UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number: 811-02021
Deutsche DWS Securities Trust
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
| Date of fiscal year end: | 6/30 |
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| Date of reporting period: | 6/30/2023 |
| ITEM 1. | REPORT TO STOCKHOLDERS |
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| | (a) |
June 30, 2023
Annual Report
to Shareholders
DWS Enhanced Commodity Strategy Fund
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.
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
| | DWS Enhanced Commodity Strategy Fund |
The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. A counterparty with whom the Fund does business may decline in financial health and become unable to honor its commitments, which could cause losses for the Fund. The Fund may lend securities to approved institutions. Please read the prospectus for details.
War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises, natural disasters, climate change and related geopolitical events have led and, in the future, may lead to significant disruptions in U.S. and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the Fund and its investments.
DWS Enhanced Commodity Strategy Fund | | |
Letter to Shareholders
Dear Shareholder:
This past year can be described as one where there were major structural disruptions and challenges impacting financial markets: record high inflation; end of ultra-loose monetary policy; impact of slower growth in China; ongoing political attacks on global trade; demographic change profoundly affecting more and more countries; and finally, the Ukraine conflict, the future course of which continues to be highly unpredictable.
It is therefore apparent that there will be no lack of challenges for investors in 2023. With looming recession concerns in the U.S. and Europe, we believe the prospects for equity returns will be challenging for the remainder of 2023. Further, aggressive tightening by the Federal Reserve and international monetary authorities has increased pressure on banks and their ability to lend, and also negatively impacted the performance of fixed income securities. Inflation continues to remain above monetary authority targets, however there is evidence that rate hikes by the Federal Reserve are beginning to take effect and cool the pace of rising prices.
Consequently, we believe that it is important for investors to diversify their investments given the level of volatility in markets. Balanced portfolios can help mitigate the negative impact of unexpected economic, geopolitical, and market events. While investment objectives are unique to each investor, we do believe there may be benefits to owning corporate and government bonds given their potential for yield as well as holding equities for their ability to counter the negative effects of persistent inflation.
In our view, these factors of market volatility, unpredictable economic events, and complex geo-political forces strongly underscore the value add of active portfolio management. The partnership between our portfolio managers and our CIO Office — which synthesizes the views of more than 900 DWS economists, analysts and investment professionals around the world — makes an important difference in making strategic and tactical decisions for the DWS Funds. Thank you for your trust. For ongoing updates to our market and economic outlook, please visit the “Insights” section of dws.com.
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.
| | DWS Enhanced Commodity Strategy Fund |
Portfolio Management Review(Unaudited)
Market Overview and Fund Performance
All performance information below is historical and does not guarantee future results. Returns shown are for Class A shares, unadjusted for sales charges. 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 most recent month-end performance of all share classes. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had. Please refer to pages 10 through 12 for more complete performance information.
The Fund’s Class A shares returned -9.49% during the 12-month period ended June 30, 2023, outperforming the -9.61% return of the Bloomberg Commodity Index.
Investment Process
Portfolio management generally will allocate the Fund’s commodity-linked investments among a variety of different commodity sectors. Portfolio management employs three main strategies with respect to its commodity-linked investments: a relative value strategy, a tactical strategy, and a “roll enhancement” strategy. In implementing the relative value strategy, portfolio management will use a proprietary quantitative, rules-based methodology in determining the Fund’s commodity sector weightings relative to the Fund’s benchmark index, the Bloomberg Commodity Index. Portfolio management normally will rebalance commodity sector positions when a sector undergoes a “trigger event,” reducing the Fund’s exposure to commodity sectors that are believed to be “expensive” and increasing its exposure to sectors that are believed to be “cheap.” To the extent environmental, social or governance (ESG) factors apply to the market supply and demand of a commodity sector, portfolio management will take such factors into account when analyzing the expected supply and demand for such sector. The tactical strategy focuses on the direction of commodity markets as a whole. Portfolio management will use a proprietary, momentum-driven, quantitative formula that seeks to anticipate the direction of the commodity markets. Portfolio management may reduce the Fund’s exposure to all commodity sectors when commodities in general appear overvalued. In implementing the “roll enhancement” strategy, portfolio management seeks to invest in commodity contracts whose expiration is further out on the “commodity curve” than the subsequent month so as to avoid continually paying premiums to replace expiring contracts.
With respect to the Fund’s fixed income investments, portfolio management uses a relative value style to seek to construct a diversified portfolio of fixed income securities.
DWS Enhanced Commodity Strategy Fund | | |
Commodity prices trended steadily lower throughout the period, creating challenging conditions for investors. Part of the weakness was the result of timing: commodities surged in the first half of 2022, particularly in the wake of Russia’s invasion of Ukraine, and spiked to a ten-year high in early June of that year. While the index fell sharply in the latter half of the month, it still entered the current reporting period at an elevated level. As a result, a shift to less favorable news flow over the course of the past 12 months had an outsized impact on prices.
The weakness in energy-related commodities, which are heavily weighted in the index, was the primary driver of the downturn. West Texas Intermediate Crude declined from $105.76 a barrel to $70.64 over the course of the year. While production was constrained, with lower capital expenditures by the major producers and continued discipline by the OPEC+ countries, oil lost ground due to concerns about the impact of slowing global growth. Natural gas was also a weak performer, with prices falling from $5.424 per million British Thermal Units (btu) on June 30, 2022 to $2.798 by the close of the period. Supplies rose more than the markets had been anticipating, causing the commodity to lag the broader index by a wide margin.
“Commodity prices trended steadily lower throughout the period, creating challenging conditions for investors.”
Base metals (including copper, aluminum, and zinc) also finished the 12-month period in the red. Prices in this segment are driven largely by expectations for China’s economy, which was a headwind given that the nation’s reopening from its extended COVID-19 lockdowns did not provide the expected boost to growth. In addition, government policy in the country shifted in favor of boosting consumer spending rather than capital investment, depressing demand for metals.
Agricultural commodities posted a narrow gain but outperformed the index. Generally speaking, the category was helped by the combination of weaker-than-expected production and steady demand. It also has a lower sensitivity to the outlook for economic growth, a positive trait in the current environment.
Precious metals gained ground and were the best-performing major segment of the commodity market. A general downtrend in the U.S. dollar
| | DWS Enhanced Commodity Strategy Fund |
from the autumn of 2022 onward provided a tailwind, as did the periodic emergence of hopes that the U.S. Federal Reserve (Fed) would “pause” its long series of interest rate hikes.
Fund Performance
We use a number of different strategies in an effort to maximize returns and manage risk. The majority contributed to relative performance over the past 12 months, somewhat offsetting the full impact of weakness in the broader commodities market.
Tactical Strategy: This element of our approach was a key contributor. The portfolio averaged less than 100% market exposure during the period, which proved very helpful at a time in which the index posted a double-digit loss.
Roll Enhancement Strategy: We made a number of adjustments in this area over the course of the year in an effort to adjust to market conditions and extract value from various parts of the curve. This activity was a net contributor to performance. In our view, this illustrates the potential merits of a strategy that seeks opportunities along the entire curve and not just in short-dated contracts.
Relative Value Strategy: Here, the Fund benefited from its overweight in gold against underweights in base metals and energy.
We invest in commodities using swaps and futures, and we invest the remainder of the Fund’s assets in a fixed-income portfolio. Although we use a conservative approach in this area, holding fixed-income assets as collateral detracted from performance given the poor returns for bonds in a rising-rate environment.
We also sought to adjust the portfolio’s positioning to take advantage of short-term market dislocations in an opportunistic fashion. Our activity on this front added value, highlighted by trades in natural gas. Positioning in wheat was an additional contributor of note. On the other hand, positioning in the broader energy sector detracted.
Outlook and Fund Positioning
A number of variables continued to affect the commodities market at the midway point of the year, leading to a broad range of potential outcomes. The prospects for global central bank policy, China’s economy, and weather conditions all remained uncertain, indicating the likelihood of
DWS Enhanced Commodity Strategy Fund | | |
ongoing market volatility and a wide dispersion in returns among individual commodities. We believe these circumstances create fertile ground for the Fund to seek opportunities and manage downside risk using its disciplined, multi-faceted strategy.
Portfolio Management Team
Darwei Kung, Head of Investment Strategy Liquid Real Assets
Portfolio Manager of the Fund. Began managing the Fund in 2010.
—Joined DWS in 2006; previously has worked as a Director, Engineering and Business Development at Calpoint LLC from 2001–2004.
—Portfolio Manager: New York.
—BS and MS, University of Washington, Seattle; MS and MBA, Carnegie Mellon University.
Jeff Morton, CFA, Senior Portfolio Manager Fixed Income
Portfolio Manager of the Fund. Began managing the Fund in 2022.
—Joined DWS in 2011 with 13 years of industry experience. Prior to joining, he served as a Portfolio Manager at Fischer Francis Trees and Watts. Previously, he worked as a Vice President at Credit Suisse and at Blackrock.
—Fixed Income Portfolio Manager: New York.
—BS in Major Industrial Management and Economics, Carnegie Mellon University.
Avraham D. Feinberg, CFA, Head of Investment Strategy Liquid Real Assets
Portfolio Manager of the Fund. Began managing the Fund in 2023.
—Joined DWS in 2012, with 8 years of industry experience. Prior to joining he worked as an Equity Analyst at Morningstar and as a Senior Business Planning Consultant at MetLife.
—Senior Portfolio Manager Liquid Real Assets: Chicago.
—BA in Economics from Northwestern University; MBA, from Kellogg School of Management, Northwestern University.
The views expressed reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Past performance is no guarantee of future results. Current and future portfolio holdings are subject to risk.
Terms to Know
Futures contracts are contractual agreements to buy or sell a particular commodity or financial instrument at a predetermined price in the future.
Bloomberg Commodity Index is an unmanaged index that tracks a diversified group of commodities and commodities futures contracts traded on both U.S. and London exchanges. Index returns do not reflect fees or expenses and it is not possible to invest directly into an index.
Momentum is the rate of acceleration or deceleration of a security’s price.
Overweight means the Fund holds a higher weighting in a given sector, security, or commodity than the benchmark. Underweight means the Fund holds a lower weighting.
| | DWS Enhanced Commodity Strategy Fund |
A swap is a derivative in which two counterparties exchange cash flows of one party’s financial instrument for those of the other party’s financial instrument for a set period of time. Derivatives are contracts whose values can be based on a variety of instruments including indices, currencies or securities.
DWS Enhanced Commodity Strategy Fund | | |
Performance SummaryJune 30, 2023 (Unaudited)
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Average Annual Total Returns as of 6/30/23 |
Unadjusted for Sales Charge | | | |
Adjusted for the Maximum Sales Charge
(max 5.75% load) | | | |
Bloomberg Commodity Index† | | | |
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Average Annual Total Returns as of 6/30/23 |
Unadjusted for Sales Charge | | | |
Adjusted for the Maximum Sales Charge
(max 1.00% CDSC) | | | |
Bloomberg Commodity Index† | | | |
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Average Annual Total Returns as of 6/30/23 |
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Bloomberg Commodity Index† | | | |
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Average Annual Total Returns as of 6/30/23 |
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Bloomberg Commodity Index† | | | |
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Average Annual Total Returns as of 6/30/23 |
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Bloomberg Commodity Index† | | | |
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 recent month-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 October 1, 2022 are 1.36%, 1.99%, 0.97%, 1.13% and 1.04% for Class A,
| | DWS Enhanced Commodity Strategy Fund |
Class C, Class R6, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Consolidated 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.
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)
Yearly periods ended June 30
The Fund’s growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.
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 June 1, 2016. |
| The Bloomberg Commodity Index is an unmanaged index that tracks a diversified group of commodities and commodities futures contracts traded on both U.S. and London exchanges. |
DWS Enhanced Commodity Strategy Fund | | |
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Distribution Information as of 6/30/23 |
Income Dividends, Twelve Months | | | | | |
| | DWS Enhanced Commodity Strategy Fund |
Consolidated Portfolio Summary(Unaudited)
The Fund invests in commodity-linked derivative instruments backed by a portfolio of fixed-income instruments.
