N-CSRS 1 sr13118lcg.htm DEUTSCHE LARGE CAP FOCUS GROWTH FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

FORM N-CSRS

 

Investment Company Act file number: 811-00043

 

Deutsche Investment Trust

(Exact Name of Registrant as Specified in Charter)

 

345 Park Avenue

New York, NY 10154-0004

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s Telephone Number, including Area Code: (212) 250-3220

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and Address of Agent for Service)

 

Date of fiscal year end: 07/31
   
Date of reporting period: 1/31/2018

 

ITEM 1. REPORT TO STOCKHOLDERS
   

Table of Contents

LOGO

January 31, 2018

Semiannual Report

to Shareholders

Deutsche Large Cap Focus Growth Fund

 

LOGO

 

Table of Contents

Contents

 

 

 

This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the Fund’s objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the Fund. Please read the prospectus carefully before you invest.

The Fund may lend securities to approved institutions. Stocks may decline in value. See the prospectus for details.

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or Deutsche Investment Management Americas Inc. and RREEF America L.L.C. which offer advisory services.

NOT FDIC/NCUA INSURED    NO BANK GUARANTEE    MAY LOSE VALUE NOT A DEPOSIT    NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

 

2      Deutsche Large Cap Focus Growth Fund  

Table of Contents

Letter to Shareholders

Dear Shareholder:

You may have noticed a new logo appearing on the cover of this report. As of March 23, 2018, Deutsche Asset Management has adopted its existing European brand, DWS, globally. As we have consolidated several businesses over the last several years, each of which has grown up relatively independently, the time has now come to be united under a single brand that reflects our global identity and the full breadth of capabilities we offer to our clients.

The DWS brand — Deutsche Gesellschaft für Wertpapiersparen — draws on our roots in the German market, going back over 60 years. It was established in Hamburg in 1956 with a singular objective: to assist private investors in building wealth and managing risk. We have been fulfilling that promise for generations. Today, the DWS name is synonymous with the values that we have continuously lived up to, and those that will remain central to our future success: Excellence, Entrepreneurship, Sustainability and Integrity. It is therefore a name that we are proud to adopt and build upon as our brand here in the Americas.

In connection with this change, our web site has recently been redesigned with a new address: dws.com. However, for your convenience, the deutschefunds.com address will remain live and automatically redirect you to our new site. Please visit us online to find the most current insights from our CIO, economists and investment specialists.

As always, thank you for your ongoing trust in us. We look forward to bringing you the very best in investment insight, strategies and solutions as we march forward gathering our unique qualities and capabilities under one roof, DWS.

Best regards,

 

   

LOGO

 

Hepsen Uzcan

 

President, Deutsche Funds

Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.

 

  Deutsche Large Cap Focus Growth Fund        3  

Table of Contents
Performance Summary   January 31, 2018 (Unaudited)

 

Class A   6-Month‡     1-Year     5-Year     10-Year  
Average Annual Total Returns as of 1/31/18  
Unadjusted for Sales Charge     11.77%       27.13%       16.06%       9.70%  
Adjusted for the Maximum Sales Charge
(max 5.75% load)		     5.34%       19.82%       14.70%       9.05%  
Russell 1000® Growth Index†     19.15%       34.89%       17.95%       11.65%  
Average Annual Total Returns as of 12/31/17 (most recent calendar quarter end)  
Unadjusted for Sales Charge       24.80%       15.51%       8.24%  
Adjusted for the Maximum Sales Charge
(max 5.75% load)		       17.62%       14.15%       7.60%  
Russell 1000® Growth Index†       30.21%       17.33%       10.00%  
Class C   6-Month‡     1-Year     5-Year     10-Year  
Average Annual Total Returns as of 1/31/18  
Unadjusted for Sales Charge     11.35%       26.20%       15.20%       8.88%  
Adjusted for the Maximum Sales Charge
(max 1.00% CDSC)		     10.35%       26.20%       15.20%       8.88%  
Russell 1000® Growth Index†     19.15%       34.89%       17.95%       11.65%  
Average Annual Total Returns as of 12/31/17 (most recent calendar quarter end)  
Unadjusted for Sales Charge       23.88%       14.65%       7.43%  
Adjusted for the Maximum Sales Charge
(max 1.00% CDSC)		       23.88%       14.65%       7.43%  
Russell 1000® Growth Index†       30.21%       17.33%       10.00%  
Class S   6-Month‡     1-Year     5-Year     10-Year  
Average Annual Total Returns as of 1/31/18  
No Sales Charges     11.90%       27.45%       16.35%       9.95%  
Russell 1000® Growth Index     19.15%       34.89%       17.95%       11.65%  
Average Annual Total Returns as of 12/31/17 (most recent calendar quarter end)  
No Sales Charges       25.12%       15.80%       8.49%  
Russell 1000® Growth Index†       30.21%       17.33%       10.00%  

 

4      Deutsche Large Cap Focus Growth Fund  

Table of Contents
Institutional Class   6-Month‡     1-Year     5-Year     10-Year  
Average Annual Total Returns as of 1/31/18  
No Sales Charges     11.93%       27.46%       16.37%       10.06%  
Russell 1000® Growth Index†     19.15%       34.89%       17.95%       11.65%  
Average Annual Total Returns as of 12/31/17 (most recent calendar quarter end  
No Sales Charges       25.12%       15.82%       8.60%  
Russell 1000® Growth Index†       30.21%       17.33%       10.00%  

Performance in the Average Annual Total Returns table above and the Growth of an Assumed $10,000 Investment line graph that follows is historical and does not guarantee future results. Investment return and principal fluctuate, so your shares may be worth more or less when redeemed. Current performance may differ from performance data shown. Please visit dws.com for the Fund’s most recent month-end performance. Fund performance includes reinvestment of all distributions. Unadjusted returns do not reflect sales charges and would have been lower if they had.

The gross expense ratios of the Fund, as stated in the fee table of the prospectus dated December 1, 2017 are 1.25%, 1.99%, 0.98% and 0.98% for Class A, Class C, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report.

Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index.

Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemptions of fund shares.

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

 

  Deutsche Large Cap Focus Growth Fund        5  

Table of Contents
Growth of an Assumed $10,000 Investment
(Adjusted for Maximum Sales Charge)

 

LOGO

 

The Fund’s growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425.

The growth of $10,000 is cumulative.

Performance of other share classes will vary based on the sales charges and the fee structure of those classes.

 

†  The Russell 1000® Growth Index is an unmanaged index that consists of those stocks in the Russell 1000® Index that have higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Index is an unmanaged price-only index of the 1,000 largest capitalized companies that are domiciled in the U.S. and whose common stocks are traded.

 

‡  Total returns shown for periods less than one year are not annualized.

