UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-01236
Deutsche DWS Market 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: | 3/31 |
| | |
| Date of reporting period: | 9/30/2024 |
| Item 1. | Reports to Stockholders. |
| | |
| | (a) |
DWS RREEF Real Assets Fund
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $64 | 1.21% |
Gross expense ratio as of the latest prospectus: 1.28%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-A
R-102968-1 (11/24)
DWS RREEF Real Assets Fund
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $103 | 1.96% |
Gross expense ratio as of the latest prospectus: 2.01%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-C
R-102968-1 (11/24)
DWS RREEF Real Assets Fund
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R | $77 | 1.46% |
Gross expense ratio as of the latest prospectus: 1.66%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-R
R-102968-1 (11/24)
DWS RREEF Real Assets Fund
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $47 | 0.90% |
Gross expense ratio as of the latest prospectus: 0.91%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-R6
R-102968-1 (11/24)
DWS RREEF Real Assets Fund
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class S | $55 | 1.05% |
Gross expense ratio as of the latest prospectus: 1.12%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-S
R-102968-1 (11/24)
DWS RREEF Real Assets Fund
Institutional Class: AAAZX
Semi-Annual Shareholder Report—September 30, 2024
This semi-annual shareholder report contains important information about DWS RREEF Real Assets Fund (the "Fund") for the period April 1, 2024 to September 30, 2024. You can find additional information about the Fund on the Fund's website at dws.com/mutualreports. You can also request this information by contacting us at (800) 728-3337.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Institutional Class | $47 | 0.90% |
Gross expense ratio as of the latest prospectus: 1.00%. See prospectus for any contractual or voluntary waivers; without a waiver, costs would have been higher.
| Net Assets ($) | 4,426,891,863 |
| Number of Portfolio Holdings | 143 |
| Portfolio Turnover Rate (%) | 30 |
| Total Net Advisory Fees Paid ($) | 16,785,426 |
What did the Fund invest in?
| Asset Type | % of Net Assets |
|---|
| Common Stocks | |
| Infrastructure | 38% |
| Real Estate | 29% |
| Natural Resource Equities | 12% |
| Commodity Futures | 10% |
| Treasury Inflation Protected Securities | 10% |
Cash Equivalents, U.S. Treasury Notes, Short-Term U.S. Treasury Obligations and Other Assets and Liabilities, netFootnote Reference* | 1% |
| Total | 100% |
| Footnote | Description |
Footnote* | Net of notional exposure to futures contracts. |
| Sector | % of Net Assets |
| Real Estate | 35% |
| Utilities | 15% |
| Energy | 12% |
| Materials | 8% |
| Industrials | 7% |
| Communication Services | 2% |
| Consumer Staples | 0% |
Ten Largest Equity Holdings
| Holdings | 21.8% of Net Assets |
|---|
| American Tower Corp. (United States) | 4.2% |
| National Grid PLC (United Kingdom) | 2.7% |
| ONEOK, Inc. (United States) | 2.4% |
| Equinix, Inc. (United States) | 2.1% |
| SBA Communications Corp. (United States) | 2.0% |
| PG&E Corp. (United States) | 1.8% |
| NiSource, Inc. (United States) | 1.7% |
| Vinci SA (France) | 1.7% |
| Cellnex Telecom SA (Spain) | 1.6% |
| Sempra (United States) | 1.6% |
Geographical Diversification
| Country | % of Net Assets |
| United States | 63% |
| Canada | 7% |
| United Kingdom | 6% |
| Spain | 3% |
| France | 3% |
| Japan | 3% |
| Hong Kong | 1% |
| Australia | 1% |
| Switzerland | 1% |
| Sweden | 1% |
| Other | 8% |
Holdings-based data is subject to change.
If you wish to view additional information about the Fund, including, but not limited to, its prospectus, quarterly holdings, Board fee evaluation reports, and financial statements and other information, please visit dws.com/mutualreports. For information about the Fund's proxy voting policies and procedures and how the Fund voted proxies related to its portfolio securities, please visit dws.com/en-us/resources/proxy-voting. This additional information is also available free of charge by contacting us at (800) 728-3337.
In order to reduce the amount of mail you receive and to help reduce expenses, we generally send a single copy of any shareholder report and prospectus to each household. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact your financial representative or call DWS toll free at (800) 728-3337.