Commodity-Linked Investments
Commodity Sector Allocation (Commodity Exposure from Commodity-Linked Derivative Instruments as a % of Net Assets) | | |
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Fixed-Income Investments
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | | |
Government & Agency Obligations | | |
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Commercial Mortgage-Backed Securities | | |
Short-Term U.S. Treasury Obligations | | |
Collateralized Mortgage Obligations | | |
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Quality (Excludes Securities Lending Collateral and Cash Equivalents) | | |
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The quality ratings represent the higher of Moody’s Investors Service, Inc. (“Moody’s” ), Fitch Ratings, Inc. (“Fitch” ) or S&P Global Ratings (“S&P” ) credit ratings. The ratings of Moody’s, Fitch and S&P represent their opinions as to the quality of the securities they rate. Credit quality measures a bond issuer’s ability to repay interest and principal in a timely manner. Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change.
Interest Rate Sensitivity | | |
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DWS Enhanced Commodity Strategy Fund | | |
Effective maturity is the weighted average of the maturity date of bonds held by the Fund taking into consideration any available maturity shortening features.
Effective duration is an approximate measure of the Fund’s sensitivity to interest rate changes taking into consideration any maturity shortening features.
Consolidated portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s consolidated investment portfolio, see page 15. A quarterly Fact Sheet is available on dws.com or upon request. Please see the Account Management Resources section on page 85 for contact information.
| | DWS Enhanced Commodity Strategy Fund |
Consolidated
Investment Portfolioas of June 30, 2023
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Communication Services 1.2% | |
Charter Communications Operating LLC, 4.908%, 7/23/2025 | | | |
Discovery Communications LLC, 3.45%, 3/15/2025 | | | |
Empresa Nacional de Telecomunicaciones SA, 144A, 4.875%, 10/30/2024 | | | |
Kenbourne Invest SA, 144A, 6.875%, 11/26/2024 | | | |
Meituan, 144A, 2.125%, 10/28/2025 | | | |
Sirius XM Radio, Inc., 144A, 3.125%, 9/1/2026 | | | |
Sprint LLC, 7.625%, 3/1/2026 | | | |
Tencent Music Entertainment Group, 1.375%, 9/3/2025 | | | |
T-Mobile U.S.A., Inc., 3.5%, 4/15/2025 | | | |
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Consumer Discretionary 2.2% | |
7-Eleven, Inc., 144A, 0.8%, 2/10/2024 | | | |
Aptiv PLC, 2.396%, 2/18/2025 | | | |
AutoZone, Inc., 4.5%, 2/1/2028 | | | |
Daimler Truck Finance North America LLC, 144A, 5.15%, 1/16/2026 | | | |
Dollar General Corp., 4.25%, 9/20/2024 | | | |
Ford Motor Credit Co. LLC, 3.375%, 11/13/2025 | | | |
General Motors Financial Co., Inc., 1.7%, 8/18/2023 | | | |
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KFC Holding Co., 144A, 4.75%, 6/1/2027 | | | |
Kia Corp., 144A, 1.0%, 4/16/2024 | | | |
Royal Caribbean Cruises Ltd.: | | | |
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Warnermedia Holdings, Inc., 3.428%, 3/15/2024 | | | |
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Constellation Brands, Inc., 5.0%, 2/2/2026 | | | |
Coty, Inc., 144A, 5.0%, 4/15/2026 | | | |
GSK Consumer Healthcare Capital UK PLC, 3.125%, 3/24/2025 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
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JBS U.S.A. Lux SA, 144A, 2.5%, 1/15/2027 | | | |
JDE Peet’s NV, 144A, 0.8%, 9/24/2024 | | | |
Mondelez International, Inc., 2.125%, 3/17/2024 | | | |
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Antero Midstream Partners LP, 144A, 7.875%, 5/15/2026 | | | |
Canadian Natural Resources Ltd.: | | | |
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DCP Midstream Operating LP, 5.375%, 7/15/2025 | | | |
Endeavor Energy Resources LP, 144A, 5.75%, 1/30/2028 | | | |
MarkWest Energy Partners LP, 4.875%, 6/1/2025 | | | |
MPLX LP, 4.875%, 12/1/2024 | | | |
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Phillips 66, 0.9%, 2/15/2024 | | | |
Plains All American Pipeline LP, 3.85%, 10/15/2023 (a) | | | |
SA Global Sukuk Ltd., 144A, 0.946%, 6/17/2024 | | | |
Saudi Arabian Oil Co., 144A, 1.25%, 11/24/2023 | | | |
Williams Companies, Inc., 4.55%, 6/24/2024 | | | |
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AerCap Ireland Capital DAC: | | | |
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Ally Financial, Inc., 1.45%, 10/2/2023 | | | |
American Express Co., 3.375%, 5/3/2024 | | | |
ASB Bank Ltd., 144A, 3.125%, 5/23/2024 | | | |
Avolon Holdings Funding Ltd., 144A, 5.125%, 10/1/2023 | | | |
Banco Votorantim SA, 144A, 4.375%, 7/29/2025 | | | |
Bancolombia SA, 3.0%, 1/29/2025 | | | |
Barclays PLC, 1.007%, 12/10/2024 | | | |
BBVA Bancomer SA, 144A, 1.875%, 9/18/2025 | | | |
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The accompanying notes are an integral part of the consolidated financial statements.
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Capital One Financial Corp., 4.985%, 7/24/2026 | | | |
Citizens Bank NA, 4.119%, 5/23/2025 | | | |
Corebridge Financial, Inc., 3.5%, 4/4/2025 | | | |
Credicorp Ltd., 144A, 2.75%, 6/17/2025 | | | |
Credit Agricole SA, 144A, 5.589%, 7/5/2026 (b) | | | |
Danske Bank AS, 144A, 6.466%, 1/9/2026 | | | |
Equitable Financial Life Global Funding, 144A, 0.5%, 11/17/2023 | | | |
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ING Groep NV, 3.55%, 4/9/2024 | | | |
Intesa Sanpaolo SpA, 144A, 7.0%, 11/21/2025 | | | |
KeyBank NA, 3.4%, 5/20/2026 | | | |
KeyCorp., 3.878%, 5/23/2025 | | | |
Lloyds Banking Group PLC, 4.716%, 8/11/2026 | | | |
Macquarie Group Ltd., 144A, SOFR + 0.92%, 6.011% (c), 9/23/2027 | | | |
Mitsubishi UFJ Financial Group, Inc.: | | | |
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Mizuho Financial Group, Inc., 1.241%, 7/10/2024 | | | |
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Nasdaq, Inc., 5.65%, 6/28/2025 | | | |
NatWest Markets PLC, 144A, 0.8%, 8/12/2024 | | | |
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Pacific Life Global Funding II, 144A, 5.951% (c), 6/16/2025 | | | |
SNB Funding Ltd., REG S, 2.75%, 10/2/2024 | | | |
Societe Generale SA, 144A, 2.625%, 1/22/2025 | | | |
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Sumitomo Mitsui Trust Bank Ltd., 144A, SOFR + 0.44%, 5.531% (c), 9/16/2024 | | | |
Synchrony Bank, 5.4%, 8/22/2025 | | | |
Synchrony Financial, 4.875%, 6/13/2025 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
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Truist Financial Corp., 6.047%, 6/8/2027 | | | |
UBS Group AG, 144A, 2.193%, 6/5/2026 | | | |
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Bayer U.S. Finance II LLC, 144A, 3.875%, 12/15/2023 | | | |
CVS Health Corp., 3.875%, 7/20/2025 | | | |
Humana, Inc., 5.7%, 3/13/2026 | | | |
Prime Healthcare Services, Inc., 144A, 7.25%, 11/1/2025 | | | |
Teva Pharmaceutical Finance Netherlands III BV: | | | |
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Zimmer Biomet Holdings, Inc., 1.45%, 11/22/2024 | | | |
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Albemarle Corp., 4.65%, 6/1/2027 (a) | | | |
Boeing Co., 1.95%, 2/1/2024 | | | |
Clean Harbors, Inc., 144A, 4.875%, 7/15/2027 | | | |
Delta Air Lines, Inc., 144A, 4.5%, 10/20/2025 | | | |
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Hillenbrand, Inc., 5.75%, 6/15/2025 | | | |
Howmet Aerospace, Inc., 6.875%, 5/1/2025 | | | |
Penske Truck Leasing Co., 144A, 4.4%, 7/1/2027 | | | |
Penske Truck Leasing Co., LP, 144A, 1.2%, 11/15/2025 | | | |
Prime Security Services Borrower LLC, 144A, 5.25%, 4/15/2024 | | | |
Spirit Loyalty Cayman Ltd., 144A, 8.0%, 9/20/2025 | | | |
WESCO Distribution, Inc., 144A, 7.125%, 6/15/2025 | | | |
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Information Technology 1.7% | |
Dell International LLC, 5.25%, 2/1/2028 | | | |
DXC Technology Co., 1.8%, 9/15/2026 | | | |
HP, Inc., 2.2%, 6/17/2025 | | | |
Microchip Technology, Inc.: | | | |
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The accompanying notes are an integral part of the consolidated financial statements.
