Semiannual Report to Shareholders Deutsche Capital Growth Fund

Transcription

1 March 31, 2018 Semiannual Report to Shareholders Deutsche Capital Growth Fund

2 Contents 3 Letter to Shareholders 4 Performance Summary 7 Portfolio Manager 7 Portfolio Summary 9 Investment Portfolio 14 Statement of Assets and Liabilities 16 Statement of Operations 17 Statements of Changes in Net Assets 18 Financial Highlights 24 Notes to Financial Statements 33 Information About Your Fund s Expenses 35 Advisory Agreement Board Considerations and Fee Evaluation 40 Account Management Resources 42 Privacy Statement This report must be preceded or accompanied by a prospectus. To obtain a summary prospectus, if available, or prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. We advise you to consider the Fund s objectives, risks, charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important information about the Fund. Please read the prospectus carefully before you invest. The Fund may lend securities to approved institutions. Stocks may decline in value. Please read 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 Capital Growth Fund

3 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, 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 Capital Growth Fund 3

4 Performance Summary March 31, 2018 (Unaudited) Class A 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 Unadjusted for Sales Charge 7.07% 17.75% 14.61% 9.39% Adjusted for the Maximum Sales Charge (max 5.75% load) 0.92% 10.97% 13.26% 8.74% Russell 1000 Growth Index 9.39% 21.25% 15.53% 11.34% Class C 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 Unadjusted for Sales Charge 6.62% 16.71% 13.67% 8.52% Adjusted for the Maximum Sales Charge (max 1.00% CDSC) 5.65% 16.71% 13.67% 8.52% Russell 1000 Growth Index 9.39% 21.25% 15.53% 11.34% Class R 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 6.84% 17.25% 14.15% 9.02% Russell 1000 Growth Index 9.39% 21.25% 15.53% 11.34% Class R6 6-Month 1-Year Life of Class* Average Annual Total Returns as of 3/31/18 No Sales Charges 7.24% 18.11% 11.98% Russell 1000 Growth Index 9.39% 21.25% 10.23% Class S 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 7.20% 18.03% 14.90% 9.67% Russell 1000 Growth Index 9.39% 21.25% 15.53% 11.34% Institutional Class 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 7.20% 17.99% 14.91% 9.72% Russell 1000 Growth Index 9.39% 21.25% 15.53% 11.34% 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 4 Deutsche Capital Growth Fund

5 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 February 1, 2018 are 0.96%, 1.84%, 1.37%, 0.65%, 0.71% and 0.73% for Class A, Class C, Class R, Class R6, Class S and Institutional Class shares, respectively, and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. Index returns do not reflect any fees or expenses and it is not possible to invest directly into an index. Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights. Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) Deutsche Capital Growth Fund Class A Russell 1000 Growth Index $40,000 $30,000 $20,000 $29,277 $23,116 $10,000 $0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Yearly periods ended March 31 '18 The Fund s growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425. The growth of $10,000 is cumulative. Performance of other share classes will vary based on the sales charges and the fee structure of those classes. * Class R6 shares commenced operations on August 25, 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. Total returns shown for periods less than one year are not annualized. Deutsche Capital Growth Fund 5

6 Class A Class C Class R Class R6 Class S Institutional Class Net Asset Value 3/31/18 $77.89 $67.18 $76.81 $78.34 $78.66 $ /30/17 $79.22 $69.19 $78.07 $79.77 $80.05 $79.95 Distribution Information as of 3/31/18 Income Dividends, Six Months $.32 $ $ $.58 $.54 $.52 Capital Gain Distributions, Six Months $ 6.52 $ 6.52 $ 6.52 $ 6.52 $ 6.52 $ Deutsche Capital Growth Fund

7 Portfolio Manager Sebastian P. Werner, PhD, Director Portfolio Manager of the fund. Began managing the fund in 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) 3/31/18 9/30/17 Common Stocks 100% 100% Cash Equivalents 0% 0% Convertible Preferred Stocks 0% 0% 100% 100% Sector Diversification (As a % of Common Stocks and Convertible Preferred Stocks) 3/31/18 9/30/17 Information Technology 37% 37% Consumer Discretionary 19% 17% Health Care 17% 17% Industrials 10% 10% Financials 6% 5% Consumer Staples 4% 6% Telecommunication Services 2% 2% Real Estate 2% 2% Materials 2% 3% Energy 1% 1% 100% 100% Deutsche Capital Growth Fund 7

