SEMIANNUAL REPORT - Prudential

JUNE 30, 2010
SEMIANNUAL REPORT
DWS VARIABLE SERIES II
DWS Strategic Income VIP
This report must be preceded or accompanied by a prospectus. To obtain an additional prospectus or summary prospectus,
if available, call (800) 778-1482 or your financial representative. We advise you to consider the Portfolio’s objectives, risks,
charges and expenses carefully before investing. The summary prospectus and prospectus contain this and other important
information about the Portfolio. Please read the prospectus carefully before you invest.
Investments in variable portfolios involve risk. Some portfolios have more risk than others. These include portfolios that allow exposure to or
otherwise concentrate investments in certain sectors, geographic regions, security types, market capitalization or foreign securities (e.g.,
political or economic instability, which can be accentuated in Emerging Market countries). Please read the prospectus for specific details
regarding its investments and risk profile.
DWS Investments is part of Deutsche Bank’s Asset Management division and, within the US, represents the retail asset management
activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust
Company.
NOT FDIC/NCUA INSUREDМNO BANK GUARANTEEМMAY LOSE VALUEМNOT A DEPOSITМ
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance Summary June 30, 2010
DWS Strategic Income VIP
All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions and does not
guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when
redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the
performance data quoted. Please contact your participating insurance company for the Portfolio’s most recent month-end
performance. Performance doesn’t reflect charges and fees (contract charges") associated with the separate account that
invests in the Portfolio or any variable life insurance policy or variable annuity contract for which the Portfolio is an
investment option. These charges and fees will reduce returns.
The gross expense ratio of the Portfolio, as stated in the fee table of the prospectus dated May 1, 2010 is 0.86% for Class A
shares and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
Risk Considerations
Bond investments are subject to interest−rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to
the ability of an issuer to make timely payments of principal and interest. Investments in lower-quality and non-rated securities
present greater risk of loss than investments in higher-quality securities. The portfolio may use derivatives, including as part of its
global alpha strategy. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns
and/or increase volatility. Investing in foreign securities, particularly those of emerging markets, presents certain risks, such as
currency fluctuations, political and economic changes, and market risks. See the prospectus for details.
Portfolio returns for all periods shown reflect a fee waiver and/or expense reimbursement. Without this waiver/reimbursement,
returns would have been lower.
Growth of an Assumed $10,000 Investment in DWS Strategic Income VIP
НDWS Strategic Income VIP Class A
НBarclays Capital US Government/Credit Index
НBlended Index
$25,000
$20,000
$15,000
$10,000
$5,000
$0
’00
|
’01
|
’02
|
’03
|
’04
|
’05
|
’06
|
’07
Yearly periods ended June 30
|
’08
|
’09
’10
$20,632
$19,618
$18,728
The Barclays Capital US Government/Credit
Index is an unmanaged index comprising
intermediate− and long−term government and
investment−grade corporate debt securities.
The Blended Index consists of the Credit
Suisse High Yield Index (35%), Barclays
Capital US Government/Credit Index (35%),
JPMorgan Emerging Markets Bond Index
Global Diversified (15%) and Citigroup Non
US Hedged World Government Bond Index
(WGBI") (15%). The Advisor believes this
blended benchmark, which is a secondary
benchmark, more accurately reflects typical
portfolio asset allocations and represents the
overall investment process.
Index returns, unlike portfolio returns, do not
reflect any fees or expenses. It is not
possible to invest directly into an index.
Comparative Results
DWS Strategic Income VIP 6-Month 1-Year 3-Year 5-Year 10-Year
Class A Growth of $10,000 $10,462 $11,758 $12,276 $13,742 $19,618
Average annual total return 4.62% 17.58% 7.07% 6.56% 6.97%
Barclays Capital US Growth of $10,000 $10,549 $10,965 $12,377 $12,921 $18,728
Government/Credit Index
Average annual total return 5.49% 9.65% 7.37% 5.26% 6.48%
Blended Index Growth of $10,000 $10,483 $11,610 $12,262 $13,576 $20,632
Average annual total return 4.83% 16.10% 7.03% 6.30% 7.51%
The growth of $10,000 is cumulative.
Total returns shown for periods less than one year are not annualized.
2 |
DWS Variable Series II
DWS Strategic Income VIP

Information About Your Portfolio’s Expenses
DWS Strategic Income VIP
As an investor of the Portfolio, you incur two types of
costs: ongoing expenses and transaction costs.
Ongoing expenses include management fees and
other Portfolio expenses. Examples of transaction
costs include contract charges, redemption fees and
account maintenance fees, which are not shown in
this section. The following tables are intended to help
you understand your ongoing expenses (in dollars) of
investing in the Portfolio and to help you compare
these expenses with the ongoing expenses of
investing in other mutual funds. In the most recent
six-month period, the Portfolio limited these
expenses; had it not done so, expenses would have
been higher. The example in the table is based on an
investment of $1,000 invested at the beginning of the
six-month period and held for the entire period
(January 1, 2010 to June 30, 2010).
The tables illustrate your Portfolio’s expenses in two
ways:
Actual Portfolio Return. This helps you estimate
the actual dollar amount of ongoing expenses (but
not transaction costs) paid on a $1,000 investment
in the Portfolio using the Portfolio’s actual return
during the period. To estimate the expenses you
paid over the period, simply divide your account
value by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the
result by the number in the Expenses Paid per
$1,000" line under the share class you hold.
Hypothetical 5% Portfolio Return. This helps you
to compare your Portfolio’s ongoing expenses (but
not transaction costs) with those of other mutual
funds using the Portfolio’s actual expense ratio and
a hypothetical rate of return of 5% per year before
expenses. Examples using a 5% hypothetical
Portfolio return may be found in the shareholder
reports of other mutual funds. The hypothetical
account values and expenses may not be used to
estimate the actual ending account balance or
expenses you paid for the period.
Please note that the expenses shown in these tables
are meant to highlight your ongoing expenses only
and do not reflect any transaction costs. The
Expenses Paid per $1,000" line of the tables is
useful in comparing ongoing expenses only and will
not help you determine the relative total expense of
owning different funds. If these transaction costs had
been included, your costs would have been higher.
Expenses and Value of a $1,000 Investment for the six months ended June 30, 2010
Actual Portfolio Return
Class A
Beginning Account Value 1/1/10 $1,000.00
Ending Account Value 6/30/10 $1,046.20
Expenses Paid per $1,000* $ 4.46
Hypothetical 5% Portfolio Return
Class A
Beginning Account Value 1/1/10 $1,000.00
Ending Account Value 6/30/10 $1,020.43
Expenses Paid per $1,000* $ 4.41
* Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the
number of days in the most recent six-month period, then divided by 365.
Annualized Expense Ratio
Class A
DWS Variable Series II DWS Strategic Income VIP .88%
For more information, please refer to the Portfolio’s prospectus.
These tables do not reflect charges and fees (contract charges") associated with the separate account that
invests in the Portfolio or any variable life insurance policy or variable annuity contract for which the Portfolio is an
investment option.
DWS Variable Series II
DWS Strategic Income VIP | 3

Portfolio Summary
DWS Strategic Income VIP
Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral) 6/30/10 12/31/09
Corporate Bonds 61% 62%
Government & Agency Obligations 19% 18%
Cash Equivalents 8% 8%
Mortgage-Backed Securities Pass-Throughs 3% 4%
Loan Participations and Assignments 3% 3%
Commercial Mortgage-Backed Securities 2% 1%
Collateralized Mortgage Obligations 2% 2%
Asset Backed 1% 1%
Preferred Securities 1% 1%
Municipal Bonds and Notes 0%
100% 100%
Quality (Excludes Securities Lending Collateral) 6/30/10 12/31/09
Cash Equivalents 7% 9%
AAA 17% 12%
AA 4% 8%
A 4% 6%
BBB 15% 14%
BB 16% 18%
B 27% 21%
CCC 9% 8%
Below CCC 2%
Not Rated 1% 2%
100% 100%
Interest Rate Sensitivity 6/30/10 12/31/09
Effective Maturity 6.6 years 6.6 years
Effective Duration 4.4 years 3.7 years
Asset allocation, quality and interest rate sensitivity are subject to change.
The quality ratings represent the lower of Moody’s Investors Service, Inc. (Moody’s") or Standard & Poor’s Corporation (S&P") credit
ratings. The ratings of Moody’s and S&P represent their opinions as to the quality of the securities they rate. Ratings are relative and
subjective and are not absolute standards of quality. The Portfolio’s credit quality does not remove market risk. Credit quality ratings are
subject to change.
Effective maturity is the weighted average of the bonds held by the Portfolio taking into consideration any maturity shortening features.
Effective duration is the measurable change in the value of a security in response to a change in interest rates.
For more complete details about the Portfolio’s investment portfolio, see page 5.
Following the Portfolio’s fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC
on Form N-Q. The form will be available on the SEC’s Web site at www.sec.gov, and it also may be reviewed and
copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public
Reference Room may be obtained by calling (800) SEC-0330. A complete list of the portfolio holdings of the
Portfolio is also posted on www.dws-investments.com from time to time. Please see the Portfolio’s current
prospectus for more information.
4 |
DWS Variable Series II
DWS Strategic Income VIP