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Qorvo, Inc., 144A, 1.75%, 12/15/2024 | | | |
Take-Two Interactive Software, Inc., 3.3%, 3/28/2024 | | | |
Workday, Inc., 3.5%, 4/1/2027 | | | |
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Celanese U.S. Holdings LLC: | | | |
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Chemours Co., 5.375%, 5/15/2027 | | | |
First Quantum Minerals Ltd., 144A, 6.875%, 3/1/2026 | | | |
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Indonesia Asahan Aluminium Persero PT: | | | |
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LYB International Finance III LLC, 1.25%, 10/1/2025 | | | |
MEGlobal Canada ULC, 144A, 5.0%, 5/18/2025 | | | |
NOVA Chemicals Corp., 144A, 4.875%, 6/1/2024 | | | |
Nucor Corp., 2.0%, 6/1/2025 | | | |
POSCO, 144A, 4.0%, 8/1/2023 | | | |
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American Tower Corp., (REIT), 2.4%, 3/15/2025 | | | |
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Office Properties Income Trust, (REIT), 2.65%, 6/15/2026 | | | |
Realty Income Corp., 5.05%, 1/13/2026 | | | |
RLJ Lodging Trust LP, 144A, (REIT), 3.75%, 7/1/2026 | | | |
Starwood Property Trust, Inc., 144A, (REIT), 3.625%, 7/15/2026 | | | |
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144A, (REIT), 5.25%, 12/15/2024 | | | |
REG S, (REIT), 5.25%, 12/15/2024 | | | |
Ventas Realty LP, (REIT), 3.5%, 4/15/2024 | | | |
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144A, (REIT), 3.5%, 2/15/2025 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
| | |
144A, (REIT), 4.625%, 6/15/2025 | | | |
Welltower OP LLC, (REIT), 3.625%, 3/15/2024 | | | |
| | | |
| |
Alexander Funding Trust, 144A, 1.841%, 11/15/2023 | | | |
American Electric Power Co., Inc.: | | | |
Series M, 0.75%, 11/1/2023 | | | |
| | | |
CenterPoint Energy, Inc., SOFR + 0.65%, 5.739% (c), 5/13/2024 | | | |
Dominion Energy, Inc., 3.071%, 8/15/2024 | | | |
Korea East-West Power Co., Ltd., 144A, 1.75%, 5/6/2025 | | | |
NextEra Energy Capital Holdings, Inc., 6.051%, 3/1/2025 | | | |
NextEra Energy Operating Partners LP, 144A, 4.25%, 7/15/2024 | | | |
Pacific Gas and Electric Co., 1.7%, 11/15/2023 | | | |
Southern California Edison Co., Series J, 0.7%, 8/1/2023 | | | |
Vistra Operations Co. LLC, 144A, 3.55%, 7/15/2024 | | | |
| | | |
Total Corporate Bonds (Cost $360,669,829) | |
|
Automobile Receivables 3.8% | |
AmeriCredit Automobile Receivables Trust: | | | |
“C” , Series 2020-2, 1.48%, 2/18/2026 | | | |
“C” , Series 2019-2, 2.74%, 4/18/2025 | | | |
CarMax Auto Owner Trust, “C” , Series 2020-3, 1.69%, 4/15/2026 | | | |
Carvana Auto Receivables Trust: | | | |
“A3” , Series 2022-P2, 4.13%, 4/12/2027 | | | |
“B” , Series 2022-P3, 5.04%, 10/10/2028 | | | |
Chase Auto Owner Trust, “C” , Series 2022-AA, 144A, 4.64%, 7/25/2028 | | | |
CPS Auto Receivables Trust: | | | |
“C” , Series 2022-A, 144A, 2.17%, 4/16/2029 | | | |
“C” , Series 2022-B, 144A, 4.33%, 8/15/2028 | | | |
“B” , Series 2022-C, 144A, 4.88%, 4/15/2030 | | | |
“E” , Series 2019-B, 144A, 5.0%, 3/17/2025 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
| | |
“E” , Series 2019-A, 144A, 5.81%, 3/16/2026 | | | |
“E” , Series 2018-D, 144A, 5.82%, 6/16/2025 | | | |
“E” , Series 2020-B, 144A, 7.38%, 6/15/2027 | | | |
Exeter Automobile Receivables Trust, “D” , Series 2020-2A, 144A, 4.73%, 4/15/2026 | | | |
Flagship Credit Auto Trust: | | | |
“C” , Series 2021-1, 144A, 0.91%, 3/15/2027 | | | |
“C” , Series 2020-4, 144A, 1.28%, 2/16/2027 | | | |
“C” , Series 2020-3, 144A, 1.73%, 9/15/2026 | | | |
“C” , Series 2019-3, 144A, 2.74%, 10/15/2025 | | | |
“C” , Series 2019-4, 144A, 2.77%, 12/15/2025 | | | |
“C” , Series 2020-2, 144A, 3.8%, 4/15/2026 | | | |
GLS Auto Receivables Trust, “B” , Series 2022-2A, 144A, 4.7%, 9/15/2026 | | | |
GMF Floorplan Owner Revolving Trust, “C” , Series 2020-2, 144A, 1.31%, 10/15/2025 | | | |
Hertz Vehicle Financing III LLC: | | | |
“C” , Series 2022-1A, 144A, 2.63%, 6/25/2026 | | | |
“C” , Series 2022-3A, 144A, 4.35%, 3/25/2025 | | | |
Hertz Vehicle Financing LLC: | | | |
“B” , Series 2021-1A, 144A, 1.56%, 12/26/2025 | | | |
“C” , Series 2021-1A, 144A, 2.05%, 12/26/2025 | | | |
| | | |
“B” , Series 2021-3, 144A, 0.76%, 2/26/2029 | | | |
“C” , Series 2021-3, 144A, 0.86%, 2/26/2029 | | | |
“D” , Series 2021-3, 144A, 1.009%, 2/26/2029 | | | |
“C” , Series 2021-1, 144A, 1.024%, 9/25/2028 | | | |
“D” , Series 2021-2, 144A, 1.138%, 12/26/2028 | | | |
“D” , Series 2021-1, 144A, 1.174%, 9/25/2028 | | | |
“D” , Series 2020-2, 144A, 1.487%, 2/25/2028 | | | |
“E” , Series 2021-2, 144A, 2.28%, 12/26/2028 | | | |
“E” , Series 2021-1, 144A, 2.365%, 9/25/2028 | | | |
“E” , Series 2020-2, 144A, 3.072%, 2/25/2028 | | | |
“E” , Series 2020-1, 144A, 3.715%, 1/25/2028 | | | |
OneMain Direct Auto Receivables Trust, “A1” , Series 2022-1A, 144A, 4.65%, 3/14/2029 | | | |
PenFed Auto Receivables Owner Trust: | | | |
“B” , Series 2022-A, 144A, 4.6%, 12/15/2028 | | | |
“C” , Series 2022-A, 144A, 4.83%, 12/15/2028 | | | |
Santander Bank Auto Credit Linked Notes, “B” , Series 2022-A, 144A, 5.281%, 5/15/2032 | | | |
| | | |
“B” , Series 2021-1A, 144A, 1.833%, 12/15/2031 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
| | |
“C” , Series 2021-1A, 144A, 3.268%, 12/15/2031 | | | |
Santander Consumer Auto Receivables Trust, “B” , Series 2021-BA, 144A, 1.45%, 10/16/2028 | | | |
Santander Drive Auto Receivables Trust: | | | |
“C” , Series 2020-4, 1.01%, 1/15/2026 | | | |
“C” , Series 2022-1, 2.56%, 4/17/2028 | | | |
“C” , Series 2022-5, 4.74%, 10/16/2028 | | | |
Westlake Automobile Receivables Trust, “C” , Series 2022-3A, 144A, 6.44%, 12/15/2027 | | | |
| | | |
Credit Card Receivables 0.9% | |
Brex, Inc., “A” , Series 2022-1, 144A, 4.63%, 7/15/2025 | | | |
Continental Finance Credit Card ABS Master Trust: | | | |
“A” , Series 2021-A, 144A, 2.55%, 12/17/2029 | | | |
“A” , Series 2022-A, 144A, 6.19%, 10/15/2030 | | | |
Genesis Sales Finance Master Trust, “A” , Series 2021-AA, 144A, 1.2%, 12/21/2026 | | | |
Master Credit Card Trust II, “C” , Series 2022-1A, 144A, 2.27%, 7/21/2026 | | | |
Mercury Financial Credit Card Master Trust, “A” , Series 2022-1A, 144A, 2.5%, 9/21/2026 | | | |
| | | |
| |
American Homes 4 Rent Trust: | | | |
“D” , Series 2015-SFR1, 144A, 4.407%, 4/17/2052 | | | |
“C” , Series 2014-SFR3, 144A, 4.596%, 12/17/2036 | | | |
Babson CLO Ltd., “BR” , Series 2015-IA, 144A, 3-month USD-LIBOR + 1.4%, 6.65% (c), 1/20/2031 | | | |
BlueMountain Fuji U.S. CLO II Ltd., “A1B” , Series 2017-2A, 144A, 3-month USD-LIBOR + 1.35%, 6.6% (c), 10/20/2030 | | | |
| | | |
“B1” , Series 2021-1A, 144A, 1.98%, 3/15/2061 | | | |
“B1” , Series 2020-1, 144A, 2.28%, 7/15/2060 | | | |
DB Master Finance LLC, “A2II” , Series 2019-1A, 144A, 4.021%, 5/20/2049 | | | |
Domino’s Pizza Master Issuer LLC, “A2I” , Series 2018-1A, 144A, 4.116%, 7/25/2048 | | | |
Hilton Grand Vacations Trust, “A” , Series 2019-AA, 144A, 2.34%, 7/25/2033 | | | |
Madison Park Funding XXIX Ltd., “A2” , Series 2018-29A, 144A, 3-month USD-LIBOR + 1.45%, 6.712% (c), 10/18/2030 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
| | |
Madison Park Funding XXVI Ltd., “AR” , Series 2017-26A, 144A, 3-month USD-LIBOR + 1.2%, 6.499% (c), 7/29/2030 | | | |
| | | |
“B” , Series 2021-1WA, 144A, 1.44%, 1/22/2041 | | | |
“A” , Series 2020-1A, 144A, 1.74%, 10/20/2037 | | | |
“B” , Series 2019-2A, 144A, 2.44%, 10/20/2038 | | | |
“B” , Series 2020-1A, 144A, 2.73%, 10/20/2037 | | | |
MVW Owner Trust, “A” , Series 2019-1A, 144A, 2.89%, 11/20/2036 | | | |
Neuberger Berman Loan Advisers CLO Ltd.: | | | |
“B” , Series 2018-27A, 144A, 3-month USD-LIBOR + 1.4%, 6.66% (c), 1/15/2030 | | | |
“A2” , Series 2018-29A, 144A, 3-month USD-LIBOR + 1.4%, 6.665% (c), 10/19/2031 | | | |
New Economy Assets Phase 1 Sponsor LLC, “B1” , Series 2021-1, 144A, 2.41%, 10/20/2061 | | | |
NRZ Excess Spread-Collateralized Notes: | | | |
“A” , Series 2021-GNT1, 144A, 3.474%, 11/25/2026 | | | |
“A” , Series 2020-PLS1, 144A, 3.844%, 12/25/2025 | | | |
Progress Residential Trust, “E” , Series 2020-SFR2, 144A, 5.115%, 6/17/2037 | | | |
Sierra Timeshare Receivables Funding LLC, “B” , Series 2020-2A, 144A, 2.32%, 7/20/2037 | | | |
Venture XXX CLO Ltd., “A2” , Series 2017-30A, 144A, 3-month USD-LIBOR + 1.35%, 6.61% (c), 1/15/2031 | | | |
Voya CLO Ltd., “A1RR” , Series 2014-2A, 144A, 3-month USD-LIBOR + 1.02%, 6.28% (c), 4/17/2030 | | | |
| | | |
Total Asset-Backed (Cost $116,450,411) | |
Commercial Mortgage-Backed Securities 5.2% | |
Atrium Hotel Portfolio Trust, “B” , Series 2018-ATRM, 144A, 1-month USD-LIBOR + 1.43%, 6.873% (c), 6/15/2035 | | | |
BAMLL Commercial Mortgage Securities Trust: | | | |
“A” , Series 2018-DSNY, 144A, 1-month USD-LIBOR + 0.85%, 6.044% (c), 9/15/2034 | | | |
“B” , Series 2018-DSNY, 144A, 1-month USD-LIBOR + 1.15%, 6.344% (c), 9/15/2034 | | | |
“C” , Series 2018-DSNY, 144A, 1-month USD-LIBOR + 1.35%, 6.544% (c), 9/15/2034 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
| | |
BFLD TRUST, “B” , Series 2019-DPLO, 144A, 30-day average SOFR + 1.454%, 6.601% (c), 10/15/2034 | | | |
| | | |
“B” , Series 2021-TY, 144A, 1-month USD-LIBOR + 1.15%, 6.343% (c), 9/15/2038 | | | |
“C” , Series 2021-TY, 144A, 1-month USD-LIBOR + 1.7%, 6.893% (c), 9/15/2038 | | | |
“C” , Series 2021-KEN, 144A, 30-day average SOFR + 2.664%, 7.811% (c), 2/15/2029 | | | |
BX Commercial Mortgage Trust: | | | |
“B” , Series 2019-IMC, 144A, 1-month USD-LIBOR + 1.3%, 6.493% (c), 4/15/2034 | | | |
“D” , Series 2020-VKNG, 144A, 30-day average SOFR + 1.814%, 6.961% (c), 10/15/2037 | | | |
BX Trust, “D” , Series 2021-ARIA, 144A, 1-month USD-LIBOR + 1.895%, 7.088% (c), 10/15/2036 | | | |
| | | |