8 Ten Largest Equity Holdings at March 31, 2018 (36.5% of Net Assets) 1. Microsoft Corp. 5.5% Develops, manufactures, licenses, sells and supports software products 2. Apple, Inc. 5.4% Designs, manufactures and markets personal computing and mobile communication devices 3. Alphabet, Inc. 4.8% Holding company with subsidiaries that provide Web-based search, maps, hardware products and various software applications 4. Amazon.com, Inc. 4.5% Online retailer offering a wide range of products 5. Visa, Inc. 3.6% Operates a retail electronic payments network and manages global financial services 6. Becton, Dickinson & Co. 2.8% Provider of medical supplies and devices 7. Home Depot, Inc. 2.7% Home improvement retailer that sells building materials and home improvements products 8. Boeing Co. 2.5% Manufacturer of jet aircrafts 9. Thermo Fisher Scientific, Inc. 2.4% Manufacturer of measurement instruments that monitor, collect, and analyze information for various industries 10. Progressive Corp. 2.3% Provider of property and casualty insurance Portfolio holdings and characteristics are subject to change. For more complete details about the fund s investment portfolio, see page 9. A quarterly Fact Sheet is available on dws.com or upon request. Please see the Account Management Resources section on page 40 for contact information. 8 Deutsche Capital Growth Fund

9 Investment Portfolio as of March 31, 2018 (Unaudited) Common Stocks 99.6% Consumer Discretionary 18.6% Shares Value ($) Hotels, Restaurants & Leisure 2.6% Las Vegas Sands Corp. 148,825 10,700,518 McDonald s Corp. 177,403 27,742,281 38,442,799 Internet & Direct Marketing Retail 5.8% Amazon.com, Inc.* 46,390 67,142,103 Booking Holdings, Inc.* 9,188 19,114,623 86,256,726 Media 4.8% Comcast Corp. A 614,900 21,011,133 Live Nation Entertainment, Inc.* 169,388 7,138,010 Time Warner, Inc. 182,154 17,228,125 Walt Disney Co. 258,381 25,951,788 71,329,056 Multiline Retail 1.0% Dollar General Corp. 157,202 14,706,247 Specialty Retail 3.7% Burlington Stores, Inc.* 116,355 15,492,668 Home Depot, Inc. 222,500 39,658,400 55,151,068 Textiles, Apparel & Luxury Goods 0.7% Carter s, Inc. 100,691 10,481,933 Consumer Staples 4.1% Food & Staples Retailing 1.0% Costco Wholesale Corp. 78,947 14,875,983 Food Products 1.7% Mondelez International, Inc. A 246,930 10,304,389 Pinnacle Foods, Inc. 279,426 15,116,947 25,421,336 Personal Products 1.4% Estee Lauder Companies, Inc. A 139,059 20,819,913 Energy 0.8% Oil, Gas & Consumable Fuels Concho Resources, Inc.* 81,752 12,289,778 Financials 5.7% Banks 1.2% SVB Financial Group* 71,889 17,254,079 The accompanying notes are an integral part of the financial statements. Deutsche Capital Growth Fund 9