Investment Portfolio
June 30, 2010 (Unaudited)
DWS Strategic Income VIP
Principal
Amount ($) (a) Value ($)
Corporate Bonds 62.6%
Consumer Discretionary 8.2%
Advance Auto Parts, Inc.,
5.75%, 5/1/2020 232,000 237,217
AMC Entertainment, Inc.,
8.0%, 3/1/2014 105,000 101,062
American Achievement Corp.,
144A, 8.25%, 4/1/2012 30,000 29,775
Ameristar Casinos, Inc.,
9.25%, 6/1/2014 115,000 120,462
ArvinMeritor, Inc.:
8.125%, 9/15/2015 55,000 52,800
10.625%, 3/15/2018 60,000 63,600
Asbury Automotive Group, Inc.:
7.625%, 3/15/2017 65,000 61,100
8.0%, 3/15/2014 30,000 29,625
Ashtead Holdings PLC, 144A,
8.625%, 8/1/2015 120,000 118,800
Avis Budget Car Rental LLC,
144A, 9.625%, 3/15/2018 45,000 45,450
Brunswick Corp., 144A,
11.25%, 11/1/2016 45,000 49,500
Cablevision Systems Corp.:
7.75%, 4/15/2018 10,000 10,000
8.0%, 4/15/2020 10,000 10,125
CanWest MediaWorks LP,
144A, 9.25%, 8/1/2015** 50,000 12,000
Carnival Corp.,
6.65%, 1/15/2028 285,000 296,720
Carrols Corp., 9.0%, 1/15/2013 30,000 29,850
CCO Holdings LLC:
144A, 7.875%, 4/30/2018 40,000 40,200
144A, 8.125%, 4/30/2020 25,000 25,563
Cequel Communications
Holdings I LLC, 144A,
8.625%, 11/15/2017 215,000 214,194
Clear Channel Worldwide
Holdings, Inc.:
Series A, 144A,
9.25%, 12/15/2017 15,000 14,925
Series B, 144A,
9.25%, 12/15/2017 25,000 25,125
Comcast Corp.,
5.15%, 3/1/2020 145,000 151,808
Cooper-Standard Automotive,
Inc., 144A, 8.5%, 5/1/2018 25,000 25,188
DISH DBS Corp.:
6.375%, 10/1/2011 345,000 356,212
6.625%, 10/1/2014 65,000 65,000
7.125%, 2/1/2016 155,000 155,387
Dollarama Group Holdings LP,
7.287%***, 8/15/2012 (b) 52,000 52,520
Fontainebleau Las Vegas
Holdings LLC, 144A,
11.0%, 6/15/2015** 65,000 244
Ford Motor Co.,
7.45%, 7/16/2031 65,000 58,662
GameStop Corp.,
8.0%, 10/1/2012 60,000 61,650
Goodyear Tire & Rubber Co.,
10.5%, 5/15/2016 25,000 27,188
Gray Television, Inc., 144A,
10.5%, 6/29/2015 60,000 58,200
The accompanying notes are an integral part of the financial statements.
Principal
Amount ($) (a) Value ($)
Great Canadian Gaming Corp.,
144A, 7.25%, 2/15/2015 55,000 54,175
Group 1 Automotive, Inc.,
144A, 3.0%, 3/15/2020 65,000 52,650
Harrah’s Operating Co., Inc.:
11.25%, 6/1/2017 240,000 252,600
144A, 12.75%, 4/15/2018 55,000 52,525
Hertz Corp., 8.875%, 1/1/2014 285,000 288,562
Hyundai Motor
Manufacturing Czech,
144A, 4.5%, 4/15/2015 145,000 143,794
Isle of Capri Casinos, Inc.,
7.0%, 3/1/2014 39,000 35,100
Lear Corp.:
7.875%, 3/15/2018 40,000 40,100
8.125%, 3/15/2020 40,000 40,100
Limited Brands, Inc.,
7.0%, 5/1/2020 20,000 20,150
Macy’s Retail Holdings, Inc.:
5.9%, 12/1/2016 143,000 143,357
8.375%, 7/15/2015 10,000 11,025
Mediacom Broadband LLC,
8.5%, 10/15/2015 75,000 71,625
Mediacom LLC,
9.125%, 8/15/2019 30,000 28,950
MGM Resorts International:
144A, 9.0%, 3/15/2020 65,000 66,787
10.375%, 5/15/2014 45,000 48,938
11.125%, 11/15/2017 50,000 55,125
Michaels Stores, Inc., Step-up
Coupon, 0% to 11/1/2011,
13.0% to 11/1/2016 25,000 22,250
Nexstar Broadcasting, Inc.,
144A, 8.875%, 4/15/2017 55,000 55,275
Norcraft Holdings LP,
9.75%, 9/1/2012 71,000 67,184
Penn National Gaming, Inc.,
8.75%, 8/15/2019 25,000 25,688
Penske Automotive Group, Inc.,
7.75%, 12/15/2016 175,000 164,500
Phillips-Van Heusen Corp.,
7.375%, 5/15/2020 25,000 25,219
Pinnacle Entertainment, Inc.:
7.5%, 6/15/2015 30,000 28,125
144A, 8.625%, 8/1/2017 310,000 319,300
Sabre Holdings Corp.,
8.35%, 3/15/2016 160,000 152,800
Seminole Indian Tribe of Florida,
144A, 7.804%, 10/1/2020 70,000 63,103
Simmons Bedding Co., 144A,
11.25%, 7/15/2015 50,000 53,687
Sirius XM Radio, Inc., 144A,
8.75%, 4/1/2015 55,000 54,175
Sonic Automotive, Inc.,
Series B, 9.0%, 3/15/2018 95,000 96,425
Standard Pacific Corp.:
8.375%, 5/15/2018 10,000 9,500
10.75%, 9/15/2016 80,000 85,600
Travelport LLC:
5.163%***, 9/1/2014 45,000 42,075
9.875%, 9/1/2014 85,000 85,212
DWS Variable Series II
DWS Strategic Income VIP | 5

Principal
Amount ($) (a) Value ($)
Trump Entertainment Resorts,
Inc., 8.5%, 6/1/2015** 15,000 19
United Components, Inc.,
9.375%, 6/15/2013 10,000 10,050
Unitymedia Hessen GmbH &
Co., KG, 144A, 8.125%,
12/1/2017 200,000 196,000
UPC Holding BV:
144A, 7.75%, 1/15/2014 EUR 200,000 236,621
144A, 8.0%, 11/1/2016 EUR 100,000 116,171
Vertis, Inc.,
13.5%, 4/1/2014 (PIK) 22,809 9,523
WMG Acquisition Corp.,
9.5%, 6/15/2016 45,000 47,925
Young Broadcasting, Inc.,
8.75%, 1/15/2014** 275,000 165
5,972,307
Consumer Staples 2.1%
Alliance One International, Inc.,
144A, 10.0%, 7/15/2016 70,000 71,225
Altria Group, Inc.,
9.25%, 8/6/2019 145,000 180,975
B&G Foods, Inc.,
7.625%, 1/15/2018 25,000 25,125
Central Garden & Pet Co.,
8.25%, 3/1/2018 35,000 34,694
Dole Food Co., Inc., 144A,
8.0%, 10/1/2016 35,000 35,088
FAGE Dairy Industry SA, 144A,
9.875%, 2/1/2020 85,000 71,400
General Nutrition Centers, Inc.,
5.75%***, 3/15/2014 (PIK) 40,000 36,700
Grupo Bimbo SAB de CV, 144A,
4.875%, 6/30/2020 160,000 160,797
Kraft Foods, Inc.,
5.375%, 2/10/2020 145,000 155,375
North Atlantic Trading Co.,
144A, 10.0%, 3/1/2012 223,000 190,665
Reddy Ice Corp., 144A,
11.25%, 3/15/2015 25,000 25,750
Reynolds American, Inc.,
6.75%, 6/15/2017 200,000 216,678
Rite Aid Corp., 7.5%, 3/1/2017 60,000 53,100
Smithfield Foods, Inc.:
7.75%, 7/1/2017 155,000 148,025
144A, 10.0%, 7/15/2014 85,000 94,137
SUPERVALU, Inc.,
8.0%, 5/1/2016 35,000 34,650
TreeHouse Foods, Inc.,
7.75%, 3/1/2018 25,000 25,938
1,560,322
Energy 8.0%
Atlas Energy Operating Co., LLC:
10.75%, 2/1/2018 115,000 122,619
12.125%, 8/1/2017 55,000 60,775
Belden & Blake Corp.,
8.75%, 7/15/2012 310,000 289,075
Bill Barrett Corp.,
9.875%, 7/15/2016 40,000 42,400
Bristow Group, Inc.,
7.5%, 9/15/2017 70,000 66,850
Chaparral Energy, Inc.,
8.5%, 12/1/2015 230,000 213,900
Chesapeake Energy Corp.:
6.25%, 1/15/2018 55,000 55,550
6.875%, 11/15/2020 75,000 75,656
Principal
Amount ($) (a) Value ($)
7.25%, 12/15/2018 100,000 103,250
9.5%, 2/15/2015 185,000 204,425
CITGO Petroleum Corp., 144A,
11.5%, 7/1/2017 105,000 104,212
Coffeyville Resources LLC,
144A, 9.0%, 4/1/2015 70,000 69,300
Colorado Interstate Gas Co.,
6.8%, 11/15/2015 30,000 34,568
CONSOL Energy, Inc.:
144A, 8.0%, 4/1/2017 115,000 118,737
144A, 8.25%, 4/1/2020 60,000 62,550
Continental Resources, Inc.:
144A, 7.375%, 10/1/2020 35,000 34,388
8.25%, 10/1/2019 20,000 20,900
Crosstex Energy LP,
8.875%, 2/15/2018 55,000 54,931
DCP Midstream LLC, 144A,
5.35%, 3/15/2020 165,000 168,706
El Paso Corp.:
7.25%, 6/1/2018 55,000 55,148
9.625%, 5/15/2012 255,000 271,011
El Paso Pipeline Partners
Operating Co., LLC,
6.5%, 4/1/2020 155,000 158,308
Enbridge Energy Partners LP,
5.2%, 3/15/2020 145,000 149,408
EXCO Resources, Inc.,
7.25%, 1/15/2011 95,000 94,763
Frontier Oil Corp.,
6.625%, 10/1/2011 40,000 40,150
Global Geophysical Services,
Inc., 144A, 10.5%, 5/1/2017 130,000 124,800
Holly Energy Partners LP, 144A,
8.25%, 3/15/2018 55,000 55,275
Husky Energy, Inc.,
7.25%, 12/15/2019 210,000 253,784
KCS Energy, Inc.,
7.125%, 4/1/2012 240,000 239,400
Linn Energy LLC:
144A, 8.625%, 4/15/2020 55,000 56,306
11.75%, 5/15/2017 75,000 85,125
Mariner Energy, Inc.:
7.5%, 4/15/2013 60,000 61,500
8.0%, 5/15/2017 95,000 103,787
Newfield Exploration Co.,
7.125%, 5/15/2018 90,000 89,100
Nexen, Inc., 6.2%, 7/30/2019 90,000 101,049
Niska Gas Storage US LLC,
144A, 8.875%, 3/15/2018 55,000 55,825
OPTI Canada, Inc.:
7.875%, 12/15/2014 215,000 187,050
8.25%, 12/15/2014 70,000 60,900
Petrohawk Energy Corp.:
7.875%, 6/1/2015 30,000 30,075
9.125%, 7/15/2013 65,000 67,763
Plains Exploration & Production Co.:
7.0%, 3/15/2017 60,000 57,300
7.625%, 6/1/2018 110,000 107,525
8.625%, 10/15/2019 55,000 55,688
Quicksilver Resources, Inc.:
7.125%, 4/1/2016 30,000 27,675
11.75%, 1/1/2016 15,000 16,538
Regency Energy Partners LP:
8.375%, 12/15/2013 80,000 82,400
144A, 9.375%, 6/1/2016 115,000 121,900
6 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