Stocks may decline in value. Investing in foreign securities presents certain risks, such as currency fluctuations, political and economic changes, and market risks. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Companies in the infrastructure, transportation, energy, and utility industries may be affected by a variety of factors, including, but not limited to, high interest costs, energy prices, high degrees of leverage, environmental and other government regulations, the level of government spending on infrastructure projects, intense competition and other factors. The Fund invests in commodity-linked derivatives which may subject the Fund to special risks. Market price movements or regulatory and economic changes will have a significant impact on the Fund’s performance. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Any fund that focuses in a particular segment of the market or region of the world will generally be more volatile than a fund that invests more broadly. The Fund may lend securities to approved institutions. Please read the prospectus for details.
This report must be preceded or accompanied by a prospectus. We advise you to consider the Fund's objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the Fund, which can be requested by calling (800) 728-3337, contacting your financial representative, or visit dws.com/mutualreports to view or download a prospectus. Please read the prospectus carefully before you invest.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
©2024 DWS Group GmbH&Co. KGaA. All rights reserved
DRAF-TSRS-I
R-102968-1 (11/24)
| | |
| | (b) Not applicable |
| | |
| Item 2. | Code of Ethics. |
| | |
| | Not applicable |
| | |
| Item 3. | Audit Committee Financial Expert. |
| | |
| | Not applicable |
| | |
| Item 4. | Principal Accountant Fees and Services. |
| | |
| | Not applicable |
| | |
| Item 5. | Audit Committee of Listed Registrants. |
| | |
| | Not applicable |
| | |
| Item 6. | Investments. |
| | |
| | Not applicable |
| | |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
| | |
| | (a) |
September 30, 2024
Semiannual Financial Statements and Other Information
DWS RREEF Real Assets Fund
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.
| | DWS RREEF Real Assets Fund |
ConsolidatedInvestment Portfolioas of September 30, 2024 (Unaudited)
| | |
| | | |
Communication Services 1.9% | |
Diversified Telecommunication Services | |
| | | |
China Tower Corp. Ltd. “H” 144A | | | |
| | | |
| |
| |
| | | |
Darling Ingredients, Inc.* | | | |
| | | |
| |
Oil, Gas & Consumable Fuels | |
Canadian Natural Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pembina Pipeline Corp. (b) | | | |
Petroleo Brasileiro SA (ADR) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Commercial Services & Supplies 1.7% | |
| | | |
| | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
| | |
Construction & Engineering 2.1% | |
| | | |
| | | |
| | | |
Ground Transportation 1.0% | |
| | | |
| | | |
| | | |
Transportation Infrastructure 1.7% | |
| | | |
Grupo Aeroportuario del Pacifico SAB de CV (ADR) (b) | | | |
Grupo Aeroportuario del Sureste SAB de CV (ADR) | | | |
Japan Airport Terminal Co., Ltd. | | | |
| | | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
Containers & Packaging 1.6% | |
Graphic Packaging Holding Co. | | | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
| | |
| | | |
| | | |
| | | |
Paper & Forest Products 0.3% | |
| | | |
| |
| |
| | | |
Essential Properties Realty Trust, Inc. | | | |
KDX Realty Investment Corp. | | | |
| | | |
| | | |
| |
American Healthcare REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Hotel & Resort REITs 0.5% | |
Ryman Hospitality Properties, Inc. | | | |
| |
Americold Realty Trust, Inc. | | | |
| | | |
EastGroup Properties, Inc. | | | |
| | | |
Industrial & Infrastructure Fund Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
Real Estate Management & Development 4.4% | |
| | | |
| | | |
| | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
| | |
Fastighets AB Balder “B” * | | | |
Mitsubishi Estate Co., Ltd. (b) | | | |
| | | |
PSP Swiss Property AG (Registered) | | | |
| | | |
| | | |
| |
American Homes 4 Rent “A” | | | |
AvalonBay Communities, Inc. | | | |
Boardwalk Real Estate Investment Trust | | | |
Equity LifeStyle Properties, Inc. | | | |
Essex Property Trust, Inc. | | | |
InterRent Real Estate Investment Trust | | | |
| | | |
| | | |
| |
| | | |
Brixmor Property Group, Inc. | | | |
CapitaLand Integrated Commercial Trust | | | |
First Capital Real Estate Investment Trust (b) | | | |
Japan Metropolitan Fund Invest | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Simon Property Group, Inc. | | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
