Semiannual Report to Shareholders Deutsche Core Equity Fund

Transcription

1 March 31, 2018 Semiannual Report to Shareholders Deutsche Core Equity Fund

2 Contents 3 Letter to Shareholders 4 Performance Summary 7 Portfolio Management Team 7 Portfolio Summary 9 Investment Portfolio 15 Statement of Assets and Liabilities 17 Statement of Operations 18 Statements of Changes in Net Assets 19 Financial Highlights 26 Notes to Financial Statements 36 Information About Your Fund s Expenses 38 Advisory Agreement Board Considerations and Fee Evaluation 43 Account Management Resources 45 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. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. The Fund may lend securities to approved institutions. Portfolio management could be wrong in its analysis of industries, companies, economic trends and favor a security that underperforms the market. 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 Core Equity 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 Core Equity 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 5.69% 14.96% 13.33% 9.77% Adjusted for the Maximum Sales Charge (max 5.75% load) 0.38% 8.35% 11.99% 9.12% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% Class T 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 Unadjusted for Sales Charge 5.68% 14.85% 13.28% 9.76% Adjusted for the Maximum Sales Charge (max 2.50% load) 3.03% 11.97% 12.71% 9.49% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% Class C 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 Unadjusted for Sales Charge 5.25% 14.06% 12.45% 8.93% Adjusted for the Maximum Sales Charge (max 1.00% CDSC) 4.25% 14.06% 12.45% 8.93% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% Class R 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 5.45% 14.48% 12.81% 9.35% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% Class R6 6-Month 1-Year Life of Class* Average Annual Total Returns as of 3/31/18 No Sales Charges 5.83% 15.35% 10.74% Russell 1000 Index 5.85% 13.98% 10.23% Class S 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 5.79% 15.23% 13.65% 10.12% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% Institutional Class 6-Month 1-Year 5-Year 10-Year Average Annual Total Returns as of 3/31/18 No Sales Charges 5.79% 15.27% 13.71% 10.22% Russell 1000 Index 5.85% 13.98% 13.17% 9.61% 4 Deutsche Core Equity Fund

5 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 February 1, 2018 are 0.86%, 0.97%, 1.62%, 1.23%, 0.50%, 0.58% and 0.56% for Class A, Class T, 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. Returns shown for Class R shares for the period prior to its inception on May 1, 2012 are derived from the historical performance of Class S shares of Deutsche Core Equity Fund during such periods and have been adjusted to reflect the higher total annual operating expenses of Class R. Any difference in expenses will affect performance. Returns shown for Class T shares for the period prior to its inception on June 5, 2017 are derived from the historical performance of Class S shares of Deutsche Core Equity Fund during such periods and have been adjusted to reflect the higher total annual operating expenses and applicable sales charges of Class T. Any difference in expenses will affect performance. 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 Core Equity Fund 5

6 Growth of an Assumed $10,000 Investment (Adjusted for Maximum Sales Charge) Deutsche Core Equity Fund Class A Russell 1000 Index $30,000 $20,000 $25,022 $23,937 $10,000 $0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Yearly periods ended March 31 The Fund s growth of an assumed $10,000 investment is adjusted for the maximum sales charge of 5.75%. This results in a net initial investment of $9,425. The growth of $10,000 is cumulative. Performance of other share classes will vary based on the sales charges and the fee structure of those classes. * Class R6 shares commenced operations on August 25, The Russell 1000 Index is an unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. Total returns shown for periods less than one year are not annualized. Institutional Class A Class T Class C Class R Class R6 Class S Class Net Asset Value 3/31/18 $27.08 $27.08 $25.89 $27.33 $27.38 $27.35 $ /30/17 $27.04 $27.02 $25.92 $27.28 $27.33 $27.30 $27.35 Distribution Information as of 3/31/18 Income Dividends, Six Months $.10 $.08 $ $.04 $.15 $.14 $.14 Capital Gain Distributions, Six Months $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ 1.40 $ Deutsche Core Equity Fund