 

     Class A      Class C      Class S      Institutional
Class		  
Net Asset Value  
1/31/18    $ 45.68      $ 38.70      $ 47.58      $ 48.22  
7/31/17    $ 42.39      $ 36.29      $ 44.09      $ 44.65  
Distribution Information as of 1/31/18  
Income Dividends, Six Months    $ —      $ —      $ .05      $ .05  
Capital Gain Distributions, Six Months    $ 1.60      $ 1.60      $ 1.60      $ 1.60  

 

 

6      Deutsche Large Cap Focus Growth Fund  

Table of Contents

Portfolio Manager

Sebastian P. Werner, PhD, Director.

Portfolio Manager of the Fund. Began managing the Fund in 2016.

 

– Joined DWS in 2008; previously, he served as a Research Assistant for the Endowed Chair of Asset Management at the European Business School, Oestrich-Winkel while earning his PhD.

 

– Portfolio Manager for Global and US Growth Equities: New York.

 

– MBA in International Management from the Thunderbird School of Global Management; Masters Degree (“Diplom-Kaufmann”) and PhD in Finance (“Dr.rer.pol.”) from the European Business School, Oestrich-Winkel.

 

Portfolio Summary      (Unaudited)  
Asset Allocation (As a % of Investment Portfolio excluding
Securities Lending Collateral)		    1/31/18      7/31/17  
Common Stocks      99%        97%  
Cash Equivalents      1%        3%  
       100%        100%  
Sector Diversification (As a % of Investment Portfolio
excluding Cash Equivalents and Securities Lending Collateral)		    1/31/18      7/31/17  

Information Technology

      37%        32%  

Health Care

      20%        23%  

Consumer Discretionary

      12%        12%  

Industrials

      12%        10%  

Financials

      7%        7%  

Consumer Staples

      5%        7%  

Telecommunication Services

      3%        2%  

Real Estate

      2%        3%  

Materials

      1%        3%  

Energy

      1%        1%  
       100%        100%  

 

  Deutsche Large Cap Focus Growth Fund        7  

Table of Contents
Ten Largest Equity Holdings at January 31, 2018
(44.9% of Net Assets)
  1    

Apple, Inc.

  

6.8%

       

Designs, manufactures and markets personal computers and related computing and mobile communication devices

    
  2    

Alphabet, Inc.

  

6.1%

       

Holding company with subsidiaries that provide web-based search, maps, hardware products and various software applications

    
  3    

Microsoft Corp.

  

5.7%

       

Develops, manufactures, licenses, sells and supports software products

    
  4    

Visa, Inc.

  

5.4%

       

Operates a retail electronic payments network and manages global financial services

    
  5    

Home Depot, Inc.

  

4.2%

       

Home improvement retailer that sells building materials and home improvements products

    
  6    

Amazon.com, Inc.

  

3.8%

       

Online retailer offering a wide range of products

    
  7    

Becton, Dickinson & Co.

  

3.5%

       

Provider of medical supplies and devices

    
  8    

Progressive Corp.

  

3.2%

       

Provider of property and casualty insurance

    
  9    

Cigna Corp.

  

3.1%

       

Provider of health care services

    
  10    

Boeing Co.

  

3.1%

       

Manufacturer of jet aircrafts

    

Portfolio holdings and characteristics are subject to change.

For more complete details about the Fund’s investment portfolio, see page 9. A quarterly Fact Sheet is available on dws.com or upon request. Please see the Account Management Resources section on page 37 for contact information.

 

8      Deutsche Large Cap Focus Growth Fund  

Table of Contents
Investment Portfolio   as of January 31, 2018 (Unaudited)

 

    Shares     Value ($)  
Common Stocks 99.6%    
Consumer Discretionary 12.3%    

Internet & Direct Marketing Retail 5.3%

    

Amazon.com, Inc.*

     6,500       9,430,785  

The Priceline Group, Inc.*

     2,000       3,824,100  
   

 

 

  
      13,254,885  

Media 2.5%

    

Comcast Corp. “A”

     146,000       6,209,380  

Specialty Retail 4.5%

    

Floor & Decor Holdings, Inc. “A”*

     20,000       938,000  

Home Depot, Inc.

     52,000       10,446,800  
   

 

 

  
      11,384,800  
Consumer Staples 5.4%    

Food & Staples Retailing 1.8%

    

Costco Wholesale Corp.

     23,000       4,482,010  

Food Products 2.4%

    

Pinnacle Foods, Inc.

     95,000       5,884,300  

Personal Products 1.2%

    

Estee Lauder Companies, Inc. “A”

     23,000       3,104,080  
Energy 0.8%    

Oil, Gas & Consumable Fuels

    

Concho Resources, Inc.*

     13,000       2,046,720  
Financials 6.7%    

Capital Markets 2.9%

    

Intercontinental Exchange, Inc.

     99,465       7,344,496  

Consumer Finance 0.5%

    

PRA Group, Inc.*

     35,000       1,251,250  

Insurance 3.3%

    

Progressive Corp.

     150,000       8,115,000  
Health Care 20.0%    

Biotechnology 3.5%

    

Celgene Corp.*

     64,096       6,483,951  

Shire PLC (ADR)

     16,000       2,240,640  
   

 

 

  
      8,724,591  

Health Care Equipment & Supplies 6.5%

    

Becton, Dickinson & Co.

     36,500       8,867,310  

DexCom, Inc.* (a)

     17,000       989,400  

Edwards Lifesciences Corp.*

     22,000       2,784,760  

Hologic, Inc.*

     86,000       3,672,200  
   

 

 

  
      16,313,670  

 

The accompanying notes are an integral part of the financial statements.

 

  Deutsche Large Cap Focus Growth Fund        9  

Table of Contents
    Shares     Value ($)  

Health Care Providers & Services 3.9%

    

Cigna Corp.

     37,000       7,708,950  

PetIQ, Inc.* (a)

     84,000       2,016,000  
   

 

 

  
      9,724,950  

Health Care Technology 1.3%

    

Evolent Health, Inc. “A”* (a)

     225,000       3,172,500  

Life Sciences Tools & Services 2.8%

    

Thermo Fisher Scientific, Inc.

     32,000       7,171,520  

Pharmaceuticals 2.0%

    

Aclaris Therapeutics, Inc.*

     52,000       1,150,240  

Zoetis, Inc.

     50,000       3,836,500  
   

 

 

  
      4,986,740  
Industrials 12.0%    

Aerospace & Defense 3.0%

    

Boeing Co.

     21,500       7,618,955  

Electrical Equipment 2.1%

    

AMETEK, Inc.

     70,000       5,341,000  

Industrial Conglomerates 2.4%

    

Roper Technologies, Inc.

     21,500       6,032,685  

Machinery 1.6%

    

Parker-Hannifin Corp.

     20,000       4,028,400  

Professional Services 0.5%

    

WageWorks, Inc.*

     20,000       1,211,000  

Road & Rail 1.6%

    

Norfolk Southern Corp.