| | |
| | | |
| | | |
Pinnacle West Capital Corp. | | | |
| | | |
Terna - Rete Elettrica Nazionale | | | |
| | | |
| |
| | | |
| | | |
China Resources Gas Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP (ADR) | | | |
| | | |
| | | |
Total Common Stocks (Cost $2,911,096,419) | | | |
| | |
Government & Agency Obligations 19.0% | |
U.S. Treasury Obligations | |
U.S. Treasury Inflation-Indexed Bonds: | | | |
| | | |
| | | |
U.S. Treasury Inflation-Indexed Notes: | | | |
| | | |
| | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Government & Agency Obligations (Cost $845,263,173) | |
| | |
Securities Lending Collateral 1.3% | |
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” , 4.82% (c) (d)
(Cost $59,437,613) | | | |
| |
DWS Central Cash Management Government Fund,
4.93% (c) (Cost $136,561,347) | | | |
| | | |
Total Consolidated Investment Portfolio (Cost $3,952,358,552) | | | |
Other Assets and Liabilities, Net(b) | | | |
| | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
A summary of the Fund’s transactions with affiliated investments during the period ended September 30, 2024 are as follows:
| | | Net
Real-
ized
Gain/
(Loss)
($) | Net
Change
in
Unreal-
ized
Appreci-
ation
(Depreci-
ation)
($) | | Capital
Gain
Distri-
butions
($) | Number of
Shares at
9/30/2024 | |
Securities Lending Collateral 1.3% |
DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares” ,
4.82% (c) (d) |
| | | | | | | | |
|
DWS Central Cash Management Government Fund, 4.93% (c) |
| | | | | | | | |
| | | | | | | | |
| Non-income producing security. |
| Non-income producing security; due to applicable sanctions, dividend income was not recorded. |
| Investment was valued using significant unobservable inputs. |
| All or a portion of these securities were on loan. In addition, “Other Assets and Liabilities, Net” include pending transactions of $4,937,672 that are also on loan. The value of securities loaned at September 30, 2024 amounted to $56,884,012, which is 1.3% of net assets. |
| Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
| Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the period ended September 30, 2024. |
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
ADR: American Depositary Receipt |
LME: London Metal Exchange |
PJSC: Public Joint Stock Company |
RBOB: Reformulated Blendstock for Oxygenate Blending |
REIT: Real Estate Investment Trust |
ULSD: Ultra-Low Sulfur Diesel |
WTI: West Texas Intermediate |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
At September 30, 2024, open futures contracts purchased were as follows:
| | | | | | Unrealized
Appreciation/
(Depreciation) ($) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
LME Primary Aluminium Futures | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
| | | | | | Unrealized Appreciation/ (Depreciation) ($) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | |
At September 30, 2024, open futures contracts sold were as follows:
| | | | | | Unrealized
Depreciation ($) |
| | | | | | |
For information on the Fund’s policy and additional disclosures regarding futures contracts, please refer to the Derivatives section of Note B in the accompanying Notes to Consolidated Financial Statements.
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets 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 September 30, 2024 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Consolidated Financial Statements.
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Government & Agency Obligations | | | | |
Short-Term Investments (a) | | | | |
| | | | |
| | | | |
| | | | |
| See Consolidated Investment Portfolio for additional detailed categorizations. |
| Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
Consolidated Statement of Assets and Liabilities
as of September 30, 2024 (Unaudited)
| |
Investments in non-affiliated securities, at value (cost $3,756,359,592) — including $51,946,340 of securities loaned | |
Investment in DWS Government & Agency Securities Portfolio | |
Investment in DWS Central Cash Management Government Fund (cost $136,561,347) | |
| |
Foreign currency, at value (cost $6,342,739) | |
Deposit with broker for futures contracts | |
Receivable for investments sold | |
Receivable for Fund shares sold | |
| |
| |
Affiliated securities lending income receivable | |
Foreign taxes recoverable | |
| |
| |
| |
Payable upon return of securities loaned | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
Payable for variation margin on futures contracts | |
| |
| |
Other accrued expenses and payables | |
| |
| |
| |
Distributable earnings (loss) | |
| |
| |
*
Represents collateral on securities loaned.
