||||
United Technologies Corp. | 53,154 | 6,920,651 | ||||||
|
| |||||||
41,638,756 | ||||||||
Air Freight & Logistics 0.5% |
| |||||||
C.H. Robinson Worldwide, Inc. | 9,077 | 765,645 | ||||||
Expeditors International of Washington, Inc. | 11,390 | 864,045 | ||||||
FedEx Corp. | 15,700 | 2,577,783 | ||||||
United Parcel Service, Inc. “B” | 45,680 | 4,717,374 | ||||||
|
| |||||||
8,924,847 | ||||||||
Airlines 0.4% |
| |||||||
Alaska Air Group, Inc. | 8,202 | 524,190 | ||||||
American Airlines Group, Inc. | 25,944 | 846,034 | ||||||
Delta Air Lines, Inc. | 38,999 | 2,213,193 | ||||||
Southwest Airlines Co. | 32,001 | 1,625,011 | ||||||
United Continental Holdings, Inc.* | 14,469 | 1,266,761 | ||||||
|
| |||||||
6,475,189 | ||||||||
Building Products 0.3% |
| |||||||
A.O. Smith Corp. | 9,057 | 427,128 | ||||||
Allegion PLC | 6,151 | 679,993 | ||||||
Fortune Brands Home & Security, Inc. | 9,262 | 529,138 | ||||||
Johnson Controls International PLC | 52,125 | 2,153,284 | ||||||
Masco Corp. | 19,398 | 761,177 | ||||||
|
| |||||||
4,550,720 | ||||||||
Commercial Services & Supplies 0.4% |
| |||||||
Cintas Corp. | 5,601 | 1,329,061 | ||||||
Copart, Inc.* | 13,333 | 996,509 |
The accompanying notes are an integral part of the financial statements.
32 | | | Deutsche DWS Equity 500 Index Portfolio |
Table of Contents
Shares | Value ($) | |||||||
Republic Services, Inc. | 14,047 | 1,217,032 | ||||||
Rollins, Inc. | 9,646 | 346,002 | ||||||
Waste Management, Inc. | 25,597 | 2,953,126 | ||||||
|
| |||||||
6,841,730 | ||||||||
Construction & Engineering 0.1% |
| |||||||
Jacobs Engineering Group, Inc. | 7,405 | 624,908 | ||||||
Quanta Services, Inc. | 9,548 | 364,638 | ||||||
|
| |||||||
989,546 | ||||||||
Electrical Equipment 0.5% |
| |||||||
AMETEK, Inc. | 15,043 | 1,366,506 | ||||||
Eaton Corp. PLC | 27,705 | 2,307,273 | ||||||
Emerson Electric Co. | 40,256 | 2,685,880 | ||||||
Rockwell Automation, Inc. | 7,754 | 1,270,338 | ||||||
|
| |||||||
7,629,997 | ||||||||
Industrial Conglomerates 1.4% |
| |||||||
3M Co. | 37,775 | 6,547,918 | ||||||
General Electric Co. | 571,359 | 5,999,270 | ||||||
Honeywell International, Inc. | 47,690 | 8,326,197 | ||||||
Roper Technologies, Inc. | 6,809 | 2,493,864 | ||||||
|
| |||||||
23,367,249 | ||||||||
Machinery 1.6% |
| |||||||
Caterpillar, Inc. | 37,481 | 5,108,285 | ||||||
Cummins, Inc. | 9,459 | 1,620,705 | ||||||
Deere & Co. | 20,776 | 3,442,791 | ||||||
Dover Corp. | 9,418 | 943,684 | ||||||
Flowserve Corp. | 8,627 | 454,557 | ||||||
Fortive Corp. | 19,340 | 1,576,597 | ||||||
Illinois Tool Works, Inc. | 19,652 | 2,963,718 | ||||||
Ingersoll-Rand PLC | 15,787 | 1,999,739 | ||||||
PACCAR, Inc. | 22,716 | 1,627,829 | ||||||
Parker-Hannifin Corp. | 8,425 | 1,432,334 | ||||||
Pentair PLC | 10,620 | 395,064 | ||||||
Snap-on, Inc. | 3,603 | 596,801 | ||||||
Stanley Black & Decker, Inc. | 9,980 | 1,443,208 | ||||||
Wabtec Corp. | 10,444 | 749,461 | ||||||
Xylem, Inc. | 11,775 | 984,861 | ||||||
|
| |||||||
25,339,634 | ||||||||
Professional Services 0.3% |
| |||||||
Equifax, Inc. | 7,903 | 1,068,802 | ||||||
IHS Markit Ltd.* | 23,743 | 1,512,904 | ||||||
Nielsen Holdings PLC | 22,858 | 516,591 | ||||||
Robert Half International, Inc. | 7,561 | 431,052 | ||||||
Verisk Analytics, Inc. | 10,698 | 1,566,829 | ||||||
|
| |||||||
5,096,178 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 33 |
Table of Contents
Shares | Value ($) | |||||||
Road & Rail 1.0% |
| |||||||
CSX Corp. | 50,358 | 3,896,198 | ||||||
J.B. Hunt Transport Services, Inc. | 5,681 | 519,300 | ||||||
Kansas City Southern | 6,588 | 802,550 | ||||||
Norfolk Southern Corp. | 17,423 | 3,472,927 | ||||||
Union Pacific Corp. | 46,370 | 7,841,631 | ||||||
|
| |||||||
16,532,606 | ||||||||
Trading Companies & Distributors 0.2% |
| |||||||
Fastenal Co. | 37,247 | 1,213,880 | ||||||
United Rentals, Inc.* | 5,089 | 674,954 | ||||||
W.W. Grainger, Inc. | 2,912 | 781,086 | ||||||
|
| |||||||
2,669,920 | ||||||||