Principal
Amount ($) (a) Value ($)
Sabine Pass LNG LP:
7.25%, 11/30/2013 115,000 103,500
7.5%, 11/30/2016 100,000 83,250
Southwestern Energy Co.,
7.5%, 2/1/2018 85,000 90,313
Stone Energy Corp.:
6.75%, 12/15/2014 95,000 80,750
8.625%, 2/1/2017 125,000 112,500
TransCanada PipeLines Ltd.,
6.1%, 6/1/2040 145,000 156,030
Valero Energy Corp.,
6.125%, 2/1/2020 160,000 164,415
Whiting Petroleum Corp.:
7.25%, 5/1/2012 125,000 125,000
7.25%, 5/1/2013 20,000 20,150
Williams Partners LP, 144A,
5.25%, 3/15/2020 200,000 204,513
5,852,766
Financials 17.0%
Algoma Acquisition Corp.,
144A, 9.875%, 6/15/2015 125,000 106,250
Ally Financial, Inc.:
6.875%, 9/15/2011 297,000 301,084
7.0%, 2/1/2012 185,000 186,156
7.25%, 3/2/2011 455,000 462,394
144A, 8.0%, 3/15/2020 90,000 87,975
8.0%, 11/1/2031 75,000 69,187
144A, 8.3%, 2/12/2015 35,000 35,438
American International
Group, Inc., Series G,
5.6%, 10/18/2016 290,000 264,770
Antero Resources
Finance Corp., 144A,
9.375%, 12/1/2017 30,000 30,000
Ashton Woods USA LLC,
144A, Step-up Coupon,
0% to 6/30/2012,
11.0% to 6/30/2015 75,400 43,732
Bank of America Corp.:
5.625%, 7/1/2020 145,000 146,152
7.625%, 6/1/2019 90,000 103,096
BBVA Bancomer SA, 144A,
7.25%, 4/22/2020 115,000 113,457
Buffalo Thunder Development
Authority, 144A,
9.375%, 12/15/2014** 30,000 5,400
Calpine Construction
Finance Co., LP, 144A,
8.0%, 6/1/2016 120,000 122,700
Case New Holland, Inc.,
7.75%, 9/1/2013 45,000 46,012
CIT Group, Inc.,
7.0%, 5/1/2017 300,000 270,000
Citigroup Funding, Inc.,
5.0%, 4/7/2013 295,000 286,150
Depfa ACS Bank, 144A,
9.118%***, 10/6/2023 1,000,000 866,400
Discover Bank,
7.0%, 4/15/2020 145,000 146,411
E*TRADE Financial Corp.,
7.375%, 9/15/2013 120,000 108,000
Export-Import Bank of Korea,
5.125%, 6/29/2020 113,000 113,454
Express LLC, 144A,
8.75%, 3/1/2018 45,000 45,787
FCE Bank PLC,
9.375%, 1/17/2014 EUR 100,000 128,399
Principal
Amount ($) (a) Value ($)
Ford Motor Credit Co., LLC:
7.25%, 10/25/2011 60,000 61,636
7.375%, 2/1/2011 45,000 45,843
7.5%, 8/1/2012 500,000 511,287
9.875%, 8/10/2011 145,000 152,575
GE Capital European Funding,
4.25%, 3/1/2017 EUR 290,000 363,087
General Electric Capital Corp.,
5.5%, 1/8/2020 225,000 237,770
Genworth Financial, Inc.,
7.7%, 6/15/2020 90,000 89,903
Hartford Financial Services
Group, Inc.:
5.5%, 3/30/2020 50,000 48,530
6.625%, 3/30/2040 85,000 78,929
Hellas Telecommunications
Finance SCA, 144A,
8.644%***, 7/15/2015 (PIK) EUR 106,853 14
Hexion US Finance Corp.,
8.875%, 2/1/2018 165,000 148,912
Hospitality Properties Trust,
(REIT), 7.875%, 8/15/2014 200,000 220,497
Host Hotels & Resorts LP,
(REIT), 6.875%, 11/1/2014 165,000 164,587
Hutchison Whampoa Finance
09 Ltd., 4.75%, 11/14/2016 EUR 150,000 192,674
Intergas Finance BV, REG S,
6.875%, 11/4/2011 275,000 286,687
International Bank for
Reconstruction &
Development,
5.25%, 4/9/2025 290,000 290,000
International Finance Corp.,
5.75%, 3/16/2015 AUD 285,000 243,837
International Lease
Finance Corp.:
144A, 8.625%, 9/15/2015 40,000 37,900
144A, 8.75%, 3/15/2017 80,000 75,800
iPayment, Inc.,
9.75%, 5/15/2014 45,000 40,950
Jefferies Group, Inc.,
6.875%, 4/15/2021 145,000 145,376
LBI Escrow Corp., 144A,
8.0%, 11/1/2017 100,000 103,000
Lincoln National Corp.,
7.0%, 6/15/2040 290,000 305,441
MetLife, Inc.,
7.717%, 2/15/2019 180,000 214,240
Morgan Stanley, Series F,
5.625%, 9/23/2019 82,000 79,328
New ASAT (Finance) Ltd.,
9.25%, 2/1/2011** 90,000 18,000
Nielsen Finance LLC:
Step-up Coupon,
0% to 8/1/2011,
12.5% to 8/1/2016 45,000 42,862
11.5%, 5/1/2016 20,000 21,850
Nomura Holdings, Inc.,
6.7%, 3/4/2020 90,000 95,215
Nuveen Investments, Inc.,
10.5%, 11/15/2015 60,000 52,200
Orascom Telecom
Finance SCA, 144A,
7.875%, 2/8/2014 200,000 183,500
Pacific Life Global Funding,
144A, 4.49%***, 2/6/2016 386,000 370,587
Pinnacle Foods Finance LLC,
9.25%, 4/1/2015 35,000 35,700
The accompanying notes are an integral part of the financial statements.
DWS Variable Series II
DWS Strategic Income VIP | 7

Principal
Amount ($) (a) Value ($)
PNC Bank NA,
6.875%, 4/1/2018 180,000 203,363
Prudential Financial, Inc.,
5.375%, 6/21/2020 135,000 136,725
Rainbow National
Services LLC, 144A,
10.375%, 9/1/2014 13,000 13,536
Reynolds Group Issuer, Inc.,
144A, 8.5%, 5/15/2018 195,000 191,344
Rio Tinto Finance (USA) Ltd.,
9.0%, 5/1/2019 240,000 314,945
SLM Corp., 8.0%, 3/25/2020 25,000 21,955
Sprint Capital Corp.:
7.625%, 1/30/2011 50,000 50,875
8.375%, 3/15/2012 135,000 141,581
Susser Holdings LLC, 144A,
8.5%, 5/15/2016 30,000 30,000
Teachers Insurance & Annuity
Association of America,
144A, 6.85%, 12/16/2039 185,000 215,478
Total Capital SA,
4.45%, 6/24/2020 290,000 296,017
Toyota Motor Credit Corp.,
5.25%, 2/3/2012 EUR 270,000 346,274
Toys "R" Us Property
Co. I, LLC, 144A,
10.75%, 7/15/2017 50,000 54,625
Tropicana Entertainment LLC,
9.625%, 12/15/2014** 150,000 11
UCI Holdco, Inc., 8.537%***,
12/15/2013 (PIK) 79,793 77,399
Vale Overseas Ltd.,
5.625%, 9/15/2019 160,000 168,817
Virgin Media Finance PLC,
Series 1, 9.5%, 8/15/2016 300,000 316,875
Virgin Media Secured Finance
PLC, 144A, 6.5%, 1/15/2018 375,000 368,437
Wind Acquisition Finance SA:
144A, 11.0%, 12/1/2015 EUR 180,000 220,113
144A, 11.75%, 7/15/2017 EUR 60,000 74,105
144A, 11.75%, 7/15/2017 100,000 102,500
Wind Acquisition Holdings
Finance SA, 144A,
12.25%, 7/15/2017 (PIK) EUR 60,000 66,401
12,458,497
Health Care 3.8%
CareFusion Corp.,
6.375%, 8/1/2019 145,000 165,638
Community Health Systems,
Inc., 8.875%, 7/15/2015 575,000 592,969
Genzyme Corp., 144A,
5.0%, 6/15/2020 155,000 159,649
HCA, Inc.:
7.875%, 2/15/2020 365,000 375,494
8.5%, 4/15/2019 45,000 47,700
9.125%, 11/15/2014 155,000 162,169
9.25%, 11/15/2016 310,000 328,600
9.625%, 11/15/2016 (PIK) 152,000 162,640
IASIS Healthcare LLC,
8.75%, 6/15/2014 95,000 94,525
Life Technologies Corp.,
6.0%, 3/1/2020 215,000 232,826
The Cooper Companies, Inc.,
7.125%, 2/15/2015 95,000 95,237
Valeant Pharmaceuticals
International, 144A,
7.625%, 3/15/2020 85,000 100,300
Principal
Amount ($) (a) Value ($)
Vanguard Health Holding Co. II,
LLC, 8.0%, 2/1/2018 55,000 52,800
Watson Pharmaceuticals, Inc.,
6.125%, 8/15/2019 220,000 247,687
2,818,234
Industrials 5.0%
Acco Brands Corp.,
10.625%, 3/15/2015 20,000 21,700
Actuant Corp.,
6.875%, 6/15/2017 40,000 39,000
ARAMARK Corp.,
8.5%, 2/1/2015 20,000 20,200
BE Aerospace, Inc.,
8.5%, 7/1/2018 105,000 110,250
Belden, Inc.:
7.0%, 3/15/2017 45,000 43,481
144A, 9.25%, 6/15/2019 40,000 42,200
Bombardier, Inc., 144A,
7.75%, 3/15/2020 55,000 57,063
Cenveo Corp.:
8.875%, 2/1/2018 100,000 96,000
144A, 10.5%, 8/15/2016 55,000 55,963
Clean Harbors, Inc.,
7.625%, 8/15/2016 35,000 35,963
Congoleum Corp.,
8.625%, 8/1/2008** 125,000 28,438
Corrections Corp. of America,
7.75%, 6/1/2017 30,000 31,125
DynCorp International, Inc.,
144A, 10.375%, 7/1/2017 (c) 50,000 50,125
Garda World Security Corp.,
144A, 9.75%, 3/15/2017 60,000 60,900
Great Lakes Dredge & Dock
Co., 7.75%, 12/15/2013 50,000 49,500
Hutchison Whampoa
International 09/19 Ltd.,
144A, 5.75%, 9/11/2019 225,000 239,791
Iron Mountain, Inc.,
8.375%, 8/15/2021 80,000 81,600
K. Hovnanian Enterprises, Inc.,
8.875%, 4/1/2012 55,000 51,425
Kansas City Southern de
Mexico SA de CV:
7.375%, 6/1/2014 115,000 117,012
7.625%, 12/1/2013 155,000 158,100
144A, 8.0%, 2/1/2018 105,000 108,675
Kansas City Southern Railway
Co., 8.0%, 6/1/2015 100,000 103,000
Masco Corp.,
7.125%, 3/15/2020 145,000 140,793
McJunkin Red Man Corp.,
144A, 9.5%, 12/15/2016 95,000 92,150
Mobile Mini, Inc.,
9.75%, 8/1/2014 65,000 66,462
Navios Maritime Holdings, Inc.,
9.5%, 12/15/2014 75,000 72,000
Oshkosh Corp.:
8.25%, 3/1/2017 10,000 10,400
8.5%, 3/1/2020 25,000 26,000
Owens Corning, Inc.,
9.0%, 6/15/2019 217,000 256,576
Ply Gem Industries, Inc., 144A,
13.125%, 7/15/2014 75,000 75,937
RailAmerica, Inc.,
9.25%, 7/1/2017 36,000 37,710
RBS Global, Inc.., 144A,
8.5%, 5/1/2018 120,000 116,400
8 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