“A” , Series 2017-CQHP, 144A, 1-month USD-LIBOR + 0.85%, 6.043% (c), 11/15/2034 | | | |
“B” , Series 2017-CQHP, 144A, 1-month USD-LIBOR + 1.1%, 6.293% (c), 11/15/2034 | | | |
COMM Mortgage Trust, “B” , Series 2013-CR6, 144A, 3.397%, 3/10/2046 | | | |
Credit Suisse Mortgage Trust: | | | |
“C” , Series 2020-NET, 144A, 3.526%, 8/15/2037 | | | |
“B” , Series 2020-FACT, 144A, 1-month USD-LIBOR + 2.0%, 7.193% (c), 10/15/2037 | | | |
“A” , Series 2020-TMIC, 144A, 1-month USD-LIBOR + 3.5%, 8.693% (c), 12/15/2035 | | | |
CSAIL Commercial Mortgage Trust, “AS” , Series 2016-C6, 3.346%, 1/15/2049 | | | |
FHLMC Multifamily Structured Pass-Through Certificates, “X1” , Series K058, Interest Only, 1.04% (c), 8/25/2026 | | | |
Hilton Orlando Trust, “A” , Series 2018-ORL, 144A, 1-month USD-LIBOR + 1.02%, 6.213% (c), 12/15/2034 | | | |
Hospitality Mortgage Trust, “B” , Series 2019-HIT, 144A, 1-month USD-LIBOR + 1.35%, 6.543% (c), 11/15/2036 | | | |
JPMDB Commercial Mortgage Securities Trust, “AS” , Series 2016-C4, 3.385%, 12/15/2049 | | | |
JPMorgan Chase Commercial Mortgage Securities Trust, “A” , Series 2018-PHH, 144A, 1-month USD-LIBOR + 1.21%, 6.403% (c), 6/15/2035 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
| | |
KKR Industrial Portfolio Trust, “E” , Series 2021-KDIP, 144A, 30-day average SOFR + 1.664%, 6.811% (c), 12/15/2037 | | | |
Morgan Stanley Capital I Trust, “B” , Series 2018-SUN, 144A, 1-month USD-LIBOR + 1.2%, 6.393% (c), 7/15/2035 | | | |
Natixis Commercial Mortgage Securities Trust, “C” , Series 2018-285M, 144A, 3.917% (c), 11/15/2032 | | | |
One New York Plaza Trust, “AJ” , Series 2020-1NYP, 144A, 1-month USD-LIBOR + 1.25%, 6.443% (c), 1/15/2036 | | | |
PKHL Commercial Mortgage Trust, “D” , Series 2021-MF, 144A, 1-month USD-LIBOR + 2.0%, 7.194% (c), 7/15/2038 | | | |
Starwood Mortgage Trust, “B” , Series 2021-LIH, 144A, 1-month USD-LIBOR + 1.656%, 6.849% (c), 11/15/2036 | | | |
UBS Commercial Mortgage Trust, “XA” , Series 2017-C1, Interest Only, 1.686% (c), 6/15/2050 | | | |
Wells Fargo Commercial Mortgage Trust: | | | |
“A2” , Series 2016-C34, 2.603%, 6/15/2049 | | | |
“ASB” , Series 2015-C31, 3.487%, 11/15/2048 | | | |
Total Commercial Mortgage-Backed Securities (Cost $68,839,471) | |
Collateralized Mortgage Obligations 1.6% |
Barclays Mortgage Loan Trust, “A2” , Series 2021-NQM1, 144A, 1.984%, 9/25/2051 | | | |
COLT Funding LLC, “A2” , Series 2021-3R, 144A, 1.257%, 12/25/2064 | | | |
COLT Mortgage Loan Trust: | | | |
“A1” , Series 2021-2R, 144A, 0.798%, 7/27/2054 | | | |
“A2” , Series 2021-1, 144A, 1.167%, 6/25/2066 | | | |
“A3” , Series 2021-2, 144A, 1.335%, 8/25/2066 | | | |
“A2” , Series 2021-HX1, 144A, 1.348%, 10/25/2066 | | | |
Connecticut Avenue Securities Trust: | | | |
“1M2” , Series 2021-R03, 144A, 30-day average SOFR + 1.65%, 6.717% (c), 12/25/2041 | | | |
“1M2” , Series 2022-R04, 144A, 30-day average SOFR + 3.1%, 8.167% (c), 3/25/2042 | | | |
Ellington Financial Mortgage Trust, “A2” , Series 2021-3, 144A, 1.396%, 9/25/2066 | | | |
Fontainebleau Miami Beach Trust, “A” , Series 2019-FBLU, 144A, 3.144%, 12/10/2036 | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
| | |
Freddie Mac Structured Agency Credit Risk Debt Notes, “M2” , Series 2021-DNA7, 144A, 30-day average SOFR + 1.8%, 6.867% (c), 11/25/2041 | | | |
FWD Securitization Trust, “A1” , Series 2020-INV1, 144A, 2.24%, 1/25/2050 | | | |
GCAT Trust, “A2” , Series 2021-NQM2, 144A, 1.242%, 5/25/2066 | | | |
GS Mortgage-Backed Securities Trust, “A2” , Series 2020-NQM1, 144A, 1.791%, 9/27/2060 | | | |
Imperial Fund Mortgage Trust: | | | |
“A2” , Series 2021-NQM1, 144A, 1.205%, 6/25/2056 | | | |
“A2” , Series 2021-NQM2, 144A, 1.362%, 9/25/2056 | | | |
JPMorgan Chase Bank NA, “M1” , Series 2020-CL1, 144A, 1-month USD-LIBOR + 2.25%, 7.4% (c), 10/25/2057 | | | |
JPMorgan Mortgage Trust, “A5” , Series 2020-LTV2, 144A, 3.0%, 11/25/2050 | | | |
| | | |
“A3” , Series 2021-INV1, 144A, 1.262%, 1/25/2056 | | | |
“A2” , Series 2021-NQM2, 144A, 1.317%, 11/25/2064 | | | |
“A3” , Series 2021-NQM2, 144A, 1.472%, 11/25/2064 | | | |
Starwood Mortgage Residential Trust, “A3” , Series 2020-INV1, 144A, 1.593%, 11/25/2055 | | | |
Towd Point Mortgage Trust, “M1” , Series 2022-SJ1, 144A, 4.5%, 3/25/2062 | | | |
Verus Securitization Trust: | | | |
“A2” , Series 2021-R3, 144A, 1.277%, 4/25/2064 | | | |
“A2” , Series 2020-4, 144A, 1.912%, 5/25/2065 | | | |
“A1” , Series 2020-INV1, 144A, 1.977%, 3/25/2060 | | | |
“A1” , Series 2020-2, 144A, 2.226%, 5/25/2060 | | | |
Total Collateralized Mortgage Obligations (Cost $24,010,037) | |
Government & Agency Obligations 32.8% |
Other Government Related (d) 0.2% | |
Central American Bank for Economic Integration, 144A, 5.0%, 2/9/2026 | | | |
Korea National Oil Corp., 144A, 3.25%, 7/10/2024 | | | |
Vnesheconombank, 144A, 6.025%, 7/5/2022* | | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
| | |
| |
Abu Dhabi Government International Bond, 144A, 2.5%, 4/16/2025 | | | |
U.S. Treasury Obligations 32.4% | |
U.S. Treasury Floating Rate Notes: | | | |
3-month U.S. Treasury Bill Money Market Yield + 0.14%, 5.389% (c), 10/31/2024 (e) | | | |
3-month U.S. Treasury Bill Money Market Yield + 0.169%, 5.418% (c), 4/30/2025 (e) | | | |
3-month U.S. Treasury Bill Money Market Yield + 0.2%, 5.449% (c), 1/31/2025 (e) | | | |
U.S. Treasury Inflation-Indexed Notes, 0.375%, 7/15/2023 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Government & Agency Obligations (Cost $428,240,434) | |
Short-Term U.S. Treasury Obligations 2.5% |
| | | |
4.85% (f), 8/17/2023 (e) (g) | | | |
4.91% (f), 8/17/2023 (e) (g) | | | |
| | | |
Total Short-Term U.S. Treasury Obligations (Cost $31,721,471) | |
| Contracts/
Notional Amount | |
Call Options Purchased 0.1% |
Options on Exchange-Traded Futures Contracts | |
Natural Gas Futures, Expiration Date 03/25/2024, Strike Price $4.5 (Cost $1,080,000) | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
| | |
Securities Lending Collateral 0.1% |
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 5.03% (h) (i)
(Cost $1,764,716) | | | |
|
DWS Central Cash Management Government Fund, 5.13% (h) | | | |
DWS ESG Liquidity Fund “Capital Shares” , 5.23% (h) | | | |
Total Cash Equivalents (Cost $288,087,104) | | | |
| | | |
Total Consolidated Investment Portfolio (Cost $1,320,863,473) | | | |
Other Assets and Liabilities, Net | | | |
| | | |
A summary of the Fund’s transactions with affiliated investments during the year ended June 30, 2023 are as follows:
| | | Net
Real-
ized
Gain/
(Loss)
($) | Net
Change
in
Unreal-
ized
Appreci-
ation
(Depreci-
ation)
($) | | Capital
Gain
Distri-
butions
($) | Number of
Shares at
6/30/2023 | |
Securities Lending Collateral 0.1% |
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 5.03% (h) (i) |
| | | | | | | | |
|
DWS Central Cash Management Government Fund, 5.13% (h) |
| | | | | | | | |
DWS ESG Liquidity Fund “Capital Shares” , 5.23% (h) |
| | | | | | | | |
| | | | | | | | |
| Non-income producing security. |
| All or a portion of these securities were on loan. In addition, “Other Assets and Liabilities, Net” may include pending sales that are also on loan. The value of securities loaned at June 30, 2023 amounted to $1,703,835, which is 0.1% of net assets. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
| |
| Variable or floating rate security. These securities are shown at their current rate as of June 30, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
| Government-backed debt issued by financial companies or government sponsored enterprises. |
| At June 30, 2023, this security has been pledged, in whole or in part, as collateral for open commodity-linked rate swap contracts. |
| Annualized yield at time of purchase; not a coupon rate. |
| At June 30, 2023, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
| Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
| Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended June 30, 2023. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
CLO: Collateralized Loan Obligation |
COT: Commitment of Traders |
Interest Only: Interest Only (IO) bonds represent the “interest only” portion of payments on a pool of underlying mortgages or mortgage-backed securities. IO securities are subject to prepayment risk of the pool of underlying mortgages. |
LME: London Metal Exchange |
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
REIT: Real Estate Investment Trust |
SOFR: Secured Overnight Financing Rate |
UFJ: United Financial of Japan |
|
ULSD: Ultra-Low Sulfur Diesel |
WTI: West Texas Intermediate |
LIBOR: London Interbank Offered Rate, a common benchmark rate previously used for certain floating rate securities, has been phased out as of the end of 2021 for most maturities and currencies. As of the end of June 2023, certain remaining widely used US Dollar LIBOR rates that were published for an additional period of time to assist with the transition were also phased out. The transition process from LIBOR to Secure Overnight Financing Rate (SOFR) for US Dollar LIBOR rates has become increasingly well defined, especially following the signing of the federal Adjustable Interest Rate Act in March 2022. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
LIBOR or that it will have the same volume or liquidity as did LIBOR prior to its discontinuance or unavailability, which may affect the value or liquidity or return on certain of the Fund’s investments.
Included in the portfolio are investments in mortgage or asset-backed securities which are interests in separate pools of mortgages or assets. Effective maturities of these investments may be shorter than stated maturities due to prepayments.