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
Consolidated Statement of Assets and Liabilitiesas of September 30, 2024 (Unaudited) (continued)
| |
| |
Net Asset Value and redemption price per share
($90,411,175 ÷ 7,163,544 outstanding shares of beneficial interest,
no par value, unlimited number of shares authorized) | |
Maximum offering price per share (100 ÷ 94.25 of $12.62) | |
| |
Net Asset Value, offering and redemption price
(subject to contingent deferred sales charge) per share
($14,446,062 ÷ 1,155,349 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($2,096,273 ÷ 165,254 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($181,721,650 ÷ 14,493,620 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($157,567,554 ÷ 12,582,245 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | |
| |
Net Asset Value, offering and redemption price per share
($3,980,649,149 ÷ 317,567,730 outstanding shares of beneficial interest, no par value, unlimited number of shares authorized) | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
Consolidated Statement of Operations
for the six months ended September 30, 2024 (Unaudited)
| |
| |
Dividends (net of foreign taxes withheld of $3,161,040) | |
Interest (net of foreign taxes withheld of $168,564) | |
Income distributions — DWS Central Cash Management Government Fund | |
Affiliated securities lending income | |
| |
| |
| |
| |
| |
Distribution and service fees | |
| |
| |
| |
| |
Trustees' fees and expenses | |
| |
Total expenses before expense reductions | |
| |
Total expenses after expense reductions | |
| |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
| |
| |
| |
| |
Change in net unrealized appreciation (depreciation) on: | |
| |
| |
| |
| |
| |
Net increase (decrease) in net assets resulting from operations | |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
Consolidated Statements of Changes in Net Assets
| Six Months
Ended
September 30, 2024 | |
Increase (Decrease) in Net Assets | | |
| | |
| | |
| | |
Change in net unrealized appreciation
(depreciation) | | |
Net increase (decrease) in net assets resulting from operations | | |
Distributions to shareholders: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Proceeds from shares sold | | |
Reinvestment of distributions | | |
Payments for shares redeemed | | |
Net increase (decrease) in net assets from Fund share transactions | | |
Increase (decrease) in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
Consolidated Financial Highlights
DWS RREEF Real Assets Fund — Class A |
| | |
| | | | | | |
|
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return does not reflect the effect of any sales charges. |
| Total return would have been lower had certain expenses not been reduced. |
| |
| |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
DWS RREEF Real Assets Fund — Class C |
| | |
| | | | | | |
|
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return does not reflect the effect of any sales charges. |
| Total return would have been lower had certain expenses not been reduced. |
| |
| |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
DWS RREEF Real Assets Fund — Class R |
| | |
| | | | | | |
| | | | | | |
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
| |
| |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
DWS RREEF Real Assets Fund — Class R6 |
| | |
| | | | | | |
|
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
| |
| |
The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
DWS RREEF Real Assets Fund — Class S |
| | |
| | | | | | |
|
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
| |
| |
The accompanying notes are an integral part of the consolidated financial statements.
DWS RREEF Real Assets Fund | | |
DWS RREEF Real Assets Fund — Institutional Class |
| | |
| | | | | | |
|
Net asset value, beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | | | | | | |
Ratio of expenses before expense reductions (%) | | | | | | |
Ratio of expenses after expense reductions (%) | | | | | | |
Ratio of net investment income (%) | | | | | | |
Portfolio turnover rate (%) | | | | | | |
| Based on average shares outstanding during the period. |
| Total return would have been lower had certain expenses not been reduced. |
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The accompanying notes are an integral part of the consolidated financial statements.
| | DWS RREEF Real Assets Fund |
Notes to Consolidated Financial Statements (Unaudited)
A.
Organization and Significant Accounting Policies
DWS RREEF Real Assets Fund (the “Fund” ) is a diversified series of Deutsche DWS Market 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 R shares are not subject to initial or contingent deferred sales charges and are generally available only to certain retirement plans. Class R6 shares are not subject to initial or contingent deferred sales charges and are generally available only to certain qualifying plans and programs. Class S shares are not subject to initial or contingent deferred sales charges and are available through certain intermediary relationships with financial services firms, or can be purchased by establishing an account directly with the Fund’s transfer agent. Institutional Class shares are not subject to initial or contingent deferred sales charges and are generally available only to qualified institutions.
Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.
The Fund’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” ) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards
DWS RREEF Real Assets Fund | | |
Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its consolidated financial statements.
Principles of Consolidation. The Fund invests indirectly in commodities markets through a wholly owned subsidiary, Cayman Real Assets Fund, Ltd., organized under the laws of the Cayman Islands (the “Subsidiary” ). The Fund and the Subsidiary are each a commodity pool and are subject to the requirements of the Commodity Exchange Act (“CEA” ), as amended, and the rules of the Commodity Futures Trading Commission (“CFTC” ) promulgated thereunder. DWS Investment Management Americas, Inc. (the “Advisor” ) acts as a commodity pool operator with respect to the operation of the Fund and the Subsidiary as commodity pools under and pursuant to the CEA. The Advisor, the Fund and the Subsidiary are subject to dual regulation by the CFTC and the Securities and Exchange Commission. Among other investments, the Subsidiary may invest in commodity-linked derivative instruments, including, but not limited to futures contracts, options and total return swaps. The Subsidiary may also invest in debt securities, some of which are intended to serve as margin or collateral for the Subsidiary’s derivatives positions. The Subsidiary may also invest available cash in affiliated money market funds. The Subsidiary is managed by the same portfolio managers that manage the Fund. As of September 30, 2024, the Fund’s investment in the Subsidiary was $453,002,387, representing 9.8% of the Fund’s total assets.