Principal
Amount ($) (a) Value ($)
Republic Services, Inc., 144A,
5.0%, 3/1/2020 145,000 150,353
Sitel LLC, 144A,
11.5%, 4/1/2018 95,000 87,875
Textron, Inc., 7.25%, 10/1/2019 312,000 356,188
Titan International, Inc.,
8.0%, 1/15/2012 195,000 202,800
TransDigm, Inc.,
7.75%, 7/15/2014 30,000 30,075
United Rentals North America,
Inc., 7.0%, 2/15/2014 175,000 164,500
USG Corp., 144A,
9.75%, 8/1/2014 45,000 46,800
Waste Management, Inc.,
4.75%, 6/30/2020 95,000 97,662
3,632,192
Information Technology 2.2%
Alcatel-Lucent USA, Inc.,
6.45%, 3/15/2029 70,000 46,200
Amkor Technology, Inc., 144A,
7.375%, 5/1/2018 45,000 43,650
Aspect Software, Inc., 144A,
10.625%, 5/15/2017 130,000 130,000
Equinix, Inc., 8.125%, 3/1/2018 120,000 122,700
First Data Corp.,
9.875%, 9/24/2015 45,000 34,200
Freescale Semiconductor, Inc.:
8.875%, 12/15/2014 125,000 114,062
144A, 9.25%, 4/15/2018 200,000 197,500
Jabil Circuit, Inc.,
7.75%, 7/15/2016 30,000 31,350
L-3 Communications Corp.:
5.875%, 1/15/2015 105,000 103,687
Series B, 6.375%, 10/15/2015 80,000 80,000
ManTech International Corp.,
144A, 7.25%, 4/15/2018 20,000 20,200
MasTec, Inc., 7.625%, 2/1/2017 65,000 63,213
NXP BV, 7.875%, 10/15/2014 75,000 68,813
Seagate HDD Cayman, 144A,
6.875%, 5/1/2020 20,000 19,000
Seagate Technology
International, 144A,
10.0%, 5/1/2014 25,000 28,500
SunGard Data Systems, Inc.,
10.25%, 8/15/2015 225,000 232,312
Unisys Corp., 144A,
12.75%, 10/15/2014 80,000 89,400
Vangent, Inc.,
9.625%, 2/15/2015 35,000 33,469
Western Union Co.,
6.2%, 6/21/2040 145,000 150,036
1,608,292
Materials 6.3%
Appleton Papers, Inc., 144A,
11.25%, 12/15/2015 25,000 21,250
ArcelorMittal, 6.125%, 6/1/2018 250,000 261,470
Ashland, Inc., 9.125%, 6/1/2017 55,000 60,225
Ball Corp.:
7.125%, 9/1/2016 30,000 31,387
7.375%, 9/1/2019 25,000 26,000
Berry Plastics Corp., 144A,
9.5%, 5/15/2018 65,000 59,475
Boise Paper Holdings LLC,
144A, 8.0%, 4/1/2020 30,000 29,925
Principal
Amount ($) (a) Value ($)
CF Industries, Inc.,
6.875%, 5/1/2018 25,000 25,437
Clondalkin Acquisition
BV, 144A,
2.537%***, 12/15/2013 75,000 64,875
CPG International I, Inc.,
10.5%, 7/1/2013 130,000 129,350
Crown Americas LLC, 144A,
7.625%, 5/15/2017 30,000 31,050
Dow Chemical Co.:
7.375%, 11/1/2029 290,000 321,060
8.55%, 5/15/2019 290,000 354,993
Essar Steel Algoma, Inc., 144A,
9.375%, 3/15/2015 240,000 228,000
Exopack Holding Corp.,
11.25%, 2/1/2014 160,000 162,000
GEO Specialty Chemicals, Inc.:
144A, 7.5%, 3/31/2015 (PIK) 120,175 102,149
10.0%, 3/31/2015 119,040 101,184
Georgia-Pacific LLC:
144A, 7.0%, 1/15/2015 45,000 45,450
144A, 7.125%, 1/15/2017 35,000 35,700
144A, 8.25%, 5/1/2016 65,000 69,306
9.5%, 12/1/2011 300,000 322,500
Graphic Packaging International,
Inc., 9.5%, 6/15/2017 130,000 135,850
Greif, Inc., 7.75%, 8/1/2019 195,000 200,850
Hexcel Corp., 6.75%, 2/1/2015 255,000 249,900
Huntsman International LLC,
144A, 8.625%, 3/15/2020 50,000 46,250
Innophos, Inc.,
8.875%, 8/15/2014 35,000 36,050
International Paper Co.,
7.5%, 8/15/2021 145,000 169,780
MeadWestvaco Corp.,
7.375%, 9/1/2019 145,000 157,556
Millar Western Forest Products
Ltd., 7.75%, 11/15/2013 35,000 30,100
NewMarket Corp.,
7.125%, 12/15/2016 110,000 106,700
Newmont Mining Corp.,
5.125%, 10/1/2019 100,000 107,153
Novelis, Inc.:
7.25%, 2/15/2015 100,000 96,500
11.5%, 2/15/2015 35,000 36,575
Owens-Brockway Glass
Container, Inc.:
144A, 3.0%, 6/1/2015 40,000 36,750
7.375%, 5/15/2016 110,000 114,675
Plastipak Holdings, Inc., 144A,
10.625%, 8/15/2019 15,000 16,650
Radnor Holdings Corp.,
11.0%, 3/15/2010** 25,000 2
Silgan Holdings, Inc.,
7.25%, 8/15/2016 50,000 51,250
Solo Cup Co., 10.5%, 11/1/2013 135,000 139,556
United States Steel Corp.,
7.375%, 4/1/2020 80,000 79,100
Viskase Companies, Inc., 144A,
9.875%, 1/15/2018 145,000 145,725
Weyerhaeuser Co.,
7.375%, 10/1/2019 145,000 153,222
Wolverine Tube, Inc.,
15.0%, 3/31/2012 (PIK) 88,963 51,154
4,644,134
The accompanying notes are an integral part of the financial statements.
DWS Variable Series II
DWS Strategic Income VIP | 9

Principal
Amount ($) (a) Value ($)
Telecommunication Services 5.7%
CC Holdings GS V LLC, 144A,
7.75%, 5/1/2017 350,000 370,125
Cincinnati Bell, Inc.,
8.75%, 3/15/2018 170,000 154,275
Cricket Communications, Inc.:
9.375%, 11/1/2014 205,000 208,075
10.0%, 7/15/2015 (d) 100,000 104,500
Crown Castle International
Corp., 9.0%, 1/15/2015 195,000 206,212
Digicel Group Ltd., 144A,
10.5%, 4/15/2018 100,000 103,125
Digicel Ltd., 144A,
8.25%, 9/1/2017 200,000 198,000
ERC Ireland Preferred Equity
Ltd., 144A, 7.683%***,
2/15/2017 (PIK) EUR 76,488 11,261
Frontier Communications
Corp., 6.25%, 1/15/2013 36,000 36,090
Grupo Iusacell Celular SA de
CV, 10.0%, 3/31/2012** 29,280 9,370
Hughes Network Systems
LLC, 9.5%, 4/15/2014 150,000 151,875
Intelsat Corp.:
9.25%, 8/15/2014 30,000 30,675
9.25%, 6/15/2016 380,000 399,000
Intelsat Jackson Holdings SA,
11.25%, 6/15/2016 60,000 63,900
Intelsat Subsidiary Holding Co.
SA, 8.875%, 1/15/2015 195,000 198,169
iPCS, Inc.,
2.469%***, 5/1/2013 35,000 32,725
MetroPCS Wireless, Inc.,
9.25%, 11/1/2014 335,000 345,050
Millicom International Cellular
SA, 10.0%, 12/1/2013 265,000 272,950
New Communications
Holdings, Inc.:
144A, 7.875%, 4/15/2015 10,000 10,075
144A, 8.25%, 4/15/2017 70,000 70,262
144A, 8.5%, 4/15/2020 90,000 90,225
144A, 8.75%, 4/15/2022 10,000 10,000
Nextel Communications,
Inc., Series E,
6.875%, 10/31/2013 60,000 58,125
Qwest Communications
International, Inc.:
144A, 7.125%, 4/1/2018 55,000 54,862
144A, 8.0%, 10/1/2015 60,000 61,650
Qwest Corp., 7.5%, 10/1/2014 285,000 303,169
SBA Telecommunications, Inc.:
144A, 8.0%, 8/15/2016 35,000 36,225
144A, 8.25%, 8/15/2019 25,000 26,313
Sprint Nextel Corp.,
8.375%, 8/15/2017 115,000 115,000
Telesat Canada,
11.0%, 11/1/2015 180,000 194,400
West Corp., 9.5%, 10/15/2014 65,000 65,325
Windstream Corp.:
7.0%, 3/15/2019 60,000 55,350
7.875%, 11/1/2017 135,000 131,794
8.625%, 8/1/2016 10,000 10,075
4,188,227
Principal
Amount ($) (a) Value ($)
Utilities 4.3%
AES Corp.:
8.0%, 10/15/2017 10,000 10,100
8.0%, 6/1/2020 175,000 175,875
144A, 8.75%, 5/15/2013 257,000 260,855
AmerenEnergy Generating Co.,
6.3%, 4/1/2020 160,000 162,857
CMS Energy Corp.,
8.5%, 4/15/2011 225,000 232,153
Energy Future Holdings Corp.,
144A, 10.0%, 1/15/2020 25,000 24,875
Kinder Morgan, Inc.,
6.5%, 9/1/2012 205,000 211,662
Mirant Americas Generation
LLC, 8.3%, 5/1/2011 230,000 234,600
Mirant North America LLC,
7.375%, 12/31/2013 60,000 61,350
NRG Energy, Inc.:
7.25%, 2/1/2014 390,000 395,362
7.375%, 2/1/2016 660,000 656,700
7.375%, 1/15/2017 90,000 89,100
NV Energy, Inc.:
6.75%, 8/15/2017 80,000 80,593
8.625%, 3/15/2014 25,000 25,687
RRI Energy, Inc.,
7.875%, 6/15/2017 25,000 23,625
Suburban Propane Partners LP,
7.375%, 3/15/2020 15,000 15,188
Toledo Edison Co.,
7.25%, 5/1/2020 230,000 278,657
Xcel Energy, Inc.,
4.7%, 5/15/2020 210,000 218,815
3,158,054
Total Corporate Bonds (Cost $45,673,160) 45,893,025
Mortgage-Backed Securities Pass-Throughs 3.6%
Government National Mortgage
Association:
4.5%, 5/1/2039 (c) 1,500,000 1,562,461
5.0%, 5/1/2038 (c) 1,000,000 1,065,156
Total Mortgage-Backed Securities Pass-Throughs
(Cost $2,601,719) 2,627,617
Asset-Backed 0.8%
Miscellaneous
Babson CLO Ltd., "A",
Series 2005-3A, 144A,
0.624%***, 11/10/2019 193,425 182,683
Duane Street CLO, "A",
Series 2005-1A, 144A,
0.624%***, 11/8/2017 485,188 447,586
Total Asset-Backed (Cost $574,862) 630,269
Commercial Mortgage-Backed Securities 2.2%
Credit Suisse Mortgage
Capital Certificates Trust,
"A2", Series 2007-C1,
5.268%, 2/15/2040 814,000 838,001
JPMorgan Chase Commercial
Mortgage Securities Corp.,
"F", Series 2004-LN2, 144A,
5.636%***, 7/15/2041 500,000 314,955
10 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