Information Technology 21.1% | ||||||||
Communications Equipment 1.2% | ||||||||
Arista Networks, Inc.* | 3,479 | 903,218 | ||||||
Cisco Systems, Inc. | 280,484 | 15,350,889 | ||||||
F5 Networks, Inc.* | 3,835 | 558,491 | ||||||
Juniper Networks, Inc. | 22,467 | 598,296 | ||||||
Motorola Solutions, Inc. | 10,812 | 1,802,685 | ||||||
|
| |||||||
19,213,579 | ||||||||
Electronic Equipment, Instruments & Components 0.5% |
| |||||||
Amphenol Corp. “A” | 19,580 | 1,878,505 | ||||||
Corning, Inc. | 51,399 | 1,707,989 | ||||||
FLIR Systems, Inc. | 9,059 | 490,092 | ||||||
IPG Photonics Corp.* | 2,314 | 356,934 | ||||||
Keysight Technologies, Inc.* | 12,379 | 1,111,758 | ||||||
TE Connectivity Ltd. | 22,081 | 2,114,918 | ||||||
|
| |||||||
7,660,196 | ||||||||
IT Services 5.2% |
| |||||||
Accenture PLC “A” | 41,797 | 7,722,832 | ||||||
Akamai Technologies, Inc.* | 10,645 | 853,090 | ||||||
Alliance Data Systems Corp. | 2,873 | 402,594 | ||||||
Automatic Data Processing, Inc. | 28,528 | 4,716,534 | ||||||
Broadridge Financial Solutions, Inc. | 7,609 | 971,517 | ||||||
Cognizant Technology Solutions Corp. “A” | 37,314 | 2,365,334 | ||||||
DXC Technology Co. | 17,361 | 957,459 | ||||||
Fidelity National Information Services, Inc. | 21,211 | 2,602,165 | ||||||
Fiserv, Inc.* | 25,697 | 2,342,539 | ||||||
FleetCor Technologies, Inc.* | 5,606 | 1,574,445 | ||||||
Gartner, Inc.* | 5,905 | 950,351 | ||||||
Global Payments, Inc. | 10,255 | 1,642,133 | ||||||
International Business Machines Corp. | 58,100 | 8,011,990 | ||||||
Jack Henry & Associates, Inc. | 5,087 | 681,251 | ||||||
MasterCard, Inc. “A” | 58,891 | 15,578,436 |
The accompanying notes are an integral part of the financial statements.
34 | | | Deutsche DWS Equity 500 Index Portfolio |
Table of Contents
Shares | Value ($) | |||||||
Paychex, Inc. | 21,088 | 1,735,332 | ||||||
PayPal Holdings, Inc.* | 76,986 | 8,811,818 | ||||||
Total System Services, Inc. | 10,601 | 1,359,790 | ||||||
VeriSign, Inc.* | 6,878 | 1,438,602 | ||||||
Visa, Inc. “A” | 113,941 | 19,774,461 | ||||||
Western Union Co. | 28,520 | 567,263 | ||||||
|
| |||||||
85,059,936 | ||||||||
Semiconductors & Semiconductor Equipment 3.7% |
| |||||||
Advanced Micro Devices, Inc.* | 58,007 | 1,761,673 | ||||||
Analog Devices, Inc. | 24,231 | 2,734,953 | ||||||
Applied Materials, Inc. | 61,370 | 2,756,127 | ||||||
Broadcom, Inc. | 25,936 | 7,465,937 | ||||||
Intel Corp. | 293,328 | 14,041,611 | ||||||
KLA-Tencor Corp. | 10,604 | 1,253,393 | ||||||
Lam Research Corp. | 9,830 | 1,846,467 | ||||||
Maxim Integrated Products, Inc. | 17,685 | 1,057,917 | ||||||
Microchip Technology, Inc. | 15,628 | 1,354,948 | ||||||
Micron Technology, Inc.* | 72,566 | 2,800,322 | ||||||
NVIDIA Corp. | 39,905 | 6,553,598 | ||||||
Qorvo, Inc.* | 7,712 | 513,696 | ||||||
QUALCOMM., Inc. | 79,651 | 6,059,051 | ||||||
Skyworks Solutions, Inc. | 11,321 | 874,774 | ||||||
Texas Instruments, Inc. | 61,492 | 7,056,822 | ||||||
Xilinx, Inc. | 16,643 | 1,962,542 | ||||||
|
| |||||||
60,093,831 | ||||||||
Software 6.6% | ||||||||
Adobe, Inc.* | 31,975 | 9,421,434 | ||||||
ANSYS, Inc.* | 5,499 | 1,126,305 | ||||||
Autodesk, Inc.* | 14,316 | 2,332,076 | ||||||
Cadence Design Systems, Inc.* | 18,421 | 1,304,391 | ||||||
Citrix Systems, Inc. | 8,118 | 796,700 | ||||||
Fortinet, Inc.* | 9,382 | 720,819 | ||||||
Intuit, Inc. | 16,990 | 4,439,997 | ||||||
Microsoft Corp. | 502,035 | 67,252,609 | ||||||
Oracle Corp. | 158,992 | 9,057,774 | ||||||
Red Hat, Inc.* | 11,645 | 2,186,465 | ||||||
salesforce.com, Inc.* | 50,890 | 7,721,540 | ||||||
Symantec Corp. | 40,542 | 882,194 | ||||||
Synopsys, Inc.* | 9,895 | 1,273,388 | ||||||
|
| |||||||
108,515,692 | ||||||||
Technology Hardware, Storage & Peripherals 3.9% | ||||||||
Apple, Inc. | 286,371 | 56,678,548 | ||||||
Hewlett Packard Enterprise Co. | 87,846 | 1,313,298 | ||||||
HP, Inc. | 98,797 | 2,053,990 |
The accompanying notes are an integral part of the financial statements.