10 Shares Value ($) Capital Markets 2.2% Charles Schwab Corp. 339,973 17,753,390 Intercontinental Exchange, Inc. 216,305 15,686,439 33,439,829 Insurance 2.3% Progressive Corp. 550,195 33,523,381 Health Care 16.6% Biotechnology 4.6% Alexion Pharmaceuticals, Inc.* 142,257 15,855,965 Biogen, Inc.* 39,434 10,797,818 BioMarin Pharmaceutical, Inc.* 96,160 7,795,691 Celgene Corp.* 264,047 23,555,633 Shire PLC (ADR) 69,714 10,414,575 68,419,682 Health Care Equipment & Supplies 5.5% Becton, Dickinson & Co. 190,823 41,351,344 Danaher Corp. 197,213 19,309,125 Hologic, Inc.* 352,241 13,159,724 The Cooper Companies, Inc. 32,048 7,332,903 81,153,096 Health Care Providers & Services 1.1% Cigna Corp. 98,784 16,570,028 Life Sciences Tools & Services 2.5% Thermo Fisher Scientific, Inc. 175,386 36,210,193 Pharmaceuticals 2.9% Allergan PLC 82,324 13,854,306 Bristol-Myers Squibb Co. 119,341 7,548,318 Zoetis, Inc. 258,771 21,609,966 43,012,590 Industrials 10.4% Aerospace & Defense 3.4% Boeing Co. 111,240 36,473,371 TransDigm Group, Inc. 45,613 14,000,454 50,473,825 Electrical Equipment 2.0% Acuity Brands, Inc. 35,214 4,901,437 AMETEK, Inc. 322,201 24,477,610 29,379,047 Industrial Conglomerates 1.4% Roper Technologies, Inc. 75,226 21,115,186 The accompanying notes are an integral part of the financial statements. 10 Deutsche Capital Growth Fund

11 Shares Value ($) Machinery 1.1% Parker-Hannifin Corp. 95,530 16,338,496 Professional Services 1.3% Verisk Analytics, Inc.* 194,377 20,215,208 Road & Rail 1.2% Norfolk Southern Corp. 127,508 17,313,036 Information Technology 37.4% Communications Equipment 0.6% Palo Alto Networks, Inc.* 49,385 8,964,365 Internet Software & Services 6.8% Alphabet, Inc. A * 35,547 36,867,216 Alphabet, Inc. C * 32,735 33,775,646 Facebook, Inc. A * 192,483 30,756, ,399,720 IT Services 7.3% Cognizant Technology Solutions Corp. A 292,472 23,543,996 Fidelity National Information Services, Inc. 183,609 17,681,547 Global Payments, Inc. 131,578 14,673,578 Visa, Inc. A 441,118 52,766, ,665,656 Semiconductors & Semiconductor Equipment 4.4% Analog Devices, Inc. 166,022 15,129,585 Broadcom Ltd. 118,877 28,013,365 NVIDIA Corp. 92,651 21,457,045 64,599,995 Software 12.9% Activision Blizzard, Inc. 211,225 14,249,239 Adobe Systems, Inc.* 129,113 27,898,737 Intuit, Inc. 95,551 16,563,766 Microsoft Corp. 901,589 82,288,028 Oracle Corp. 354,711 16,228,028 salesforce.com, Inc.* 212,756 24,743,523 ServiceNow, Inc.* 51,151 8,462, ,434,254 Technology Hardware, Storage & Peripherals 5.4% Apple, Inc. 478,847 80,340,950 Materials 1.6% Chemicals 0.9% Albemarle Corp. 134,739 12,495,695 Construction Materials 0.7% Vulcan Materials Co. 94,176 10,752,074 The accompanying notes are an integral part of the financial statements. Deutsche Capital Growth Fund 11

12 Real Estate 1.9% Shares Value ($) Equity Real Estate Investment Trusts (REITs) Digital Realty Trust, Inc. 151,872 16,004,272 Prologis, Inc. 189,188 11,916,952 27,921,224 Telecommunication Services 2.5% Diversified Telecommunication Services 1.1% Zayo Group Holdings, Inc.* 454,684 15,532,006 Wireless Telecommunication Services 1.4% T-Mobile U.S., Inc.* 348,985 21,302,044 Total Common Stocks (Cost $851,918,172) 1,476,600,498 Convertible Preferred Stock 0.0% Industrials Stericycle, Inc., Series A, 5.25% (Cost $479,700) 4, ,016 Cash Equivalents 0.5% Deutsche Central Cash Management Government Fund, 1.64% (a) (Cost $7,149,316) 7,149,316 7,149,316 % of Net Assets Value ($) Total Investment Portfolio (Cost $859,547,188) ,483,966,830 Other Assets and Liabilities, Net (0.1) (1,400,629) Net Assets ,482,566,201 A summary of the Fund s transactions with affiliated Underlying Deutsche Funds during the period ended March 31, 2018 are as follows: Value ($) at 9/30/2017 Purchases Cost ($) Sales Proceeds ($) Net Realized Gain/ (Loss) ($) Net Change in Unrealized Appreciation (Depreciation) Income ($) ($) Capital Gain Distributions ($) Number of Shares at 3/31/2018 Value ($) at 3/31/2018 Securities Lending Collateral 0.9% Deutsche Government & Agency Securities Portfolio Deutsche Government Cash Institutional Shares, 0.93% (a) (b) 12,678,750 12,678,750 2,519 Cash Equivalents 0.5% Deutsche Central Cash Management Government Fund, 1.64% (a) 5,311, ,155, ,317, ,054 7,149,316 7,149,316 17,989, ,155, ,996, ,573 7,149,316 7,149,316 * Non-income producing security. (a) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end. The accompanying notes are an integral part of the financial statements. 12 Deutsche Capital Growth Fund