Principal
Amount ($) (a) Value ($)
LB-UBS Commercial Mortgage
Trust, "A3", Series 2006-C7,
5.347%, 11/15/2038 440,000 454,015
Total Commercial Mortgage-Backed Securities
(Cost $1,621,382) 1,606,971
Collateralized Mortgage Obligations 1.7%
Banc of America Mortgage
Securities, "2A2",
Series 2004-A,
3.52%***, 2/25/2034 215,282 197,085
Bear Stearns Adjustable Rate
Mortgage Trust, "2A1",
Series 2005-11,
4.127%***, 12/25/2035 290,184 275,343
Citicorp Mortgage Securities,
Inc., "1A7", Series 2006-4,
6.0%, 8/25/2036 124,745 120,323
Merrill Lynch Mortgage
Investors Trust:
"2A", Series 2003-A6,
3.615%***, 10/25/2033 153,219 149,278
"2A1A", Series 2005-A9,
5.108%***, 12/25/2035 211,431 210,722
Provident Funding Mortgage
Loan Trust, "2A1",
Series 2005-1,
2.99%***, 5/25/2035 125,356 116,277
Residential Funding Mortgage
Securities I, "3A1",
Series 2005-SA2,
5.117%***, 6/25/2035 11,537 11,332
Washington Mutual
Mortgage Pass-Through
Certificates Trust, "1A1",
Series 2005-AR12,
4.8%***, 10/25/2035 154,701 144,996
Total Collateralized Mortgage Obligations
(Cost $1,108,819) 1,225,356
Principal
Amount ($) (a) Value ($)
Republic of Lithuania, 144A,
7.375%, 2/11/2020 195,000 206,553
Republic of Panama,
9.375%, 1/16/2023 500,000 650,000
Republic of Peru,
7.35%, 7/21/2025 285,000 341,288
Republic of Poland,
6.375%, 7/15/2019 345,000 381,647
Republic of South Africa,
6.875%, 5/27/2019 220,000 251,625
Republic of Uruguay:
7.625%, 3/21/2036 60,000 69,600
9.25%, 5/17/2017 105,000 132,563
Republic of Venezuela,
9.25%, 9/15/2027 150,000 100,875
Russian Federation, REG S,
7.5%, 3/31/2030 492,103 554,748
Socialist Republic of Vietnam,
144A, 6.875%, 1/15/2016 100,000 105,000
United Kingdom Treasury
Bond, 3.75%, 9/7/2019 GBP 750,000 1,158,776
5,507,622
US Government Sponsored Agency 0.2%
Federal Home Loan Mortgage
Corp., 1.125%, 12/15/2011 100,000 100,790
US Treasury Obligations 6.9%
US Treasury Bills,
0.22%****, 9/16/2010 (f) 1,302,000 1,301,568
US Treasury Bond,
4.625%, 2/15/2040 592,000 665,445
US Treasury Notes:
0.875%, 2/29/2012 500,000 502,675
2.5%, 3/31/2015 570,000 590,662
3.5%, 5/15/2020 (d) 1,917,000 2,006,255
5,066,605
Total Government & Agency Obligations
(Cost $13,439,590) 14,204,944
Government & Agency Obligations 19.4%
Other Government Related (e) 4.8%
Citibank NA, FDIC Guaranteed,
0.39%***, 5/7/2012 650,000 651,507
JPMorgan Chase & Co.,
Series 3, FDIC Guaranteed,
0.787%***, 12/26/2012 232,000 234,154
Kreditanstalt fuer
Wiederaufbau,
1.35%, 1/20/2014 JPY 185,000,000 2,162,377
Pemex Project Funding
Master Trust,
5.75%, 3/1/2018 460,000 481,889
3,529,927
Sovereign Bonds 7.5%
Federative Republic of Brazil:
8.875%, 10/14/2019 295,000 385,712
12.5%, 1/5/2016 BRL 250,000 145,622
Government of Canada,
4.5%, 6/1/2015 CAD 350,000 362,043
Republic of Argentina,
5.83%, 12/31/2033 ARS 535 110
Republic of El Salvador, 144A,
7.65%, 6/15/2035 156,000 165,360
Republic of Indonesia, 144A,
6.875%, 3/9/2017 440,000 496,100
Loan Participations and Assignments 3.1%
Senior Loans*** 2.6%
Big West Oil LLC, Term Loan,
12%, 2/19/2015 35,000 35,284
Buffets, Inc.:
Letter of Credit, First Lien,
7.375%, 4/22/2015 11,351 8,797
Term Loan B,
12.0%, 4/21/2015 70,000 62,930
Charter Communications
Operating LLC:
Replacement Term Loan,
2.35%, 3/6/2014 21,680 20,147
Term Loan, 3.79%, 9/6/2016 209,198 195,306
New Term Loan,
7.25%, 3/6/2014 112,700 113,099
Clarke American Corp., Term
Loan B, 2.847%, 6/30/2014 22,191 19,140
Ford Motor Co., Term Loan,
3.35%, 12/16/2013 237,315 224,976
Hawker Beechcraft
Acquisition Co., LLC:
Term Loan,
2.347%, 3/26/2014 166,068 134,746
Letter of Credit,
2.533%, 3/26/2014 9,903 8,035
The accompanying notes are an integral part of the financial statements.
DWS Variable Series II
DWS Strategic Income VIP | 11

Principal
Amount ($) (a) Value ($)
Hexion Specialty
Chemicals, Inc.:
Term Loan C1,
2.563%, 5/6/2013 115,541 105,696
Term Loan C2,
2.813%, 5/6/2013 59,295 54,242
IASIS Healthcare LLC,
Term Loan,
5.588%, 6/13/2014 (PIK) 106,353 95,850
Kabel Deutschland
GmbH, Term Loan,
7.983%, 12/19/2014 (PIK) EUR 91,111 105,447
OSI Restaurant Partners LLC:
Term Loan,
2.786%, 6/14/2013 11,007 9,468
Term Loan B,
2.875%, 6/14/2014 121,819 104,786
Sabre, Inc., Term Loan B,
2.347%, 9/30/2014 48,148 42,902
Sbarro, Inc., Term Loan,
4.847%, 1/31/2014 40,000 35,700
Texas Competitive Electric
Holdings Co., LLC:
Term Loan B3,
3.85%, 10/10/2014 402,341 297,014
Term Loan B2,
4.066%, 10/10/2014 59,271 44,031
Tribune Co., Term Loan B,
5.25%, 6/4/2014** 88,875 54,314
US Foodservice, Inc., Term
Loan B, 2.85%, 5/29/2012 84,782 73,049
VML US Finance LLC:
Delayed Draw Term Loan B,
5.04%, 5/25/2012 18,264 17,805
Term Loan B,
5.04%, 5/27/2013 31,620 30,825
1,893,589
Sovereign Loans 0.5%
BOM Capital PLC, 144A,
6.699%, 3/11/2015 205,000 202,181
VTB Bank, 144A,
6.875%, 5/29/2018 145,000 149,169
351,350
Total Loan Participations and Assignments
(Cost $2,393,247) 2,244,939
Municipal Bonds and Notes 0.1%
Oregon, State Department of
Transportation Highway, User Tax
Revenue, Build America Bonds,
Series A, 5.834%, 11/15/2034
(Cost $80,000) 80,000 88,444
Preferred Securities 0.8%
Financials 0.7%
Capital One Capital VI,
8.875%, 5/15/2040 330,000 343,653
USB Capital XIII Trust,
6.625%, 12/15/2039 145,000 152,879
496,532
Materials 0.1%
Hercules, Inc., 6.5%, 6/30/2029 95,000 74,100
Total Preferred Securities (Cost $526,616) 570,632
Shares Value ($)
Common Stocks 0.0%
Consumer Discretionary 0.0%
Buffets Restaurants Holdings, Inc.* 2,318 6,954
Dex One Corp.* 540 10,260
SuperMedia, Inc.* 99 1,804
Vertis Holdings, Inc.* 940 0
19,018
Industrials 0.0%
World Color Press, Inc.* 322 3,591
Materials 0.0%
GEO Specialty Chemicals, Inc.* 2,058 1,749
Total Common Stocks (Cost $320,829) 24,358
Warrants 0.0%
Consumer Discretionary 0.0%
Reader’s Digest Association, Inc.,
Expiration Date 2/19/2014* 159 0
Financials 0.0%
New ASAT (Finance) Ltd.,
Expiration Date 2/1/2011* 15,600 0
Industrials 0.0%
World Color Press, Inc.,
Expiration Date 7/20/2014* 366 423
Materials 0.0%
Ashland, Inc.,
Expiration Date 3/31/2029* 85 0
Total Warrants (Cost $17,432) 423
Contracts Value ($)
Call Options Purchased 0.0%
Floating rate-LIBOR, Effective Date
5/16/2011, Expiration Date
5/16/2012, Cap Rate 3.0%
(Cost $54,460) 14,000,000 4,898
Units Value ($)
Other Investments 0.0%
Consumer Discretionary
AOT Bedding Super Holdings LLC*
(Cost $4,000) 4 3,469
Shares Value ($)
Securities Lending Collateral 2.5%
Daily Assets Fund Institutional,
0.27% (g) (h) (Cost $1,818,253) 1,818,253 1,818,253
Cash Equivalents 8.2%
Central Cash Management Fund,
0.21% (g) (Cost $6,048,734) 6,048,734 6,048,734
% of Net
Assets Value ($)
Total Investment Portfolio
(Cost $76,283,103) 105.0 76,992,332
Other Assets and Liabilities, Net (5.0) (3,684,694)
Net Assets 100.0 73,307,638
12 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

* Non-income producing security.
** Non-income producing security. Issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. The following
table represents bonds and senior loans that are in default:
Securities
Coupon
Maturity
Date
Principal
Amount ($)
Acquisition
Cost ($) Value ($)
Buffalo Thunder Development Authority 9.375% 12/15/2014 30,000 USD 30,000 5,400
CanWest MediaWorks LP 9.25% 8/1/2015 50,000 USD 50,000 12,000
Congoleum Corp. 8.625% 8/1/2008 125,000 USD 105,994 28,438
Fontainebleau Las Vegas Holdings LLC 11.0% 6/15/2015 65,000 USD 65,225 244
Grupo Iusacell Celular SA de CV 10.0% 3/31/2012 29,280 USD 27,863 9,370
New ASAT (Finance) Ltd. 9.25% 2/1/2011 90,000 USD 75,700 18,000
Radnor Holdings Corp. 11.0% 3/15/2010 25,000 USD 15,888 2
Tribune Co. 5.25% 6/4/2014 88,875 USD 88,819 54,314
Tropicana Entertainment LLC 9.625% 12/15/2014 150,000 USD 122,979 11
Trump Entertainment Resorts, Inc. 8.5% 6/1/2015 15,000 USD 10,838 19
Young Broadcasting, Inc. 8.75% 1/15/2014 275,000 USD 224,631 165
817,937 127,963
*** These securities are shown at their current rate as of June 30, 2010. Floating rate securities’ yields vary with a designated market index
or market rate, such as the coupon-equivalent of the US Treasury bill rate.
**** Annualized yield at time of purchase; not a coupon rate.
The cost for federal income tax purposes was $76,522,884. At June 30, 2010, net unrealized appreciation for all securities based on tax
cost was $469,448. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over
tax cost of $2,885,137 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value
of $2,415,689.
(a) Principal amount stated in US dollars unless otherwise noted.
(b) Security has deferred its 6/15/2008, 12/15/2008 and 6/15/2009 interest payments until 8/15/2012.
(c) When-issued or delayed delivery security included.
(d) All or a portion of these securities were on loan (see Notes to Financial Statements). The value of all securities loaned at June 30, 2010
amounted to $1,773,771, which is 2.4% of net assets.
(e) Government−backed debt issued by financial companies or government sponsored enterprises.
(f) At June 30, 2010, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
(g) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at
period end.
(h) Represents collateral held in connection with securities lending. Income earned by the Portfolio is net of borrower rebates.
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
CLO: Collateralized Loan Obligation
FDIC: Federal Deposit Insurance Corp.
PIK: Denotes that all or a portion of the income is paid in-kind.
REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of,
US persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
REIT: Real Estate Investment Trust
At June 30, 2010, open futures contracts purchased were as follows:
Futures
Currency
Expiration
Date Contracts
Notional
Value ($)
Unrealized
Appreciation/
(Depreciation) ($)
10 Year Japanese Government Bond JPY 9/9/2010 6 9,613,301 71,850
10 Year US Treasury Note USD 9/21/2010 17 2,083,297 22,905
CAC 40 Index EUR 7/16/2010 16 673,448 (39,755)
Federal Republic of Germany Euro-Bund EUR 9/8/2010 2 316,449 559
Federal Republic of Germany Euro-Schatz EUR 9/8/2010 28 3,750,284 (989)
FTSE 100 Index GBP 9/17/2010 11 802,115 (52,046)
FTSE MIB Index EUR 9/17/2010 2 236,573 (12,222)
IBEX 35 Index EUR 7/16/2010 5 562,694 (24,590)
NASDAQ 100 E-Mini Index USD 9/17/2010 8 278,080 (17,378)
TOPIX Index JPY 9/10/2010 4 379,347 (9,388)
United Kingdom Long Gilt Bond GBP 9/28/2010 7 1,266,026 24,805
Total net unrealized depreciation (36,249)
The accompanying notes are an integral part of the financial statements.
DWS Variable Series II
DWS Strategic Income VIP | 13