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Shares | Value ($) | |||||||
NetApp, Inc. | 16,166 | 997,442 | ||||||
Seagate Technology PLC | 16,530 | 778,893 | ||||||
Western Digital Corp. | 19,134 | 909,822 | ||||||
Xerox Corp. | 12,682 | 449,070 | ||||||
|
| |||||||
63,181,063 | ||||||||
Materials 2.7% | ||||||||
Chemicals 2.0% | ||||||||
Air Products & Chemicals, Inc. | 14,429 | 3,266,293 | ||||||
Albemarle Corp. | 6,780 | 477,380 | ||||||
Celanese Corp. | 8,252 | 889,566 | ||||||
CF Industries Holdings, Inc. | 14,459 | 675,380 | ||||||
Corteva, Inc.* | 48,988 | 1,448,575 | ||||||
Dow, Inc. | 49,099 | 2,421,072 | ||||||
DuPont de Nemours, Inc. | 49,074 | 3,683,985 | ||||||
Eastman Chemical Co. | 9,134 | 710,899 | ||||||
Ecolab, Inc. | 16,627 | 3,282,835 | ||||||
FMC Corp. | 8,648 | 717,352 | ||||||
International Flavors & Fragrances, Inc. | 6,688 | 970,362 | ||||||
Linde PLC | 35,563 | 7,141,050 | ||||||
LyondellBasell Industries NV “A” | 19,910 | 1,714,848 | ||||||
PPG Industries, Inc. | 15,419 | 1,799,551 | ||||||
The Mosaic Co. | 23,409 | 585,927 | ||||||
The Sherwin-Williams Co. | 5,327 | 2,441,311 | ||||||
|
| |||||||
32,226,386 | ||||||||
Construction Materials 0.1% | ||||||||
Martin Marietta Materials, Inc. | 4,098 | 942,991 | ||||||
Vulcan Materials Co. | 8,744 | 1,200,638 | ||||||
|
| |||||||
2,143,629 | ||||||||
Containers & Packaging 0.4% |
| |||||||
Amcor PLC* | 105,489 | 1,212,069 | ||||||
Avery Dennison Corp. | 5,550 | 642,024 | ||||||
Ball Corp. | 21,909 | 1,533,411 | ||||||
International Paper Co. | 26,069 | 1,129,309 | ||||||
Packaging Corp. of America | 6,165 | 587,648 | ||||||
Sealed Air Corp. | 9,972 | 426,602 | ||||||
WestRock Co. | 16,966 | 618,750 | ||||||
|
| |||||||
6,149,813 | ||||||||
Metals & Mining 0.2% |
| |||||||
Freeport-McMoRan, Inc. | 94,489 | 1,097,017 | ||||||
Newmont Goldcorp Corp. | 53,561 | 2,060,492 | ||||||
Nucor Corp. | 19,781 | 1,089,933 | ||||||
|
| |||||||
4,247,442 |
The accompanying notes are an integral part of the financial statements.
36 | | | Deutsche DWS Equity 500 Index Portfolio |
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Shares | Value ($) | |||||||
Real Estate 3.0% |
| |||||||
Equity Real Estate Investment Trusts (REITs) 2.9% |
| |||||||
Alexandria Real Estate Equities, Inc. | 7,324 | 1,033,343 | ||||||
American Tower Corp. | 28,975 | 5,923,939 | ||||||
Apartment Investment & Management Co. “A” | 9,778 | 490,073 | ||||||
AvalonBay Communities, Inc. | 9,136 | 1,856,252 | ||||||
Boston Properties, Inc. | 10,047 | 1,296,063 | ||||||
Crown Castle International Corp. | 27,262 | 3,553,602 | ||||||
Digital Realty Trust, Inc. | 13,615 | 1,603,711 | ||||||
Duke Realty Corp. | 23,192 | 733,099 | ||||||
Equinix, Inc. | 5,530 | 2,788,724 | ||||||
Equity Residential | 24,329 | 1,847,058 | ||||||
Essex Property Trust, Inc. | 4,293 | 1,253,256 | ||||||
Extra Space Storage, Inc. | 8,273 | 877,765 | ||||||
Federal Realty Investment Trust | 4,884 | 628,864 | ||||||
HCP, Inc. | 31,447 | 1,005,675 | ||||||
Host Hotels & Resorts, Inc. | 48,558 | 884,727 | ||||||
Iron Mountain, Inc. | 18,566 | 581,116 | ||||||
Kimco Realty Corp. | 27,605 | 510,140 | ||||||
Mid-America Apartment Communities, Inc. | 7,492 | 882,258 | ||||||
Prologis, Inc. | 41,387 | 3,315,099 | ||||||
Public Storage | 9,843 | 2,344,307 | ||||||
Realty Income Corp. | 20,693 | 1,427,196 | ||||||
Regency Centers Corp. | 11,054 | 737,744 | ||||||
SBA Communications Corp.* | 7,384 | 1,660,219 | ||||||
Simon Property Group, Inc. | 20,270 | 3,238,335 | ||||||
SL Green Realty Corp. | 5,558 | 446,696 | ||||||
The Macerich Co. | 6,934 | 232,220 | ||||||
UDR, Inc. | 18,625 | 836,076 | ||||||
Ventas, Inc. | 24,245 | 1,657,146 | ||||||
Vornado Realty Trust | 11,270 | 722,407 | ||||||
Welltower, Inc. | 26,578 | 2,166,904 | ||||||
Weyerhaeuser Co. | 48,622 | 1,280,703 | ||||||
|
| |||||||
47,814,717 | ||||||||
Real Estate Management & Development 0.1% |
| |||||||
CBRE Group, Inc. “A”* | 20,438 | 1,048,470 | ||||||
Utilities 3.3% |
| |||||||
Electric Utilities 2.0% |
| |||||||
Alliant Energy Corp. | 15,403 | 755,979 | ||||||
American Electric Power Co., Inc. | 32,352 | 2,847,300 | ||||||
Duke Energy Corp. | 47,698 | 4,208,871 | ||||||
Edison International | 21,357 | 1,439,675 | ||||||
Entergy Corp. | 12,359 | 1,272,112 | ||||||
Evergy, Inc. | 16,002 | 962,520 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 37 |
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Shares | Value ($) | |||||||
Eversource Energy | 21,206 | 1,606,567 | ||||||
Exelon Corp. | 63,644 | 3,051,093 | ||||||
FirstEnergy Corp. | 32,876 | 1,407,422 | ||||||
NextEra Energy, Inc. | 31,379 | 6,428,302 | ||||||
Pinnacle West Capital Corp. | 7,365 | 692,973 | ||||||
PPL Corp. | 47,572 | 1,475,208 | ||||||
Southern Co. | 68,204 | 3,770,317 | ||||||
Xcel Energy, Inc. | 33,621 | 2,000,113 | ||||||
|
| |||||||
31,918,452 | ||||||||
Gas Utilities 0.0% | ||||||||
Atmos Energy Corp. | 7,629 | 805,317 | ||||||