7 Portfolio Management Team Pankaj Bhatnagar, PhD, Managing Director Portfolio Manager of the Fund. Began managing the Fund in Joined DWS in 2000 with seven years of industry experience; previously, served in Quantitative Strategy roles at Nomura Securities, Credit Suisse and Salomon Brothers. Portfolio Manager for the Quantitative Group: New York. Degree in Civil Engineering, Indian Institute of Technology; MBA, Kent State University; PhD in Finance, University of North Carolina at Chapel Hill. Arno V. Puskar, Director Portfolio Manager of the Fund. Began managing the Fund in Joined DWS in Portfolio Manager for US Equities and Quantitative Analyst: Boston, MA. BS in Industrial Engineering from Lehigh University; MBA from Pepperdine University. Di Kumble, CFA, Managing Director Portfolio Manager of the Fund. Began managing the Fund in Joined DWS in 2003 with seven years of industry experience. Prior to joining, she served as a Portfolio Manager at Graham Capital Management. Previously, she worked as a Quantitative Strategist at ITG Inc. and Morgan Stanley. Portfolio Manager: New York. BS, Beijing University; PhD in Chemistry, Princeton University. Portfolio Summary (Unaudited) Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) 3/31/18 9/30/17 Common Stocks 99% 97% Exchange-Traded Fund 1% Cash Equivalents 0% 3% 100% 100% Sector Diversification (As a % of Common Stocks) 3/31/18 9/30/17 Information Technology 24% 24% Financials 15% 14% Health Care 14% 15% Consumer Discretionary 12% 11% Industrials 10% 11% Consumer Staples 8% 8% Energy 5% 5% Real Estate 4% 4% Utilities 3% 3% Materials 3% 3% Telecommunication Services 2% 2% 100% 100% Deutsche Core Equity Fund 7

8 Ten Largest Equity Holdings at March 31, 2018 (30% of Net Assets) Percent 1 Microsoft Corp. 4.9% Develops, manufactures, licenses, sells and supports software products 2 Apple, Inc. 4.2% Designs, manufactures and markets personal computers and related computing and mobile communication devices 3 Alphabet, Inc. 3.3% Holding company with subsidiaries that provide Web-based search, maps, hardware products and various software applications 4 Visa, Inc. 3.0% Operates a retail electronic payments network and manages global financial services 5 Amazon.com, Inc. 2.8% Online retailer that offers a wide range of products 6 Intel Corp. 2.7% Designer, manufacturer and seller of computer components and related products 7 Omnicom Group, Inc. 2.4% Provider of advertising services 8 Gilead Sciences, Inc. 2.3% Developer of nucleotide pharmaceuticals 9 PepsiCo, Inc. 2.3% Provider of soft drinks, snack foods and food services 10 U.S. Bancorp. 2.1% Provider of diversified financial services 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 43 for contact information. 8 Deutsche Core Equity Fund

9 Investment Portfolio as of March 31, 2018 (Unaudited) Common Stocks 99.0% Consumer Discretionary 12.3% Shares Value ($) Auto Components 0.8% BorgWarner, Inc. 279,537 14,041,143 Goodyear Tire & Rubber Co. 526,458 13,993,254 28,034,397 Hotels, Restaurants & Leisure 1.6% Hyatt Hotels Corp. A 359,845 27,441,780 Yum! Brands, Inc. 355,692 30,280,060 57,721,840 Internet & Direct Marketing Retail 2.8% Amazon.com, Inc.* 69, ,973,675 Media 4.1% Comcast Corp. A 721,624 24,657,892 Live Nation Entertainment, Inc.* 899,625 37,910,198 Omnicom Group, Inc. (a) 1,177,929 85,600, ,168,190 Multiline Retail 0.6% Macy s, Inc. 716,449 21,307,193 Specialty Retail 1.3% Best Buy Co., Inc. 477,743 33,437,233 Ulta Salon, Cosmetics & Fragrance, Inc.* 72,302 14,769,129 48,206,362 Textiles, Apparel & Luxury Goods 1.1% NIKE, Inc. B 587,738 39,049,313 Consumer Staples 7.3% Beverages 2.3% PepsiCo, Inc. 773,595 84,437,894 Food & Staples Retailing 2.7% CVS Health Corp. 212,478 13,218,256 Sprouts Farmers Market, Inc.* 382,263 8,971,713 Sysco Corp. 1,243,329 74,550,007 96,739,976 Food Products 2.2% Conagra Brands, Inc. 678,521 25,023,854 Pinnacle Foods, Inc. 481,877 26,069,546 The JM Smucker Co. 228,173 28,295,734 79,389,134 The accompanying notes are an integral part of the financial statements. Deutsche Core Equity Fund 9

