UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number: 811-00043
Deutsche DWS Investment 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: | 7/31 |
| Date of reporting period: | 7/31/2021 |
| ITEM 1. | REPORT TO STOCKHOLDERS |
| (a) |
July 31, 2021
Annual Report
to Shareholders
DWS Large Cap Focus Growth Fund
Contents
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.
Stocks may decline in value. The Fund may lend securities to approved institutions. Please read the prospectus for details.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the ongoing pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Fund and its investments.
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
| 2 | | | DWS Large Cap Focus Growth Fund |
Letter to Shareholders
Dear Shareholder:
The economic outlook remains moderately positive overall, buoyed by good corporate earnings and continued support from central banks. While the U.S. and Asia are acting as growth engines, there is still some uncertainty whether the current momentum is sustainable.
Inflation has come back into focus sooner than expected as a result of the combination of the growth upswing, stimulus packages, expansive central banks, and, most recently, sharply rising oil prices. These circumstances may, to a great extent, prove to be a temporary phenomenon driven by one-time, pandemic-related effects. For example, the massive underutilization of productive capacity and labor in 2020 depressed prices last year. Normalization of commodity prices alone is providing a significant base effect. Together with pent-up demand for many goods, especially in services, this is likely to increase inflationary pressure this year, before it then subsides as economic activity returns to a more typical level.
Whether central banks will be able to leave interest rates at their current low levels is another critical question for the markets this year. Again, our CIO Office believes that government bond yields are likely to rise only temporarily this year.
The scope and pace of recovery is likely to remain uneven among regions, asset classes and investment sectors. We believe that this underscores the value add of active portfolio management. We also believe that the strong 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. We welcome the opportunity to help you navigate these unusual times. 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 Large Cap Focus Growth Fund | | | 3 |
| 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 9 through 10 for more complete performance information.
DWS Large Cap Focus Growth Fund returned 31.03% during the 12-month period that ended on July 31, 2021, but it underperformed the 36.68% gain for its benchmark, the Russell 1000® Growth Index. The Fund outperformed its Morningstar peer group, Large Growth, in the five- and 10-year periods that ended on the same date.
Management Process
Portfolio management aims to add value through stock selection. In choosing securities, portfolio management employs a risk-balanced bottom-up selection process to identify companies it believes have above average and sustainable growth potential.
The U.S. equity market produced an impressive return in the past 12 months, helping the major indexes achieve a series of all-time highs. Stocks were initially boosted by the steady recovery in economic growth and corporate earnings from their lows of early 2020. Both trends were fueled, in part, by the accommodative policies of the U.S. Federal Reserve (Fed) and other world central banks, as well as the fiscal stimulus provided by global governments. Investor sentiment was further enhanced by the November 2020 approval of a vaccine for COVID-19. In combination, these factors led to strong, steady gains for the stock market.
The growth and value styles alternated leadership throughout the period. Growth strongly outperformed until the vaccine announcement, at which point investors began rotating toward the types of economically sensitive stocks more prevalent in the value category. Growth recaptured its leadership role in the second calendar quarter of 2021, when investors appeared to grow concerned that the economy was set to slow in the latter half of the year. Despite this recovery in relative performance, the
| 4 | | | DWS Large Cap Focus Growth Fund |
growth style lagged for the full period. The Russell 1000 Growth Index, while rising 36.68%, trailed the 39.32% return of the Russell 1000® Value Index in the 12 months that ended on July 31, 2021.
“We continue to focus on understanding change and its implications, rather than debating growth versus value or the direction of the economy.”
Fund Performance
The Fund posted a robust absolute return, but it did not fully participate in the gain for the broader market. The majority of the shortfall was the result of the Fund’s zero weighting in Tesla, Inc., which has a sizable influence on the benchmark’s return. Since our goal is to own the most attractive long-term growth ideas in the market, we do not “chase” performance in individual stocks in an attempt to boost short-term returns. All of the underperformance occurred in the first half of the period, when the stock rallied following the announcement of its inclusion into the S&P 500 Index. The zero weighting was in fact a positive in the latter half of the period, when Tesla gave back ground from its January 2021 peak even as overall market continued to move higher.
Sector allocations were also a minor detractor from relative performance. While the Fund benefited from being underweight in the consumer staples sector, the contribution was offset by modest overweights in financials and health care. The Fund’s cash weighting, though small on an absolute basis, was another detractor of note. We typically maintain a limited cash position to provide liquidity, and it usually has a minimal impact on results. However, cash was a slight headwind at a time of unusually robust market returns.
In terms of stock selection, the communication services sector was an area of relative weakness for the Fund. Both Activision Blizzard, Inc.* and Netflix, Inc., which performed very well in 2020 due to rising demand from people spending more time at home, began to underperform as investors became concerned about decelerating user trends. We also underperformed in information technology, despite strength in the semiconductor stocks Applied Materials, Inc. and NVIDIA Corp. Fiserv, Inc. and Visa, Inc. experienced weaker relative performance as investors gravitated to cheaper and more cyclical bank stocks at a time of rising
| DWS Large Cap Focus Growth Fund | | | 5 |
long-term bond yields. In all cases, these detractors posted positive absolute returns but simply failed to keep up pace with their sector peers. Quidel Corp. was among the handful of Fund holdings to finish the annual period with a negative return. The company, which had been a key beneficiary of the need for Covid tests, underperformed as shifting demand dynamics and excess inventory levels began to weigh on expectations.
On the positive side, the Fund’s holdings in health care outpaced the overall sector by a wide margin even though Quidel declined. PPD, Inc.,* a pharmaceutical contract-research company that was bid for by Thermo Fisher Scientific at a large premium, was a top contributor. Eargo, Inc. — an online-based hearing aid manufacturer that came public in late 2020 — also outperformed as investors recognized its potential to disrupt the staid, low-growth hearing aid market. agilon health, Inc., a value-based health care platform that also came public in the past year, performed behind strong results that demonstrated its growth capabilities as the health care market continued to shift away from the fee-for-service model.
Outside of health care, two consumer stocks — Yeti Holdings, Inc. and Chewy, Inc. — were top contributors to relative performance. Yeti, a provider of premium outdoor products, benefited from accelerating business momentum as it executed on its plan to become a global lifestyle brand. In addition, the shares were propelled by continued strength in the overall outdoor recreation category. Chewy, an online retailer of pet food, supplies, and pharmaceuticals, showed strong growth thanks to increasing pet ownership levels and accelerating online adoption rates.