At June 30, 2023, open futures contracts purchased were as follows:
| | | | | | Unrealized
Appreciation/
(Depreciation) ($) |
| | | | | | |
LME Primary Aluminium Futures | | | | | | |
LME Primary Aluminium Futures | | | | | | |
| | | | | | |
Total net unrealized depreciation | |
At June 30, 2023, open futures contracts sold were as follows:
| | | | | | Unrealized
Appreciation/
(Depreciation) ($) |
| | | | | | |
| | | | | | |
LME Primary Aluminium Futures | | | | | | |
| | | | | | |
Total net unrealized appreciation | |
At June 30, 2023, open futures options contracts purchased were as follows:
| | | | | | Unrealized Depreciation ($) |
Brent Crude Oil Futures, Expiration Date 12/31/2023 | | | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
At June 30, 2023, open futures options contracts sold were as follows:
| | | | | | Unrealized Appreciation ($) |
Brent Crude Oil Futures, Expiration Date 12/31/2023 | | | | | | |
| | | | | | Unrealized Appreciation ($) |
Brent Crude Oil Futures, Expiration Date 12/31/2023 | | | | | | |
At June 30, 2023, open written option contracts were as follows:
Options on Exchange-Traded Futures Contracts | |
| | | | | | | Unrealized Appreciation/
(Depreciation) ($) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Each commodity linked swap is a commitment to receive the total return of the specified commodity linked index in exchange for a fixed financing rate. At June 30, 2023, open commodity-linked swap contracts were as follows:
Pay/Receive
Return of the
Reference Index | | | | Fixed Fee
Received/
(Paid) by
the Fund | | |
| | | | | | |
Barclays Commodity Strategy 1673/BXCS1673 | | | | | | |
Barclays Commodity Strategy 1721/BXCS1721 | | | | | | |
Barclays Commodity Strategy 1750/BXCS1750 | | | | | | |
Barclays EFS Custom Commodity Basket 08 Index/BEFSCB08 | | | | | | |
Bloomberg Wheat Subindex/BCOMWH | | | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Pay/Receive Return of the Reference Index | | | | Fixed Fee Received/ (Paid) by the Fund | | |
Bloomberg Commodity Index 3 Month Forward/BCOMF3 | | JPMorgan Chase Securities, Inc. | | | | |
Bloomberg Commodity Index 6 Month Forward/BCOMF6 | | JPMorgan Chase Securities, Inc. | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | Canadian Imperial Bank of Commerce | | | | |
Bloomberg Commodity Index/BCOM | | JPMorgan Chase Securities, Inc. | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Index/BCOM | | | | | | |
Bloomberg Commodity Kansas Wheat Index/BCOMKW | | | | | | |
Bloomberg Corn Index/BCOMCN | | | | | | |
Bloomberg Platinum Subindex/BCOMPL | | | | | | |
Bloomberg Soybean Meal Subindex/BCOMSM | | | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Pay/Receive Return of the Reference Index | | | | Fixed Fee Received/ (Paid) by the Fund | | |
Bloomberg Soybeans Index/BCOMSY | | | | | | |
BNP Paribas 03 Alpha Index/BNPXFMP3 | | | | | | |
BofA Merrill Lynch Commodity Excess Return Strategy/MLCIHR6S | | Merrill Lynch International Ltd. | | | | |
Citi Commodities Gold Call Ratio Index/CICXGCCR | | | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Pay/Receive
Return of the
Reference Index | | | | Fixed Fee
Received/
(Paid) by
the Fund | | |
Citi Custom CiVICS 7 Excess Return/CVICSER7 | | | | | | |
Goldman Sachs Brent Vol Carry 05/GSVLBR05 | | | | | | |
Goldman Sachs Commodity COT Strategy 1193/ABGS1193 | | | | | | |
Goldman Sachs Gold Vol Carry Index 04/GSVLGC04 | | | | | | |
JPMorgan JPDRXBA1 Index/JPDRXBA1 | | JPMorgan Chase Securities, Inc. | | | | |
JPMorgan JPDRXDA1 Index/JPDRXDA1 | | JPMorgan Chase Securities, Inc. | | | | |
JPMorgan Liquid Commodity Curve Value Long Only Index/JMABCCVL | | JPMorgan Chase Securities, Inc. | | | | |
JPMorgan NEO Commodity Curve Alpha Index/JMABNEO1 | | JPMorgan Chase Securities, Inc. | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Pay/Receive Return of the Reference Index | | | | Fixed Fee Received/ (Paid) by the Fund | | |
Macquarie Commodity Product 708E/MQCP708E | | | | | | |
Macquarie Vol Product 2CL2/VMAC2CL2 | | | | | | |
Merrill Lynch Backwardation Momentum Long Only Excess Return Index/MLCXAKLE | | Merrill Lynch International Ltd. | | | | |
Merrill Lynch Enhanced Benchmark - A Pre Roll Excess Return Index/MLCXAPRE | | Merrill Lynch International Ltd. | | | | |
Modified Strategy D177 on the Bloomberg Commodity Index/ENHG177P | | | | | | |
Morgan Stanley MSCBDF11 Index/MSCBDF11 | | | | | | |
Morgan Stanley MSCBVB20 Index | | | | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SOYBEAN MEAL (CBT) DEC 23 | | | |
| | | |
| | | |
| | | |
WHITE SUGAR (LIFFE) OCT 23 | | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Pay/Receive
Return of the
Reference Index | | | | Fixed Fee
Received/
(Paid) by
the Fund | | |
RBC Enhanced Commodity 21VW Index/RBCE21VW | | | | | | |
RBC Enhanced Commodity CC3V Index/RBCSCC3V | | | | | | |
RBC Enhanced Commodity MSC4 Index/RBCAMSC4 | | | | | | |
| | | | | | |
SGI Commodity Dynamic Alpha Index/SGICCODA | | | | | | |
Societe Generale Alpha 1 Custom Excess Return/SGCOA1CE | | | | | | |
Societe Generale Commodity Index/SGCOM11S | | | | | | |
Societe Generale M Po 3 U Index/SGCOL45E | | | | | | |
UBS Custom Commodity Index/UBSIB163 | | | | | | |
| | | | |
Bloomberg Silver Subindex | | | | |
Bloomberg Commodity Index 2-4-6 Forward Blend | | | | |
| | | | |
| | | | |
| | | | |
Bloomberg Copper Subindex | | | | |
Bloomberg ULS Diesel Subindex | | | | |
Bloomberg WTI Crude Subindex | | | | |
UBS Custom Commodity Index/UBSIB163 | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Pay/Receive
Return of the
Reference Index | | | | Fixed Fee
Received/
(Paid) by
the Fund | | |
UBS DBAM Basket 3 Custom Basket/UBSIB165 | | | | | | |
| | | |
| | | |
Bloomberg Kansas City Wheat Subindex | | | |
| | | |
Bloomberg Soybeans Subindex | | | |
Bloomberg Soybean Meal Subindex | | | |
Bloomberg Soybean Oil Subindex | | | |
Bloomberg Cotton Subindex | | | |
| | | |
Bloomberg Coffee Subindex | | | |
Bloomberg Lean Hogs Subindex | | | |
Bloomberg Live Cattle Subindex | | | |
Bloomberg Brent Crude Subindex | | | |
Bloomberg WTI Crude Oil Subindex | | | |
Bloomberg Unleaded Gas Subindex | | | |
Bloomberg Gas Oil Subindex | | | |
Bloomberg ULS Diesel Subindex | | | |
Bloomberg Natural Gas Subindex | | | |
| | | |
Bloomberg Silver Subindex | | | |
Bloomberg Platinum Subindex | | | |
Bloomberg Palladium Subindex | | | |
Bloomberg Aluminum Subindex | | | |
Bloomberg Copper Subindex | | | |
Bloomberg Nickel Subindex | | | |
| | | |
Pay/Receive
Return of the
Reference Index | | | | Fixed Fee
Received/
(Paid) by
the Fund | | |
Total net unrealized depreciation | |
| There are no upfront payments on the commodity-linked swaps listed above, therefore unrealized appreciation (depreciation) is equal to their value. |
Currency Abbreviation(s)
For information on the Fund’s policy and additional disclosures regarding futures and futures options contracts, options purchased, commodity-linked swap contracts and written options, please refer to the Derivatives section of Note B in the accompanying Notes to Financial Statements.
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The 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, 2023 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Consolidated Financial Statements.
| | | | |
| | | | |
| | | | |
Commercial Mortgage-Backed Securities | | | | |
Collateralized Mortgage Obligations | | | | |
Government & Agency Obligations (a) | | | | |
Short-Term U.S. Treasury Obligations | | | | |
| | | | |
Short-Term Investments (a) | | | | |
| | | | |
Futures and Futures Options Contracts | | | | |
Commodity-Linked Swap Contracts | | | | |
| | | | |
| | | | |
| | | | |
Futures and Futures Options Contracts | | | | |
| | | | |
Commodity-Linked Swap Contracts | | | | |
| | | | |
| See Investment Portfolio for additional detailed categorizations. |
| Derivatives include value of options purchased, unrealized appreciation (depreciation) on open futures and futures options contracts, commodity-linked swap contracts; and written options, at value. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Consolidated Statement of Assets and Liabilities
as of June 30, 2023
| |
Investments in non-affiliated securities, at value (cost $1,031,011,653) — including $1,703,835 of securities loaned | |
Investment in DWS Government & Agency Securities Portfolio | |
Investment in affiliated securities, at value (cost $288,087,104) | |
| |
Receivable for Fund shares sold | |
| |
Unrealized appreciation on bilateral swap contracts | |
Foreign taxes recoverable | |
| |
| |
| |
Payable upon return of securities loaned | |
Payable for investments purchased — when-issued securities | |
Payable for Fund shares redeemed | |
Payable for variation margin on futures contracts | |
Options written, at value (premium received $1,200,000) | |
Unrealized depreciation on bilateral swap contracts | |
Net payable for pending swap contracts | |
| |
| |
Other accrued expenses and payables | |
| |
| |
| |
Distributable earnings (loss) | |
| |
| |
*
Represents collateral on securities loaned.
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Consolidated Statement of Assets and Liabilities
as of June 30, 2023 (continued)
| |
| |
Net Asset Value and redemption price per share
($58,566,293 ÷ 10,445,123 outstanding shares of beneficial interest,
$.01 par value, unlimited number of shares authorized) | |
Maximum offering price per share (100 ÷ 94.25 of $5.61) | |
| |
Net Asset Value, offering and redemption price
(subject to contingent deferred sales charge) per share
($11,955,021 ÷ 2,394,710 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($41,760,103 ÷ 7,339,446 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($49,186,580 ÷ 8,663,141 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($1,120,937,654 ÷ 196,856,833 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Consolidated Statement of Operations
for the year ended June 30, 2023
| |
| |
| |
Income distributions from affiliated securities | |
Securities lending income, net of borrower rebates | |
| |
| |
| |
| |
| |
Distribution and service fees | |
| |
| |
| |
| |
Trustees' fees and expenses | |
| |
Total expenses before expense reductions | |
| |
Total expenses after expense reductions | |
| |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Consolidated Statement of Operations
for the year ended June 30, 2023 (continued)
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
| |
| |
| |
| |
| |
Change in net unrealized appreciation (depreciation) on: | |
| |
Non-affiliated investments | |
| |
| |
| |
| |
| |
| |
Net increase (decrease) in net assets resulting from operations | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Statements of Changes in Net Assets
| |
Increase (Decrease) in Net Assets | | |
| | |
| | |
| | |
Change in net unrealized appreciation
(depreciation) | | |
Net increase (decrease) in net assets resulting from operations | | |
Distributions to shareholders: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Proceeds from shares sold | | |
Reinvestment of distributions | | |
Payments for shares redeemed | | |
Net increase (decrease) in net assets from Fund share transactions | | |
Increase (decrease) in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
| For the period from July 1, 2022 to September 30, 2022 (Class T liquidation date). |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Consolidated Financial Highlights
DWS Enhanced Commodity Strategy Fund — Class A |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
Income (loss) from investment operations: | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Total from investment operations | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | |
Ratio of expenses before expense reductions (%) | | | | | |
Ratio of expenses after expense reductions (%) | | | | | |
Ratio of net investment income (%) | | | | | |
Portfolio turnover rate (%) | | | | | |
| Based on average shares outstanding during the period. |
| Total return does not reflect the effect of any sales charges. |
| Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
DWS Enhanced Commodity Strategy Fund — Class C |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
Income (loss) from investment operations: | | | | | |
Net investment income (loss)a | | | | | |
Net realized and unrealized gain (loss) | | | | | |
Total from investment operations | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | |
Ratio of expenses before expense reductions (%) | | | | | |
Ratio of expenses after expense reductions (%) | | | | | |
Ratio of net investment income (loss) (%) | | | | | |
Portfolio turnover rate (%) | | | | | |
| Based on average shares outstanding during the period. |
| Total return does not reflect the effect of any sales charges. |
| Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
DWS Enhanced Commodity Strategy Fund — Class R6 |
| |
| | | | | |
| | | | | |
Net asset value, beginning of period | | | | | |
Income (loss) from investment operations: | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Total from investment operations | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | |
Ratio of expenses before expense reductions (%) | | | | | |
Ratio of expenses after expense reductions (%) | | | | | |
Ratio of net investment income (%) | | | | | |
Portfolio turnover rate (%) | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
DWS Enhanced Commodity Strategy Fund — Class S |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
Income (loss) from investment operations: | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Total from investment operations | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | |
Ratio of expenses before expense reductions (%) | | | | | |
Ratio of expenses after expense reductions (%) | | | | | |
Ratio of net investment income (%) | | | | | |
Portfolio turnover rate (%) | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
DWS Enhanced Commodity Strategy Fund — Institutional Class |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
Income (loss) from investment operations: | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Total from investment operations | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | |
Ratio of expenses before expense reductions (%) | | | | | |
Ratio of expenses after expense reductions (%) | | | | | |
Ratio of net investment income (%) | | | | | |
Portfolio turnover rate (%) | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS Enhanced Commodity Strategy Fund |
Notes to Consolidated Financial Statements
A.