At June 30, 2010, open futures contracts sold were as follows:
Futures
Currency
Expiration
Date Contracts
Notional
Value ($)
Unrealized
Appreciation/
(Depreciation) ($)
10 Year Canadian Government Bond CAD 9/21/2010 16 1,861,143 (43,492)
2 Year US Treasury Note USD 9/30/2010 31 6,783,672 (20,890)
AEX Index EUR 7/16/2010 3 232,219 12,515
ASX SPI 200 Index AUD 9/16/2010 5 448,442 25,661
DJ Euro Stoxx 50 Index EUR 9/17/2010 31 973,486 49,963
Federal Republic of Germany Euro-Bund EUR 9/8/2010 53 8,385,900 (33,352)
Hang Seng Index HKD 7/29/2010 4 515,712 14,980
Russell 2000 Mini Index USD 9/17/2010 2 121,560 8,515
S&P 500 E-Mini Index USD 9/17/2010 7 359,310 20,826
S&P TSX 60 Index CAD 9/16/2010 3 371,537 12,674
Total net unrealized appreciation 47,400
At June 30, 2010, open written interest rate option contracts were as follows:
Effective/
Expiration Date
Call Option
5/16/2011
5/16/2012
Cash Flows Paid
Contract
Amount ($)
Strike
Rate (%) Value ($)
Premiums
Received ($)
Unrealized
Depreciation ($)
30-year USD Swap Rate
10-year USD Swap Rate 29,000,000 0.6 (37,230) 30,740 (6,490)
At June 30, 2010, open credit default swap contracts purchased were as follows:
Effective/
Expiration Date
Notional
Amount ($)
Fixed Cash
Flows Paid
9/21/2009
12/20/2014 400,000 1 1.0%
9/21/2009
12/20/2014 400,000 2 1.0%
9/21/2009
3/20/2015 400,000 1 1.0%
Underlying Debt
Obligation/Quality Rating (i) Value ($)
Upfront
Payments Paid/
(Received) ($)
Unrealized
Appreciation/
Depreciation ($)
Home Depot, Inc.,
5.875%, 12/16/2036, BBB+ (7,120) (6,500) (620)
Hewlett-Packard Co.,
5.4%, 3/1/2017, A (11,318) (13,354) 2,036
Eli Lilly & Co.,
6.57%, 1/1/2016, A+ (9,294) (10,550) 1,256
3/22/2010
6/20/2015 2,000,000 2 1.0% Markit CDX.NA.IG 18,145 23,466 (5,321)
Total net unrealized depreciation (2,649)
At June 30, 2010, open credit default swap contracts sold were as follows:
Effective/
Expiration Date
Notional
Amount ($) (j)
Fixed Cash
Flows
Received
9/21/2009
12/20/2014 290,000 3 1.0%
3/22/2010
6/20/2015 290,000 1 1.0%
Underlying Debt
Obligation/Quality Rating (i) Value ($)
Upfront
Payments Paid/
(Received) ($)
Unrealized
Depreciation ($)
Berkshire Hathaway Finance
Corp., 4.625%, 10/15/2013, AA (11,385) (7,340) (4,045)
Freeport-McMoRan Copper &
Gold, Inc., 8.375%, 4/1/2017, BB (9,105) (1,645) (7,460)
Total unrealized depreciation (11,505)
(i) The quality ratings represent the lower of Moody’s Investors Service, Inc. ("Moody’s") or Standard & Poor’s Corporation ("S&P")
credit ratings.
(j) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap
contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the
referenced debt obligation or net amounts received from the settlement of buy protection credit default swap contracts entered into by
the Portfolio for the same referenced debt obligation.
At June 30, 2010, open interest rate swaps contracts were as follows:
Effective/
Expiration Date
Notional
Amount ($)
Cash Flows Paid
by the Portfolio
Cash Flows Received
by the Portfolio Value ($)
Upfront Unrealized
Payments Paid/ Appreciation/
(Received) ($) (Depreciation) ($)
10/27/2010
10/27/2020 1,500,000 1 Fixed 4.12% Floating LIBOR (128,031) 525 (128,556)
11/24/2010
11/24/2020 1,300,000 4 Fixed 3.96% Floating LIBOR (89,168) 591 (89,759)
4/20/2009
4/20/2024 500,000 1 Floating LIBOR Floating 7.5% 3,299 3,299
14 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

Effective/
Expiration Date
Notional
Amount ($)
Cash Flows Paid
by the Portfolio
Cash Flows Received
by the Portfolio
Value ($)
Upfront Unrealized
Payments Paid/ Appreciation/
(Received) ($) (Depreciation) ($)
5/15/2009
5/15/2024 500,000 1 Floating LIBOR Floating 7.5% (1,031) (1,031)
11/15/2009
11/15/2024 300,000 4 Floating LIBOR Floating 8.7% 19,840 19,840
Total net unrealized depreciation (196,207)
These interest rate swaps are shown at their current rate as of June 30,2010.
LIBOR: London InterBank Offered Rate
At June 30, 2010, open total return swap contracts were as follows:
Effective/
Expiration Date
Notional
Amount ($)
5/28/2010
6/14/2012 2,800,000 5 0.45%
Counterparties:
1 Morgan Stanley
2 The Goldman Sachs & Co.
3 JPMorgan Chase Securities, Inc.
4 Barclays Bank PLC
5 Citigroup, Inc.
Fixed Cash
Flows Paid Reference Entity Value ($)
Upfront
Payment Paid/
(Received) ($)
Unrealized
Depreciation ($)
Global Interest Rate
Strategy Index (46,463) 1,867 (48,330)
At June 30, 2010, the Portfolio had the following open forward foreign currency exchange contracts:
Contracts to Deliver
In Exchange For
Settlement
Date
Unrealized
Appreciation ($)
Counterparty
EUR 788,900 USD 967,002 7/27/2010 2,178 Citigroup, Inc.
GBP 1,710,000 USD 2,562,358 8/18/2010 7,525 Royal Bank of Scotland PLC
EUR 3,259,000 USD 4,014,697 8/18/2010 28,432 UBS AG
Total unrealized appreciation 38,135
Contracts to Deliver
In Exchange For
Settlement
Date
Unrealized
Depreciation ($)
Counterparty
EUR 5,300 USD 6,481 7/27/2010 (1) JPMorgan Chase Securities, Inc.
USD 905,740 AUD 1,052,000 8/18/2010 (25,380) Royal Bank of Scotland PLC
USD 306,290 NZD 436,000 8/18/2010 (8,303) Royal Bank of Scotland PLC
USD 197,757 NOK 1,287,000 8/18/2010 (489) Royal Bank of Scotland PLC
USD 718,283 SEK 5,582,000 8/18/2010 (2,411) UBS AG
USD 1,241,593 CAD 1,296,000 8/18/2010 (24,543) UBS AG
CHF 187,000 USD 169,691 8/18/2010 (3,949) Royal Bank of Scotland PLC
JPY 121,167,000 USD 1,357,081 8/18/2010 (14,440) UBS AG
EUR 1,985,000 USD 2,436,125 9/16/2010 (4,538) Morgan Stanley
GBP 925,000 USD 1,370,736 9/21/2010 (11,803) Morgan Stanley
JPY 195,000,000 USD 2,138,263 9/21/2010 (67,980) Morgan Stanley
Total unrealized depreciation (163,837)
Currency Abbreviations
ARS
AUD
BRL
CAD
CHF
Argentine Peso
Australian Dollar
Brazilian Real
Canadian Dollar
Swiss Franc
EUR
GBP
HKD
JPY
Euro
British Pound
Hong Kong Dollar
Japanese Yen
NOK
NZD
SEK
USD
Norwegian Krone
New Zealand Dollar
Swedish Krona
United States Dollar
For information on the Portfolio’s policy and additional disclosures regarding option contracts, futures contracts, interest rate swap contracts,
credit default swap contracts, total return swap contracts and forward foreign currency exchange contracts, please refer to the Derivatives
section of Note A in the accompanying Notes to Financial Statements.
Fair Value Measurements
Various inputs are used in determining the value of the Portfolio’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
Portfolio’s own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
The accompanying notes are an integral part of the financial statements.
DWS Variable Series II
DWS Strategic Income VIP | 15

The following is a summary of the inputs used as of June 30, 2010 in valuing the Portfolio’s investments. For information on the Portfolio’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
Fixed Income Investments (k)
Corporate Bonds $ $ 44,193,455 $ 1,699,570 $ 45,893,025
Mortgage-Backed Securities Pass-Throughs 2,627,617 2,627,617
Asset-Backed 182,683 447,586 630,269
Commercial Mortgage-Backed Securities 1,606,971 1,606,971
Collateralized Mortgage Obligations 1,225,356 1,225,356
Government & Agency Obligations 12,903,376 12,903,376
Loan Participations and Assignments 2,244,939 2,244,939
Municipal Bonds and Notes 88,444 88,444
Preferred Securities 570,632 570,632
Common Stocks 15,655 6,954 1,749 24,358
Warrants 423 0 423
Other Investments 3,469 3,469
Short-Term Investments 7,866,987 1,301,568 9,168,555
Derivatives (l) 11,151 64,566 4,898 80,615
Total $ 7,893,793 $ 67,016,984 $ 2,157,272 $ 77,068,049
Liabilities
Derivatives (l) $ $ (455,449) $ (37,230) $ (492,679)
Total $ $ (455,449) $ (37,230) $ (492,679)
There have been no significant transfers in and out of Level 1 and Level 2 fair value measurements during the period ended June 30, 2010.
(k) See Investment Portfolio for additional detailed categorizations.
(l) Derivatives include unrealized appreciation (depreciation) on open futures contracts, credit default swap contracts, interest rate swap
contracts, total return swap contracts, forward foreign currency exchange contracts and value of options purchased.
Level 3 Reconciliation
The following is a reconciliation of the Portfolio’s Level 3 investments for which significant unobservable inputs were used in determining
value:
Loan
Participations
Convertible
Corporate Asset- and Common
Preferred Call Options Other
Written
Bonds Backed Assignments Stocks Warrants Stocks Purchased Investments Total Options
Balance as of
December 31,
2009 $1,399,392 $600,572 $ 72,237 $ 1,749 $ 625 $ 0 $ 0 $ $2,074,575 $
Realized gains
(loss) 3,736 (4,191) (455)
Change in
unrealized
appreciation
(depreciation) 4,565 18,195 7,897 (625) 4,191 (49,562) (531) (15,870) (6,490)
Amortization
premium/
discount 4,483 408 4,891
Net purchases
(sales) 290,000 (84,278) 0 54,460 4,000 264,182 (30,740)
Transfers into
Level 3 50,000 (m) 50,000
Transfers (out) of
Level 3 (48,870) (n) (171,181) (n) (220,051)
Balance as of
June 30, 2010 $1,699,570 $447,586 $ $ 1,749 $ 0 $ $ 4,898 $ 3,469 $2,157,272 $(37,230)
Net change in
unrealized
appreciation
(depreciation)
from investments
still held as of
June 30, 2010 $ 4,565 $ 18,195 $ $ $ $ $ (49,562) $ (531) $ (27,333) $ (6,490)
Transfers between price levels are recognized at the beginning of the reporting period.
(m) The investment was transferred from Level 2 to Level 3 because of the lack of observable market data due to a decrease in market
activity.
(n) The investment was transferred from Level 3 to Level 2 as a result of the availability of a pricing source supported by observable inputs.
The accompanying notes are an integral part of the financial statements.
16 |
DWS Variable Series II
DWS Strategic Income VIP