Outlook
We see markets remaining in a state of instability as the world recovers from the pandemic. The combination of rising inflation, a possible peak in domestic economic growth, the persistence of COVID-19, and a more hawkish Fed have produced a dramatic swings in sentiment between growth stocks and cyclicals. For our part, we continue to focus on understanding change and its implications, rather than debating growth versus value or attempting to predict the direction of the economy. We seek to invest in companies that are on the right side of change and are addressing current and future challenges with innovative solutions. We have also sought to maintain diversification across the growth life cycle,
| 6 | | | DWS Large Cap Focus Growth Fund |
with allocations to both rapidly growing companies and larger, more stable growers. We believe our attention to balance and diversification, together with our emphasis on companies we think will grow at durable, superior rates and generate long-term shareholder value, has helped the Fund navigate the recent volatility and deliver robust results over time.
Our bigger-picture view leads us to believe that the economy is still very much in the midst of a transformative wave of innovation. While in many cases this process was accelerated because of COVID-19, we think it can continue to provide a tailwind for faster-growing businesses that are at the forefront of inevitable technological change. We also think stock selection remains critical in a time of accelerating transformation. We believe it’s better to be on the right side of change through positions in disruptors and their beneficiaries, rather than the companies whose businesses are being disrupted.
| * | Not held at July 31, 2021. |
Portfolio Manager
Sebastian P. Werner, PhD, Head of Investment Strategy Equity
Portfolio Manager of the Fund. Began managing the Fund in 2016.
—
Joined DWS in 2008; previously, he served as a Research Assistant for the Endowed Chair of Asset Management at the European Business School, Oestrich-Winkel while earning his PhD.
—
Portfolio Manager for Global and US Growth Equities: New York.
—
MBA in International Management from the Thunderbird School of Global Management; Masters Degree (“Diplom-Kaufmann” ) and PhD in Finance (“Dr.rer.pol.” ) from the European Business School, Oestrich-Winkel.
The views expressed reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The portfolio manager’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
The Russell 1000 Growth Index is an unmanaged index that consists of those stocks in the Russell 1000® Index that have higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index measures the performance of stocks in the Russell 1000 Index with lower price/book ratios and lower forecasted growth values. The Russell 1000 Index is an unmanaged price-only index of the 1,000 largest capitalized companies that are domiciled in the U.S. and whose common stocks are traded.
Morningstar Large-Growth Funds invest in big U.S. companies that are projected to grow faster than other large-cap stocks. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large-cap. Growth is defined based on fast growth (high growth rates for earnings, sales, book value, and cash flow) and high
| DWS Large Cap Focus Growth Fund | | | 7 |
valuations (high price ratios and low dividend yields). Most of these portfolios focus on companies in rapidly expanding industries. The average category returns for the one-, five- and 10-year periods ended July 31, 2021 were 35.53%, 21.40% and 16.43%, respectively.
Overweight means that a fund holds a higher weighting in a given sector or security than its benchmark index. Underweight means that a fund holds a lower weighting.
Contribution and detraction incorporate both an investment’s total return and its weighting in the Fund.
| 8 | | | DWS Large Cap Focus Growth Fund |
| Performance Summary | July 31, 2021 (Unaudited) |
| Class A | 1-Year | 5-Year | 10-Year |
| Average Annual Total Returns as of 7/31/21 | |||
| Unadjusted for Sales Charge | 31.03% | 22.10% | 16.92% |
| Adjusted for the Maximum Sales Charge (max 5.75% load) | 23.49% | 20.66% | 16.23% |
| Russell 1000® Growth Index† | 36.68% | 23.32% | 18.37% |
| Class C | 1-Year | 5-Year | 10-Year |
| Average Annual Total Returns as of 7/31/21 | |||
| Unadjusted for Sales Charge | 30.05% | 21.19% | 16.05% |
| Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | 30.05% | 21.19% | 16.05% |
| Russell 1000® Growth Index† | 36.68% | 23.32% | 18.37% |
| Class S | 1-Year | 5-Year | 10-Year |
| Average Annual Total Returns as of 7/31/21 | |||
| No Sales Charges | 31.35% | 22.41% | 17.21% |
| Russell 1000® Growth Index† | 36.68% | 23.32% | 18.37% |
| Institutional Class | 1-Year | 5-Year | 10-Year |
| Average Annual Total Returns as of 7/31/21 | |||
| No Sales Charges | 31.36% | 22.42% | 17.23% |
| Russell 1000® Growth Index† | 36.68% | 23.32% | 18.37% |
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 December 1, 2020 are 1.18%, 1.93%, 0.91% and 0.86% for Class A, Class C, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.
Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
| DWS Large Cap Focus Growth Fund | | | 9 |
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 July 31
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.
| † | The Russell 1000® Growth Index is an unmanaged index that consists of those stocks in the Russell 1000® Index that have higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Index is an unmanaged price-only index of the 1,000 largest capitalized companies that are domiciled in the U.S. and whose common stocks are traded. |
| Class A | Class C | Class S | Institutional Class | |
| Net Asset Value | ||||
| 7/31/21 | $79.81 | $63.65 | $84.33 | $85.64 |
| 7/31/20 | $63.63 | $51.67 | $66.92 | $67.92 |
| Distribution Information as of 7/31/21 | ||||
| Capital Gain Distributions | $ 3.00 | $ 3.00 | $ 3.00 | $ 3.00 |
| 10 | | | DWS Large Cap Focus Growth Fund |
| Portfolio Summary | (Unaudited) |
| Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) | 7/31/21 | 7/31/20 |
| Common Stocks | 99% | 99% |
| Cash Equivalents | 1% | 1% |
| 100% | 100% |
| Sector Diversification (As a % of Investment Portfolio excluding Securities Lending Collateral and Cash Equivalents) | 7/31/21 | 7/31/20 |
| Information Technology | 41% | 37% |
| Health Care | 16% | 18% |
| Consumer Discretionary | 15% | 17% |
| Communication Services | 11% | 10% |
| Industrials | 7% | 7% |
| Financials | 4% | 5% |
| Real Estate | 2% | 3% |
| Consumer Staples | 2% | 2% |
| Materials | 2% | 1% |
| 100% | 100% |
| DWS Large Cap Focus Growth Fund | | | 11 |
| Ten Largest Equity Holdings at July 31, 2021 (50.0% of Net Assets) | |
| 1 Microsoft Corp. | 9.8% |
| Develops, manufactures, licenses, sells and supports software products | |
| 2 Apple, Inc. | 9.5% |
| Designs, manufactures and markets personal computers and related computing and mobile-communication devices | |
| 3 Amazon.com, Inc. | 6.1% |
| Online retailer offering a wide range of products | |
| 4 Alphabet, Inc. | 5.9% |
| Holding company with subsidiaries that provide Web-based search, maps, hardware products and various software applications | |
| 5 Visa, Inc. | 4.0% |
| Operates a retail electronic payments network and manages global financial services | |
| 6 Thermo Fisher Scientific, Inc. | 3.8% |
| Manufacturer of measurement instruments that monitor, collect and analyze information for various industries | |
| 7 NVIDIA Corp. | 3.1% |
| Designs, develops and markets three dimensional (3D) graphic processors | |
| 8 ServiceNow, Inc. | 2.7% |
| Designs, develops and produces prepackaged computer software, cloud services and IT service management platform | |
| 9 DexCom, Inc. | 2.6% |
| Operates as a medical device company | |
| 10 Progressive Corp. | 2.5% |
| Provider of property and casualty insurance | |
Portfolio holdings and characteristics are subject to change.