10 Shares Value ($) Personal Products 0.1% Coty, Inc. A 272,654 4,989,568 Energy 5.0% Energy Equipment & Services 0.3% Transocean Ltd.* (a) 818,461 8,102,764 Weatherford International PLC* 1,921,841 4,401,016 12,503,780 Oil, Gas & Consumable Fuels 4.7% Concho Resources, Inc.* 272,940 41,031,070 Devon Energy Corp. 592,899 18,848,259 Laredo Petroleum, Inc.* 4,387,387 38,214,141 Newfield Exploration Co.* 1,861,394 45,455,241 ONEOK, Inc. 470,236 26,765, ,314,544 Financials 15.2% Banks 5.5% Bank of the Ozarks, Inc. 364,105 17,575,348 Citigroup, Inc. 542,468 36,616,590 PacWest Bancorp. 361,361 17,898,210 Popular, Inc. 1,150,396 47,879,482 U.S. Bancorp. 1,520,329 76,776, ,746,245 Capital Markets 7.1% Ameriprise Financial, Inc. 503,965 74,556,582 Ares Capital Corp. 2,306,647 36,606,488 BlackRock, Inc. 48,943 26,513,402 CME Group, Inc. 123,469 19,969,876 E*TRADE Financial Corp.* 706,188 39,129,877 Lazard Ltd. A 314,840 16,547,991 LPL Financial Holdings, Inc. 152,533 9,315,190 S&P Global, Inc. 185,788 35,496, ,136,061 Insurance 2.6% Chubb Ltd. 358,632 49,050,099 MetLife, Inc. 971,597 44,586,586 93,636,685 Health Care 14.0% Biotechnology 4.3% AbbVie, Inc. 521,486 49,358,650 Amgen, Inc. 124,086 21,154,181 Gilead Sciences, Inc. 1,121,132 84,522, ,034,972 The accompanying notes are an integral part of the financial statements. 10 Deutsche Core Equity Fund

11 Shares Value ($) Health Care Equipment & Supplies 2.5% Becton, Dickinson & Co. 218,031 47,247,318 Boston Scientific Corp.* 1,271,560 34,739,019 Hill-Rom Holdings, Inc. 118,360 10,297,320 92,283,657 Health Care Providers & Services 2.8% Cardinal Health, Inc. 98,551 6,177,177 Cigna Corp. 272,490 45,707,473 McKesson Corp. 348,689 49,119, ,004,469 Life Sciences Tools & Services 0.9% Thermo Fisher Scientific, Inc. 151,837 31,348,267 Pharmaceuticals 3.5% Eli Lilly & Co. 216,509 16,751,301 Endo International PLC* 783,099 4,651,608 Merck & Co., Inc. 760,723 41,436,582 Pfizer, Inc. 1,793,642 63,656, ,495,846 Industrials 10.0% Aerospace & Defense 1.8% Boeing Co. 200,639 65,785,515 Electrical Equipment 2.0% AMETEK, Inc. 660,078 50,146,126 Regal Beloit Corp. 298,867 21,921,894 72,068,020 Industrial Conglomerates 2.6% Honeywell International, Inc. 261,802 37,833,007 Roper Technologies, Inc. 200,462 56,267,679 94,100,686 Machinery 1.6% Ingersoll-Rand PLC 299,957 25,649,323 Parker-Hannifin Corp. 199,065 34,046,087 59,695,410 Road & Rail 1.6% Norfolk Southern Corp. 418,364 56,805,464 Trading Companies & Distributors 0.4% WESCO International, Inc.* 244,810 15,190,461 Information Technology 24.0% Communications Equipment 0.3% Cisco Systems, Inc. 206,633 8,862,489 The accompanying notes are an integral part of the financial statements. Deutsche Core Equity Fund 11