Organization and Significant Accounting Policies
DWS Enhanced Commodity Strategy Fund (the “Fund” ) is a diversified series of Deutsche DWS Securities Trust (the “Trust” ), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act” ), as an open-end management investment company organized as a Massachusetts business trust.
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 8 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 8 years. Class R6 shares are not subject to initial or contingent deferred sales charges and are generally available only to certain qualifying plans and programs. Class S shares are not subject to initial or contingent deferred sales charges and are available through certain intermediary relationships with financial services firms, or can be purchased by establishing an account directly with the Fund’s transfer agent. Institutional Class shares are not subject to initial or contingent deferred sales charges and are generally available only to qualified institutions.
Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund’s consolidated 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 consolidated financial statements.
DWS Enhanced Commodity Strategy Fund | | |
Principles of Consolidation. The Fund invests indirectly in commodities markets through a wholly owned subsidiary, Cayman Commodity Fund II, Ltd., organized under the laws of the Cayman Islands (the “Subsidiary” ). The Fund and the Subsidiary are each a commodity pool and are subject to the requirements of the Commodity Exchange Act (“CEA” ), as amended, and the rules of the Commodity Futures Trading Commission (“CFTC” ) promulgated thereunder. DWS Investment Management Americas, Inc. (the “Advisor” ) acts as a commodity pool operator with respect to the operation of the Fund and the Subsidiary as commodity pools under and pursuant to the CEA. The Advisor, the Fund and the Subsidiary are subject to dual regulation by the CFTC and the Securities and Exchange Commission. Among other investments, the Subsidiary may invest in commodity-linked derivative instruments, such as futures and options contracts and commodity-linked swaps. The Subsidiary may also invest in debt securities, some of which are intended to serve as margin or collateral for the Subsidiary’s derivatives positions. The Subsidiary may also invest available cash in affiliated money market funds. The Subsidiary is managed by the same portfolio managers that manage the Fund. As of June 30, 2023, the Fund’s investment in the Subsidiary was $247,037,017, representing 18.9% of the Fund’s total assets.
The Fund’s Investment Portfolio has been consolidated and includes the portfolio holdings of the Fund and the Subsidiary. The consolidated financial statements include the accounts of the Fund and the Subsidiary. All inter-company transactions and balances have been eliminated.
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.
The Fund’s Board has designated DWS Investment Management Americas, Inc. (the “Advisor” ) as the valuation designee for the Fund pursuant to Rule 2a-5 under the 1940 Act. The Advisor’s Pricing Committee (the “Pricing Committee” ) typically values securities using readily available market quotations or prices supplied by independent pricing services (which are considered fair values under Rule 2a-5). The Advisor has adopted fair valuation procedures that provide methodologies for fair valuing securities.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
| | DWS Enhanced Commodity Strategy Fund |
Debt securities are valued at prices supplied by independent pricing services approved by the Pricing Committee. 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 from broker-dealers. These securities are generally categorized as Level 2.
Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Swap contracts are valued daily based upon prices supplied by a pricing vendor approved by the Pricing Committee, if available, and otherwise are valued at the price provided by the broker-dealer with which the swap was traded. Swap contracts are generally categorized as Level 2.
Exchange-traded options are valued at the last sale price or, in the absence of a sale, the mean between the closing bid and asked prices or at the most recent asked price (bid for purchased options) if no bid or asked price are available. Exchange-traded options are generally categorized as Level 1. Over-the-counter written or purchased options are valued at prices supplied by a pricing vendor approved by the Pricing Committee, if available, and otherwise are valued at the price provided by the broker-dealer with which the option was traded. Over-the-counter written or purchased options are generally categorized as Level 2.
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 Pricing Committee and are generally categorized as Level 3. In accordance with the Fund’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 from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of
DWS Enhanced Commodity Strategy Fund | | |
the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Consolidated Investment Portfolio.
Securities Lending. Prior to May 1, 2023, Brown Brothers Harriman & Co., served as securities lending agent for the Fund. Effective May 1, 2023, National Financial Services LLC (Fidelity Agency Lending), as securities lending agent, lends securities of the Fund to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the securities 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 year ended June 30, 2023, the Fund invested the cash collateral into a joint trading account in affiliated money market funds, including DWS Government & Agency Securities Portfolio, managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.07% annualized effective rate as of June 30, 2023) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a securities lending agent. Either the Fund 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 Fund is not able to recover securities lent, the Fund 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 Fund is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of June 30, 2023, the Fund had securities on loan, which were classified as corporate bonds in the Consolidated Investment Portfolio. The value of the related collateral exceeded the value of the security loaned at period end. As of period end, the remaining contractual maturity of the collateral agreements was overnight and continuous.
| | DWS Enhanced Commodity Strategy Fund |
When-Issued/Delayed Delivery Securities. The Fund may purchase or sell securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the transaction is reflected in the net asset value. The price of such security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations.
Certain risks may arise upon entering into when-issued or delayed delivery transactions from the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
Income from certain commodity-linked derivatives does not constitute “qualifying income” to the Fund. Receipt of such income could cause the Fund to be subject to tax at the Fund level. The IRS has issued a private letter ruling to the Fund stating that such income earned through its wholly owned Subsidiary constitutes qualifying income. The Fund is required to increase its taxable income by its share of the Subsidiary’s income, including net gains from commodity-linked transactions. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income for future periods.
At June 30, 2023, the Fund had net tax basis capital loss carryforwards of approximately $38,958,000, including short-term losses ($15,644,000) and long-term losses ($23,314,000), which may be applied against realized net taxable capital gains indefinitely.
The Fund has reviewed the tax positions for the open tax years as of June 30, 2023 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s consolidated 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, if any, 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.
DWS Enhanced Commodity Strategy Fund | | |
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 certain securities sold at a loss, premium amortization on debt securities, interest income on defaulted securities and investment in the subsidiary. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
At June 30, 2023, the Fund’s components of distributable earnings (accumulated losses) on a net tax basis were as follows:
Undistributed ordinary income* | |
Capital loss carryforwards | |
Net unrealized appreciation (depreciation) on investments | |
At June 30, 2023, the aggregate cost of investments for federal income tax purposes was $2,174,710,746. The net unrealized depreciation for all investments based on tax cost was $885,719,706. This consisted of aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost of $506,034,989 and aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value of $1,391,754,695.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
| |
| | |
Distributions from ordinary income* | | |
| For tax purposes, short-term capital gain distributions, and income and net realized gains from certain commodity-linked derivative instruments are considered ordinary income distributions. |
Expenses. Expenses of the Trust arising in connection with a specific fund are allocated to that fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the funds in the Trust based upon the relative net assets or other appropriate measures.
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.
| | DWS Enhanced Commodity Strategy Fund |
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. 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. All premiums and discounts are amortized/accreted for both tax and financial reporting purposes.
Swaps. A swap is a contract between two parties to exchange future cash flows at periodic intervals based on the notional amount of the swap. A bilateral swap is a transaction between the Fund and a counterparty where cash flows are exchanged between the two parties. A centrally cleared swap is a transaction executed between the Fund and a counterparty, then cleared by a clearing member through a central clearinghouse. The central clearinghouse serves as the counterparty, with whom the Fund exchanges cash flows.
The value of a swap is adjusted daily, and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Consolidated Statement of Assets and Liabilities. Gains or losses are realized when the swap expires or is closed. Certain risks may arise when entering into swap transactions including counterparty default; liquidity; or unfavorable changes in interest rates or the value of the underlying reference security, commodity or index. In connection with bilateral swaps, securities and/or cash may be identified as collateral in accordance with the terms of the swap agreement to provide assets of value and recourse in the event of default. The maximum counterparty credit risk is the net present value of the cash flows to be received from or paid to the counterparty over the term of the swap, to the extent that this amount is beneficial to the Fund, in addition to any related collateral posted to the counterparty by the Fund. This risk may be partially reduced by a master netting arrangement between the Fund and the counterparty. Upon entering into a centrally cleared swap, the Fund is required to deposit with a financial intermediary cash or securities (“initial margin” ) in an amount equal to a certain percentage of the notional amount of the swap. Subsequent payments (“variation margin” ) are made or received by the Fund dependent upon the daily fluctuations in the value of the swap. In a centrally cleared swap transaction, counterparty risk is minimized as the central clearinghouse acts as the counterparty.
Commodity-linked swap agreements involve a commitment to pay interest in exchange for a commodity-linked return based on a notional amount. To the extent the return of the reference commodity or commodity index underlying the commodity-linked swap exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a
DWS Enhanced Commodity Strategy Fund | | |
payment or make a payment to the counterparty, respectively. For the year ended June 30, 2023, the Fund entered into commodity-linked swap agreements to gain exposure to the investment return of assets that trade in the commodity markets, without investing directly in physical commodities.
A summary of the open commodity-linked swap contracts as of June 30, 2023 is included in a table following the Fund’s Consolidated Investment Portfolio. For the year ended June 30, 2023, the investment in long commodity-linked swap contracts had a total notional amount generally indicative of a range from approximately $1,794,522,000 to $4,099,701,000, and the investment in short commodity-linked swap contracts had a total notional amount generally indicative of a range from $0 to approximately $248,512,000.
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 year ended June 30, 2023, the Fund entered into commodity futures contracts and futures options contracts to gain exposure to the investment return of assets that trade in the commodity markets, without investing directly in physical commodities.
Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary cash or securities (“initial margin” ) in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments (“variation margin” ) are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange-traded, counterparty risk is minimized as the exchange’s clearinghouse acts as the counterparty, and guarantees the futures against default.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Fund’s ability to close out a futures contract prior to the settlement date and the risk that the futures contract is not well correlated with the security, index or currency to which it relates. Risk of loss may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
A summary of the open futures contracts and futures options contracts as of June 30, 2023, is included in a table following the Fund’s Consolidated Investment Portfolio. For the year ended June 30, 2023, the investment in futures contracts purchased had a total notional value generally indicative of a range from approximately $18,431,000 to $90,158,000, the investment in futures options contracts purchased had a total notional value generally indicative of a range from $0 to $6,976,000, and the
| | DWS Enhanced Commodity Strategy Fund |
investment in futures contracts sold had a total notional value generally indicative of a range from approximately $18,431,000 to $93,414,000, and the investment in futures options contracts sold had a total notional value generally indicative of a range from $0 to $5,344,000.