13 (b) Represents 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 for the period ended March 31, 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 March 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 (c) $1,476,600,498 $ $ $1,476,600,498 Convertible Preferred Stocks 217, ,016 Short-Term Investments 7,149,316 7,149,316 Total $1,483,966,830 $ $ $1,483,966,830 There have been no transfers between fair value measurement levels during the period ended March 31, (c) See Investment Portfolio for additional detailed categorizations. The accompanying notes are an integral part of the financial statements. Deutsche Capital Growth Fund 13

14 Statement of Assets and Liabilities as of March 31, 2018 (Unaudited) Assets Investments in non-affiliated securities, at value (cost $852,397,872) $ 1,476,817,514 Investment in Deutsche Central Cash Management Government Fund (cost $7,149,316) 7,149,316 Cash 12,204 Receivable for Fund shares sold 84,735 Dividends receivable 387,506 Interest receivable 13,171 Other assets 49,818 Total assets 1,484,514,264 Liabilities Payable for Fund shares redeemed 515,290 Accrued management fee 597,968 Accrued Trustees fees 9,602 Other accrued expenses and payables 825,203 Total liabilities 1,948,063 Net assets, at value $ 1,482,566,201 Net Assets Consist of Undistributed net investment income 2,288,455 Net unrealized appreciation (depreciation) on investments 624,419,642 Accumulated net realized gain (loss) 112,952,521 Paid-in capital 742,905,583 Net assets, at value $ 1,482,566,201 The accompanying notes are an integral part of the financial statements. 14 Deutsche Capital Growth Fund

15 Statement of Assets and Liabilities as of March 31, 2018 (Unaudited) (continued) Net Asset Value Class A Net Asset Value and redemption price per share ($611,634,613 7,852,791 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Maximum offering price per share ( of $77.89) $ Class C Net Asset Value offering and redemption price per share ($20,823, ,936 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class R Net Asset Value offering and redemption price per share ($8,404, ,416 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class R6 Net Asset Value offering and redemption price per share ($1,486,660 18,978 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class S Net Asset Value offering and redemption price per share ($779,528,826 9,909,663 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Institutional Class Net Asset Value offering and redemption price per share ($60,688, ,451 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ The accompanying notes are an integral part of the financial statements. Deutsche Capital Growth Fund 15

16 Statement of Operations for the six months ended March 31, 2018 (Unaudited) Investment Income Income: Dividends $ 8,461,118 Income distributions Deutsche Central Cash Management Government Fund 103,054 Securities lending income, net of borrower rebates 2,519 Total income 8,566,691 Expenses: Management fee 3,495,511 Administration fee 754,694 Services to shareholders 867,547 Distribution and service fees 847,712 Custodian fee 7,484 Professional fees 61,350 Reports to shareholders 51,064 Registration fees 38,464 Trustees fees and expenses 45,388 Other 36,946 Total expenses 6,206,160 Net investment income 2,360,531 Realized and Unrealized Gain (Loss) Net realized gain (loss) from investments 114,205,145 Change in net unrealized appreciation (depreciation) on investments (12,564,039) Net gain (loss) 101,641,106 Net increase (decrease) in net assets resulting from operations $ 104,001,637 The accompanying notes are an integral part of the financial statements. 16 Deutsche Capital Growth Fund