The Fund’s Investment Portfolio has been consolidated and includes the portfolio holdings of the Fund and the Subsidiary. The consolidated financial statements include the accounts of the Fund and the Subsidiary. All inter-company transactions and balances have been eliminated.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.
The Fund’s Board has designated DWS Investment Management Americas, Inc. (the “Advisor” ) as the valuation designee for the Fund pursuant to Rule 2a-5 under the 1940 Act. The Advisor’s Pricing Committee (the “Pricing Committee” ) typically values securities using readily available market quotations or prices supplied by independent pricing services (which are considered fair values under Rule 2a-5). The Advisor has adopted fair valuation procedures that provide methodologies for fair valuing securities.
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk).
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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 and exchange-traded funds (“ETFs” ) 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. Equity securities or ETFs 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 and ETFs are generally categorized as Level 1. For certain international equity securities, in order to adjust for events which may occur between the close of the foreign exchanges and the close of the New York Stock Exchange, a fair valuation model may be used. This fair valuation model takes into account comparisons to the valuation of American Depository Receipts (ADRs), exchange-traded funds, futures contracts and certain indices and these securities are categorized as Level 2.
Debt securities are valued at prices supplied by independent pricing services approved by the Pricing Committee. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, prepayment speeds and other data, as well as broker quotes. If the pricing services are unable to provide valuations, debt securities are valued at the average of the most recent reliable bid quotations or evaluated prices, as applicable, obtained from broker-dealers. These securities are generally categorized as Level 2.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
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 Pricing Committee and are generally categorized as Level 3. In accordance with the Fund’s valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the
DWS RREEF Real Assets Fund | | |
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 Consolidated Investment Portfolio.
Securities Lending. National Financial Services LLC (Fidelity Agency Lending), as securities lending agent, lends securities of the Fund to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the securities lending agent will use its best efforts to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the six months ended September 30, 2024, the Fund invested the cash collateral, if any, into a joint trading account in affiliated money market funds, including DWS Government & Agency Securities Portfolio, managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.13% annualized effective rate as of September 30, 2024) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a securities lending agent. Either the Fund or the borrower may terminate the loan at any time, and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Fund is not able to recover securities lent, the Fund may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Fund is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of September 30, 2024, the Fund had securities on loan, which were classified as common stocks in the Consolidated Investment Portfolio. The
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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.
Foreign Currency Translations. The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.
Additionally, the Fund may be subject to taxes imposed by the governments of countries in which it invests and are generally based on income and/or capital gains earned or repatriated. Estimated tax liabilities on certain foreign securities are recorded on an accrual basis and are reflected as components of interest income or net change in unrealized gain/loss on investments. Tax liabilities realized as a result of security sales are reflected as a component of net realized gain/loss on investments.
Income from certain commodity-linked derivatives does not constitute “qualifying income” to the Fund. Receipt of such income could cause the Fund to be subject to tax at the Fund level. The IRS has issued a private letter ruling to the Fund stating that such income earned through its wholly owned Subsidiary constitutes qualifying income. The Fund is required to increase its taxable income by its share of the Subsidiary’s income, including net gains from commodity-linked transactions. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income for future periods.
At March 31, 2024, the Fund had net tax basis capital loss carryforwards of $742,402,805, including short-term losses ($383,333,879) and long-term losses ($359,068,926), which may be applied against realized net taxable capital gains indefinitely.
DWS RREEF Real Assets Fund | | |
At September 30, 2024, the aggregate cost of investments for federal income tax purposes was $4,281,227,053. The net unrealized appreciation for all investments based on tax cost was $234,812,791. This consisted of aggregate gross unrealized appreciation for all investments for which there was an excess of value over tax cost of $1,006,333,758 and aggregate gross unrealized depreciation for all investments for which there was an excess of tax cost over value of $771,520,967.