Independent Power & Renewable Electricity Producers 0.1% |
| |||||||
AES Corp. | 44,068 | 738,580 | ||||||
NRG Energy, Inc. | 17,497 | 614,495 | ||||||
|
| |||||||
1,353,075 | ||||||||
Multi-Utilities 1.1% | ||||||||
Ameren Corp. | 16,014 | 1,202,812 | ||||||
CenterPoint Energy, Inc. | 33,201 | 950,545 | ||||||
CMS Energy Corp. | 18,688 | 1,082,222 | ||||||
Consolidated Edison, Inc. | 21,354 | 1,872,319 | ||||||
Dominion Energy, Inc | 52,573 | 4,064,944 | ||||||
DTE Energy Co. | 11,998 | 1,534,304 | ||||||
NiSource, Inc. | 24,802 | 714,298 | ||||||
Public Service Enterprise Group, Inc. | 32,980 | 1,939,884 | ||||||
Sempra Energy | 17,985 | 2,471,858 | ||||||
WEC Energy Group, Inc. | 20,539 | 1,712,336 | ||||||
|
| |||||||
17,545,522 | ||||||||
Water Utilities 0.1% | ||||||||
American Water Works Co., Inc. | 11,824 | 1,371,584 | ||||||
Total Common Stocks(Cost $542,944,380) | 1,600,896,804 | |||||||
Principal Amount ($) | Value ($) | |||||||
Government & Agency Obligations 0.1% |
| |||||||
U.S. Treasury Obligation | ||||||||
U.S. Treasury Bill, 2.42%**, 7/18/2019 (b) (Cost $2,212,469) | 2,215,000 | 2,212,854 | ||||||
Shares | Value ($) | |||||||
Securities Lending Collateral 0.1% |
| |||||||
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 2.28% (c) (d) (Cost $956,280) | 956,280 | 956,280 |
The accompanying notes are an integral part of the financial statements.
38 | | | Deutsche DWS Equity 500 Index Portfolio |
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Shares | Value ($) | |||||||
Cash Equivalents 1.6% |
| |||||||
DWS Central Cash Management Government Fund, 2.40% (c) (Cost $26,730,441) | 26,730,441 | 26,730,441 | ||||||
% of Net Assets | Value ($) | |||||||
Total Investment Portfolio(Cost $572,843,570) | 100.0 | 1,630,796,379 | ||||||
Other Assets and Liabilities, Net | (0.0 | ) | (433,360 | ) | ||||
| ||||||||
Net Assets | 100.0 | 1,630,363,019 |
A summary of the Fund’s transactions with affiliated investments during the period ended June 30, 2019 are as follows:
Value ($) at 12/31/2018 | Pur- chases ($) | Sales ($) | Net ized | Net in ized ($) | Income ($) | Capital Gain Distribu- tions ($) | Number of Shares at 6/30/2019 | Value ($) at 6/30/2019 | ||||||||||||||||||||||||||
Securities Lending Collateral 0.1% | ||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 2.28% (c) (d) | |||||||||||||||||||||||||||||||||
1,382,030 | — | 425,750(e) | — | — | 19,820 | — | 956,280 | 956,280 | ||||||||||||||||||||||||||
Cash Equivalents 1.6% | ||||||||||||||||||||||||||||||||||
DWS Central Cash Management Government Fund, 2.40% (c) | ||||||||||||||||||||||||||||||||||
37,277,171 | 78,099,371 | 88,646,101 | — | — | 194,834 | — | 26,730,441 | 26,730,441 | ||||||||||||||||||||||||||
38,659,201 | 78,099,371 | 89,071,851 | — | — | 214,654 | — | 27,686,721 | 27,686,721 |
* | Non-income producing security. |
** | Annualized yield at time of purchase; not a coupon rate. |
(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, 2019 amounted to $944,632, which is 0.1% of net assets. |
(b) | At June 30, 2019, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
(c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualizedseven-day yield at period end. |
(d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
(e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended June 30, 2019. |
MSCI: Morgan Stanley Capital International
S&P: Standard & Poor’s
At June 30, 2019, open futures contracts purchased were as follows:
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized (Depreciation) ($) | ||||||||||||||||||
S&P 500E-Mini Index | USD | 9/20/2019 | 201 | 29,541,591 | 29,589,210 | (47,619 | ) |
The accompanying notes are an integral part of the financial statements.
��
Deutsche DWS Equity 500 Index Portfolio | | | 39 |
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Currency Abbreviation |
USD United States Dollar |
For information on the Fund’s policy and additional disclosures regarding futures contracts, please refer to the Derivatives section of Note B in the accompanying Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of June 30, 2019 in valuing the Portfolio’s investments. For information on the Portfolio’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks (f) | $ | 1,600,896,804 | $ | — | $ | — | $ | 1,600,896,804 | ||||||||
Government & Agency Obligations | — | 2,212,854 | — | 2,212,854 | ||||||||||||
Short-Term Investments (f) | 27,686,721 | — | — | 27,686,721 | ||||||||||||
Total | $ | 1,628,583,525 | $ | 2,212,854 | $ | — | $ | 1,630,796,379 | ||||||||
Liabilities | ||||||||||||||||
Derivatives (g) | ||||||||||||||||
Futures Contracts | $ | (47,619 | ) | $ | — | $ | — | $ | (47,619 | ) | ||||||
Total | $ | (47,619 | ) | $ | — | $ | — | $ | (47,619 | ) |
(f) | See Investment Portfolio for additional detailed categorizations. |
(g) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
The accompanying notes are an integral part of the financial statements.