     26,000       3,922,880  

Trading Companies & Distributors 0.8%

    

MSC Industrial Direct Co., Inc. “A”

     20,000       1,877,600  
Information Technology 36.4%    

Communications Equipment 0.8%

    

Palo Alto Networks, Inc.*

     12,000       1,894,440  

Internet Software & Services 8.2%

    

Alphabet, Inc. “A”*

     13,000       15,368,860  

Facebook, Inc. “A”*

     27,000       5,046,030  
   

 

 

  
      20,414,890  

IT Services 9.4%

    

Fidelity National Information Services, Inc.

     67,000       6,858,120  

Switch, Inc. “A” (a)

     200,000       3,244,000  

Visa, Inc. “A”

     108,000       13,416,840  
   

 

 

  
      23,518,960  

Semiconductors & Semiconductor Equipment 3.4%

    

Broadcom Ltd.

     27,000       6,696,810  

QUALCOMM, Inc.

     28,000       1,911,000  
   

 

 

  
      8,607,810  

 

The accompanying notes are an integral part of the financial statements.

 

10      Deutsche Large Cap Focus Growth Fund  

Table of Contents
    Shares     Value ($)  

Software 7.8%

    

Activision Blizzard, Inc.

     70,000       5,189,100  

Microsoft Corp.

     151,000       14,346,510  
   

 

 

  
      19,535,610  

Technology Hardware, Storage & Peripherals 6.8%

    

Apple, Inc.

     102,000       17,077,860  
Materials 1.2%    

Construction Materials

    

Vulcan Materials Co.

     22,000       2,978,800  
Real Estate 2.1%    

Equity Real Estate Investment Trusts (REITs)

    

Digital Realty Trust, Inc.

     47,000       5,261,650  
Telecommunication Services 2.7%    

Wireless Telecommunication Services

    

T-Mobile U.S., Inc.*

     104,000       6,770,400  
Total Common Stocks (Cost $150,398,583)       249,263,832  
Securities Lending Collateral 3.6%    

Deutsche Government & Agency Securities Portfolio “Deutsche Government Cash Institutional Shares,”
1.25% (b) (c) (Cost $9,028,042)

     9,028,042       9,028,042  
Cash Equivalents 0.9%    

Deutsche Central Cash Management Government Fund,
1.34% (b) (Cost $2,289,796)

     2,289,796       2,289,796  
    % of Net
Assets		     Value ($)  
Total Investment Portfolio (Cost $161,716,421)     104.1       260,581,670  
Other Assets and Liabilities, Net     (4.1 )      (10,228,558 ) 

 

  
Net Assets     100.0       250,353,112  

 

The accompanying notes are an integral part of the financial statements.

 

  Deutsche Large Cap Focus Growth Fund        11  

Table of Contents

A summary of the Fund’s transactions with affiliated Underlying Deutsche Funds during the period ended January 31, 2018 are as follows:

 

Value ($)

at

7/31/2017

  

Purchases

Cost

($)

    

Sales

Proceeds

($)

    

Realized

Gain/

(Loss)

($)

    

Change in

Unrealized

Appreciation

(Depreciation)

($)

    

Income

($)

    

Capital

Gain
Distributions
($)

    

Number

of Shares

at

1/31/2018

    

Value ($)

at

1/31/2018

  
Securities Lending Collateral 3.6%              
Deutsche Government & Agency Securities Portfolio “Deutsche Government Cash Institutional Shares” 1.25% (b) (c)  
3,323,820     5,704,222       —       —       —       9,222       —       9,028,042       9,028,042  
Cash Equivalents 0.9%              
Deutsche Central Cash Management Government Fund, 1.34% (b)  
6,537,879     22,745,728       26,993,811       —       —       18,677       —       2,289,796       2,289,796  
9,861,699     28,449,950       26,993,811       —       —       27,899       —       11,317,838       11,317,838  

 

* Non-income producing security.

 

(a) All or a portion of these securities were on loan. In addition, “Other Assets and Liabilities, Net” may include pending sales that are also on loan. The value of securities loaned at January 31, 2018 amounted to $8,743,513, which is 3.5% of net assets.

 

(b) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.

 

(c) Represents collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. Represents the net increase (purchases cost) or decrease (sales proceeds) in the amount invested for the period ended January 31, 2018.

ADR: American Depositary Receipt

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 January 31, 2018 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to Financial Statements.

 

Assets   Level 1     Level 2     Level 3     Total  
Common Stocks (d)   $ 249,263,832     $ —     $ —     $ 249,263,832  
Short-Term Investments (d)     11,317,838       —       —       11,317,838  
Total   $ 260,581,670     $                 —     $                 —     $ 260,581,670  

There have been no transfers between fair value measurement levels during the period ended January 31, 2018.

 

(d) See Investment Portfolio for additional detailed categorizations.

 

The accompanying notes are an integral part of the financial statements.

 

12      Deutsche Large Cap Focus Growth Fund  

Table of Contents

Statement of Assets and Liabilities

 

as of January 31, 2018 (Unaudited)        
Assets  
Investments in non-affiliated securities, at value (cost $150,398,583) — including $8,743,513 of securities loaned   $ 249,263,832  
Investment in Deutsche Government & Agency Securities Portfolio
(cost $9,028,042)*		     9,028,042  
Investment in Deutsche Central Cash Management Government Fund (cost $2,289,796)     2,289,796  
Cash     10,000  
Receivable for investments sold     5,517,006  
Receivable for Fund shares sold     52,070  
Dividends receivable     6,300  
Interest receivable     4,824  
Other assets     34,924  
Total assets     266,206,794  
Liabilities  
Payable upon return of securities loaned     9,028,042  
Payable for investments purchased     5,838,515  
Payable for Fund shares redeemed     653,487  
Accrued management fee     129,209  
Accrued Trustees’ fees     3,914  
Other accrued expenses and payables     200,515  
Total liabilities     15,853,682  
Net assets, at value   $ 250,353,112  
Net Assets Consist of  
Distributions in excess of net investment income     (41,789 ) 
Net unrealized appreciation (depreciation) on investments     98,865,249  
Accumulated net realized gain (loss)     (338,551 ) 
Paid-in capital     151,868,203  
Net assets, at value   $ 250,353,112  

 

* Represents collateral on securities loaned.

 

The accompanying notes are an integral part of the financial statements.

 

  Deutsche Large Cap Focus Growth Fund        13  

Table of Contents
Statement of Assets and Liabilities as of January 31, 2018 (Unaudited) (continued)    

 

Net Asset Value        

Class A

 

Net Asset Value and redemption price per share

($26,001,868 ÷ 569,257 outstanding shares of beneficial interest

$.01 par value, unlimited number of shares authorized)

   $ 45.68  
Maximum offering price per share (100 ÷ 94.25 of $45.68)   $ 48.47  

Class C

 

Net Asset Value, offering and redemption price

(subject to contingent deferred sales charge) per share

($5,953,755 ÷ 153,829 outstanding shares of beneficial interest,

$.01 par value, unlimited number of shares authorized)

   $ 38.70  

Class S

 

Net Asset Value, offering and redemption price per share

($209,241,770 ÷ 4,397,479 outstanding shares of beneficial interest,

$.01 par value, unlimited number of shares authorized)

   $ 47.58  

Institutional Class

 

Net Asset Value, offering and redemption price per share

($9,155,719 ÷ 189,877 outstanding shares of beneficial interest,

$.01 par value, unlimited number of shares authorized)

   $ 48.22  

 

The accompanying notes are an integral part of the financial statements.