17 Statements of Changes in Net Assets Six Months Ended March 31, 2018 (Unaudited) Year Ended September 30, 2017 Increase (Decrease) in Net Assets Operations: Net investment income (loss) $ 2,360,531 $ 7,760,631 Net realized gain (loss) 114,205, ,794,051 Change in net unrealized appreciation (depreciation) (12,564,039) 144,890,842 Net increase (decrease) in net assets resulting from operations 104,001, ,445,524 Distributions to shareholders from: Net investment income: Class A (2,401,394) (1,295,345) Class R6 (5,788) (1,505) Class S (5,019,935) (3,349,032) Institutional Class (383,937) (1,038,670) Net realized gains: Class A (48,863,677) (41,881,532) Class C (2,033,354) (2,120,984) Class R (681,237) (508,480) Class R6 (64,624) (20,902) Class S (61,149,449) (50,345,141) Institutional Class (4,835,611) (15,259,142) Total distributions (125,439,006) (115,820,733) Fund share transactions: Proceeds from shares sold 33,373, ,382,603 Reinvestment of distributions 118,928, ,153,289 Payments for shares redeemed (115,586,343) (423,375,716) Net increase (decrease) in net assets from Fund share transactions 36,715,185 (203,839,824) Increase (decrease) in net assets 15,277,816 (49,215,033) Net assets at beginning of period 1,467,288,385 1,516,503,418 Net assets at end of period (including undistributed net investment income of $2,288,455 and $7,738,978, respectively) $ 1,482,566,201 $ 1,467,288,385 The accompanying notes are an integral part of the financial statements. Deutsche Capital Growth Fund 17

18 Financial Highlights Six Months Ended 3/31/18 Years Ended September 30, Class A (Unaudited) Selected Per Share Data Net asset value, beginning of period $79.22 $71.34 $71.63 $ $70.56 $60.83 Income (loss) from investment operations: Net investment income (loss) a Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.32) (.17) (.19) (.10) (.21) (.50) Net realized gains (6.52) (5.34) (7.72) (11.04) (4.48) Total distributions (6.84) (5.51) (7.91) (11.14) (4.69) (.50) Net asset value, end of period $77.89 $79.22 $71.34 $ $79.28 $70.56 Total Return (%) b 7.07 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).95 * Ratio of net investment income (loss) (%).19 * Portfolio turnover rate (%) 14 ** a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized 18 Deutsche Capital Growth Fund

19 Six Months Ended 3/31/18 Years Ended September 30, Class C (Unaudited) Selected Per Share Data Net asset value, beginning of period $69.19 $63.34 $64.74 $ $65.72 $56.65 Income (loss) from investment operations: Net investment income (loss) a (.22) (.31) (.36) (.37) (.46).10 Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.04) Net realized gains (6.52) (5.34) (7.72) (11.04) (4.48) Total distributions (6.52) (5.34) (7.72) (11.04) (4.48) (.04) Net asset value, end of period $67.18 $69.19 $63.34 $ $73.12 $65.72 Total Return (%) b 6.62 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%) 1.77 * Ratio of net investment income (loss) (%) (.64) * (.48) (.58) (.53) (.66).17 Portfolio turnover rate (%) 14 ** a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized Deutsche Capital Growth Fund 19

20 Six Months Ended 3/31/18 Years Ended September 30, Class R (Unaudited) Selected Per Share Data Net asset value, beginning of period $78.07 $70.48 $70.94 $ $70.24 $60.62 Income (loss) from investment operations: Net investment income (loss) a (.09) (.00) *** (.11) (.10) (.20).34 Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.34) Net realized gains (6.52) (5.34) (7.72) (11.04) (4.48) Total distributions (6.52) (5.34) (7.72) (11.04) (4.48) (.34) Net asset value, end of period $76.81 $78.07 $70.48 $ $78.80 $70.24 Total Return (%) 6.84 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%) 1.37 * Ratio of net investment income (loss) (%) (.24) * (.01) (.16) (.13) (.26).54 Portfolio turnover rate (%) 14 ** a Based on average shares outstanding during the period. * Annualized ** Not annualized *** Amount is less than $ Deutsche Capital Growth Fund