40 | | | Deutsche DWS Equity 500 Index Portfolio |
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Statement of Assets and Liabilities
as of June 30, 2019 (Unaudited) |
| |||
Assets |
| |||
Investments innon-affiliated securities, at value (cost $545,156,849) — including $944,632 of securities loaned | $ | 1,603,109,658 | ||
Investment in DWS Government & Agency Securities Portfolio (cost $956,280)* | 956,280 | |||
Investment in DWS Central Cash Management Government Fund (cost $26,730,441) | 26,730,441 | |||
Cash | 12,457 | |||
Dividends receivable | 1,328,772 | |||
Interest receivable | 22,369 | |||
Receivable for variation margin on futures contracts | 137,771 | |||
Other assets | 20,298 | |||
Total assets | 1,632,318,046 | |||
Liabilities |
| |||
Payable upon return of securities loaned | 956,280 | |||
Payable for investments purchased | 793,586 | |||
Accrued management fee | 65,858 | |||
Accrued Trustees’ fees | 17,783 | |||
Other accrued expenses and payables | 121,520 | |||
Total liabilities | 1,955,027 | |||
Net assets, at value | $ | 1,630,363,019 |
* | Represents collateral on securities loaned. |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 41 |
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for the six months ended June 30, 2019 (Unaudited) | ||||
Investment Income | ||||
Income: | ||||
Dividends (net of foreign taxes withheld of $54,630) | $ | 15,923,812 | ||
Interest | 26,762 | |||
Income distributions — DWS Central Cash Management Government Fund | 194,834 | |||
Securities lending income, net of borrower rebates | 19,820 | |||
Total income | 16,165,228 | |||
Expenses: | ||||
Management fee | 390,582 | |||
Administration fee | 234,349 | |||
Custodian fee | 14,714 | |||
Professional fees | 71,593 | |||
Reports to shareholders | 8,830 | |||
Trustees’ fees and expenses | 38,456 | |||
Insurance expense | 19,550 | |||
Other | 28,255 | |||
Total expenses | 806,329 | |||
Net investment income (loss) | 15,358,899 | |||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain (loss) from: | ||||
Investments | 37,876,042 | |||
Futures | 3,095,370 | |||
40,971,412 | ||||
Change in net unrealized appreciation (depreciation) on: | ||||
Investments | 205,757,481 | |||
Futures | (669,828 | ) | ||
205,087,653 | ||||
Net gain (loss) | 246,059,065 | |||
Net increase (decrease) in net assets resulting from operations | $ | 261,417,964 |
The accompanying notes are an integral part of the financial statements.
42 | | | Deutsche DWS Equity 500 Index Portfolio |
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Statements of Changes in Net Assets
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | ||||||
Operations: | ||||||||
Net investment income (loss) | $ | 15,358,899 | $ | 32,066,804 | ||||
Net realized gain (loss) | 40,971,412 | 177,436,948 | ||||||
Change in net unrealized appreciation (depreciation) | 205,087,653 | (264,328,120 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 261,417,964 | (54,824,368 | ) | |||||
Capital transactions in shares of beneficial interest: | ||||||||
Proceeds from capital invested | 19,179,485 | 36,356,142 | ||||||
Value of capital withdrawn | (106,949,940 | ) | (313,130,515 | ) | ||||
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest | (87,770,455 | ) | (276,774,373 | ) | ||||
Increase (decrease) in net assets | 173,647,509 | (331,598,741 | ) | |||||
Net assets at beginning of period | 1,456,715,510 | 1,788,314,251 | ||||||
Net assets at end of period | $ | 1,630,363,019 | $ | 1,456,715,510 |
The accompanying notes are an integral part of the financial statements.
Deutsche DWS Equity 500 Index Portfolio | | | 43 |
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Six Months Ended 6/30/19 | Years Ended December 31, | |||||||||||||||||||||||||
(Unaudited) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Ratios to Average Net Assets and Supplemental Data |
| |||||||||||||||||||||||||
Net assets, end of period ($ millions) | 1,630 | 1,457 | 1,788 | 1,689 | 1,765 | 1,904 | ||||||||||||||||||||
Ratio of expenses (%) | .10 | * | .10 | .10 | .10 | .10 | .10 | |||||||||||||||||||
Ratio of net investment income (%) | 1.97 | * | 1.90 | 1.93 | 2.14 | 2.00 | 1.95 | |||||||||||||||||||
Portfolio turnover rate (%) | 1 | ** | 3 | 6 | 3 | 3 | 2 | |||||||||||||||||||
Total investment return (%)a | 18.60 | ** | (4.09 | )b | 21.62 | 11.75 | 1.33 | 13.50 |
a | Total investment return for the Portfolio was derived from the performance of the Institutional Class of DWS Equity 500 Index Fund. |
b | Includes a reimbursement from the sub-advisor to reimburse the effect of a loss incurred as a result of an operational error. Excluding this reimbursement, total return would have been .30% lower. |
* | Annualized |
** | Not annualized |
The accompanying notes are an integral part of the financial statements.
44 | | | Deutsche DWS Equity 500 Index Portfolio |
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Notes to Financial Statements | (Unaudited) |
A. Organization and Significant Accounting Policies
Deutsche DWS Equity 500 Index Portfolio (the “Portfolio”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversifiedopen-end management investment company organized as a New York trust.
The Portfolio is a master fund; a master/feeder fund structure is one in which a fund (a “feeder fund”), instead of investing directly in a portfolio of securities, invests most or all of its investment assets in a separate registered investment company (the “master fund”) with substantially the same investment objective and policies as the feeder fund. Such a structure permits the pooling of assets of two or more feeder funds, preserving separate identities or distribution channels at the feeder fund level. The Portfolio has two affiliated DWS feeder funds, with a significant ownership percentage of the Portfolio’s net assets. Investment activities of these feeder funds could have a material impact on the Portfolio. As of June 30, 2019, DWS S&P 500 Index Fund and DWS Equity 500 Index Fund owned approximately 62% and 38%, respectively, of the Portfolio.
The Portfolio’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Portfolio qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Portfolio in the preparation of its financial statements.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) orover-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked
Deutsche DWS Equity 500 Index Portfolio | | | 45 |
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quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1.
Debt securities are valued at prices supplied by independent pricing services approved by the Portfolio’s Board. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, prepayment speeds and other data, as well as broker quotes. If the pricing services are unable to provide valuations, debt securities are valued at the average of the most recent reliable bid quotations or evaluated prices, as applicable, obtained frombroker-dealers. These securities are generally categorized as Level 2.