For more complete details about the Fund’s investment portfolio, see page 13. A quarterly Fact Sheet is available on dws.com or upon request. Please see the Account Management Resources section on page 52 for contact information.
| 12 | | | DWS Large Cap Focus Growth Fund |
| Investment Portfolio | as of July 31, 2021 |
| Shares | Value ($) | ||
| Common Stocks 99.2% | |||
| Communication Services 10.9% | |||
| Entertainment 1.5% | |||
| Netflix, Inc.* | 11,800 | 6,107,326 | |
| Interactive Media & Services 7.9% | |||
| Alphabet, Inc. “A” * | 8,750 | 23,577,138 | |
| Match Group, Inc.* | 33,200 | 5,287,764 | |
| MediaAlpha, Inc. “A” * | 80,600 | 2,692,040 | |
| 31,556,942 | |||
| Wireless Telecommunication Services 1.5% | |||
| T-Mobile U.S., Inc.* | 42,200 | 6,077,644 | |
| Consumer Discretionary 15.0% | |||
| Hotels, Restaurants & Leisure 1.3% | |||
| Airbnb, Inc. “A” * | 5,550 | 799,255 | |
| McDonald’s Corp. | 18,200 | 4,417,322 | |
| 5,216,577 | |||
| Internet & Direct Marketing Retail 7.3% | |||
| Amazon.com, Inc.* | 7,327 | 24,381,252 | |
| Chewy, Inc. “A” * (a) | 58,400 | 4,888,080 | |
| 29,269,332 | |||
| Leisure Products 1.7% | |||
| YETI Holdings, Inc.* | 72,069 | 6,942,407 | |
| Specialty Retail 3.3% | |||
| CarMax, Inc.* | 39,200 | 5,250,840 | |
| Home Depot, Inc. | 23,700 | 7,778,103 | |
| 13,028,943 | |||
| Textiles, Apparel & Luxury Goods 1.4% | |||
| Lululemon Athletica, Inc.* | 14,000 | 5,602,380 | |
| Consumer Staples 2.0% | |||
| Food & Staples Retailing | |||
| Costco Wholesale Corp. | 18,400 | 7,906,848 | |
| Financials 4.3% | |||
| Capital Markets 1.8% | |||
| Intercontinental Exchange, Inc. | 61,000 | 7,309,630 | |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 13 |
| Shares | Value ($) | ||
| Insurance 2.5% | |||
| Progressive Corp. | 106,900 | 10,172,604 | |
| Health Care 16.1% | |||
| Biotechnology 0.7% | |||
| Exact Sciences Corp.* | 24,000 | 2,588,160 | |
| Health Care Equipment & Supplies 8.3% | |||
| agilon health, Inc.* | 122,000 | 4,488,380 | |
| DexCom, Inc.* | 20,000 | 10,310,200 | |
| Eargo, Inc.* (a) | 71,000 | 2,556,000 | |
| Hologic, Inc.* | 90,000 | 6,753,600 | |
| Intuitive Surgical, Inc.* | 7,200 | 7,138,512 | |
| Quidel Corp.* (a) | 15,000 | 2,122,050 | |
| 33,368,742 | |||
| Health Care Technology 0.7% | |||
| Certara, Inc.* | 50,000 | 1,360,500 | |
| Schrodinger, Inc.* | 22,000 | 1,488,740 | |
| 2,849,240 | |||
| Life Sciences Tools & Services 4.1% | |||
| Berkeley Lights, Inc.* (a) | 23,400 | 1,066,572 | |
| Thermo Fisher Scientific, Inc. | 28,500 | 15,390,285 | |
| 16,456,857 | |||
| Pharmaceuticals 2.3% | |||
| Zoetis, Inc. | 45,350 | 9,192,445 | |
| Industrials 6.4% | |||
| Building Products 0.6% | |||
| AZEK Co., Inc.* | 68,000 | 2,473,160 | |
| Electrical Equipment 1.9% | |||
| AMETEK, Inc. | 53,300 | 7,411,365 | |
| Industrial Conglomerates 1.6% | |||
| Roper Technologies, Inc. | 13,000 | 6,387,420 | |
| Professional Services 1.7% | |||
| Clarivate PLC* | 300,000 | 6,840,000 | |
| Road & Rail 0.6% | |||
| Norfolk Southern Corp. | 9,700 | 2,500,951 | |
| Information Technology 41.1% | |||
| IT Services 8.4% | |||
| Fiserv, Inc.* | 67,500 | 7,769,925 | |
| Globant SA* | 36,500 | 8,729,340 | |
The accompanying notes are an integral part of the financial statements.