21 Six Months Ended 3/31/18 Years Ended September 30, Period Ended Class R6 (Unaudited) /30/14 a Selected Per Share Data Net asset value, beginning of period $79.77 $71.80 $72.01 $ $80.34 Income (loss) from investment operations: Net investment income (loss) b Net realized and unrealized gain (loss) (.53) Total from investment operations (.45) Less distributions from: Net investment income (.58) (.38) (.35) (.42) Net realized gains (6.52) (5.34) (7.72) (11.04) Total distributions (7.10) (5.72) (8.07) (11.46) Net asset value, end of period $78.34 $79.77 $71.80 $ $79.89 Total Return (%) 7.24 ** (.56) ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).63 * * Ratio of net investment income (loss) (%).55 * * Portfolio turnover rate (%) 14 ** c a For the period from August 25, 2014 (commencement of operations) to September 30, b Based on average shares outstanding during the period. c Represents the Fund s portfolio turnover rate for the year ended September 30, * Annualized ** Not annualized Deutsche Capital Growth Fund 21

22 Six Months Ended 3/31/18 Years Ended September 30, Class S (Unaudited) Selected Per Share Data Net asset value, beginning of period $80.05 $72.05 $72.29 $ $71.12 $61.32 Income (loss) from investment operations: Net investment income (loss) a Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.54) (.36) (.40) (.32) (.41) (.66) Net realized gains (6.52) (5.34) (7.72) (11.04) (4.48) Total distributions (7.06) (5.70) (8.12) (11.36) (4.89) (.66) Net asset value, end of period $78.66 $80.05 $72.05 $ $79.94 $71.12 Total Return (%) 7.20 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).70 * Ratio of net investment income (loss) (%).44 * Portfolio turnover rate (%) 14 ** a Based on average shares outstanding during the period. * Annualized ** Not annualized 22 Deutsche Capital Growth Fund

23 Six Months Ended 3/31/18 Years Ended September 30, Institutional Class (Unaudited) Selected Per Share Data Net asset value, beginning of period $79.95 $71.99 $72.24 $ $71.11 $61.32 Income (loss) from investment operations: Net investment income (loss) a Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.52) (.36) (.41) (.32) (.45) (.70) Net realized gains (6.52) (5.34) (7.72) (11.04) (4.48) Total distributions (7.04) (5.70) (8.13) (11.36) (4.93) (.70) Net asset value, end of period $78.57 $79.95 $71.99 $ $79.89 $71.11 Total Return (%) 7.20 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).71 * Ratio of net investment income (loss) (%).43 * Portfolio turnover rate (%) 14 ** a Based on average shares outstanding during the period. * Annualized ** Not annualized Deutsche Capital Growth Fund 23

24 Notes to Financial Statements (Unaudited) A. Organization and Significant Accounting Policies Deutsche Capital 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 C shares do not automatically convert into another class. Class R shares and Class R6 shares are not subject to initial or contingent deferred sales charges and are generally available only to certain retirement plans. Class S shares are not subject to initial or contingent deferred sales charges and are only available to a limited group of investors. 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. 24 Deutsche Capital Growth Fund

25 Various inputs are used in determining the value of the Fund s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1. Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1. Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund s valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer; analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company s or issuer s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities. Disclosure about the classification of fair value measurements is included in a table following the Fund s Investment Portfolio. Securities Lending. Deutsche Bank AG as lending agent lends securities of the Fund to certain financial institutions under the terms of its Deutsche Capital Growth Fund 25

26 securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of either cash or liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the 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 March 31, 2018, the Fund invested the cash collateral into a joint trading account in affiliated money market funds, including Deutsche Government & Agency Securities Portfolio, managed by Deutsche Investment Management Americas Inc. Deutsche Investment Management Americas Inc. receives a management/administration fee (0.14% annualized effective rate as of March 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 March 31, 2018, the Fund had no securities on loan. 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 September 30, 2017, the aggregate cost of investments for federal income tax purposes was $846,041,905. The net unrealized appreciation for all investments based on tax cost was $635,869,994. This consisted of aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost of $657,832,566 and aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value of $21,962, Deutsche Capital Growth Fund