Investments inopen-end investment companies are valued at their net asset value each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Portfolio’s valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices frombroker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (forexchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Securities Lending. Brown Brothers Harriman & Co., as lending agent, lends securities of the Portfolio to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Portfolio continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Portfolio requires the borrowers of the securities to maintain collateral
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with the Portfolio consisting of either cash and/or U.S. Treasury Securities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best efforts to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the six months ended June 30, 2019, the Portfolio invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.11% annualized effective rate as of June 30, 2019) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Portfolio receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a lending agent. Either the Portfolio or the borrower may terminate the loan at any time, and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Portfolio is not able to recover securities lent, the Portfolio may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Portfolio is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of June 30, 2019, the Portfolio had securities on loan, which were classified as common stock in the Investment Portfolio. The value of the related collateral exceeded the value of the securities loaned at period end. As of period end, the remaining contractual maturity of the collateral agreements were overnight and continuous.
Federal Income Taxes. The Portfolio is considered a partnership under the Internal Revenue Code, as amended. Therefore, no federal income tax provision is necessary.
It is intended that the Portfolio’s assets, income and distributions will be managed in such a way that an investor in the Portfolio will be able to satisfy the requirements of Subchapter M of the Code, assuming that the investor invested all of its assets in the Portfolio.
At June 30, 2019, the aggregate cost of investments for federal income tax purposes was $614,354,407. The net unrealized appreciation for all investments based on tax cost was $1,016,441,972. This consisted of aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost of $1,084,198,593 and aggregate gross unrealized depreciation for all investments in which was an excess of tax cost over value of $67,756,621.
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The Portfolio has reviewed the tax positions for the open tax years as of June 30, 2019 and has determined that no provision for income tax and/or uncertain tax provisions is required in the Portfolio’s financial statements. The Portfolio’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Contingencies. In the normal course of business, the Portfolio may enter into contracts with service providers that contain general indemnification clauses. The Portfolio’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolio that have not yet been made. However, based on experience, the Portfolio expects the risk of loss to be remote.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on theex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis. Proceeds from litigation payments, if any, are included in net realized gain (loss) from investments.
The Portfolio makes a daily allocation of its net investment income and realized and unrealized gains and losses from securities, futures and foreign currency transactions to its investors in proportion to their investment in the Portfolio.
B. Derivative Instruments
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). For the six months ended June 30, 2019, the Portfolio invested in futures contracts to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the stock market.
Upon entering into a futures contract, the Portfolio is required to deposit with a financial intermediary cash or securities (“initial margin”) in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments (“variation margin”) are made or received by the Portfolio dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Portfolio. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange’s clearinghouse acts as the counterparty, and guarantees the futures against default.
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Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Portfolio’s ability to close out a futures contract prior to the settlement date and the risk that the futures contract is not well correlated with the security, index or currency to which it relates. Risk of loss may exceed amounts disclosed in the Statement of Assets and Liabilities.
A summary of the open futures contracts as of June 30, 2019 is included��in a table following the Portfolio’s Investment Portfolio. For the six months ended June 30, 2019, the investment in futures contracts purchased had a total notional value generally indicative of a range from approximately $22,422,000 to $30,081,000.
The following table summarizes the value of the Portfolio’s derivative instruments held as of June 30, 2019 presented by primary underlying risk exposure:
Liability Derivative | Futures Contracts | |||
Equity Contracts (a) | $ | (47,619 | ) |
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. |
Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Portfolio earnings during the six months ended June 30, 2019 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
Realized Gain (Loss) | Futures Contracts | |||
Equity Contracts (b) | $ | 3,095,370 |
The above derivative is located in the following Statement of Operations account:
(b) | Net realized gain (loss) from futures |
Change in Net Unrealized Appreciation (Depreciation) | Futures Contracts | |||
Equity Contracts (c) | $ | (669,828 | ) |
The above derivative is located in the following Statement of Operations account:
(c) | Change in net unrealized appreciation (depreciation) on futures |
C. Purchases and Sales of Securities
During the six months ended June 30, 2019, purchases and sales of investment securities (excludingshort-term investments) aggregated $12,901,544 and $71,553,605, respectively.
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D. Related Parties
DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as the investment manager to the Portfolio.
Management Agreement. Under its Investment Management Agreement with the Portfolio, the Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Portfolio or delegates such responsibility to the Portfolio’ssub-advisor. Northern Trust Investments, Inc. (“NTI”) serves assub-advisor to the Portfolio and is paid by the Advisor for its services. NTI is responsible for theday-to-day management of the Portfolio.
The management fee payable under the Investment Management Agreement is equal to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.05% of the Portfolio’s average daily net assets, computed and accrued daily and payable monthly.
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Portfolio. For all services provided under the Administrative Services Agreement, the Portfolio pays the Advisor an annual fee (“Administration Fee”) of 0.03% of the Portfolio’s average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2019, the Administration Fee was $234,349, of which $39,515 is unpaid.
Filing Service Fee. Under an agreement with the Portfolio, DIMA is compensated for providing certain regulatory filing services to the Portfolio. For the six months ended June 30, 2019, the amount charged to the Portfolio by DIMA included in the Statement of Operations under “Reports to shareholders” aggregated $2,412, of which $907 is unpaid.
Trustees’ Fees and Expenses. The Portfolio paid retainer fees to each Trustee not affiliated with the Advisor, plus specified amounts to the Board Chairperson and to each committee Chairperson.
Affiliated Cash Management Vehicles. The Portfolio may invest uninvested cash balances in DWS Central Cash Management Government Fund and DWS ESG Liquidity Fund, affiliated money market funds which are managed by the Advisor. Each affiliated money market fund is managed in accordance with Rule2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Central Cash Management Government Fund seeks to maintain a stable net asset value, and DWS ESG Liquidity Fund maintains a floating net asset value. The Portfolio indirectly bears its proportionate share of the expenses of each affiliated money market fund in which it invests. DWS Central Cash Management Government Fund does not pay the Advisor an investment management
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fee. To the extent that DWS ESG Liquidity Fund pays an investment management fee to the Advisor, the Advisor will waive an amount of the investment management fee payable to the Advisor by the Portfolio equal to the amount of the investment management fee payable on the Portfolio’s assets invested in DWS ESG Liquidity Fund.
E. Line of Credit
The Portfolio and other affiliated funds (the “Participants”) share in a $400 million revolving credit facility provided by a syndication of banks. The Portfolio may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if theone-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement. The Portfolio had no outstanding loans at June 30, 2019.