Options. An option contract is a contract in which the writer (seller) of the option grants the buyer of the option, upon payment of a premium, the right to purchase from (call option), or sell to (put option), the writer a designated instrument at a specified price within a specified period of time. The Fund may write or purchase interest rate swaption agreements which are options to enter into a pre-defined swap agreement. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise. The Fund may also purchase options on exchange-traded futures contracts where the Fund is required to deposit with a financial intermediary cash or securities (“initial margin” ) in an amount equal to a certain percentage of the face value indicated in the underlying futures contract. Subsequent payments (“variation margin” ) are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by
the Fund. Certain options, including options on indices, will require cash settlement by the Fund if exercised. For the year ended June 30, 2023, the Fund entered into options on commodity futures contracts to gain exposure to the investment return of assets that trade in the commodity markets, without investing directly in physical commodities.
If the Fund writes a covered call option, the Fund foregoes, in exchange for the premium, the opportunity to profit during the option period from an increase in the market value of the underlying security above the exercise price. If the Fund writes a put option it accepts the risk of a decline in the value of the underlying security below the exercise price. Over-the-counter options have the risk of the potential inability of counterparties to meet the terms of their contracts. The Fund’s maximum exposure to purchased options is limited to the premium initially paid. There is no premium paid at the time of purchase on certain options on exchange-traded futures. At the expiration of these options on exchange-traded futures, the accumulated variation margin made or received is recorded as realized gains or losses. Certain risks may arise upon entering into option contracts including the risk that an illiquid secondary market will limit the Fund’s ability to close out an option contract prior to the expiration date and that a change in the value of the option contract may not correlate exactly with changes in the value of the securities or currencies hedged.
A summary of open purchased option contracts as of June 30, 2023 is included in the Fund’s Consolidated Investment Portfolio. A summary of open written option contracts is included in the table following the Fund’s Consolidated Investment Portfolio. For the year ended June 30, 2023, the
DWS Enhanced Commodity Strategy Fund | | |
investment in purchased options contracts had a total value generally indicative of a range from $0 to approximately $6,883,000, and the investment in written options contracts had a total value generally indicative of a range from $0 to approximately $2,988,000.
The following tables summarize the value of the Fund’s derivative instruments held as of June 30, 2023 and the related location in the accompanying Consolidated Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| | | | |
Commodity Contracts (a) (b) | | | | |
Each of the above derivatives is located in the following Consolidated Statement of Assets and Liabilities accounts: |
| Includes cumulative appreciation of futures and futures options contracts as disclosed in the Consolidated Investment Portfolio. Unsettled variation margin is disclosed separately within the Consolidated Statement of Assets and Liabilities. |
| Investments in securities at value (includes purchased options) and unrealized appreciation on bilateral swap contracts |
| | | | |
Commodity Contracts (a) (b) | | | | |
Each of the above derivatives is located in the following Consolidated Statement of Assets and Liabilities accounts: |
| Includes cumulative depreciation of futures and futures options contracts as disclosed in the Consolidated Investment Portfolio. Unsettled variation margin is disclosed separately within the Consolidated Statement of Assets and Liabilities. |
| Written options, at value and unrealized depreciation on bilateral swap contracts |
Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Fund earnings during the year ended June 30, 2023 and the related location in the accompanying Consolidated
| | DWS Enhanced Commodity Strategy Fund |
Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| | | | | |
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Each of the above derivatives is located in the following Consolidated Statement of Operations accounts: |
| Net realized gain (loss) from investments (includes purchased options), written options, swap and futures and futures options contracts, respectively |
Change in Net Unrealized Appreciation (Depreciation) |
| | | | | |
| | | | | |
Each of the above derivatives is located in the following Consolidated Statement of Operations accounts: |
| Change in net unrealized appreciation (depreciation) on investments (includes purchased options), written options, swap and futures and futures options contracts, respectively |
As of June 30, 2023, the Fund has transactions subject to enforceable master netting agreements which govern the terms of certain transactions, and reduce the counterparty risk associated with such transactions. Master netting agreements allow a Fund to close out and net total exposure to a counterparty in the event of a deterioration in the credit quality or contractual default with respect to all of the transactions with a counterparty. As defined by the master netting agreement, the Fund may have collateral agreements with certain counterparties to mitigate risk. For financial reporting purposes the Consolidated Statement of Assets and Liabilities generally shows derivatives assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting. A reconciliation of the gross amounts on the Consolidated
DWS Enhanced Commodity Strategy Fund | | |
Statement of Assets and Liabilities to the net amounts by a counterparty, including any collateral exposure, is included in the following tables:
| Gross Amount
of Assets
Presented
in the
Consolidated
Statement of
Assets and
Liabilities | Financial
Instruments
and
Derivatives
Available
for Offset | Non-Cash
Collateral
Received | | Net Amount
of Derivative
Assets |
| | | | | |
| | | | | |
Canadian Imperial Bank of Commerce | | | | | |
| | | | | |
JPMorgan Chase Securities, Inc. | | | | | |
| | | | | |
Merrill Lynch International Ltd. | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | DWS Enhanced Commodity Strategy Fund |
| Gross Amount
of Liabilities
Presented
in the
Consolidated
Statement of
Assets and
Liabilities | Financial
Instruments
and
Derivatives
Available
for Offset | Non-Cash
Collateral
Pledged (a) | | Net Amount
of Derivative
Liabilities |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
JPMorgan Chase Securities, Inc. | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| The actual collateral received and/or pledged may be more than the amounts shown. |
C.
Purchases and Sales of Securities
During the year ended June 30, 2023, purchases and sales of investment securities, excluding short-term investments, were as follows:
| | |
Non-U.S. Treasury Obligations | | |
U.S. Treasury Obligations | | |
Management Agreement. Under the Investment Management Agreement with DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group” ), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.
DWS Enhanced Commodity Strategy Fund | | |
Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the average daily net assets of the Fund, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Fund’s average daily net assets | |
Next $500 million of such net assets | |
Next $500 million of such net assets | |
Next $1 billion of such net assets | |
Next $1 billion of such net assets | |
Next $1.5 billion of such net assets | |
Over $5 billion of such net assets | |
Accordingly, for the year ended June 30, 2023, the fee pursuant to the Investment Management Agreement was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.787% of the Fund’s average daily net assets.
For the period from July 1, 2022 through September 30, 2022 (through September 30, 2023 for Class R6 and Institutional Class shares), the Advisor had contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest expense and acquired fund fees and expenses) of each class as follows:
Effective October 1, 2022 through September 30, 2023, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest expense and acquired fund fees and expenses) of certain classes as follows:
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For the year ended June 30, 2023, fees waived and/or expenses reimbursed for each class are as follows:
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 0.097% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the year ended June 30, 2023, the Administration Fee was $1,741,948, of which $104,588 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 for the Fund. Pursuant to a sub-transfer agency agreement between DSC and SS&C GIDS, Inc. (“SS&C” ), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to SS&C. DSC compensates SS&C out of the shareholder servicing fee it receives from the Fund. For the year ended June 30, 2023 (through September 30, 2022 for Class T shares), the amounts charged to the Fund by DSC were as follows:
In addition, for the year ended June 30, 2023, the amounts charged to the Fund for recordkeeping and other administrative services provided by
DWS Enhanced Commodity Strategy Fund | | |
unaffiliated third parties, included in the Consolidated Statement of Operations under “Services to shareholders,” were as follows:
Distribution and Service Fees. Under the Fund’s Class C 12b-1 Plan, DWS Distributors, Inc. (“DDI” ), an affiliate of the Advisor, receives a fee (“Distribution Fee” ) of 0.75% of the 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 year ended June 30, 2023, the Distribution Fee was as follows:
In addition, DDI provides information and administrative services for a fee (“Service Fee” ) to Class A, T and C shareholders at an annual rate of up to 0.25% of the 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 year ended June 30, 2023 (through September 30, 2022 for Class T shares), the Service Fee was as follows:
Underwriting Agreement and Contingent Deferred Sales Charge. DDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the year ended June 30, 2023 aggregated $7,780.
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
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redeemed for Class C. For the year ended June 30, 2023, the CDSC for Class C shares aggregated $6,051. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the year ended June 30, 2023, DDI received $95 for Class A shares.
Other Service Fees. Under an agreement with the Fund, DIMA is compensated for providing regulatory filing services to the Fund. For the year ended June 30, 2023, the amount charged to the Fund by DIMA included in the Consolidated Statement of Operations under “Reports to shareholders” aggregated $1,483, of which $210 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.
Affiliated Cash Management Vehicles. The Fund 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 Rule 2a-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 Fund 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 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 Fund equal to the amount of the investment management fee payable on the Fund’s assets invested in DWS ESG Liquidity Fund.
The Fund and other affiliated funds (the “Participants” ) share in a $375 million revolving credit facility provided by a syndication of banks. The Fund may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee, which is allocated based on net assets, among each of the Participants. Interest is calculated at a daily fluctuating rate per annum equal to the sum of 0.10% plus the higher of the Federal Funds Effective Rate and the Overnight Bank Funding Rate, plus 1.25%. The Fund may borrow up to a maximum of 25 percent of its net assets under the agreement. The Fund had no outstanding loans at June 30, 2023.
DWS Enhanced Commodity Strategy Fund | | |
F.
Investing in Commodities-Related Investments
The Fund invests in commodity-linked derivative instruments such as commodity-linked swaps, commodity-linked structured notes and options and futures contracts that are designed to provide exposure to the investment return of assets that trade in the commodity markets, without investing directly in physical commodities. The commodities-linked derivatives instruments in which the Fund invests are more volatile than many other types of securities and may subject the Fund to special risks that do not apply to all derivatives transactions. The value of a commodity-linked derivative investment generally is based upon the price movements of a physical commodity (such as energy, minerals, or agricultural products), a futures contract, swap or commodity index, or other economic variables based upon changes in the value of commodities or the commodities markets. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, changes in storage costs, embargoes, tariffs, policies of commodity cartels and international economic, political and regulatory developments. Also, a liquid secondary market may not exist for the types of commodity-linked derivative instruments the Fund buys, which may make it difficult for the Fund to sell them at an acceptable price. The Fund’s ability to gain exposure to commodity-linked investments and achieve its investment objective may be limited by its intention to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended.
G.
Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
| | DWS Enhanced Commodity Strategy Fund |
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| | | | |
Shares issued to shareholders in reinvestment of distributions |
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| | | | |
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| | | | |
|
| | | | |
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| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| For the period from July 1, 2022 to September 30, 2022 (Class T liquidation date). |
DWS Enhanced Commodity Strategy Fund | | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Deutsche DWS Securities Trust and Shareholders of DWS Enhanced Commodity Strategy Fund:
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of DWS Enhanced Commodity Strategy Fund (the “Fund” ) (one of the funds constituting Deutsche DWS Securities Trust) (the “Trust” ), including the consolidated investment portfolio, as of June 30, 2023, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements” ). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Deutsche DWS Securities Trust) at June 30, 2023, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB” ) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the
| | DWS Enhanced Commodity Strategy Fund |
effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, brokers, and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
Boston, Massachusetts
August 28, 2023
DWS Enhanced Commodity Strategy Fund | | |
Other Information (Unaudited)
Regulatory Update — Tailored Shareholder Report
Effective January 24, 2023, the SEC amended the rules for mutual fund and exchange-traded fund (“ETF” ) annual and semi-annual shareholder reports. The amended rules apply to mutual funds and ETFs that are registered on Form N-1A (i.e., open-end funds) and implement a new streamlined disclosure framework requiring “concise and visually engaging” shareholder reports highlighting key information, including a simplified expense presentation, performance information, portfolio holdings and certain fund statistics. The amended rules seek to simplify shareholder reporting by consolidating investor friendly data in one report and moving other data to Form N-CSR, creating a layered disclosure framework. Certain information from the Fund’s current shareholder reports, including the Fund’s investment portfolio, financial statements and financial highlights, will move to Form N-CSR. This information must be available online, delivered free of charge upon request and filed on a semiannual basis on Form N-CSR. Notably, the amended rules will require mutual funds and ETFs to prepare separate individual shareholder reports for each fund share class. The amendments also include a revised definition of “appropriate broad-based securities market index” that will affect performance presentations in the new streamlined reports and mutual fund and ETF prospectuses. The amended rules and related form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of the amended rules and form amendments on the content of the Fund’s current shareholder reports.