 

14      Deutsche Large Cap Focus Growth Fund  

Table of Contents

Statement of Operations

 

for the six months ended January 31, 2018 (Unaudited)        
Investment Income  
Income:  
Dividends   $ 1,160,767  
Income distributions — Deutsche Central Cash Management Government Fund     18,677  
Securities lending income, net of borrower rebates     9,222  
Total income     1,188,666  
Expenses:  
Management fee     737,684  
Administration fee     119,949  
Services to shareholders     189,398  
Distribution and service fees     60,021  
Custodian fee     2,392  
Professional fees     53,672  
Reports to shareholders     20,424  
Registration fees     29,072  
Trustees’ fees and expenses     6,624  
Other     7,912  
Total expenses before expense reductions     1,227,148  
Expense reductions     (1,592 ) 
Total expenses after expense reductions     1,225,556  
Net investment income (loss)     (36,890 ) 
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) from investments     (61,752 ) 
Change in net unrealized appreciation (depreciation) on investments     27,074,617  
Net gain (loss)     27,012,865  
Net increase (decrease) in net assets resulting from operations   $ 26,975,975  

 

The accompanying notes are an integral part of the financial statements.

 

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Statements of Changes in Net Assets

 

Increase (Decrease) in Net Assets   Six Months Ended
January 31, 2018
(Unaudited)		     Year Ended
July 31, 2017		  

Operations:

    

Net investment income (loss)

   $ (36,890 )    $ 538,008  

Net realized gain (loss)

     (61,752 )      9,704,132  

Change in net unrealized appreciation (depreciation)

     27,074,617       27,896,871  

Net increase (decrease) in net assets resulting from operations

     26,975,975       38,139,011  

Distributions to shareholders from:

    

Net investment income:

    

Class S

     (222,718 )      (299,676 ) 

Institutional Class

     (9,623 )      (13,102 ) 

Net realized gains:

    

Class A

     (899,411 )      (1,667,871 ) 

Class C

     (235,670 )      (459,057 ) 

Class S

     (6,880,658 )      (11,830,667 ) 

Institutional Class

     (293,335 )      (483,716 ) 

Total distributions

     (8,541,415 )      (14,754,089 ) 

Fund share transactions:

    

Proceeds from shares sold

     6,671,772       40,775,554  

Reinvestment of distributions

     8,180,279       14,124,248  

Payments for shares redeemed

     (20,301,856 )      (61,134,059 ) 

Net increase (decrease) in net assets from Fund share transactions

     (5,449,805 )      (6,234,257 ) 

Increase (decrease) in net assets

     12,984,755       17,150,665  

Net assets at beginning of period

     237,368,357       220,217,692  

Net assets at end of period (including distributions in excess of net investment income and undistributed net investment income of $41,789 and $227,442, respectively)

   $ 250,353,112     $ 237,368,357  

 

The accompanying notes are an integral part of the financial statements.

 

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Financial Highlights

 

    Six Months
Ended 1/31/18		     Years Ended July 31,  
Class A   (Unaudited)     2017     2016     2015     2014     2013  
Selected Per Share Data  

Net asset value, beginning of period

   $ 42.39     $ 38.46     $ 43.94     $ 42.26     $ 36.55     $ 31.36  

Income (loss) from investment operations:

            

Net investment income (loss)a

     (.05 )      .02       (.07 )      (.03 )      (.05 )      .41  

Net realized and unrealized gain (loss)

     4.94       6.61       .57       8.06       6.23       4.80  

Total from investment operations

     4.89       6.63       .50       8.03       6.18       5.21  

Less distributions from:

            

Net investment income

     —       —       —       —       (.47 )      (.02 ) 

Net realized gains

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      —       —  

Total distributions

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      (.47 )      (.02 ) 

Net asset value, end of period

   $ 45.68     $ 42.39     $ 38.46     $ 43.94     $ 42.26     $ 36.55  

Total Return (%)b,c

     11.77 **      18.45       1.77       21.12       17.01       16.61  
Ratios to Average Net Assets and Supplemental Data  

Net assets, end of period
($ millions)

     26       25       26       30       24       22  

Ratio of expenses before expense reductions (%)

     1.24 *      1.25       1.25       1.24       1.26       1.26  

Ratio of expenses after
expense reductions (%)

     1.23 *      1.21       1.17       1.16       1.22       1.21  

Ratio of net investment
income (loss) (%)

     (.24 )*      .05       (.17 )      (.08 )      (.12 )      1.23  

Portfolio turnover rate (%)

     17 **      30       55       84       84       67  

 

a  Based on average shares outstanding during the period.
b  Total return does not reflect the effect of any sales charges.
c  Total return would have been lower had certain expenses not been reduced.
*  Annualized
**  Not annualized

 

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    Six Months
Ended 1/31/18		     Years Ended July 31,  
Class C   (Unaudited)     2017     2016     2015     2014     2013  
Selected Per Share Data                                                

Net asset value, beginning of period

   $ 36.29     $ 33.54     $ 39.38     $ 38.76     $ 33.52     $ 28.96  

Income (loss) from investment operations:

            

Net investment income (loss)a

     (.18 )      (.23 )      (.31 )      (.32 )      (.32 )      .12  

Net realized and unrealized gain (loss)

     4.19       5.68       .45       7.29       5.72       4.44  

Total from investment operations

     4.01       5.45       .14       6.97       5.40       4.56  

Less distributions from:

            

Net investment income

     —       —       —       —       (.16 )      —  

Net realized gains

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      —       —  

Total distributions

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      (.16 )      —  

Net asset value, end of period

   $ 38.70     $ 36.29     $ 33.54     $ 39.38     $ 38.76     $ 33.52  

Total Return (%)b,c

     11.35 **      17.60       .98       20.21       16.18       15.75  
Ratios to Average Net Assets and Supplemental Data  

Net assets, end of period
($ millions)

     6       6       6       6       5       4  

Ratio of expenses before
expense reductions (%)

     1.99 *      1.99       1.97       1.99       1.99       1.99  

Ratio of expenses after
expense reductions (%)

     1.99 *      1.96       1.92       1.91       1.97       1.96  

Ratio of net investment
income (loss) (%)

     (1.00 )*      (.70 )      (.92 )      (.82 )      (.87 )      .40  

Portfolio turnover rate (%)