27 The Fund has reviewed the tax positions for the open tax years as of September 30, 2017 and has determined that no provision for income tax and/or uncertain tax positions is required in the Fund s financial statements. The Fund s federal tax returns for the prior three fiscal years remain open subject to examination by the Internal Revenue Service. Distribution of Income and Gains. Distributions from net investment income of the Fund, if any, are declared and distributed to shareholders 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. 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. Deutsche Capital Growth Fund 27

28 B. Purchases and Sales of Securities During the six months ended March 31, 2018, purchases and sales of investment securities (excluding short-term investments) aggregated $204,267,755 and $292,965,064, 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 DWS Group Gmbh & Co. KGaA ( DWS Group ), the Advisor directs the investments of the Fund in accordance with its investment objectives, policies and restrictions. The Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Fund. Under the Investment Management Agreement with the Advisor, the Fund pays a monthly management fee based on the Fund s average daily net assets, computed and accrued daily and payable monthly, at the following annual rates: First $250 million of the Fund s average daily net assets.495% Next $750 million of such net assets.465% Next $1.5 billion of such net assets.445% Next $2.5 billion of such net assets.425% Next $2.5 billion of such net assets.395% Next $2.5 billion of such net assets.375% Next $2.5 billion of such net assets.355% Over $12.5 billion of such net assets.335% Accordingly, for the six months ended March 31, 2018, the fee pursuant to the Investment Management Agreement was equivalent to an annualized rate (exclusive of any applicable waivers/reimbursements) of 0.46% of the Fund s average daily net assets. For the period from October 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 1.20% Class C 1.95% Class R 1.45% Class R6.95% Class S.95% Institutional Class.95% 28 Deutsche Capital Growth Fund

29 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 March 31, 2018, the Administration Fee was $754,694, of which $129,126 is unpaid. Service Provider Fees. DWS Service Company ( DSC ), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Fund. Pursuant to 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 March 31, 2018, the amounts charged to the Fund by DSC were as follows: Services to Shareholders Total Aggregated Unpaid at March 31, 2018 Class A $ 161,110 $ 69,026 Class C 4,462 1,840 Class R 2,106 2,106 Class R6 89 Class S 214,558 83,116 Institutional Class 3,642 3,642 $ 385,967 $ 159,730 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 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 Service 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 March 31, 2018, the Distribution Fee was as follows: Distribution Fee Total Aggregated Unpaid at March 31, 2018 Class C $ 83,365 $ 13,652 Class R 10,703 1,829 $ 94,068 $ 15,481 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 average daily net assets for each such class. DDI in turn has Deutsche Capital Growth Fund 29

30 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 March 31, 2018, the Service Fee was as follows: Service Fee Total Aggregated Unpaid at March 31, 2018 Annualized Rate Class A $ 715,200 $ 235,786.23% Class C 27,763 8,616.25% Class R 10,681 3,411.25% $ 753,644 $ 247,813 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 March 31, 2018 aggregated $32,111. 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 March 31, 2018, the CDSC for Class C shares aggregated $164. A deferred sales charge of up to 1% is assessed on certain redemptions of Class A shares. For the six months ended March 31, 2018, DDI received $1,110 for 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 March 31, 2018, the amount charged to the Fund by DIMA included in the Statement of Operations under Reports to shareholders aggregated $8,918, of which $8,620 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 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 30 Deutsche Capital Growth Fund

31 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. Security Lending Fees. Deutsche Bank AG serves as lending agent for the Fund. For the six months ended March 31, 2018, the Fund incurred lending agent fees to Deutsche Bank AG for the amount of $190. 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 March 31, E. Fund Share Transactions The following table summarizes share and dollar activity in the Fund: Six Months Ended March 31, 2018 Year Ended September 30, 2017 Shares Dollars Shares Dollars Shares sold Class A 125,516 $10,031, ,904 $ 28,068,690 Class C 22,205 1,552,667 39,923 2,543,151 Class R 8, ,274 78,666 5,669,439 Class R6 9, ,115 8, ,691 Class S 154,504 12,413, ,162 44,963,192 Institutional Class 99,297 7,998, ,515 27,460,440 $33,373,236 $109,382,603 Deutsche Capital Growth Fund 31