12 Shares Value ($) Internet Software & Services 3.2% Alphabet, Inc. A * 56,223 58,311,122 Alphabet, Inc. C * 57,181 58,998, ,309,906 IT Services 5.2% Conduent, Inc.* 1,809,552 33,730,049 Gartner, Inc.* 153,337 18,035,498 Leidos Holdings, Inc. 337,902 22,098,791 PayPal Holdings, Inc.* 81,496 6,183,102 Visa, Inc. A 910, ,925, ,973,412 Semiconductors & Semiconductor Equipment 5.7% Intel Corp. 1,853,955 96,553,977 NVIDIA Corp. 292,919 67,837,111 Teradyne, Inc. 880,635 40,253, ,644,914 Software 4.9% Microsoft Corp. 1,945, ,534,753 Technology Hardware, Storage & Peripherals 4.7% Apple, Inc. 906, ,123,777 Hewlett Packard Enterprise Co. 993,233 17,421, ,545,084 Materials 2.9% Chemicals 1.2% Albemarle Corp. (a) 469,173 43,511,104 Metals & Mining 1.7% Freeport-McMoRan, Inc.* 3,459,380 60,781,307 Real Estate 3.6% Equity Real Estate Investment Trusts (REITs) AvalonBay Communities, Inc. 215,908 35,508,230 Digital Realty Trust, Inc. 491,542 51,798,696 Prologis, Inc. 541,735 34,123,888 STORE Capital Corp. 356,080 8,837, ,268,719 Telecommunication Services 1.7% Diversified Telecommunication Services 0.2% Zayo Group Holdings, Inc.* 254,029 8,677,631 Wireless Telecommunication Services 1.5% T-Mobile U.S., Inc.* 875,435 53,436,552 The accompanying notes are an integral part of the financial statements. 12 Deutsche Core Equity Fund

13 Utilities 3.0% Shares Value ($) Electric Utilities 1.4% NextEra Energy, Inc. 316,144 51,635,799 Multi-Utilities 0.7% CenterPoint Energy, Inc. 865,740 23,721,276 Water Utilities 0.9% American Water Works Co., Inc. 406,851 33,414,673 Total Common Stocks (Cost $2,633,489,362) 3,582,485,243 Exchange-Traded Fund 0.5% Vanguard S&P 500 ETF (Cost $17,477,395) 75,467 18,269,051 Securities Lending Collateral 0.3% Deutsche Government & Agency Securities Portfolio Deutsche Government Cash Institutional Shares, 1.56% (b) (c) (Cost $10,070,550) 10,070,550 10,070,550 Cash Equivalents 0.4% Deutsche Central Cash Management Government Fund, 1.64% (b) (Cost $13,193,263) 13,193,263 13,193,263 % of Net Assets Value ($) Total Investment Portfolio (Cost $2,674,230,570) ,624,018,107 Other Assets and Liabilities, Net (0.2) (7,277,480) Net Assets ,616,740,627 A summary of the Fund s transactions with affiliated Underlying Deutsche Funds during the period ended March 31, 2018 are as follows: Value ($) 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 0.3% Deutsche Government & Agency Securities Portfolio Deutsche Government Cash Institutional Shares, 1.56% (b) (c) 83,914,728 73,844,178 34,531 10,070,550 10,070,550 Cash Equivalents 0.4% Deutsche Central Cash Management Government Fund, 1.64% (b) 118,374, ,639, ,820, ,701 13,193,263 13,193, ,288, ,639, ,664, ,232 23,263,813 23,263,813 * Non-income producing security. The accompanying notes are an integral part of the financial statements. Deutsche Core Equity Fund 13

14 (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 March 31, 2018 amounted to $9,975,198, which is 0.3% 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 (purchase cost) or decrease (sales proceeds) in the amount invested for the period ended March 31, S&P: Standard & Poor s 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 (d) $3,582,485,243 $ $ $3,582,485,243 Exchange-Traded Fund 18,269,051 18,269,051 Short-Term Investments (d) 23,263,813 23,263,813 Total $3,624,018,107 $ $ $3,624,018,107 There have been no transfers between fair value measurement levels during the period ended March 31, (d) See Investment Portfolio for additional detailed categorizations. The accompanying notes are an integral part of the financial statements. 14 Deutsche Core Equity Fund