     17 **      30       55       84       84       67  

 

a  Based on average shares outstanding during the period.
b  Total return does not reflect the effect of any sales charges.
c  Total return would have been lower had certain expenses not been reduced.
*  Annualized
**  Not annualized

 

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    Six Months
Ended 1/31/18		     Years Ended July 31,  
Class S   (Unaudited)     2017     2016     2015     2014     2013  
Selected Per Share Data                                          

Net asset value, beginning of period

   $ 44.09     $ 39.86     $ 45.30     $ 43.28     $ 37.43     $ 32.11  

Income (loss) from investment operations:

            

Net investment income (loss)a

     .00 ***      .12       .03       .08       .05       .50  

Net realized and unrealized gain (loss)

     5.14       6.88       .58       8.29       6.39       4.91  

Total from investment operations

     5.14       7.00       .61       8.37       6.44       5.41  

Less distributions from:

            

Net investment income

     (.05 )      (.07 )      (.07 )      —       (.59 )      (.09 ) 

Net realized gains

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      —       —  

Total distributions

     (1.65 )      (2.77 )      (6.05 )      (6.35 )      (.59 )      (.09 ) 

Net asset value, end of period

   $ 47.58     $ 44.09     $ 39.86     $ 45.30     $ 43.28     $ 37.43  

Total Return (%)

     11.90 **      18.77 b      1.98 b      21.44 b      17.31 b      16.89 b 
Ratios to Average Net Assets and Supplemental Data  

Net assets, end of period
($ millions)

     209       198       180       189       175       170  

Ratio of expenses before
expense reductions (%)

     .97 *      .98       .98       .98       1.01       1.02  

Ratio of expenses after
expense reductions (%)

     .97 *      .96       .92       .91       .97       .96  

Ratio of net investment
income (loss) (%)

     .02 *      .30       .08       .19       .13       1.45  

Portfolio turnover rate (%)

     17 **      30       55       84       84       67  

 

a  Based on average shares outstanding during the period.
b  Total return would have been lower had certain expenses not been reduced.
*  Annualized
**  Not annualized
***  Amount is less than $.005.

 

  Deutsche Large Cap Focus Growth Fund        19  

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    Six Months
Ended 1/31/18		     Years Ended July 31,  
Institutional Class   (Unaudited)     2017     2016     2015     2014     2013  
Selected Per Share Data  

Net asset value, beginning of period

   $ 44.65     $ 40.34     $ 45.77     $ 43.67     $ 37.74     $ 32.40  

Income (loss) from investment operations:

            

Net investment incomea

     .01       .12       .04       .06       .07       .50  

Net realized and unrealized gain (loss)

     5.21       6.96       .58       8.39       6.46       4.96  

Total from investment operations

     5.22       7.08       .62       8.45       6.53       5.46  

Less distributions from:

            

Net investment income

     (.05 )      (.07 )      (.07 )      —       (.60 )      (.12 ) 

Net realized gains

     (1.60 )      (2.70 )      (5.98 )      (6.35 )      —       —  

Total distributions

     (1.65 )      (2.77 )      (6.05 )      (6.35 )      (.60 )      (.12 ) 

Net asset value, end of period

   $ 48.22     $ 44.65     $ 40.34     $ 45.77     $ 43.67     $ 37.74  

Total Return (%)

     11.93 **      18.76 b      1.99 b      21.43 b      17.41 b      16.90 b 
Ratios to Average Net Assets and Supplemental Data  

Net assets, end of period
($ millions)

     9       8       8       10       5       16  

Ratio of expenses before
expense reductions (%)

     .96 *      .98       1.00       .93       .96       .96  

Ratio of expenses after
expense reductions (%)

     .96 *      .96       .91       .91       .92       .95  

Ratio of net investment
income (loss) (%)

     .03 *      .30       .09       .14       .18       1.46  

Portfolio turnover rate (%)

     17 **      30       55       84       84       67  

 

a Based on average shares outstanding during the period.
b  Total return would have been lower had certain expenses not been reduced.
*  Annualized
**  Not annualized

 

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Notes to Financial Statements   (Unaudited)

A. Organization and Significant Accounting Policies

Deutsche Large Cap Focus Growth Fund (the “Fund”) is a diversified series of Deutsche Investment Trust (the “Trust”), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company organized as a Massachusetts business trust.

The Fund offers multiple classes of shares which provide investors with different purchase options. Class A shares are subject to an initial sales charge. Class C shares are not subject to an initial sales charge but are subject to higher ongoing expenses than Class A shares and a contingent deferred sales charge payable upon certain redemptions within one year of purchase. Class S shares are not subject to initial or contingent deferred sales charges and are only available to a limited group of investors. Institutional Class shares are not subject to initial or contingent deferred sales charges and are generally available only to qualified institutions.

Investment income, realized and unrealized gains and losses, and certain fund-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares except that each class bears certain expenses unique to that class such as distribution and service fees, services to shareholders and certain other class-specific expenses. Differences in class-level expenses may result in payment of different per share dividends by class. All shares of the Fund have equal rights with respect to voting subject to class-specific arrangements.

The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) which require the use of management estimates. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of U.S. GAAP. The policies described below are followed consistently by the Fund in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading.

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 are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1.

Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1.

Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund’s valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.

Disclosure about the classification of fair value measurements is included in a table following the Fund’s Investment Portfolio.

Securities Lending. Brown Brothers Harriman & Co., as lending agent, lends securities of the Fund to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the

 

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collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. As of period end, any securities on loan were collateralized by cash. During the six months ended January 31, 2018, the Fund invested the cash collateral into a joint trading account in affiliated money market funds, managed by Deutsche Investment Management Americas Inc. As of January 31, 2018, the Fund invested the cash collateral in Deutsche Government & Agency Securities Portfolio. Deutsche Investment Management Americas Inc. receives a management/administration fee (0.14% annualized effective rate as of January 31, 2018) on the cash collateral invested in Deutsche Government & Agency Securities Portfolio. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan at any time, and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Fund is not able to recover securities lent, the Fund may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Fund is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.

As of January 31, 2018, the Fund had securities on loan, which were classified as common stock in the Investment Portfolio. The value of the related collateral exceeded the value of the securities loaned at period end. As of period end, the remaining contractual maturity of the collateral agreements were overnight and continuous.

Federal Income Taxes. The Fund’s policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders.

At July 31, 2017, the aggregate cost of investments for federal income tax purposes was $169,120,831. The net unrealized appreciation for all investments based on tax cost was $71,529,930. This consisted of aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost of $75,612,272 and aggregate gross unrealized depreciation for all investments in which was an excess of tax cost over value of $4,082,342.

The Fund has reviewed the tax positions for the open tax years as of July 31, 2017 and has determined that no provision for income tax and/or

 

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uncertain tax provisions is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service.

Distribution of Income and Gains. Distributions from net investment income of the Fund, 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. 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.

Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.