| 14 | | | DWS Large Cap Focus Growth Fund |
| Shares | Value ($) | ||
| TaskUS, Inc. “A” * | 40,000 | 1,218,000 | |
| Visa, Inc. “A” (a) | 64,252 | 15,831,050 | |
| 33,548,315 | |||
| Semiconductors & Semiconductor Equipment 6.8% | |||
| Advanced Micro Devices, Inc.* | 69,000 | 7,327,110 | |
| Applied Materials, Inc. | 54,100 | 7,570,213 | |
| NVIDIA Corp. | 64,000 | 12,479,360 | |
| 27,376,683 | |||
| Software 16.4% | |||
| Datadog, Inc. “A” * | 17,500 | 1,937,250 | |
| DocuSign, Inc.* | 18,500 | 5,513,740 | |
| Microsoft Corp. | 137,125 | 39,068,284 | |
| salesforce.com, Inc.* | 34,000 | 8,225,620 | |
| ServiceNow, Inc.* | 18,500 | 10,875,965 | |
| 65,620,859 | |||
| Technology Hardware, Storage & Peripherals 9.5% | |||
| Apple, Inc. | 259,830 | 37,898,804 | |
| Materials 1.4% | |||
| Chemicals 0.9% | |||
| Ecolab, Inc. | 15,600 | 3,444,948 | |
| Construction Materials 0.5% | |||
| Vulcan Materials Co. | 12,000 | 2,159,880 | |
| Real Estate 2.0% | |||
| Equity Real Estate Investment Trusts (REITs) | |||
| Equinix, Inc. | 9,695 | 7,953,875 | |
| Total Common Stocks (Cost $151,787,305) | 397,262,337 | ||
| Securities Lending Collateral 6.7% | |||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 0.01% (b) (c) (Cost $26,692,663) | 26,692,663 | 26,692,663 | |
| Cash Equivalents 1.1% | |||
| DWS Central Cash Management Government Fund, 0.03% (b) (Cost $4,519,877) | 4,519,877 | 4,519,877 | |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 15 |
| % of Net Assets | Value ($) | ||
| Total Investment Portfolio (Cost $182,999,845) | 107.0 | 428,474,877 | |
| Other Assets and Liabilities, Net | (7.0) | (28,116,653) | |
| Net Assets | 100.0 | 400,358,224 |
A summary of the Fund’s transactions with affiliated investments during the year ended July 31, 2021 are as follows:
| Value ($) at 7/31/2020 | Pur- chases Cost ($) | Sales Proceeds ($) | Net Real- ized Gain/ (Loss) ($) | Net Change in Unreal- ized Appreci- ation (Depreci- ation) ($) | Income ($) | Capital Gain Distri- butions ($) | Number of Shares at 7/31/2021 | Value ($) at 7/31/2021 |
| Securities Lending Collateral 6.7% | ||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 0.01% (b) (c) | ||||||||
| 19,822,510 | 6,870,153 (d) | — | — | — | 39,335 | — | 26,692,663 | 26,692,663 |
| Cash Equivalents 1.1% | ||||||||
| DWS Central Cash Management Government Fund, 0.03% (b) | ||||||||
| 4,452,761 | 62,186,790 | 62,119,674 | — | — | 3,051 | — | 4,519,877 | 4,519,877 |
| 24,275,271 | 69,056,943 | 62,119,674 | — | — | 42,386 | — | 31,212,540 | 31,212,540 |
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other Assets and Liabilities, Net” may include pending sales that are also on loan. The value of securities loaned at July 31, 2021 amounted to $25,940,026, which is 6.5% of net assets. |
| (b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
| (d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended July 31, 2021. |
The accompanying notes are an integral part of the financial statements.
| 16 | | | DWS Large Cap Focus Growth 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 July 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.
| Assets | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks (a) | $397,262,337 | $— | $— | $397,262,337 |
| Short-Term Investments (a) | 31,212,540 | — | — | 31,212,540 |
| Total | $428,474,877 | $ — | $ — | $428,474,877 |
| (a) | See Investment Portfolio for additional detailed categorizations. |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 17 |
Statement of Assets and Liabilities
as of July 31, 2021
| Assets | |
| Investments in non-affiliated securities, at value (cost $151,787,305) — including $25,940,026 of securities loaned | $ 397,262,337 |
| Investment in DWS Government & Agency Securities Portfolio (cost $26,692,663)* | 26,692,663 |
| Investment in DWS Central Cash Management Government Fund (cost $4,519,877) | 4,519,877 |
| Cash | 33,256 |
| Receivable for investments sold | 30,432 |
| Receivable for Fund shares sold | 6,082 |
| Dividends receivable | 25,873 |
| Interest receivable | 2,020 |
| Other assets | 24,985 |
| Total assets | 428,597,525 |
| Liabilities | |
| Payable upon return of securities loaned | 26,692,663 |
| Payable for investments purchased | 1,100,965 |
| Payable for Fund shares redeemed | 36,864 |
| Accrued management fee | 193,879 |
| Accrued Trustees' fees | 3,290 |
| Other accrued expenses and payables | 211,640 |
| Total liabilities | 28,239,301 |
| Net assets, at value | $ 400,358,224 |
| Net Assets Consist of | |
| Distributable earnings (loss) | 273,087,940 |
| Paid-in capital | 127,270,284 |
| Net assets, at value | $ 400,358,224 |
| * | Represents collateral on securities loaned. |
The accompanying notes are an integral part of the financial statements.
| 18 | | | DWS Large Cap Focus Growth Fund |
Statement of Assets and Liabilities as of July 31, 2021 (continued)
| Net Asset Value | |
| Class A | |
| Net Asset Value and redemption price per share ($43,769,830 ÷ 548,439 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 79.81 |
| Maximum offering price per share (100 ÷ 94.25 of $79.81) | $ 84.68 |
| Class C | |
| Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($5,768,592 ÷ 90,636 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 63.65 |
| Class S | |
| Net Asset Value, offering and redemption price per share ($325,259,787 ÷ 3,857,064 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 84.33 |
| Institutional Class | |
| Net Asset Value, offering and redemption price per share ($25,560,015 ÷ 298,446 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 85.64 |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 19 |
Statement of Operations
for the year ended July 31, 2021
| Investment Income | |
| Income: | |
| Dividends | $ 2,259,375 |
| Income distributions — DWS Central Cash Management Government Fund | 3,051 |
| Securities lending income, net of borrower rebates | 39,335 |
| Total income | 2,301,761 |
| Expenses: | |
| Management fee | 2,170,025 |
| Administration fee | 342,264 |
| Services to shareholders | 371,362 |
| Distribution and service fees | 156,864 |
| Custodian fee | 4,737 |
| Professional fees | 81,277 |
| Reports to shareholders | 34,191 |
| Registration fees | 63,711 |
| Trustees' fees and expenses | 13,356 |
| Other | 20,337 |
| Total expenses before expense reductions | 3,258,124 |
| Expense reductions | (116,894) |
| Total expenses after expense reductions | 3,141,230 |
| Net investment income (loss) | (839,469) |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss) from investments | 28,914,987 |
| Change in net unrealized appreciation (depreciation) on investments | 68,651,005 |
| Net gain (loss) | 97,565,992 |
| Net increase (decrease) in net assets resulting from operations | $ 96,726,523 |
The accompanying notes are an integral part of the financial statements.