15 Statement of Assets and Liabilities As of March 31, 2018 (Unaudited) Assets Investments in non-affiliated securities, at value (cost $2,650,966,757) including $9,975,198 of securities loaned $ 3,600,754,294 Investment in Deutsche Government & Agency Securities Portfolio (cost $10,070,550)* 10,070,550 Investment in Deutsche Central Cash Management Government Fund (cost $13,193,263) 13,193,263 Cash 1,009,842 Receivable for Fund shares sold 499,361 Dividends receivable 3,644,001 Interest receivable 28,201 Other assets 85,664 Total assets 3,629,285,176 Liabilities Payable upon return of securities loaned 10,070,550 Payable for Fund shares redeemed 165,047 Accrued management fee 1,109,572 Accrued Trustees fees 15,144 Other accrued expenses and payables 1,184,236 Total liabilities 12,544,549 Net assets, at value $ 3,616,740,627 Net Assets Consist of Undistributed net investment income 17,729,204 Net unrealized appreciation (depreciation) on investments 949,787,537 Accumulated net realized gain (loss) 162,678,812 Paid-in capital 2,486,545,074 Net assets, at value $ 3,616,740,627 * Represents collateral on securities loaned. The accompanying notes are an integral part of the financial statements. Deutsche Core Equity Fund 15

16 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 ($345,229,340 12,750,365 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Maximum offering price per share ( of $27.08) $ Class T Net Asset Value and redemption price per share ($10, shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Maximum offering price per share ( of $27.08) $ Class C Net Asset Value offering and redemption price per share ($45,121,334 1,742,501 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class R Net Asset Value offering and redemption price per share ($1,541,486 56,395 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class R6 Net Asset Value offering and redemption price per share ($12,525, ,451 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Class S Net Asset Value offering and redemption price per share ($3,140,955, ,833,088 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ Institutional Class Net Asset Value offering and redemption price per share ($71,356,541 2,603,917 shares of capital stock outstanding, $.01 par value, unlimited shares authorized) $ The accompanying notes are an integral part of the financial statements. 16 Deutsche Core Equity Fund

17 Statement of Operations for the six months ended March 31, 2018 (Unaudited) Investment Income Income: Dividends (net of foreign taxes withheld of $36,580) $ 31,966,381 Income distributions Deutsche Central Cash Management Government Fund 154,701 Securities lending income, net of borrower rebates 34,531 Total income 32,155,613 Expenses: Management fee 6,492,749 Administration fee 1,836,790 Services to shareholders 1,772,249 Distribution and service fees 636,761 Custodian fee 14,115 Professional fees 81,225 Reports to shareholders 74,401 Registration fees 41,243 Trustees fees and expenses 100,779 Other 113,773 Total expenses 11,164,085 Net investment income 20,991,528 Realized and Unrealized Gain (Loss) Net realized gain (loss) from investments 172,448,898 Change in net unrealized appreciation (depreciation) on investments 11,016,658 Net gain (loss) 183,465,556 Net increase (decrease) in net assets resulting from operations $ 204,457,084 The accompanying notes are an integral part of the financial statements. Deutsche Core Equity Fund 17

18 Statements of Changes in Net Assets Six Months Ended March 31, 2018 Year Ended September 30, Increase (Decrease) in Net Assets (Unaudited) 2017 Operations: Net investment income (loss) $ 20,991,528 $ 43,684,438 Net realized gain (loss) 172,448, ,985,296 Change in net unrealized appreciation (depreciation) 11,016, ,158,530 Net increase (decrease) in net assets resulting from operations 204,457, ,828,264 Distributions to shareholders from: Net investment income: Class A (1,207,728) (3,268,308) Class T (32) (43)* Class C (89,628) Class R (2,356) (7,383) Class R6 (50,325) (66,904) Class S (15,432,262) (37,533,520) Institutional Class (365,167) (913,822) Net realized gains: Class A (17,320,332) (17,708,391) Class T (538) Class C (2,180,618) (2,251,796) Class R (72,271) (59,864) Class R6 (330,821) (224,350) Class S (155,196,706) (151,508,007) Institutional Class (3,656,553) (3,849,695) Total distributions (195,815,709) (217,481,711) Fund share transactions: Proceeds from shares sold 127,768, ,731,143 Reinvestment of distributions 183,898, ,189,511 Payments for shares redeemed (237,716,855) (472,522,493) Net increase (decrease) in net assets from Fund share transactions 73,950,136 (53,601,839) Increase (decrease) in net assets 82,591, ,744,714 Net assets at beginning of period 3,534,149,116 3,211,404,402 Net assets at end of period (including undistributed net investment income of $17,729,204 and $13,795,546, respectively) $ 3,616,740,627 $ 3,534,149,116 * For the period from June 5, 2017 (commencement of operations of Class T) to September 30, The accompanying notes are an integral part of the financial statements. 18 Deutsche Core Equity Fund