Real Estate Investment Trusts. The Fund periodically recharacterizes distributions received from a Real Estate Investment Trust (“REIT”) investment based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available timely from a REIT, the recharacterization will be estimated for financial reporting purposes and a recharacterization will be made in the following year when such information becomes available. Distributions received from REITs in excess of income are recorded as either a reduction of cost of investments or realized gains.

 

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Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis. Proceeds from litigation payments, if any, are included in net realized gain (loss) from investments.

B. Purchases and Sales of Securities

During the six months ended January 31, 2018, purchases and sales of investment securities (excluding short-term investments) aggregated $40,606,400 and $49,142,041, respectively.

C. Related Parties

Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. (“DIMA” or the “Advisor”), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund.

Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund’s average daily net assets computed and accrued daily and payable monthly, at the following annual rates:

 

First $1.5 billion of the Fund’s average daily net assets      .615%  
Next $500 million of such net assets      .565%  
Over $2.0 billion of such net assets      .515%  

Accordingly, for the six months ended January 31, 2018, the fee pursuant to the Investment Management Agreement was equivalent to an annualized rate (exclusive of any applicable waivers/reimbursements) of 0.615% of the Fund’s average daily net assets.

For the period from August 1, 2017 through November 30, 2017, the Advisor had contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of each class as follows:

 

Class A      1.23%  
Class C      1.98%  
Class S      .98%  
Institutional Class      .98%  

 

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Effective December 1, 2017 through September 30, 2018, the Advisor has contractually agreed to waive its fees and/or reimburse certain operating expenses of the Fund to the extent necessary to maintain the total annual operating expenses (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) of each class as follows:

 

Class A      1.27%  
Class C      2.02%  
Class S      1.02%  
Institutional Class      1.02%  

For the six months ended January 31, 2018, fees waived and/or expenses reimbursed for each class are as follows:

 

Class A      $1,361  
Class C      231  
       $1,592  

Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays the Advisor an annual fee (“Administration Fee”) of 0.10% of the Fund’s average daily net assets, computed and accrued daily and payable monthly. For the six months ended January 31, 2018, the Administration Fee was $119,949, of which $21,010 is unpaid.

Service Provider Fees. DWS Service Company (“DSC”), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DSC and DST Systems, Inc. (“DST”), DSC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DSC compensates DST out of the shareholder servicing fee it receives from the Fund. For the six months ended January 31, 2018, the amounts charged to the Fund by DSC were as follows:

 

Services to Shareholders   Total
Aggregated		     Unpaid at
January 31, 2018		  
Class A   $ 7,360     $ 4,259  
Class C     920       368  
Class S     92,368       51,293  
Institutional Class     4,784       6,079  
    $ 105,432     $ 61,999  

 

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Distribution and Service Fees. Under the Fund’s Class C 12b-1 Plan, DWS Distributors, Inc. (“DDI”), an affiliate of the Advisor, receives a fee (“Distribution Fee”) of 0.75% of average daily net assets of Class C shares. In accordance with the Fund’s Underwriting and Distribution Services Agreement, DDI enters into related selling group agreements with various firms at various rates for sales of Class C shares. For the six months ended January 31, 2018, the Distribution Fee was as follows:

 

Distribution Fee   Total
Aggregated		     Unpaid at
January 31, 2018		  
Class C   $ 22,263     $ 3,723  

In addition, DDI provides information and administrative services for a fee (“Service Fee”) to Class A and C shareholders at an annual rate of up to 0.25% of average daily net assets for each such class. DDI in turn has various agreements with financial services firms that provide these services and pays these fees based upon the assets of shareholder accounts the firms service. For the six months ended January 31, 2018, the Service Fee was as follows:

 

Service Fee   Total
Aggregated		     Unpaid at
January 31, 2018		     Annualized
Rate		  
Class A   $ 30,357     $ 10,883       .24 % 
Class C     7,401       2,377       .25 % 
    $ 37,758     $ 13,260          

Underwriting Agreement and Contingent Deferred Sales Charge. DDI is the principal underwriter for the Fund. Underwriting commissions paid in connection with the distribution of Class A shares for the six months ended January 31, 2018 aggregated $796.

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 January 31, 2018, the CDSC for Class C shares aggregated $102. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares.

Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing certain pre-press and regulatory filing services to the Fund. For the six months ended January 31, 2018, the amount charged to the Fund by DIMA included in the Statement of Operations under “Reports to shareholders” aggregated $8,832, all of which is unpaid.

 

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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 Vice Chairperson and to each committee Chairperson.

Affiliated Cash Management Vehicles. The Fund may invest uninvested cash balances in Deutsche Central Cash Management Government Fund and Deutsche Variable NAV Money Fund, affiliated money market funds which are managed by the Advisor. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. Deutsche Central Cash Management Government Fund seeks to maintain a stable net asset value, and Deutsche Variable NAV Money Fund maintains a floating net asset value. The Fund indirectly bears its proportionate share of the expenses of each affiliated money market fund in which it invests. Deutsche Central Cash Management Government Fund does not pay the Advisor an investment management fee. To the extent that Deutsche Variable NAV Money Fund pays an investment management fee to the Advisor, the Advisor will waive an amount of the investment management fee payable to the Advisor by the Fund equal to the amount of the investment management fee payable on the Fund’s assets invested in Deutsche Variable NAV Money Fund.

D. Line of Credit

The Fund and other affiliated funds (the “Participants”) share in a $400 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 rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if the one-month LIBOR exceeds the Federal Funds Rate, the amount of such excess. The Fund may borrow up to a maximum of 33 percent of its net assets under the agreement. The Fund had no outstanding loans at January 31, 2018.

 

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E. Fund Share Transactions

The following table summarizes share and dollar activity in the Fund:

 

     Six Months Ended
January 31, 2018		      Year Ended
July 31, 2017		  
             Shares     Dollars                     Shares     Dollars         

Shares sold

                                                                   

Class A

              30,809     $ 1,351,250                         152,014     $ 5,908,912          

Class C

              11,433       423,079                         45,862       1,500,625          

Class S

              93,574       4,234,593                         653,392       26,481,667          

Institutional Class

              14,546       662,850                         167,899       6,884,350          
                     $ 6,671,772                               $ 40,775,554          
Shares issued to shareholders in reinvestment of distributions  

Class A

              19,891     $ 857,104                         44,455     $ 1,607,954          

Class C

              5,956       217,694                         11,077       344,593          

Class S

              151,571       6,802,523                         310,833       11,674,883          

Institutional Class

              6,663       302,958                         13,060       496,818          
                     $ 8,180,279                               $ 14,124,248          
Shares redeemed  

Class A

              (65,963 )    $ (2,869,859 )                          (277,312 )    $ (10,669,841 )         

Class C

              (27,947 )      (1,035,206 )                        (70,186 )      (2,367,797 )         

Class S

              (345,353 )      (15,570,389 )                        (992,509 )      (39,980,916 )         

Institutional Class

              (18,121 )      (826,402 )                        (199,178 )      (8,115,505 )         
                     $ (20,301,856 )                              $   (61,134,059 )         
Net increase (decrease)  

Class A

              (15,263 )    $ (661,505 )                        (80,843 )    $ (3,152,975 )         

Class C

              (10,558 )      (394,433 )                        (13,247 )      (522,579 )         

Class S

              (100,208 )      (4,533,273 )                        (28,284 )      (1,824,366 )         

Institutional Class

              3,088       139,406                         (18,219 )      (734,337 )         
                     $ (5,449,805 )                              $ (6,234,257 )         

 

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Information About Your Fund’s Expenses

As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads) and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, Class A and Class C shares limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (August 1, 2017 to January 31, 2018).