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Advisory Agreement Board Considerations and Fee Evaluation
DWS S&P 500 Index Fund (the “Fund”), a series of Deutsche DWS Institutional Funds, invests substantially all of its assets in Deutsche DWS Equity 500 Index Portfolio (the “Portfolio”) in order to achieve its investment objective. The Portfolio’s Board of Trustees approved the renewal of the Portfolio’s investment management agreement (the “Portfolio Agreement”) with DWS Investment Management Americas, Inc. (“DIMA”) and thesub-advisory agreement (the“Sub-Advisory Agreement”) between DIMA and Northern Trust Investments, Inc. (“NTI”), and the Fund’s Board of Trustees (which consists of the same members as the Board of Trustees of the Portfolio) approved the renewal of the Fund’s investment management agreement with DIMA (the “Fund Agreement” and together with the Portfolio Agreement and theSub-Advisory Agreement, the “Agreements”) in September 2018. The Portfolio’s Board of Trustees and the Fund’s Board of Trustees are collectively referred to as the “Board” or “Trustees.”
In terms of the process that the Board followed prior to approving the Agreements, shareholders should know that:
– | During the entire process, all of the Portfolio’s and the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”). |
– | The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of performance, fees and expenses, and profitability from a fee consultant retained by the Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations. |
– | The Board also received extensive information throughout the year regarding performance of the Portfolio and the Fund. |
– | The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Portfolio’s and the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations. |
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– | In connection with reviewing the Agreements, the Board also reviewed the terms of the Fund’s Rule12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements. |
In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Portfolio and the Fund since their inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Portfolio and the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Portfolio and the Fund. DIMA is part of DWS Group GmbH & Co. KGaA (“DWS Group”). DWS Group is a global asset management business that offers a wide range of investing expertise and resources, including research capabilities in many countries throughout the world. In 2018, approximately 20% of DWS Group’s shares were sold in an initial public offering, with Deutsche Bank AG owning the remaining shares.
As part of the contract review process, the Board carefully considered the fees and expenses of each DWS fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.
While shareholders may focus primarily on fund performance and fees, the Board considers these and many other factors, including the quality and integrity of DIMA’s and NTI’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreements, including the scope of advisory services provided under the Agreements. The Board noted that, under the Agreements, DIMA and NTI provide portfolio management services to the Portfolio and the Fund and that, pursuant to separate administrative services agreements, DIMA provides administrative services to the Portfolio and the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. Throughout the course of the year, the Board also received information regarding DIMA’s oversight of fundsub-advisers, including NTI. The Board reviewed the Portfolio’s and the Fund’s performance over short-term and long-term periods and compared those returns to various agreed-upon performance measures, including market index(es) and a peer universe compiled using information supplied by
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Morningstar Direct (“Morningstar”), an independent fund data service. The Board also noted that it has put into place a process of identifying “Funds in Review” (e.g., funds performing poorly relative to a peer universe), and receives additional reporting from DIMA regarding such funds and, where appropriate, DIMA’s plans to address underperformance. The Board believes this process is an effective manner of identifying and addressing underperforming funds. Based on the information provided, the Board noted that, for theone-, three- and five-year periods ended December 31, 2017, the Fund’s performance (Class A shares) was in the 2nd quartile, 1st quartile and 2nd quartile, respectively, of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers).
Fees and Expenses. The Board considered the Portfolio’s and the Fund’s investment management fee schedules, the Portfolio’ssub-advisory fee schedule, the Fund’s operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Portfolio and the Fund, which include 0.03% and 0.10% fees paid to DIMA under the respective administrative services agreements, were higher than the median (3rd quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2017). The Board noted that, although shareholders of the Fund indirectly bear the Portfolio’s management fee, the Fund does not charge an additional investment management fee. With respect to thesub-advisory fee paid to NTI, the Board noted that the fee is paid by DIMA out of its fee and not directly by the Portfolio. The Board noted that the Fund’s Class A shares total (net) operating expenses (excluding12b-1 fees), which include Portfolio expenses allocated to the Fund, were expected to be equal to the median of the applicable Broadridge expense universe (based on Broadridge data provided as of December 31, 2017, and analyzing Broadridge expense universe Class A (net) expenses less any applicable12b-1 fees) (“Broadridge Universe Expenses”). The Board also reviewed data comparing other share classes’ total (net) operating expenses to the applicable Broadridge Universe Expenses. The Board noted that the expense limitations agreed to by DIMA were expected to help the Fund’s total (net) operating expenses remain competitive. The Board considered the management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds”) and considered differences between the Portfolio and the Fund and the comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts
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(including anysub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds”) managed by DWS Group. The Board noted that DIMA indicated that DWS Group does not manage any institutional accounts or DWS Europe Funds comparable to the Portfolio and the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA and NTI.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreements. The Board considered the estimated costs to DIMA, andpre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of thepre-tax profits attributable to managing the Fund in particular. The Board also received information regarding the estimated enterprise-wide profitability of DIMA and its affiliates with respect to all fund services in totality and by fund. The Board and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that thepre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available information regarding the profitability of certain similar investment management firms. The Board noted that, while information regarding the profitability of such firms is limited (and in some cases is not necessarily prepared on a comparable basis), DIMA and its affiliates’ overall profitability with respect to the DWS Funds (after taking into account distribution and other services provided to the funds by DIMA and its affiliates) was lower than the overall profitability levels of most comparable firms for which such data was available. The Board did not consider the profitability of NTI with respect to the Portfolio. The Board noted that DIMA pays NTI’s fee out of its management fee, and its understanding that the Portfolio’ssub-advisory fee schedule was the product of an arm’s length negotiation with DIMA.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Portfolio and the Fund and whether the Portfolio and the Fund benefit from any economies of scale. In this regard, the Board observed that while the Portfolio’s and the Fund’s current investment management fee schedule does not include breakpoints, the Portfolio’s and the Fund’s fee schedule represents an appropriate sharing between the Portfolio and the Fund and DIMA of such economies of scale as may exist in the management of the Portfolio and the Fund at current asset levels.