19 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 $27.04 $24.21 $23.35 $24.56 $22.12 $17.87 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 (.10) (.25) (.18) (.12) (.11) (.32) Net realized gains (1.40) (1.37) (1.82) (1.47) (1.52) Total distributions (1.50) (1.62) (2.00) (1.59) (1.63) (.32) Net asset value, end of period $27.08 $27.04 $24.21 $23.35 $24.56 $22.12 Total Return (%) b 5.69 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).85 * Ratio of net investment income (loss) (%).90 * Portfolio turnover rate (%) 23 ** 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 Core Equity Fund 19

20 Six Months Ended 3/31/18 Period Ended Class T (Unaudited) 9/30/17 a Selected Per Share Data Net asset value, beginning of period $ $ Income (loss) from investment operations: Net investment income (loss) b Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.08) (.11) Net realized gains (1.40) Total distributions (1.48) (.11) Net asset value, end of period $ $ Total Return (%) c 5.68 ** 4.01 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ thousands) Ratio of expenses (%).84 *.97 * Ratio of net investment income (loss) (%).91 *.95 * Portfolio turnover rate (%) 23 ** 47 d a For the period from June 5, 2017 (commencement of operations) to September 30, b Based on average shares outstanding during the period. c Total return does not reflect the effect of any sales charges. d Represents the Fund s portfolio turnover rate for the year ended September 30, * Annualized ** Not annualized 20 Deutsche Core Equity Fund

21 Six Months Ended 3/31/18 Years Ended September 30, Class C (Unaudited) Selected Per Share Data Net asset value, beginning of period $25.92 $23.27 $22.52 $23.80 $21.55 $17.40 Income (loss) from investment operations: Net investment income (loss) a *** (.08).14 Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.06) (.01) (.15) Net realized gains (1.40) (1.37) (1.82) (1.47) (1.52) Total distributions (1.40) (1.43) (1.83) (1.47) (1.52) (.15) Net asset value, end of period $25.89 $25.92 $23.27 $22.52 $23.80 $21.55 Total Return (%) b 5.25 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%) 1.62 * Ratio of net investment income (loss) (%).14 * *** (.35).73 Portfolio turnover rate (%) 23 ** a Based on average shares outstanding during the period. b Total return does not reflect the effect of any sales charges. * Annualized ** Not annualized *** Amount is less than $.005. Deutsche Core Equity Fund 21

22 Six Months Ended 3/31/18 Years Ended September 30, Class R (Unaudited) Selected Per Share Data Net asset value, beginning of period $27.28 $24.42 $23.57 $24.76 $22.31 $18.02 Income (loss) from investment operations: Net investment income (loss) a (.03).16 Net realized and unrealized gain (loss) Total from investment operations Less distributions from: Net investment income (.04) (.16) (.13) (.00) *** (.17) Net realized gains (1.40) (1.37) (1.82) (1.47) (1.52) Total distributions (1.44) (1.53) (1.95) (1.47) (1.52) (.17) Net asset value, end of period $27.33 $27.28 $24.42 $23.57 $24.76 $22.31 Total Return (%) 5.45 ** b b b Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ thousands) 1,541 1,389 1, Ratio of expenses before expense reductions (%) 1.23 * Ratio of expenses after expense reductions (%) 1.23 * Ratio of net investment income (loss) (%).53 * (.11).81 Portfolio turnover rate (%) 23 ** 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 $ Deutsche Core Equity Fund

23 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 $27.33 $24.46 $23.58 $24.80 $ Income (loss) from investment operations: Net investment income (loss) b Net realized and unrealized gain (loss) (.32) Total from investment operations (.29) Less distributions from: Net investment income (.15) (.35) (.27) (.19) (.06) Net realized gains (1.40) (1.37) (1.82) (1.47) Total distributions (1.55) (1.72) (2.09) (1.66) (.06) Net asset value, end of period $27.38 $27.33 $24.46 $23.58 $ Total Return (%) 5.83 ** (1.16) ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses (%).50 * * Ratio of net investment income (loss) (%) 1.31 * * Portfolio turnover rate (%) 23 ** 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 Core Equity Fund 23