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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-month period, the Fund limited these expenses; had it 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 the six-month period and held for the entire period (January 1, 2023 to June 30, 2023).
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 Enhanced Commodity Strategy Fund | | |
Expenses and Value of a $1,000 Investment
for the six months ended June 30, 2023 (Unaudited)
| | | | | |
Beginning Account Value 1/1/23 | | | | | |
Ending Account Value 6/30/23 | | | | | |
Expenses Paid per $1,000* | | | | | |
Hypothetical 5% Fund Return | | | | | |
Beginning Account Value 1/1/23 | | | | | |
Ending Account Value 6/30/23 | | | | | |
Expenses Paid per $1,000* | | | | | |
| Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | | | | | |
DWS Enhanced Commodity Strategy Fund | | | | | |
For more information, please refer to the Fund’s prospectus.
For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to tools.finra.org/fund_analyzer/.
Tax Information (Unaudited)
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 728-3337.
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Liquidity Risk Management
In accordance with Rule 22e-4 (the “Liquidity Rule” ) under the Investment Company Act of 1940 (the “1940 Act” ), your Fund has adopted a liquidity risk management program (the “Program” ), and the Board has designated DWS Investment Management Americas, Inc. (“DIMA” ) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). DIMA has designated a committee (the “Committee” ) composed of personnel from multiple departments within DIMA and its affiliates that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by the Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
In February 2023, as required by the Program and the Liquidity Rule, DIMA provided the Board with an annual written report (the “Report” ) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2021 through November 30, 2022 (the “Reporting Period” ). During the Reporting Period, your Fund was predominately invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, DIMA stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. DIMA also reported that there were no material changes made to the Program during the Reporting Period.
DWS Enhanced Commodity Strategy Fund | | |
Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees” ) approved the renewal of DWS Enhanced Commodity Strategy Fund’s (the “Fund” ) investment management agreement (the “Agreement” ) with DWS Investment Management Americas, Inc. (“DIMA” ) in September 2022.
In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:
—
During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees” ).
—
The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant” ).
—
The Board also received extensive information throughout the year regarding performance of the Fund.
—
The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations.
—
In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.
In connection with the contract review process, the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed 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
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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.
While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’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 Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board also considered the risks to DIMA in sponsoring or managing the Fund, including financial, operational and reputational risks, the potential economic impact to DIMA from such risks and DIMA’s approach to addressing such risks. The Board reviewed 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 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 the one-, three- and five-year periods ended December 31, 2021, the Fund’s performance (Class A shares) was in the 3rd quartile, 4th quartile and 4th quartile, respectively, of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The Board also observed that the Fund has outperformed its benchmark in the one-year period and has underperformed its benchmark in the three- and five-year periods ended December 31, 2021.
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge” ) and the Fee Consultant regarding investment
DWS Enhanced Commodity Strategy Fund | | |
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 Fund, which include a 0.097% fee paid to DIMA under the Fund’s administrative services agreement, were higher than the median (3rd quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2021). The Board noted that, in connection with the 2020 contract renewal process, DIMA agreed to reduce the Fund’s contractual management fee at each breakpoint by 0.10%, effective October 1, 2020. The Board noted that the Fund’s Class A shares total (net) operating expenses (excluding 12b-1 fees) were expected to be higher than the median (3rd quartile) of the applicable Broadridge expense universe (based on Broadridge data provided as of December 31, 2021, and analyzing Broadridge expense universe Class A (net) expenses less any applicable 12b-1 fees) (“Broadridge Universe Expenses” ). The Board also reviewed data comparing each other operational share class’s 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 Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds” ), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including any sub-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 manages a DWS Europe Fund comparable to the Fund, but does not manage any comparable institutional accounts. The Board took note of the differences in services provided to DWS Funds as compared to DWS Europe Funds and that such differences made comparison difficult.
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.
Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, and pre-tax profits realized by DIMA, from advising the DWS Funds, as well as estimates of the pre-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
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information provided, the Board concluded that the pre-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.
Economies of Scale. The Board considered whether there are economies of scale with respect to the management of the Fund and whether the Fund benefits from any economies of scale. The Board noted that the Fund’s investment management fee schedule includes fee breakpoints. The Board concluded that the Fund’s fee schedule represents an appropriate sharing between the Fund and DIMA of such economies of scale as may exist in the management of the Fund at current asset levels.
Other Benefits to DIMA and Its Affiliates. The Board also considered the character and amount of other incidental or “fall-out” benefits received by DIMA and its affiliates, including any fees received by DIMA for administrative services provided 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 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 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 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.
Based on all of the information considered and the conclusions reached, the Board determined that the continuation of the Agreement is in the best interests of 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
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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 Agreement.
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Board Members and Officers
The following table presents certain information regarding the Board Members and Officers of the Trust/Corporation. Each Board Member’s year of birth is set forth in parentheses after his or her name. Unless otherwise noted, (i) each Board Member has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity; and (ii) the address of each Independent Board Member is c/o Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston
Street, Boston, MA 02199-3600. Except as otherwise noted below, the term of office for each Board Member is until the election and qualification of a successor, or until such Board Member sooner dies, resigns, is removed or as otherwise provided in the governing documents of the Trust/Corporation. Because the Fund does not hold an annual meeting of shareholders, each Board Member will hold office for an indeterminate period.
The Board Members may also serve in similar capacities with other funds in the fund complex. The number of funds in the DWS fund complex shown in the table below includes all registered open- and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor.
Independent Board Members/Independent Advisory Board Members
Name, Year of
Birth, Position
with the Trust/
Corporation
and Length of
| Business Experience and Directorships
During the Past Five Years | Number of
Funds in
DWS Fund
Complex
Overseen | Other
Directorships
Held by Board
Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986); Former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds); Progressive International Corporation (kitchen goods designer and distributor) | | |
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Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly: Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways Inc.2 (population well-being and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company) (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | | |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012); Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | | |
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Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (1972–present); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee (2011–present), member Systemic Risk Council (2012–present) and member of the Advisory Board of the Yale Program on Financial Stability (2013–present); Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007–2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | | |
Chad D. Perry (1972) Board Member or Advisory Board Member | Executive Vice President and General Counsel, RLJ Lodging Trust2 (since 2023); formerly Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011–2023); Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | | Director, Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Directorships: Washington College (since July 2023); Formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020–2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012–2022) | | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
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Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (2016–present) and Professor of Accounting (1994–present); Directorships: Director, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | | |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | | |
Officers5
Name, Year of Birth, Position
with the Trust/Corporation
and Length of Time Served6 | Business Experience and Directorships During the
Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Head of Americas CEO Office, DWS (2023–present), Head of Fund Administration, Head of Product Americas and Head of U.S. Mutual Funds, DWS (2017–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Vice President, DWS Service Company (2018–present); President, DB Investment Managers, Inc.(2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Secretary, DWS USA Corporation (2018–2023); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–2023); Assistant Secretary, DWS Trust Company (2018–2023); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Director of DWS Service Company (2018–present); Director of DB Investment Managers, Inc. (2018–present); Director of Episcopalian Charities of New York (2018–present); Interested Director of The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2020–present); Director of ICI Mutual Insurance Company (2020–present); Director of DWS USA Corporation (2023–present); Director of DWS Investment Management Americas, Inc. (2023–present); and Manager of DBX Advisors LLC. (2023–present) |
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Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); Assistant Secretary, DWS Service Company (2018–present); Assistant Secretary of U.S. Mutual Funds, DWS (2019–present); Assistant Secretary, DWS USA Corporation (2023–present); Assistant Secretary, DBX Advisors, LLC (2023–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2023–present); Assistant Clerk, DWS Trust Company (2023–present); formerly, Legal Assistant at Accelerated Tax Solutions |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer’s Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer’s Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
DWS Enhanced Commodity Strategy Fund | | |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Christian Rijs7 (1980) Anti-Money Laundering
Compliance Officer, 2021–present | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (2021–present); AML Officer, DBX ETF Trust (2021–present); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2021–present); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
| The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
| A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
| Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
| Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
| As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
| The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
| Address: 875 Third Avenue, New York, New York 10022. |
| Address: 100 Summer Street, Boston, MA 02110. |
| Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
Certain officers hold similar positions for other investment companies for which DIMA or an affiliate serves as the Advisor.
The Fund’s Statement of Additional Information (“SAI” ) includes additional information about the Board Members. The SAI is available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the following toll-free number: (800) 728-3337.
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Account Management Resources
| 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 |
| dws.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. |
Obtain prospectuses and applications, news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information. |
| DWS PO Box 219151 Kansas City, MO 64121-9151 |
| The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
| Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is posted on dws.com and is available free of charge by contacting your financial intermediary or, if you are a direct investor, by calling (800) 728-3337. In addition, the portfolio holdings listing is filed with the SEC on the Fund’s Form N-PORT and will be available on the SEC’s Web site at sec.gov. Additional portfolio holdings for the Fund are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. |
| If you have questions, comments or complaints, contact: DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 |
DWS Enhanced Commodity Strategy Fund | | |
| 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. |
For shareholders of Class R6 |
Automated Information Line | DWS/Ascensus Plan Access (800) 728-3337 |
24-hour access to your retirement plan account. |
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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 at https://www.mykplan.com/participantsecure_net/login.aspx. |
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To speak with a service representative. |
| DWS Service Company 222 South Riverside Plaza Chicago, IL 60606-5806 |
| | DWS Enhanced Commodity Strategy Fund |
222 South Riverside Plaza
Chicago, IL 60606-5808
DECSF-2
(R-028287-12 8/23)
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| | (b) Not applicable |
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| ITEM 2. | CODE OF ETHICS |
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| | As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer. There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2. A copy of the code of ethics is filed as an exhibit to this Form N-CSR. |
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| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
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| | The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Ms. Catherine Schrand, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. |
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| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
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DWS Enhanced Commodity Strategy Fund
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year
Ended
June 30, | Audit Fees Billed to Fund | Audit-Related
Fees Billed to Fund | Tax Fees Billed to Fund | All
Other Fees Billed to Fund |
| 2023 | $59,014 | $0 | $10,366 | $0 |
| 2022 | $62,121 | $0 | $10,366 | $0 |
The above “Tax Fees” were billed for professional services rendered for tax preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year
Ended
June 30, | Audit-Related
Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All
Other Fees Billed to Adviser and Affiliated Fund Service Providers |
| 2023 | $0 | $572,355 | $0 |
| 2022 | $0 | $394,557 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year
Ended
June 30, | Total
Non-Audit Fees Billed to Fund
(A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund)
(B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements)
(C) | Total of
(A), (B) and (C) |
| 2023 | $10,366 | $572,355 | $0 | $582,721 |
| 2022 | $10,366 | $394,557 | $0 | $404,923 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm and (i) and (j) are not applicable.
***
In connection with the audit of the 2022 and 2023 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue to act as the Independent Registered Public Accounting Firm for the Fund.
| · | EY advised the Fund’s Audit Committee that various covered persons within EY and EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any professionals who were part of the audit engagement team for the Fund or in the position to influence the audit engagement team for the Fund. |
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| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
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| | Not applicable |
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| ITEM 6. | INVESTMENTS |
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| | Not applicable |
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| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| | Not applicable |
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| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
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| | Not applicable |
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| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
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| | Not applicable |
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| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
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| | 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. |
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| ITEM 11. | CONTROLS AND PROCEDURES |
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| | (a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
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| | (b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
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| ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
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| | Not applicable |
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| ITEM 13. | EXHIBITS |
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| | (a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
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| | (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. |
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| | (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 Enhanced Commodity Strategy Fund, a series of Deutsche DWS Securities Trust |
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| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
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| Date: | 8/29/2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
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| Date: | 8/29/2023 |
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| By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
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| Date: | 8/29/2023 |
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