The Fund files tax returns with the Internal Revenue Service, the State of New York, and various other states. Specific to U.S. federal and state taxes, generally, each of the tax years in the four-year period ended March 31, 2024, remains subject to examination by taxing authorities. Specific to foreign countries in which the Fund invests, all open tax years remain subject to examination by taxing authorities in the respective jurisdictions. The open tax years vary by each jurisdiction in which the Fund invests.
Distribution of Income and Gains. Distributions from net investment income of the Fund, if any, are declared and distributed to shareholders annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The 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, income received from passive foreign investment companies, the realized tax character on distributions from certain securities, income related to inflation protected securities and investment in the subsidiary. The Fund may utilize a portion of the proceeds from capital shares redeemed as a distribution from net investment income and realized capital gains. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The tax character of current year distributions will be determined at the end of the current fiscal year.
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 RREEF Real Assets Fund |
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 at its fiscal year end 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 to the accounting records 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. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Realized gains and losses from investment transactions are recorded on an identified cost basis. Proceeds from litigation payments, if any, are included in net realized gain (loss) from investments. All premiums and discounts are amortized/accreted for both tax and financial reporting purposes.
A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). For the six months ended September 30, 2024, the Fund entered into commodity futures contracts to gain exposure to the investment return of assets that trade in the commodity markets, without investing directly in physical commodities.
Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary cash or securities (“initial margin” ) in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments (“variation margin” ) are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Fund. Gains or losses are realized when the contract expires or is
DWS RREEF Real Assets Fund | | |
closed. Since all futures contracts are exchange-traded, counterparty risk is minimized as the exchange’s clearinghouse acts as the counterparty, and guarantees the futures against default.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Fund’s ability to close out a futures contract prior to the settlement date and the risk that the futures contract is not well correlated with the security, index or currency to which it relates. Risk of loss may exceed amounts recognized in the Consolidated Statement of Assets and Liabilities.
A summary of the open futures contracts as of September 30, 2024, is included in a table following the Fund’s Consolidated Investment Portfolio. For the six months ended September 30, 2024, the investment in futures contracts purchased had a total notional value generally indicative of a range from approximately $456,150,000 to $541,903,000, and the investment in futures contracts sold had a total notional value generally indicative of a range from approximately $3,700,000 to $82,778,000.
The following tables summarize the value of the Fund’s derivative instruments held as of September 30, 2024 and the related location in the accompanying Consolidated Statement of Assets and Liabilities, presented by primary underlying risk exposure:
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The above derivative is located in the following Consolidated Statement of Assets and Liabilities account: |
| Futures contracts are reported in the table above using cumulative appreciation of futures contracts, as reported in the futures contracts table following the Fund’s Consolidated Investment Portfolio; within the Consolidated Statement of Assets and Liabilities, the variation margin at period end is reported as Receivable (Payable) for variation margin on futures contracts. |
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The above derivative is located in the following Consolidated Statement of Assets and Liabilities account: |
| Futures contracts are reported in the table above using cumulative depreciation of futures contracts, as reported in the futures contracts table following the Fund’s Consolidated Investment Portfolio; within the Consolidated Statement of Assets and Liabilities, the variation margin at period end is reported as Receivable (Payable) for variation margin on futures contracts. |
Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in Fund earnings during the six months
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ended September 30, 2024 and the related location in the accompanying Consolidated Statement of Operations is summarized in the following tables by primary underlying risk exposure:
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The above derivative is located in the following Consolidated Statement of Operations account: |
| Net realized gain (loss) from futures contracts |
Change in Net Unrealized Appreciation (Depreciation) | |
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The above derivative is located in the following Consolidated Statement of Operations account: |
| Change in net unrealized appreciation (depreciation) on futures contracts |
C.
Purchases and Sales of Securities
During the six months ended September 30, 2024, purchases and sales of investment securities, excluding short-term investments, were as follows:
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Non-U.S. Treasury Obligations | | |
U.S. Treasury Obligations | | |
Management Agreement. Under the Investment Management Agreement with DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group” ), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund or delegates such responsibility to the Fund’s subadvisor.
RREEF America L.L.C. (“RREEF” ), also an indirect, wholly owned subsidiary of DWS Group, is the subadvisor for the Fund. While DIMA is the investment advisor to the Fund, the day-to-day activities of managing the Fund’s portfolio have been delegated to RREEF. DIMA compensates RREEF out of the management fee it receives from the Fund.
Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the average daily net
DWS RREEF Real Assets Fund | | |
assets of the Fund, computed and accrued daily and payable monthly, at the following annual rates:
First $500 million of the Fund’s average daily net assets | |
Next $1.5 billion of such net assets | |
Next $1.5 billion of such net assets | |
Next $3.0 billion of such net assets | |
Over $6.5 billion of such net assets | |
Accordingly, for the six months ended September 30, 2024, the fee pursuant to the Investment Management Agreement was equivalent to an annualized rate (exclusive of any applicable waivers/reimbursements) of 0.777% of the Fund’s average daily net assets.
For the period from April 1, 2024 to September 30, 2024 (through September 30, 2025 for Class R6 and Institutional class shares), the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest expense and acquired fund fees and expenses) of each class as follows:
Effective October 1, 2024 through September 30, 2025, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest expense and acquired fund fees and expenses) of certain classes as follows:
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For the six months ended September 30, 2024, fees waived and/or expenses reimbursed for each class are as follows:
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee” ) of 0.097% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the six months ended September 30, 2024, the Administration Fee was $2,105,243, of which $350,456 is unpaid.
Service Provider Fees. DWS Service Company (“DSC” ), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DSC and SS&C GIDS, Inc. (“SS&C” ), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to SS&C. DSC compensates SS&C out of the shareholder servicing fee it receives from the Fund. For the six months ended September 30, 2024, the amounts charged to the Fund by DSC were as follows:
| | Unpaid at
September 30, 2024 |
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In addition, for the six months ended September 30, 2024, the amounts charged to the Fund for recordkeeping and other administrative services provided by unaffiliated third parties, included in the Consolidated
DWS RREEF Real Assets Fund | | |
Statement of Operations under “Services to shareholders,” were as follows:
Distribution and Service Fees. Under the Fund’s Class C and R 12b-1 Plans, 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 and 0.25% of the average daily net assets of Class R 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 and R shares. For the six months ended September 30, 2024, the Distribution Fee was as follows:
| | Unpaid at
September 30, 2024 |
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In addition, DDI provides information and administrative services for a fee (“Service Fee” ) to Class A, C and R 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 six months ended September 30, 2024, the Service Fee was as follows:
| | Unpaid at
September 30, 2024 | |
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Underwriting Agreement and Contingent Deferred Sales Charge. DDI is the principal underwriter for the Fund. Underwriting commissions paid in
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connection with the distribution of Class A shares for the six months ended September 30, 2024 aggregated $440.
In addition, DDI receives any contingent deferred sales charge (“CDSC” ) from Class C share redemptions occurring within one year of purchase. There is no such charge upon redemption of any share appreciation or reinvested dividends. The CDSC is 1% of the value of the shares redeemed for Class C. For the six months ended September 30, 2024, the CDSC for Class C shares aggregated $8. A deferred sales charge of up to 0.75% is assessed on certain redemptions of Class A shares. For the six months ended September 30, 2024, DDI received $8,453 for Class A shares.
Other Service Fees. Under an agreement with the Fund, DIMA is compensated for providing regulatory filing services to the Fund. For the six months ended September 30, 2024, the amount charged to the Fund by DIMA included in the Consolidated Statement of Operations under “Reports to shareholders” aggregated $1,040, of which $845 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, an affiliated money market fund which is managed by the Advisor. DWS Central Cash Management Government 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 and seeks to maintain a stable net asset value. The Fund indirectly bears its proportionate share of the expenses of its investment in DWS Central Cash Management Government Fund. DWS Central Cash Management Government Fund does not pay the Advisor an investment management fee.
The Fund and other affiliated funds (the “Participants” ) share in a $345 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 20 percent of its net assets under the agreement. The Fund had no outstanding loans at September 30, 2024.
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F.
Fund Share Transactions
The following table summarizes share and dollar activity in the Fund:
| Six Months Ended
September 30, 2024 | |
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Shares issued to shareholders in reinvestment of distributions |
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| | DWS RREEF Real Assets Fund |
| Six Months Ended September 30, 2024 | |
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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 RREEF Real Assets Fund’s (the “Fund” ) investment management agreement (the “Agreement” ) with DWS Investment Management Americas, Inc. (“DIMA” ) and sub-advisory agreement (the “Sub-Advisory Agreement” and together with the Agreement, the “Agreements” ) between DIMA and RREEF America L.L.C. (“RREEF” ), an affiliate of DIMA, in September 2024.
In terms of the process that the Board followed prior to approving the Agreements, shareholders should know that:
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During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees” ).