The tables illustrate your Fund’s expenses in two ways:

 

– Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund’s actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Expenses Paid per $1,000” line under the share class you hold.

 

– Hypothetical 5% Fund Return. This helps you to compare your Fund’s ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund’s actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The “Expenses Paid per $1,000” line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. Subject to certain exceptions, an account maintenance fee of $20.00 assessed once per calendar year for Classes A, C and S shares may apply for accounts with balances less than $10,000. This fee is not included in these tables. If it was, the estimate of expenses paid for Classes A, C and S shares during the period would be higher, and account value during the period would be lower, by this amount.

 

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Expenses and Value of a $1,000 Investment

for the six months ended January 31, 2018 (Unaudited)

  
Actual Fund Return   Class A     Class C     Class S      Institutional
Class		  
Beginning Account Value 8/1/17   $ 1,000.00     $ 1,000.00     $ 1,000.00      $ 1,000.00  
Ending Account Value 1/31/18   $ 1,117.70     $ 1,113.50     $ 1,119.00      $ 1,119.30  
Expenses Paid per $1,000*   $ 6.57     $ 10.60     $ 5.18      $ 5.13  
Hypothetical 5% Fund Return   Class A     Class C     Class S      Institutional
Class		  
Beginning Account Value 8/1/17   $ 1,000.00     $ 1,000.00     $ 1,000.00      $ 1,000.00  
Ending Account Value 1/31/18   $ 1,019.00     $ 1,015.17     $ 1,020.32      $ 1,020.37  
Expenses Paid per $1,000*   $ 6.26     $ 10.11     $ 4.94      $ 4.89  

 

* Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 184 (the number of days in the most recent six-month period), then divided by 365.

 

Annualized Expense Ratios   Class A     Class C     Class S     Institutional
Class		  
Deutsche Large Cap Focus Growth Fund     1.23 %      1.99 %      .97 %      .96 % 

For more information, please refer to the Fund’s prospectuses.

For an analysis of the fees associated with an investment in the Fund or similar funds, please refer to http://apps.finra.org/fundanalyzer/1/fa.aspx.

 

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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 Deutsche Large Cap Focus Growth Fund’s (the “Fund”) investment management agreement (the “Agreement”) with Deutsche Investment Management Americas Inc. (“DIMA”) in September 2017.

In terms of the process that the Board followed prior to approving the Agreement, shareholders should know that:

 

– During the entire process, all of the Fund’s Trustees were independent of DIMA and its affiliates (the “Independent Trustees”).

 

– The Board met frequently during the past year to discuss fund matters and dedicated a substantial amount of time to contract review matters. Over the course of several months, the Board’s Contract Committee reviewed extensive materials received from DIMA, independent third parties and independent counsel. These materials included an analysis of the Fund’s performance, fees and expenses, and profitability from a fee consultant retained by the Fund’s Independent Trustees (the “Fee Consultant”). Based on its evaluation of the information provided, the Contract Committee presented its findings and recommendations to the Board. The Board then reviewed the Contract Committee’s findings and recommendations.

 

– The Board also received extensive information throughout the year regarding performance of the Fund.

 

– The Independent Trustees regularly met privately with counsel to discuss contract review and other matters. In addition, the Independent Trustees were advised by the Fee Consultant in the course of their review of the Fund’s contractual arrangements and considered a comprehensive report prepared by the Fee Consultant in connection with their deliberations.

 

– In connection with reviewing the Agreement, the Board also reviewed the terms of the Fund’s Rule 12b-1 plan, distribution agreement, administrative services agreement, transfer agency agreement and other material service agreements.

In connection with the contract review process, the Contract Committee and the Board considered the factors discussed below, among others. The Board also considered that DIMA and its predecessors have managed the Fund since its inception, and the Board believes that a long-term relationship with a capable, conscientious advisor is in the best interests

 

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of the Fund. The Board considered, generally, that shareholders chose to invest or remain invested in the Fund knowing that DIMA managed the Fund, and that the Agreement was approved by the Fund’s shareholders. DIMA is part of Deutsche Bank AG’s (“Deutsche Bank”) Asset Management (“Deutsche AM”) division. Deutsche AM 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.

As part of the contract review process, the Board carefully considered the fees and expenses of each Deutsche fund overseen by the Board in light of the fund’s performance. In many cases, this led to the negotiation and implementation of expense caps. As part of these negotiations, the Board indicated that it would consider relaxing these caps in future years following sustained improvements in performance, among other considerations.

While shareholders may focus primarily on fund performance and fees, the Fund’s Board considers these and many other factors, including the quality and integrity of DIMA’s personnel and administrative support services provided by DIMA, such as back-office operations, fund valuations, and compliance policies and procedures.

Nature, Quality and Extent of Services. The Board considered the terms of the Agreement, including the scope of advisory services provided under the Agreement. The Board noted that, under the Agreement, DIMA provides portfolio management services to the Fund and that, pursuant to a separate administrative services agreement, DIMA provides administrative services to the Fund. The Board considered the experience and skills of senior management and investment personnel and the resources made available to such personnel. The Board 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, 2016, the Fund’s performance (Class A shares) was in the 2nd quartile, 1st quartile and 2nd quartile, respectively, of the applicable Morningstar universe (the 1st quartile being the best performers and the 4th quartile being the worst performers). The

 

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Board also observed that the Fund has underperformed its benchmark in the one-, three- and five-year periods ended December 31, 2016.

Fees and Expenses. The Board considered the Fund’s investment management fee schedule, operating expenses and total expense ratios, and comparative information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and the Fee Consultant regarding investment management fee rates paid to other investment advisors by similar funds (1st quartile being the most favorable and 4th quartile being the least favorable). With respect to management fees paid to other investment advisors by similar funds, the Board noted that the contractual fee rates paid by the Fund, which include a 0.10% fee paid to DIMA under the Fund’s administrative services agreement, were lower than the median (1st quartile) of the applicable Broadridge peer group (based on Broadridge data provided as of December 31, 2016). 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, 2016, and analyzing Broadridge expense universe Class A (net) expenses less any applicable 12b-1 fees) (“Broadridge Universe Expenses”). The Board also reviewed data comparing other share classes’ total (net) operating expenses to the applicable Broadridge Universe Expenses. The Board noted that the expense limitations agreed to by DIMA were expected to help the Fund’s total (net) operating expenses remain competitive. The Board considered the Fund’s management fee rate as compared to fees charged by DIMA to comparable Deutsche U.S. registered funds (“Deutsche Funds”) and considered differences between the Fund and the comparable Deutsche 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 (“Deutsche Europe funds”) managed by Deutsche AM. The Board noted that DIMA indicated that Deutsche AM does not manage any institutional accounts or Deutsche Europe funds comparable to the Fund.