| 20 | | | DWS Large Cap Focus Growth Fund |
Statements of Changes in Net Assets
| Years Ended July 31, | ||
| Increase (Decrease) in Net Assets | 2021 | 2020 |
| Operations: | ||
| Net investment income (loss) | $ (839,469) | $ (71,753) |
| Net realized gain (loss) | 28,914,987 | 14,038,213 |
| Change in net unrealized appreciation (depreciation) | 68,651,005 | 65,410,733 |
| Net increase (decrease) in net assets resulting from operations | 96,726,523 | 79,377,193 |
| Distributions to shareholders: | ||
| Class A | (1,747,910) | (1,658,497) |
| Class C | (352,844) | (357,700) |
| Class S | (11,377,035) | (11,848,832) |
| Institutional Class | (604,553) | (281,885) |
| Total distributions | (14,082,342) | (14,146,914) |
| Fund share transactions: | ||
| Proceeds from shares sold | 41,823,945 | 27,518,007 |
| Reinvestment of distributions | 13,459,071 | 13,516,876 |
| Payments for shares redeemed | (51,599,581) | (50,614,142) |
| Net increase (decrease) in net assets from Fund share transactions | 3,683,435 | (9,579,259) |
| Increase (decrease) in net assets | 86,327,616 | 55,651,020 |
| Net assets at beginning of period | 314,030,608 | 258,379,588 |
| Net assets at end of period | $400,358,224 | $314,030,608 |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 21 |
Financial Highlights
| DWS Large Cap Focus Growth Fund — Class A | |||||
| Years Ended July 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $63.63 | $50.70 | $47.19 | $42.39 | $38.46 |
| Income (loss) from investment operations: | |||||
| Net investment income (loss)a | (.30) | (.12) | (.04) | (.06) | .02 |
| Net realized and unrealized gain (loss) | 19.48 | 16.01 | 6.07 | 6.46 | 6.61 |
| Total from investment operations | 19.18 | 15.89 | 6.03 | 6.40 | 6.63 |
| Less distributions from: | |||||
| Net realized gains | (3.00) | (2.96) | (2.52) | (1.60) | (2.70) |
| Net asset value, end of period | $79.81 | $63.63 | $50.70 | $47.19 | $42.39 |
| Total Return (%)b,c | 31.03 | 32.91 | 13.92 | 15.47 | 18.45 |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ millions) | 44 | 36 | 29 | 26 | 25 |
| Ratio of expenses before expense reductions (%) | 1.14 | 1.18 | 1.22 | 1.22 | 1.25 |
| Ratio of expenses after expense reductions (%) | 1.09 | 1.12 | 1.15 | 1.22 | 1.21 |
| Ratio of net investment income (loss) (%) | (.43) | (.23) | (.08) | (.15) | .05 |
| Portfolio turnover rate (%) | 20 | 21 | 26 | 36 | 30 |
| a | Based on average shares outstanding during the period. |
| b | Total return does not reflect the effect of any sales charges. |
| c | Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the financial statements.
| 22 | | | DWS Large Cap Focus Growth Fund |
| DWS Large Cap Focus Growth Fund — Class C | |||||
| Years Ended July 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $51.67 | $42.00 | $39.84 | $36.29 | $33.54 |
| Income (loss) from investment operations: | |||||
| Net investment income (loss)a | (.66) | (.42) | (.32) | (.33) | (.23) |
| Net realized and unrealized gain (loss) | 15.64 | 13.05 | 5.00 | 5.48 | 5.68 |
| Total from investment operations | 14.98 | 12.63 | 4.68 | 5.15 | 5.45 |
| Less distributions from: | |||||
| Net realized gains | (3.00) | (2.96) | (2.52) | (1.60) | (2.70) |
| Net asset value, end of period | $63.65 | $51.67 | $42.00 | $39.84 | $36.29 |
| Total Return (%)b,c | 30.05 | 31.92 | 13.07 | 14.60 | 17.60 |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ millions) | 6 | 6 | 5 | 6 | 6 |
| Ratio of expenses before expense reductions (%) | 1.91 | 1.93 | 1.96 | 1.97 | 1.99 |
| Ratio of expenses after expense reductions (%) | 1.84 | 1.87 | 1.90 | 1.97 | 1.96 |
| Ratio of net investment income (loss) (%) | (1.16) | (.97) | (.82) | (.89) | (.70) |
| Portfolio turnover rate (%) | 20 | 21 | 26 | 36 | 30 |
| a | Based on average shares outstanding during the period. |
| b | Total return does not reflect the effect of any sales charges. |
| c | Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 23 |
| DWS Large Cap Focus Growth Fund — Class S | |||||
| Years Ended July 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $66.92 | $53.11 | $49.22 | $44.09 | $39.86 |
| Income (loss) from investment operations: | |||||
| Net investment income (loss)a | (.14) | .01 | .08 | .06 | .12 |
| Net realized and unrealized gain (loss) | 20.55 | 16.82 | 6.37 | 6.72 | 6.88 |
| Total from investment operations | 20.41 | 16.83 | 6.45 | 6.78 | 7.00 |
| Less distributions from: | |||||
| Net investment income | — | (.06) | (.04) | (.05) | (.07) |
| Net realized gains | (3.00) | (2.96) | (2.52) | (1.60) | (2.70) |
| Total distributions | (3.00) | (3.02) | (2.56) | (1.65) | (2.77) |
| Net asset value, end of period | $84.33 | $66.92 | $53.11 | $49.22 | $44.09 |
| Total Return (%) | 31.35 b | 33.23 b | 14.24 b | 15.75 | 18.77 b |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ millions) | 325 | 260 | 223 | 209 | 198 |
| Ratio of expenses before expense reductions (%) | .87 | .91 | .94 | .95 | .98 |
| Ratio of expenses after expense reductions (%) | .84 | .87 | .90 | .95 | .96 |
| Ratio of net investment income (loss) (%) | (.19) | .02 | .16 | .12 | .30 |
| Portfolio turnover rate (%) | 20 | 21 | 26 | 36 | 30 |
| a | Based on average shares outstanding during the period. |
| b | Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the financial statements.