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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, including materials containing information on the Fund’s performance, fees and expenses, profitability, economies of scale and fall-out benefits.
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The Board also received extensive information throughout the year regarding performance of the Fund.
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The Independent Trustees regularly met privately with counsel to discuss contract review and other matters.
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In connection with reviewing the Agreements, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement, and certain 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 has 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 and RREEF are 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. DWS Group is majority-owned by Deutsche Bank AG, with approximately 20% of its shares publicly traded.
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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 and RREEF’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.
Nature, Quality and Extent of Services. The Board considered the terms of the Agreements, including the scope of advisory services provided under the Agreements. The Board noted that, under the Agreements, DIMA and RREEF provide 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. Throughout the course of the year, the Board also received information regarding DIMA’s oversight of fund sub-advisors, including RREEF. 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, 2023, the Fund’s performance (Class A shares) was in the 4th quartile, 2nd quartile and 1st 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 underperformed its benchmark in the one-, three- and five-year periods ended December 31, 2023.
Fees and Expenses. The Board considered the Fund’s investment management fee schedule, sub-advisory fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge” ) regarding investment management fee rates paid to other investment advisors by
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similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.097% fee paid to DIMA under the Fund’s administrative services agreement, were higher than the median (4th quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2023). The Board noted that, effective October 1, 2021, in connection with the 2021 contract renewal process, DIMA agreed to implement a new management fee breakpoint and that, effective October 1, 2022, in connection with the 2022 contract renewal process, DIMA agreed to implement an additional management fee breakpoint. With respect to the sub-advisory fee paid to RREEF, the Board noted that the fee is paid by DIMA out of its fee and not directly by the Fund. 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, 2023, and analyzing Broadridge expense universe Class A (net) expenses less any applicable 12b-1 fees) (“Broadridge Universe Expenses” ). The Board also reviewed data comparing each other operational share class’s total (net) operating expenses to the applicable Broadridge Universe Expenses. The Board noted that the expense limitations agreed to by DIMA were expected to help the Fund’s total (net) operating expenses remain competitive. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable DWS U.S. registered funds (“DWS Funds” ), noting that DIMA indicated that it does not provide services to any other comparable DWS Funds. The information requested by the Board as part of its review of fees and expenses also included information about institutional accounts (including any sub-advised funds and accounts) and funds offered primarily to European investors (“DWS Europe Funds” ) managed by DWS Group. The Board noted that DIMA indicated that DWS Group manages an institutional account comparable to the Fund, but that DWS Group does not manage any comparable DWS Europe Funds. The Board took note of the differences in services provided to DWS Funds as compared to institutional accounts and that such differences made comparison difficult.
On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA and RREEF.
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
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and its affiliates with respect to all fund services in totality and by fund. The Board 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 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; (ii) the substantial commitment of resources by DIMA and its affiliates to compliance matters, including the retention of compliance personnel; and (iii) ongoing efforts to enhance the compliance program.
Based on all of the information considered and the conclusions reached, the Board determined that the continuation of the Agreements is in the best interests of the Fund. In making this determination, the Board did not
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give particular weight to any single factor identified above and individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreements. 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.
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| | (b) The Financial Highlights are included with the Financial Statements under Item 7(a). |
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| Item 8. | Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
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| | Not applicable |
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| Item 9. | Proxy Disclosures for Open-End Management Investment Companies. |
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| | Not applicable |
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| Item 10. | Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
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| | Not applicable |
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| Item 11. | Statement Regarding Basis for Approval of Investment Advisory Contract. |
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| | See Item 7(a) |
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| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
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| | Not applicable |
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| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
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| | Not applicable |
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| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
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| | Not applicable |
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| Item 15. | Submission of Matters to a Vote of Security Holders. |
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| | There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. |
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| Item 16. | Controls and Procedures. |
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| | (a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
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| | (b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
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| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
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| | Not applicable |
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| Item 18. | Recovery of Erroneously Awarded Compensation. |
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| | Not applicable |
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| Item 19. | Exhibits |
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| | (a)(1) | Not applicable |
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| | (a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
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| | (b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Registrant: | DWS RREEF Real Assets Fund, a series of Deutsche DWS Market Trust |
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| By: | /s/Hepsen Uzcan Hepsen Uzcan Principal Executive Officer |
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| Date: | 11/29/2024 |
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 Principal Executive Officer |
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| Date: | 11/29/2024 |
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| By: | /s/Diane Kenneally Diane Kenneally Principal Financial Officer |
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| Date: | 11/29/2024 |
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