On the basis of the information provided, the Board concluded that management fees were reasonable and appropriate in light of the nature, quality and extent of services provided by DIMA.

Profitability. The Board reviewed detailed information regarding revenues received by DIMA under the Agreement. The Board considered the estimated costs to DIMA, and pre-tax profits realized by DIMA, from advising the Deutsche 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 and the Fee Consultant reviewed DIMA’s methodology in allocating its costs to the management of the Fund. Based on the information provided, the Board concluded that the pre-tax profits realized by DIMA in connection with the management of the Fund were not unreasonable. The Board also reviewed certain publicly available 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 Deutsche 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 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 Deutsche 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 documenting and enhancing 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 large number of DIMA compliance personnel; and (iii) the substantial commitment of resources by DIMA and its affiliates to compliance matters.

 

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Based on all of the information considered and the conclusions reached, the Board unanimously determined that the continuation of the Agreement is in the best interests of the Fund. In making this determination, the Board did not give particular weight to any single factor identified above. The Board considered these factors over the course of numerous meetings, certain of which were in executive session with only the Independent Trustees and counsel present. It is possible that individual Independent Trustees may have weighed these factors differently in reaching their individual decisions to approve the continuation of the Agreement.

 

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Account Management Resources

 

For More Information   

The automated telephone system allows you to access personalized account information and obtain information on other Deutsche funds using either your voice or your telephone keypad. Certain account types within Classes A, C and S also have the ability to purchase, exchange or redeem shares using this system.

 

For more information, contact your financial advisor. You may also access our automated telephone system or speak with a Shareholder Service representative by calling:

 

(800) 728-3337

Web Site   

dws.com

 

View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day.

 

Obtain prospectuses and applications, news about Deutsche funds, insight from DWS economists and investment specialists and access to Deutsche fund account information.

Written Correspondence   

DWS

 

PO Box 219151

Kansas City, MO 64121-9151

Proxy Voting    The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies
related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site —
dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at
(800) 728-3337.
Portfolio Holdings    Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. This form will be available on the SEC’s Web site at sec.gov, and it also may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s portfolio holdings are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information.
Principal Underwriter   

If you have questions, comments or complaints, contact:

 

DWS Distributors, Inc.

 

222 South Riverside Plaza

Chicago, IL 60606-5808

(800) 621-1148

 

  Deutsche Large Cap Focus Growth Fund        37  

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Investment Management   

Deutsche Investment Management Americas Inc. (“DIMA” or the “Advisor”), which is part of DWS, is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients.

 

DIMA is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution engaged in a wide variety of financial services, including investment management, retail, private and commercial banking, investment banking and insurance.

      Class A    Class C    Class S    Institutional
Class
Nasdaq Symbol    SGGAX    SGGCX    SCQGX    SGGIX
CUSIP Number    25157M 695    25157M 737    25157M 745    25157M 752
Fund Number    469    769    2060    1469

 

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Privacy Statement

 

FACTS   What Does DWS Do With Your Personal Information?
Why?   Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share and protect your personal information. Please read this notice carefully to understand what we do.
What?  

The types of personal information we collect and share can include:

 

– Social Security number

 

– Account balances

 

– Purchase and transaction history

 

– Bank account information

 

– Contact information such as mailing address, e-mail address and telephone number

How?   All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information, the reasons DWS chooses to share and whether you can limit this sharing.

 

Reasons we can share your personal information   Does DWS
share?		   Can you limit
this sharing?
For our everyday business purposes —
such as to process your transactions, maintain your account(s), respond to court orders or legal investigations		   Yes   No
For our marketing purposes — to offer our products and services to you   Yes   No
For joint marketing with other financial companies   No   We do not share
For our affiliates’ everyday business purposes — information about your transactions and experiences   No   We do not share
For our affiliates’ everyday business purposes — information about your creditworthiness   No   We do not share
For non-affiliates to market to you   No   We do not share

 

Questions?   Call (800) 728-3337 or e-mail us at service@dws.com

 

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Who we are    
Who is providing this notice?   DWS Distributors, Inc; Deutsche Investment Management Americas Inc.; Deutsche AM Trust Company; the Deutsche Funds
What we do    
How does DWS protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
How does DWS collect my personal information?  

We collect your personal information, for example, when you:

 

–openan account

 

–giveus your contact information

 

–providebank account information for ACH or wire transactions

 

–tellus where to send money

 

–seekadvice about your investments

Why can’t I limit all sharing?  

Federal law gives you the right to limit only

 

–sharingfor affiliates’ everyday business purposes

 

–informationabout your creditworthiness

 

–affiliatesfrom using your information to market to you

 

–sharingfor non-affiliates to market to you

 

State laws and individual companies may give you additional rights to limit sharing.

Definitions    
Affiliates   Companies related by common ownership or control. They can be financial or non-financial companies. Our affiliates include financial companies with the DWS or Deutsche Bank (“DB”) name, such as DB AG Frankfurt.
Non-affiliates   Companies not related by common ownership or control. They can be financial and non-financial companies. Non-affiliates we share with include account service providers, service quality monitoring services, mailing service providers and verification services to help in the fight against money laundering and fraud.
Joint marketing   A formal agreement between non-affiliated financial companies that together market financial products or services to you. DWS does not jointly market.

Rev. 3/2018

 

40      Deutsche Large Cap Focus Growth Fund  

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LOGO

DLCFGF-3

(R-026259-8 3/18)

 

   
ITEM 2. CODE OF ETHICS
   
  Not applicable.
   
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
   
  Not applicable
   
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
   
  Not applicable
   
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
   
  Not applicable
   
ITEM 6. SCHEDULE OF INVESTMENTS
   
  Not applicable
   
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
   
  Not applicable
   
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
   
  Not applicable
   
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
   
  Not applicable
   
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
   
  There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board.  The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, Deutsche Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600.
   
ITEM 11. CONTROLS AND PROCEDURES
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
   
  Not applicable
   
ITEM 13. EXHIBITS
   
  (a)(1) Not applicable
   
  (a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
   
  (b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant: Deutsche Large Cap Focus Growth Fund, a series of Deutsche Investment Trust
   
   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: 3/30/2018

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: 3/30/2018
   
   
   
By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

   
Date: 3/30/2018