Other Benefits to DIMA and NTI and Their Affiliates. The Board also considered the character and amount of other incidental or“fall-out”
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benefits received by DIMA and NTI and their affiliates, including any fees received by DIMA for administrative services provided to the Portfolio and to the Fund, any fees received by an affiliate of DIMA for transfer agency services provided to the Fund and any fees received by an affiliate of DIMA for distribution services. The Board also considered benefits to DIMA and NTI related to brokerage and soft-dollar allocations, including allocating brokerage to pay for research generated by parties other than the executing broker dealers, which pertain primarily to funds investing in equity securities. In addition, the Board considered the incidental public relations benefits to DIMA and NTI related to DWS Funds advertising and cross-selling opportunities among DIMA products and services. The Board considered these benefits in reaching its conclusion that the Portfolio’s and the Fund’s management fees were reasonable.
Compliance. The Board considered the significant attention and resources dedicated by DIMA to its compliance processes in recent years. The Board noted in particular (i) the experience, seniority and time commitment of the individuals serving as DIMA’s and the Fund’s chief compliance officers and (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel. The Board also considered the attention and resources dedicated by DIMA to the oversight of the investmentsub-advisor’s compliance program and compliance with the applicable fund policies and procedures.
Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreements is in the best interests of the Portfolio and the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreements.
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For More Information | The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, C and S also have the ability to purchase, exchange or redeem shares using this system.
For more information, contact your financial representative. You may also access our automated telephone system or speak with a Shareholder Service representative by calling:
(800)728-3337 | |
Web Site | dws.com
View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates bye-mail, and change your address, 24 hours a day.
Obtain prospectuses and applications,news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information. | |
Written Correspondence | DWS
PO Box 219151 Kansas City, MO64121-9151 | |
Proxy Voting | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent12-month period ended June 30 are available on our Web site —dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at(800) 728-3337. | |
Portfolio Holdings | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q or Form N-PORT (available for filings after March 31, 2019). This Fund’s Form N-Q or Form N-PORT will be available on the SEC’s Web site at sec.gov. The Fund’s portfolio holdings are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. | |
Principal Underwriter | If you have questions, comments or complaints, contact:
DWS Distributors, Inc.
222 South Riverside Plaza Chicago, IL60606-5808 (800)621-1148 |
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Investment Management | DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor”), which is part of the DWS Group GmbH & Co. KGaA (“DWS Group”), is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of DWS Group.
DWS Group is a global organization that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts and an office network that reaches the world’s major investment centers. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles. | |||||
Class A | Class C | Class S | ||||
Nasdaq Symbol | SXPAX | SXPCX | SCPIX | |||
CUSIP Number | 25159R 700 | 25159R 882 | 25159R 874 | |||
Fund Number | 1001 | 1301 | 2301 | |||
For shareholders of Class R6 | ||||||
Automated Information Line | DWS/Ascensus Plan Access (800)728-3337
24-hour access to your retirement plan account. | |||||
Web Site | dws.com
Obtain prospectuses and applications, news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information.
Log in/register to manage retirement account assets athttps://www.mykplan.com/participantsecure_net/login.aspx. | |||||
For More Information | (800)728-3337
To speak with a service representative. | |||||
Written Correspondence | DWS Service Company
222 South Riverside Plaza Chicago, IL60606-5806 | |||||
Nasdaq Symbol | SXPRX | |||||
CUSIP Number | 25159R 841 | |||||
Fund Number | 1621 |
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FACTS | What Does DWS Do With Your Personal Information? | |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do. | |
What? | The types of personal information we collect and share can include:
– Social Security number
– Account balances
– Purchase and transaction history
– Bank account information
– Contact information such as mailing address,e-mail address and telephone number | |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons DWS chooses to share and whether you can limit this sharing. |
Reasons we can share your personal information | Does DWS share? | Can you limit this sharing? | ||
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders or legal investigations | Yes | No | ||
For our marketing purposes —to offer our products and services to you | Yes | No | ||
For joint marketing with other financial companies | No | We do not share | ||
For our affiliates’ everyday businesspurposes —information about your transactions and experiences | No | We do not share | ||
For our affiliates’ everyday businesspurposes —information about your creditworthiness | No | We do not share | ||
Fornon-affiliates to market to you | No | We do not share |
Questions? | Call (800)728-3337 ore-mail us at service@dws.com |
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| ||
Who we are | ||
Who is providing this notice? | DWS Distributors, Inc; DWS Investment Management Americas, Inc.; DWS Trust Company; the DWS Funds | |
What we do | ||
How does DWS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. | |
How does DWS collect my personal information? | We collect your personal information, for example, when you:
– open an account
– give us your contact information
– provide bank account information for ACH or wire transactions
– tell us where to send money
– seek advice about your investments | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only
– sharing for affiliates’ everyday business purposes
– information about your creditworthiness
– affiliates from using your information to market to you
– sharing fornon-affiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial ornon-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank (“DB”) name, such as DB AG Frankfurt. | |
Non-affiliates | Companies not related by common ownership or control. They can be financial andnon-financial companies.
Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud. | |
Joint marketing | A formal agreement betweennon-affiliated financial companies that together market financial products or services to you. DWS does not jointly market. |
Rev. 3/2019
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DSPF500IF-3
(R-028289-8 8/19)
ITEM 2. | CODE OF ETHICS | ||
Not applicable. | |||
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT | ||
Not applicable | |||
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | ||
Not applicable | |||
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | ||
Not applicable | |||
ITEM 6. | SCHEDULE OF INVESTMENTS | ||
Not applicable | |||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | ||
Not applicable | |||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | ||
Not applicable | |||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | ||
Not applicable | |||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | ||
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | |||
ITEM 11. | CONTROLS AND PROCEDURES | ||
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within six months 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 six-month 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. | ||
(a)(3) | Not applicable | ||
(a)(4)(i) | Certification pursuant to Item 4.01 of Form 8-K under the Exchange Act (17 CFR 249.308) is attached hereto. | ||
(a)(4)(ii) | Letter from former accountant pursuant to Item 304(a) under Regulation S-K is attached hereto. | ||
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | DWS S&P 500 Index Fund, a series of Deutsche DWS Institutional Funds |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 9/5/2019 |
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: | 9/5/2019 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 9/5/2019 |