24 Six Months Ended 3/31/18 Years Ended September 30, Class S (Unaudited) Selected Per Share Data Net asset value, beginning of period $27.30 $24.44 $23.55 $24.76 $22.30 $18.01 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 (.14) (.33) (.25) (.19) (.19) (.38) Net realized gains (1.40) (1.37) (1.82) (1.47) (1.52) Total distributions (1.54) (1.70) (2.07) (1.66) (1.71) (.38) Net asset value, end of period $27.35 $27.30 $24.44 $23.55 $24.76 $22.30 Total Return (%) 5.79 ** Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) 3,141 3,073 2,770 2,661 2,817 2,564 Ratio of expenses (%).57 * Ratio of net investment income (loss) (%) 1.18 * Portfolio turnover rate (%) 23 ** a Based on average shares outstanding during the period. * Annualized ** Not annualized 24 Deutsche Core Equity Fund

25 Six Months Ended 3/31/18 Years Ended September 30, Institutional Class (Unaudited) Selected Per Share Data Net asset value, beginning of period $27.35 $24.48 $23.60 $24.80 $22.33 $18.03 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 (.14) (.34) (.26) (.21) (.20) (.40) Net realized gains (1.40) (1.37) (1.82) (1.47) (1.52) Total distributions (1.54) (1.71) (2.08) (1.68) (1.72) (.40) Net asset value, end of period $27.40 $27.35 $24.48 $23.60 $24.80 $22.33 Total Return (%) 5.79 ** b Ratios to Average Net Assets and Supplemental Data Net assets, end of period ($ millions) Ratio of expenses before expense reductions (%).55 * Ratio of expenses after expense reductions (%).55 * Ratio of net investment income (loss) (%) 1.20 * Portfolio turnover rate (%) 23 ** 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 Deutsche Core Equity Fund 25

26 Notes to Financial Statements (Unaudited) A. Organization and Significant Accounting Policies Deutsche Core Equity 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 T shares are subject to an initial sales charge and are only available through certain financial intermediaries. 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 R 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. 26 Deutsche Core Equity Fund

27 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 and exchange traded funds ( ETFs ) are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. 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 and ETFs are generally categorized as Level 1. Debt securities are valued at prices supplied by independent pricing services approved by the Fund s Board. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, prepayment speeds and other data, as well as broker quotes. If the pricing services are unable to provide valuations, debt securities are valued at the average of the most recent reliable bid quotations or evaluated prices, as applicable, obtained from broker-dealers. These securities are generally categorized as Level 2. Investments in open-end investment companies are valued at their net asset value each business day and are categorized as Level 1. 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, Deutsche Core Equity Fund 27

28 currency denomination, and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities. Disclosure about the classification of fair value measurements is included in a table following the Fund s Investment Portfolio. Securities Lending. Deutsche Bank AG, as lending agent, lends securities of the Fund to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities 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 managed by Deutsche Investment Management Americas Inc. As of March 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 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 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 was overnight and continuous. 28 Deutsche Core Equity Fund

29 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 $2,713,072,502. The net unrealized appreciation for all investments based on tax cost was $929,461,349. This consisted of aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost of $965,989,394 and aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value of $36,528,045. The Fund has reviewed the tax provisions for the open tax years as of September 30, 2017 and has determined that no provision for income tax and/or 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 are declared and distributed to shareholders quarterly. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually. The Fund may also make additional distributions for tax purposes if necessary. 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 and reclassification of distributions. 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 Deutsche Core Equity Fund 29

30 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 valuation 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 March 31, 2018, purchases and sales of investment securities (excluding short-term investments) aggregated $845,475,150 and $868,126,557, 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.365% Next $750 million of such net assets.360% Next $1.5 billion of such net assets.355% Next $5.0 billion of such net assets.345% Next $5.0 billion of such net assets.335% Next $5.0 billion of such net assets.325% Over $17.5 billion of such net assets.300% 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 0.35% of the Fund s average daily net assets. 30 Deutsche Core Equity Fund

31 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 1.14% Class T 1.14% Class C 1.89% Class R 1.39% Class R6.89% Class S.89% Institutional Class.89% 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 $1,836,790, of which $313,921 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 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 $ 75,764 $ 26,806 Class T 9 4 Class C 5,496 1,809 Class R Class R Class S 713, ,001 Institutional Class 3,449 5,556 $ 798,981 $ 293,242 Deutsche Core Equity Fund 31