| 24 | | | DWS Large Cap Focus Growth Fund |
| DWS Large Cap Focus Growth Fund — Institutional Class | |||||
| Years Ended July 31, | |||||
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Selected Per Share Data | |||||
| Net asset value, beginning of period | $67.92 | $53.83 | $49.88 | $44.65 | $40.34 |
| Income (loss) from investment operations: | |||||
| Net investment income (loss)a | (.17) | .01 | .03 | .06 | .12 |
| Net realized and unrealized gain (loss) | 20.89 | 17.10 | 6.49 | 6.82 | 6.96 |
| Total from investment operations | 20.72 | 17.11 | 6.52 | 6.88 | 7.08 |
| Less distributions from: | |||||
| Net investment income | — | (.06) | (.05) | (.05) | (.07) |
| Net realized gains | (3.00) | (2.96) | (2.52) | (1.60) | (2.70) |
| Total distributions | (3.00) | (3.02) | (2.57) | (1.65) | (2.77) |
| Net asset value, end of period | $85.64 | $67.92 | $53.83 | $49.88 | $44.65 |
| Total Return (%) | 31.36 b | 33.31 | 14.18 b | 15.78 | 18.76 b |
| Ratios to Average Net Assets and Supplemental Data | |||||
| Net assets, end of period ($ millions) | 26 | 13 | 2 | 10 | 8 |
| Ratio of expenses before expense reductions (%) | .89 | .86 | 1.01 | .94 | .98 |
| Ratio of expenses after expense reductions (%) | .84 | .86 | .90 | .94 | .96 |
| Ratio of net investment income (loss) (%) | (.23) | .01 | .06 | .13 | .30 |
| Portfolio turnover rate (%) | 20 | 21 | 26 | 36 | 30 |
| a | Based on average shares outstanding during the period. |
| b | Total return would have been lower had certain expenses not been reduced. |
The accompanying notes are an integral part of the financial statements.
| DWS Large Cap Focus Growth Fund | | | 25 |
Notes to Financial Statements
| A. | Organization and Significant Accounting Policies |
DWS Large Cap Focus Growth Fund (the “Fund” ) is a diversified series of Deutsche DWS Investment 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 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 financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” ) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
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.
| 26 | | | DWS Large Cap Focus Growth Fund |
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.
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1.
Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund’s valuation procedures, factors 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 the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.
Securities Lending. Deutsche Bank AG, as 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
| DWS Large Cap Focus Growth Fund | | | 27 |
and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best efforts to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. As of period end, any securities on loan were collateralized by cash. During the year ended July 31, 2021, the Fund invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.02% annualized effective rate as of July 31, 2021) 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 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 July 31, 2021, the Fund had securities on loan, which were classified as common stocks in the Investment Portfolio. The value of the related collateral exceeded the value of the securities loaned at period end. As of period end, the remaining contractual maturity of the collateral agreements was overnight and continuous.
Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
The Fund has reviewed the tax positions for the open tax years as of July 31, 2021 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.
Distribution of Income and Gains. Distributions from net investment income of the Fund, if any, are declared and distributed to shareholders
| 28 | | | DWS Large Cap Focus Growth Fund |
annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The Fund may also make additional distributions for tax purposes if necessary.
The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
At July 31, 2021, the Fund’s components of distributable earnings (accumulated losses) on a net tax basis were as follows:
| Undistributed ordinary income | $ 7,357,033 |
| Undistributed long-term capital gains | $ 20,432,995 |
| Net unrealized appreciation (depreciation) on investments | $ 245,297,912 |
At July 31, 2021, the aggregate cost of investments for federal income tax purposes was $183,176,965. The net unrealized appreciation for all investments based on tax cost was $245,297,912. This consisted of aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost of $246,508,478 and aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value of $1,210,566.
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
| Years Ended July 31, | ||
| 2021 | 2020 | |
| Distributions from ordinary income* | $ — | $ 1,400,324 |
| Distributions from long-term capital gains | $ 14,082,342 | $ 12,746,590 |
| * | For tax purposes, short-term capital gain distributions 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.
| DWS Large Cap Focus Growth Fund | | | 29 |
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.
Real Estate Investment Trusts. The Fund periodically recharacterizes distributions received from a Real Estate Investment Trust (“REIT” ) investment based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available timely from a REIT, the recharacterization will be estimated for financial reporting purposes and a recharacterization will be made in the following year when such information becomes available. Distributions received from REITs in excess of income are recorded as either a reduction of cost of investments or realized gains.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis. Proceeds from litigation payments, if any, are included in net realized gain (loss) from investments.
| B. | Purchases and Sales of Securities |
During the year ended July 31, 2021, purchases and sales of investment securities (excluding short-term investments) aggregated $69,590,130 and $80,184,243, respectively.
| C. | Related Parties |
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.
Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the average daily net
| 30 | | | DWS Large Cap Focus Growth Fund |
assets of the Fund, computed and accrued daily and payable monthly, at the following annual rates:
| First $1.5 billion of the Fund’s average daily net assets | .615% |
| Next $500 million of such net assets | .565% |
| Over $2.0 billion of such net assets | .515% |
Accordingly, for the year ended July 31, 2021, the fee pursuant to the Investment Management Agreement was equivalent to an annual rate (exclusive of any applicable waivers/reimbursements) of 0.615% of the Fund’s average daily net assets.
For the period from August 1, 2020 through September 30, 2020, 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 and interest expense) of each class as follows:
| Class A | 1.12% |
| Class C | 1.87% |
| Class S | .87% |
| Institutional Class | .87% |
Effective October 1, 2020 through November 30, 2021, 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 and interest expense) of each class as follows:
| Class A | 1.09% | |
| Class C | 1.84% | |
| Class S | .84% | |
| Institutional Class | .84% |
| DWS Large Cap Focus Growth Fund | | | 31 |
For the year ended July 31, 2021, fees waived and/or expenses reimbursed for each class are as follows:
| Class A | $ 19,491 |
| Class C | 4,156 |
| Class S | 83,996 |
| Institutional Class | 9,251 |
| $ 116,894 |
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 July 31, 2021, the Administration Fee was $342,264, of which $32,583 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 DST Systems, Inc. (“DST” ), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the year ended July 31, 2021, the amounts charged to the Fund by DSC were as follows:
| Services to Shareholders | Total Aggregated | Unpaid at July 31, 2021 |
| Class A | $ 12,574 | $ 2,048 |
| Class C | 914 | 129 |
| Class S | 136,583 | 22,416 |
| Institutional Class | 222 | 35 |
| $ 150,293 | $ 24,628 |
In addition, for the year ended July 31, 2021, the amounts charged to the Fund for recordkeeping and other administrative services provided by
| 32 | | | DWS Large Cap Focus Growth Fund |
unaffiliated third parties, included in the Statement of Operations under “Services to shareholders,” were as follows:
| Sub-Recordkeeping | Total Aggregated |
| Class A | $ 34,627 |
| Class C | 7,100 |
| Class S | 118,355 |
| Institutional Class | 19,434 |
| $ 179,516 |
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 July 31, 2021, the Distribution Fee was as follows:
| Distribution Fee | Total Aggregated | Unpaid at July 31, 2021 |
| Class C | $ 45,530 | $ 3,661 |
In addition, DDI provides information and administrative services for a fee (“Service Fee” ) to Class A and C shareholders at an annual rate of up to 0.25% of 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 July 31, 2021, the Service Fee was as follows:
| Service Fee | Total Aggregated | Unpaid at July 31, 2021 | Annual Rate |
| Class A | $ 96,421 | $ 17,728 | .24% |
| Class C | 14,913 | 2,207 | .25% |
| $ 111,334 | $ 19,935 |
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 July 31, 2021 aggregated $5,791.
In addition, DDI receives any contingent deferred sales charge (“CDSC” ) from Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is 1% of the value of the shares redeemed for Class C. For the year ended July 31, 2021, the CDSC for
| DWS Large Cap Focus Growth Fund | | | 33 |
Class C shares aggregated $243. A deferred sales charge of up to 1% is assessed on certain redemptions of 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 July 31, 2021, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” aggregated $2,250, of which $517 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.
Securities Lending Agent Fees. Deutsche Bank AG serves as securities lending agent for the Fund. For the year ended July 31, 2021, the Fund incurred securities lending agent fees to Deutsche Bank AG in the amount of $2,880.
| D. | Line of Credit |
The Fund and other affiliated funds (the “Participants” ) share in a $350 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 33 percent of its net assets under the agreement. The Fund had no outstanding loans at July 31, 2021.
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| E. | Fund Share Transactions |
The following table summarizes share and dollar activity in the Fund:
| Year Ended July 31, 2021 | Year Ended July 31, 2020 | |||
| Shares | Dollars | Shares | Dollars | |
| Shares sold | ||||
| Class A | 95,406 | $ 6,627,061 | 98,664 | $ 5,210,328 |
| Class C | 29,858 | 1,646,994 | 37,982 | 1,642,275 |
| Class S | 302,750 | 22,152,179 | 157,436 | 8,765,611 |
| Institutional Class | 153,516 | 11,397,711 | 210,779 | 11,899,793 |
| $ 41,823,945 | $ 27,518,007 | |||
| Shares issued to shareholders in reinvestment of distributions | ||||
| Class A | 24,494 | $ 1,646,726 | 31,206 | $ 1,567,468 |
| Class C | 6,505 | 350,387 | 8,343 | 341,906 |
| Class S | 153,094 | 10,857,405 | 214,704 | 11,325,618 |
| Institutional Class | 8,393 | 604,553 | 5,266 | 281,884 |
| $ 13,459,071 | $ 13,516,876 | |||
| Shares redeemed | ||||
| Class A | (138,155) | $ (9,680,002) | (128,079) | $ (6,649,730) |
| Class C | (53,987) | (3,032,633) | (56,265) | (2,500,416) |
| Class S | (476,741) | (34,893,377) | (689,328) | (38,148,939) |
| Institutional Class | (52,765) | (3,993,569) | (63,359) | (3,315,057) |
| $ (51,599,581) | $ (50,614,142) | |||
| Net increase (decrease) | ||||
| Class A | (18,255) | $ (1,406,215) | 1,791 | $ 128,066 |
| Class C | (17,624) | (1,035,252) | (9,940) | (516,235) |
| Class S | (20,897) | (1,883,793) | (317,188) | (18,057,710) |
| Institutional Class | 109,144 | 8,008,695 | 152,686 | 8,866,620 |
| $ 3,683,435 | $ (9,579,259) | |||
| F. | Other — COVID-19 Pandemic |
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19
| DWS Large Cap Focus Growth Fund | | | 35 |
pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Fund and its investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Fund and its service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Fund and reflect the consequences as appropriate in the Fund’s accounting and financial reporting.
| 36 | | | DWS Large Cap Focus Growth Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Deutsche DWS Investment Trust and Shareholders of DWS Large Cap Focus Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of DWS Large Cap Focus Growth Fund (the “Fund” ) (one of the funds constituting Deutsche DWS Investment Trust) (the “Trust” ), including the investment portfolio, as of July 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the 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 financial position of the Fund (one of the funds constituting Deutsche DWS Investment Trust) at July 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its 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 effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
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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 July 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. 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
September 24, 2021
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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 (February 1, 2021 to July 31, 2021).
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.
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Expenses and Value of a $1,000 Investment
for the six months ended July 31, 2021 (Unaudited)
| Actual Fund Return | Class A | Class C | Class S | Institutional Class |
| Beginning Account Value 2/1/21 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value 7/31/21 | $1,149.50 | $1,145.20 | $1,150.90 | $1,150.90 |
| Expenses Paid per $1,000* | $ 5.81 | $ 9.79 | $ 4.48 | $ 4.48 |
| Hypothetical 5% Fund Return | Class A | Class C | Class S | Institutional Class |
| Beginning Account Value 2/1/21 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value 7/31/21 | $1,019.39 | $1,015.67 | $1,020.63 | $1,020.63 |
| Expenses Paid per $1,000* | $ 5.46 | $ 9.20 | $ 4.21 | $ 4.21 |
| * | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365. |
| Annualized Expense Ratios | Class A | Class C | Class S | Institutional Class |
| DWS Large Cap Focus Growth Fund | 1.09% | 1.84% | .84% | .84% |
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) |
The Fund paid distributions of $3.00 per share from net long-term capital gains during its year ended July 31, 2021.
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates $22,661,000 as capital gain dividends for its year ended July 31, 2021.
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 a 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 2021, 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, 2019 through November 30, 2020 (the “Reporting Period” ). During the Reporting Period, your Fund was primarily 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.
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Advisory Agreement Board Considerations and Fee Evaluation
The Board of Trustees (hereinafter referred to as the “Board” or “Trustees” ) approved the renewal of DWS Large Cap Focus Growth Fund’s (the “Fund” ) investment management agreement (the “Agreement” ) with DWS Investment Management Americas, Inc. (“DIMA” ) in September 2020.
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, 2019, the Fund’s performance (Class A shares) was in the 1st quartile, 2nd quartile and 2nd quartile, respectively, of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). 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, 2019.
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
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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 0.10% 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, 2019). The Board noted that, effective March 1, 2020, the fee paid to DIMA under the Fund’s administrative services agreement was reduced to 0.097%. 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, 2019, 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” ) and considered differences between the Fund and the comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (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 does not manage any institutional accounts or DWS Europe Funds comparable to the Fund.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.
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 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
| 44 | | | DWS Large Cap Focus Growth Fund |
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.
The Board also considered that on September 24, 2020, the SEC granted a temporary order permitting DIMA and its affiliates to continue providing investment advisory and underwriting services to the DWS Funds notwithstanding a consent order entered into by Deutsche Bank AG on June 17, 2020 (the “Consent Order” ). The Board noted that the temporary order was granted effective as of the date of the Consent Order. The Board also noted various representations by DIMA to the Board relating to the Consent Order, including that the conduct giving rise to the Consent Order (unintentional conduct that resulted from a system outage
| DWS Large Cap Focus Growth Fund | | | 45 |
that prevented Deutsche Bank AG from reporting data in accordance with applicable CFTC requirements for five days in April 2016) did not involve any DWS Fund or services DIMA and its affiliates provide to the DWS Funds, that DIMA and its personnel had no involvement in the alleged conduct giving rise to the Consent Order, and that the DWS Funds would not bear any financial impact or costs relating to the Consent Order.
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 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.
| 46 | | | DWS Large Cap Focus Growth Fund |
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
| 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 |
| 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). Directorships: Progressive International Corporation (kitchen goods importer and distributor); 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) | 72 | — |
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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: Palm Beach Civic Assn.; 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 wellbeing 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 | 72 | — |
| Dawn-Marie Driscoll (1946)Board Member since 1987 | 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) | 72 | — |
| 48 | | | DWS Large Cap Focus Growth Fund |
| 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 (since July 1972); Director, The Wharton Financial Institutions Center (1994–2020); formerly: 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 since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; 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), and Nonexecutive Director of Barclays Bank DE (2010–2018) | 72 | Director, Aberdeen Japan Fund (since 2007) |
| William McClayton (1944)Board Member since 2004 | Private equity investor (since October 2009); formerly: Managing Director, Diamond Management & Technology Consultants, Inc. (global consulting firm) (2001–2009); Senior Partner, Arthur Andersen LLP (accounting) (1966–2001); Former Directorships: Board of Managers, YMCA of Metropolitan Chicago; Trustee, Ravinia Festival | 72 | — |
| Rebecca W. Rimel (1951)Board Member since 1995 | Senior Advisor, The Pew Charitable Trusts (charitable organization) (since July 2020); Director, The Bridgespan Group (nonprofit organization) (since October 2020); 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, The Pew Charitable Trusts (charitable organization) (1994–2020); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021) | 72 | Director, Becton Dickinson and Company2 (medical technology company) (2012–present) |
| 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) | 72 | — |
| DWS Large Cap Focus Growth Fund | | | 49 |
Officers3
| Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served4 | Business Experience and Directorships During the Past Five Years |
| Hepsen Uzcan5 (1974)President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and 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); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
| John Millette6 (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 Crawford7 (1984)Assistant Secretary, (2019–present) | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions. |
| Diane Kenneally6 (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 Antosca6 (1957)Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
| Sheila Cadogan6 (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. Hogan6 (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) |
| 50 | | | DWS Large Cap Focus Growth Fund |
| Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served4 | Business Experience and Directorships During the Past Five Years |
| Caroline Pearson6 (1962)Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC and DBX Strategic 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); and Secretary, Deutsche AM Service Company (2010–2017) |
| Michelle Goveia-Pine5 (1970)Interim Anti-Money Laundering Compliance Officer, since July 10, 2020 | Anti-Financial Crime & Compliance US (Regional Head), DWS; Interim AML Officer, DWS Trust Company (since July 28, 2020); Interim AML Officer, DBX ETF Trust (since July 9, 2020); Interim AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since July 24, 2020) |
| 1 | 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. |
| 2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
| 3 | 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. |
| 4 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
| 5 | Address: 875 Third Avenue, New York, NY 10022. |
| 6 | Address: 100 Summer Street, Boston, MA 02110. |
| 7 | Address: 5022 Gate Parkway, Suite 400, 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.
| DWS Large Cap Focus Growth Fund | | | 51 |
Account Management Resources
| For More Information | The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, C and S also have the ability to purchase, exchange or redeem shares using this system. |
| For more information, contact your financial representative. You may also access our automated telephone system or speak with a Shareholder Service representative by calling: (800) 728-3337 | |
| Web Site | dws.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. |
| Obtain prospectuses and applications, news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information. | |
| Written Correspondence | DWSPO Box 219151 Kansas City, MO 64121-9151 |
| Proxy Voting | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
| Portfolio Holdings | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is posted on dws.com, and is available free of charge by contacting your financial intermediary, or if you are a direct investor, by calling (800) 728-3337. In addition, the portfolio holdings listing is filed with SEC on the Fund’s Form N-PORT and will be available on the SEC’s Web site at sec.gov. Additional portfolio holdings for the Fund are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. |
| Principal Underwriter | If you have questions, comments or complaints, contact:DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 |
| 52 | | | DWS Large Cap Focus Growth Fund |
| Investment Management | DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), which is part of the DWS Group GmbH & Co. KGaA (“DWS Group” ), is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of DWS Group. |
| DWS Group is a global organization that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts and an office network that reaches the world’s major investment centers. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles. |
| Class A | Class C | Class S | Institutional Class | |
| Nasdaq Symbol | SGGAX | SGGCX | SCQGX | SGGIX |
| CUSIP Number | 25157M 695 | 25157M 737 | 25157M 745 | 25157M 752 |
| Fund Number | 469 | 769 | 2060 | 1469 |
| DWS Large Cap Focus Growth Fund | | | 53 |
| (b) Not applicable | |
| ITEM 2. | CODE OF ETHICS |
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. | |
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
| 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 Mr. William McClayton, 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. | |
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
DWS large cap focus growth 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 July 31, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
| 2021 | $53,933 | $0 | $7,880 | $0 |
| 2020 | $53,933 | $0 | $7,880 | $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 July 31, | 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 |
| 2021 | $0 | $92,492 | $0 |
| 2020 | $0 | $625,431 | $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 July 31, | 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) |
| 2021 | $7,880 | $92,492 | $0 | $100,372 |
| 2020 | $7,880 | $625,431 | $0 | $633,311 |
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.
***
In connection with the audit of the 2020 and 2021 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 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. |
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
| Not applicable | ||
| ITEM 6. | SCHEDULE OF INVESTMENTS | |
| Not applicable | ||
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
| Not applicable | ||
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
| Not applicable | ||
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
| Not applicable | ||
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
| There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
| ITEM 11. | CONTROLS AND PROCEDURES | |
| (a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
| (b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
| ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies | |
| Not applicable | ||
| ITEM 13. | EXHIBITS | |
| (a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
| (a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
| (b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Registrant: | DWS Large Cap Focus Growth Fund, a series of Deutsche DWS Investment Trust |
| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
| Date: | 9/29/2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/Hepsen Uzcan Hepsen Uzcan President |
| Date: | 9/29/2021 |
| By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
| Date: | 9/29/2021 |