Statement of
Assets and Liabilities
as of June 30, 2010 (Unaudited)
Statement of Operations
for the six months ended June 30, 2010 (Unaudited)
Assets
Investments:
Investments in securities, at value
(cost $68,416,116) including $1,773,771
of securities loaned $ 69,125,345
Investment in Daily Assets Fund Institutional
(cost $1,818,253)* 1,818,253
Investment in Central Cash Management
Fund (cost $6,048,734) 6,048,734
Total investments, at value (cost $76,283,103) 76,992,332
Foreign currency, at value (cost $318,125) 316,960
Receivable for investments sold 1,311,688
Receivable for Portfolio shares sold 34,812
Interest receivable 1,115,039
Receivable for variation margin on open futures
contracts 1,936
Unrealized appreciation on open swap contracts 26,431
Upfront payments paid on swap contracts 26,449
Foreign taxes recoverable 1,119
Net receivable for open swap contracts 7,855
Net receivable on closed forward foreign
currency exchange contracts 71
Unrealized appreciation on open forward foreign
currency exchange contracts 38,135
Other assets 581
Total assets 79,873,408
Liabilities
Cash overdraft 176,171
Payable for investments purchased 3,968,963
Payable upon return of securities loaned 1,818,253
Payable for Portfolio shares redeemed 156
Net payable for closed swap contracts 4,125
Unrealized depreciation on open forward foreign
currency exchange contracts 163,837
Options written, at value (premiums received
$30,740) 37,230
Unrealized depreciation on open swap contracts 285,122
Upfront payments received on swap contracts 39,389
Accrued management fee 5,488
Other accrued expenses and payables 67,036
Total liabilities 6,565,770
Net assets, at value $ 73,307,638
Net Assets Consist of
Undistributed net investment income 1,633,028
Net unrealized appreciation (depreciation) on:
Investments 709,229
Swap contracts (258,691)
Written options (6,490)
Futures 11,151
Foreign currency (118,606)
Accumulated net realized gain (loss) (776,792)
Paid-in capital 72,114,809
Net assets, at value $ 73,307,638
Class A
Net Asset Value, offering and redemption price
per share ($73,307,638 ÷ 6,446,500
outstanding shares of beneficial interest, no par
value, unlimited number of shares authorized) $ 11.37
* Represents collateral on securities loaned.
The accompanying notes are an integral part of the financial statements.
Investment Income
Income:
Interest (net of foreign taxes withheld of $143) $ 2,422,829
Income distributions Central Cash
Management Fund 5,719
Securities lending income, including income
from Daily Assets Fund Institutional, net of
borrower rebates 1,176
Total Income 2,429,724
Expenses:
Management fee 203,237
Administration fee 36,952
Services to shareholders 897
Custodian fee 38,023
Legal fees 10,617
Audit and tax fees 34,060
Trustees’ fees and expenses 3,371
Reports to shareholders 9,222
Other 18,270
Total expenses before expense reductions 354,649
Expense reductions (30,696)
Total expenses after expense reductions 323,953
Net investment income (loss) 2,105,771
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments 997,240
Swap contracts 47,050
Futures (137,838)
Foreign currency 1,308,834
2,215,286
Change in net unrealized appreciation
(depreciation) on:
Investments (335,832)
Swap contracts (313,819)
Written options (6,490)
Futures 104,760
Foreign currency (410,423)
(961,804)
Net gain (loss) 1,253,482
Net increase (decrease) in net assets
resulting from operations $ 3,359,253
DWS Variable Series II
DWS Strategic Income VIP | 17

Statement of Changes in Net Assets
Increase (Decrease) in Net Assets
Six Months
Ended
June 30, 2010
(Unaudited)
Year Ended
December 31,
2009
Operations:
Net investment income $ 2,105,771 $ 4,244,300
Net realized gain (loss) 2,215,286 564,606
Change in net unrealized appreciation (depreciation) (961,804) 9,572,764
Net increase (decrease) in net assets resulting from operations 3,359,253 14,381,670
Distributions to shareholders from:
Net investment income:
Class A (4,806,010) (3,708,667)
Portfolio share transactions:
Class A
Proceeds from shares sold 5,346,475 9,943,530
Shares converted * 44,195
Reinvestment of distributions 4,806,010 3,708,667
Cost of shares redeemed (9,273,245) (23,212,559)
Net increase (decrease) in net assets from Class A share transactions 879,240 (9,516,167)
Class B
Shares converted* (44,195)
Cost of shares redeemed (151)
Net increase (decrease) in net assets from Class B share transactions (44,346)
Increase (decrease) in net assets (567,517) 1,112,490
Net assets at beginning of period 73,875,155 72,762,665
Net assets at end of period (including undistributed net investment income of $1,633,028 and
$4,333,267, respectively) $ 73,307,638 $ 73,875,155
Other Information
Class A
Shares outstanding at beginning of period 6,362,456 7,250,530
Shares sold 457,317 943,043
Shares converted* 4,547
Shares issued to shareholders in reinvestment of distributions 420,473 392,867
Shares redeemed (793,746) (2,228,531)
Net increase (decrease) in Class A shares 84,044 (888,074)
Shares outstanding at end of period 6,446,500 6,362,456
Class B
Shares outstanding at beginning of period 4,594
Shares converted* (4,579)
Shares redeemed (15)
Net increase (decrease) in Class B shares (4,594)
Shares outstanding at end of period
* On March 6, 2009, Class B shares converted into Class A shares.
18 |
DWS Variable Series II
DWS Strategic Income VIP
The accompanying notes are an integral part of the financial statements.

Financial Highlights
Class A
Years Ended December 31, 2010 a 2009 2008 2007 2006 2005
Selected Per Share Data
Net asset value, beginning of period $11.61 $10.03 $11.70 $11.80 $11.50 $12.25
Income (loss) from investment operations:
Net investment income b .33 .63 .55 .63 .62 .65
Net realized and unrealized gain (loss) .21 1.50 (1.38) (.01) .36 (.39)
Total from investment operations .54 2.13 (.83) .62 .98 .26
Less distributions from:
Net investment income (.78) (.55) (.69) (.72) (.57) (.98)
Net realized gains (.15) (.11) (.03)
Total distributions (.78) (.55) (.84) (.72) (.68) (1.01)
Net asset value, end of period $11.37 $11.61 $10.03 $11.70 $11.80 $11.50
Total Return (%) 4.62 c** 22.73 c (7.75) c 5.43 c 8.98 2.38
Ratios to Average Net Assets and Supplemental Data
Net assets, end of period ($ millions) 73 74 73 100 86 71
Ratio of expenses before expense reductions (%) .96 * .86 .89 .84 .85 .88
Ratio of expenses after expense reductions (%) .88 * .80 .87 .83 .85 .88
Ratio of net investment income (%) 5.70 * 5.96 5.06 5.50 5.47 5.61
Portfolio turnover rate (%) 147 ** 370 234 147 143 120
a For the six months ended June 30, 2010 (Unaudited).
b Based on average shares outstanding during the period.
c Total return would have been lower had certain expenses not been reduced.
* Annualized
** Not annualized
DWS Variable Series II
DWS Strategic Income VIP | 19

Notes to Financial Statements
(Unaudited)
A. Organization and Significant Accounting Policies
DWS Variable Series II (the "Trust") 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 Trust offers seventeen portfolios (hereinafter referred to individually as "Portfolio" or collectively as
"Portfolios"). The Portfolio is classified as a diversified open-end management investment company.
The Trust’s financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America which require the use of management estimates. Actual results could differ from those
estimates. The policies described below are followed consistently by the Trust in the preparation of its financial
statements.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York
Stock Exchange on each day the exchange is open for trading.
Various inputs are used in determining the value of the Portfolio’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 Portfolio’s own assumptions in
determining the fair value of investments). The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing in those securities.
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (US or
foreign) or over-the-counter market on which they trade and are classified as Level 1 securities. 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. For certain
international equity securities, in order to adjust for events which may occur between the close of the foreign
exchanges and the close of the New York Stock Exchange, a fair valuation model may be used. This fair valuation
model takes into account comparisons to the valuation of American Depository Receipts (ADRs), exchange-traded
funds, futures contracts and certain indices and these securities are classified as Level 2.
Debt securities are valued by independent pricing services approved by the Portfolio’s Board. If the pricing
services are unable to provide valuations, securities are valued at the most recent bid quotation or evaluated
price, as applicable, obtained from one or more broker-dealers. 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 and other data, as well as broker quotes. These securities are generally categorized as Level 2.
Senior loans are valued by independent pricing services approved by the Portfolio’s Board. If the pricing services
are unable to provide valuations, senior loans are valued at the mean of the most recent bid and asked quotations
or evaluated price, as applicable, obtained from one or more broker-dealers. 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 and other data, as well as broker quotes. Certain senior loans may be valued on the basis
of a price provided by a single source or broker-dealer. Senior loans are generally categorize as Level 2.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which
they are traded and are classified as Level 1.
Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and
are classified as Level 2.
Swaps contracts are valued daily based upon prices supplied by a Board approved pricing vendor, if available, and
otherwise are valued at the price provided by the broker-dealer with which the swap was traded. Swaps are
generally classified as Level 2.
Exchange-traded options are valued at the last sale price or, in the absence of a sale, the mean between the
closing bid and asked prices or at the most recent asked price (bid for purchased options) if no bid or asked price
are available. Exchange-traded options are classified as Level 1. Over-the-counter written or purchased options are
valued based upon a price supplied by a Board approved pricing vendor, if available, and otherwise are valued at
the price provided by the broker-dealer with which the option was traded. Over-the-counter options are generally
classified as Level 2.
Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par,
are valued at amortized cost, which approximates value, and are 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
20 | DWS Variable Series II

determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In
accordance with the Portfolio’s valuation procedures, factors used 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 Portfolio’s
Investment Portfolio.
Foreign Currency Translations. The books and records of the Trust are maintained in US dollars. Investment
securities and other assets and liabilities denominated in a foreign currency are translated into US dollars at the
prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are
translated into US dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses
between trade and settlement dates on securities transactions, the disposition of forward foreign currency
exchange contracts and foreign currencies and the difference between the amount of net investment income
accrued and the US dollar amount actually received. That portion of both realized and unrealized gains and losses
on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is
included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending. The Portfolio may lend securities to certain financial institutions. The Portfolio retains
beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the
issuer of securities and to participate in any changes in their market value. The Portfolio requires the borrowers of
the securities to maintain collateral with the Portfolio 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 security lending agreement. The Portfolio may invest the cash collateral into a joint
trading account in an affiliated money market fund pursuant to Exemptive Orders issued by the SEC. The Portfolio
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 Portfolio or the borrower may
terminate the loan. 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. The Portfolio 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.
Loan Participations and Assignments. The Portfolio may invest in Loan Participations and Assignments. Loan
Participations and Assignments are portions of loans originated by banks and sold in pieces to investors. These
US dollar-denominated fixed and floating rate loans (Loans") in which the Portfolio invests, are arranged between
the borrower and one or more financial institutions (Lenders"). These Loans may take the form of Senior Loans,
which are corporate obligations often issued in connection with recapitalizations, acquisitions, leveraged buy-outs
and refinancings, and Sovereign Loans, which are debt instruments between a foreign sovereign entity and one
or more financial institutions. The Portfolio invests in such Loans in the form of participations in Loans
(Participations") or assignments of all or a portion of Loans from third parties (Assignments"). Participations
typically result in the Portfolio having a contractual relationship only with the Lender, not with the borrower. The
Portfolio has the right to receive payments of principal, interest and any fees to which it is entitled from the
Lender selling the Participation and only upon receipt by the Lender of the payments from the borrower. In
connection with purchasing Participations, the Portfolio generally has no right to enforce compliance by the
borrower with the terms of the loan agreement relating to the Loan, or any rights of set-off against the borrower,
and the Portfolio will not benefit directly from any collateral supporting the Loan in which it has purchased the
Participation. As a result, the Portfolio assumes the credit risk of both the borrower and the Lender that is selling
the Participation. Assignments typically result in the Portfolio having a direct contractual relationship with the
borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement. All
Loan Participations and Assignments involve interest rate risk, liquidity risk and credit risk, including the potential
default or insolvency of the borrower.
When-Issued/Delayed Delivery Securities. The Portfolio may purchase securities with delivery or payment to
occur at a later date beyond the normal settlement period. At the time the Portfolio enters into a commitment to
DWS Variable Series II | 21

purchase a security, the transaction is recorded and the value of the security is reflected in the net asset value.
The price of such security and the date when the security will be delivered and paid for are fixed at the time the
transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues to the
Portfolio until payment takes place. At the time the Portfolio enters into this type of transaction it is required to
segregate cash or other liquid assets at least equal to the amount of the commitment.
Certain risks may arise upon entering into when-issued or delayed delivery securities from the potential inability
of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to
political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying
securities.
Derivatives. Authoritative accounting guidance requires that disclosures about the Portfolio’s derivative and
hedging activities and derivatives accounted for as hedging instruments must be disclosed separately from
derivatives that do not qualify for hedge accounting. Because investment companies account for their derivatives
at fair value and record any changes in fair value in current period earnings, the Portfolio’s derivatives are not
accounted for as hedging instruments. As such, even though the Portfolio may use derivatives in an attempt to
achieve an economic hedge, the Portfolio’s derivatives are not considered to be hedging instruments. The
disclosure below is presented in accordance with authoritative accounting guidance.
Interest Rate Swap Contracts. The Portfolio enters into interest rate swap transactions to gain exposure to
different parts of the yield curve while managing overall duration. The use of interest rate swaps is a highly
specialized activity that involves investment techniques and risks different from those associated with ordinary
portfolio security transactions. In an interest rate swap, the Portfolio agrees to pay to the other party to the
interest rate swap (which is known as the counterparty") a fixed rate payment in exchange for the
counterparty agreeing to pay to the Portfolio a variable rate payment, or the Portfolio agrees to receive from the
counterparty a fixed rate payment in exchange for the counterparty agreeing to receive from the Portfolio a
variable rate payment. The payment obligations are based on the notional amount of the swap. Certain risks
may arise when entering into swap transactions including counterparty default, liquidity or unfavorable changes
in interest rates. In connection with these agreements, securities and or cash may be identified as collateral in
accordance with the terms of the swap agreements to provide assets of value and recourse in the event of
default. The maximum counterparty credit risk is the net present value of the cash flows to be received from or
paid to the counterparty over the term of the interest rate swap contract, to the extent that this amount is
beneficial to the Portfolio, in addition to any related collateral posted to the counterparty by the Portfolio. This
risk may be partially reduced by a master netting arrangement between the Portfolio and the counterparty.
Payments received or made at the end of the measurement period are recorded as realized gain or loss on the
Statement of Operations. The value of the swap is adjusted daily based upon a price supplied by a Board
approved pricing vendor and the change in value is recorded as unrealized appreciation or depreciation.
A summary of the open interest rate swap contracts as of June 30, 2010 is included in a table following the
Portfolio’s Investment Portfolio. For the six months ended June 30, 2010, the Portfolio invested in interest rate
swap contracts with a total notional amount generally indicative of a range from approximately $4,100,000 to
$4,850,000.
Credit Default Swap Contracts. A credit default swap is a contract between a buyer and a seller of protection
against pre-defined credit events for the reference entity. The Portfolio buys or sells credit default swap
contracts to gain exposure to an underlying issuer’s credit quality characteristics without directly investing in
that issuer, or to hedge the risk of default on Portfolio securities. As a seller in the credit default swap contract,
the Portfolio is required to pay the par (or other agreed-upon) value of the referenced entity to the counterparty
with the occurrence of a credit event by a third party, such as a US or foreign corporate issuer, on the reference
entity, which would likely result in a loss to the Portfolio. In return, the Portfolio receives from the counterparty a
periodic stream of payments over the term of the contract provided that no credit event has occurred. If no
credit event occurs, the Portfolio keeps the stream of payments with no payment obligations. The Portfolio may
also buy credit default swap contracts in order to hedge against the risk of a credit event on debt securities, in
which case the Portfolio functions as the counterparty referenced above. This involves the risk that the contract
may expire worthless. It also involves counterparty risk that the seller may fail to satisfy its payment obligations
to the Portfolio with the occurrence of a credit event. When the Portfolio sells a credit default swap contract it
will cover its commitment. This may be achieved by, among other methods, maintaining cash or liquid assets
equal to the aggregate notional value of the reference entities for all outstanding credit default swap contracts
sold by the Portfolio.
Credit default swap contracts are marked to market daily based upon quotations from a Board approved pricing
vendor and the change in value, if any, is recorded daily as unrealized gain or loss. An upfront payment made by
the Portfolio is recorded as an asset on the Statement of Assets and Liabilities. An upfront payment received by
the Portfolio is recorded as a liability on the Statement of Assets and Liabilities. Under the terms of the credit
22 | DWS Variable Series II

default swap contracts, the Portfolio receives or makes quarterly payments based on a specified interest rate on
a fixed notional amount. These payments are recorded as a realized gain or loss on the Statement of
Operations. Payments received or made as a result of a credit event or termination of the contract are
recognized, net of a proportional amount of the upfront payment, as realized gains or losses.
A summary of the open credit default swap contracts as of June 30, 2010 is included in a table following the
Portfolio’s Investment Portfolio. For the six months ended June 30, 2010, the Portfolio invested in credit default
swap contracts with a total notional amount generally indicative of a range from approximately $3,650,000 to
$4,190,000.
Total Return Swap Contracts. Total return swaps involve commitments to pay interest in exchange for a
market-linked return based on a notional amount. The Portfolio enters into total return swap transactions to gain
exposure to different parts of the yield curve while managing overall duration. To the extent the total return of
the reference security or index underlying the total return swap exceeds or falls short of the offsetting interest
rate obligation, the Portfolio will receive a payment or make a payment to the counterparty, respectively. Certain
risks may arise when entering into swap transactions including counterparty default, liquidity or unfavorable
changes in the value of underlying reference security or index. An upfront payment made by the Portfolio is
recorded as an asset in the Statement of Assets and Liabilities. An upfront payment received by the Portfolio is
recorded as a liability in the Statement of Assets and Liabilities. Payments received or made at the end of each
measurement period are recorded as realized gain or loss on the Statement of Operations. The value of the
swap is adjusted daily based upon a price supplied by a Board approved pricing vendor and the change in value
is recorded as unrealized appreciation or depreciation.
A summary of the open total return swap contracts as of June 30, 2010 is included in a table following the
Portfolio’s Investment Portfolio. For the six months ended June 30, 2010, the Portfolio invested in total return
swap contracts with a total notional amount generally indicative of a range from approximately $2,800,000 to
$3,000,000.
Options. An option contract is a contract in which the writer (seller) of the option grants the buyer of the option,
upon payment of a premium, the right to purchase from (call option), or sell to (put option), the writer a
designated instrument at a specified price within a specified period of time. Certain options, including options
on indices and interest rate options, will require cash settlement by the Portfolio if the option is exercised.
Interest rate options are comprised of multiple European style options that have periodic exercise dates within
the terms of the contract. The Portfolio enters into option contracts in order to hedge against potential adverse
interest rate movements of portfolio assets.
The liability representing the Portfolio’s obligation under an exchange-traded written option or investment in a
purchased option is valued at the last sale price or, in the absence of a sale, the mean between the closing bid
and asked prices or at the most recent asked price (bid for purchased options) if no bid and asked price are
available. Over-the-counter written or purchased options are valued using dealer-supplied quotations. Gain or
loss is recognized when the option contract expires, exercised or is closed.
If the Portfolio writes a covered call option, the Portfolio foregoes, in exchange for the premium, the opportunity
to profit during the option period from an increase in the market value of the underlying security above the
exercise price. If the Portfolio writes a put option it accepts the risk of a decline in the value of the underlying
security below the exercise price. Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Portfolio’s maximum exposure to purchased options is
limited to the premium initially paid. In addition, certain risks may arise upon entering into option contracts
including the risk that an illiquid secondary market will limit the Portfolio’s ability to close out an option contract
prior to the expiration date and that a change in the value of the option contract may not correlate exactly with
changes in the value of the securities or currencies hedged.
A summary of the open option contracts as of June 30, 2010 is included in the Portfolio’s Investment Portfolio.
For the six months ended June 30, 2010, the Portfolio invested in written option contracts with a total value
generally indicative of a range from $0 to approximately $37,000 and purchased option contracts with a total
value generally indicative of a range from approximately $5,000 to $59,000.
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures
exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount
of a financial instrument at a specified price on a specific date (settlement date). The Portfolio enters into
interest rate futures to gain exposure to different parts of the yield curve while managing overall duration. In
addition, the Portfolio seeks to enhance returns by employing a global tactical asset allocation overlay strategy.
The Portfolio enters into futures contracts on fixed-income securities and equities, including on financial indices,
and security indices and on currency as part of its global tactical asset allocation overlay strategy. As part of this
strategy, the Portfolio uses futures contracts to attempt to take advantage of short-term and medium-term
inefficiencies within the global equity, bond and currency markets.
DWS Variable Series II | 23

Futures contracts are valued at the most recent settlement price. Upon entering into a futures contract, the
Portfolio is required to deposit with a financial intermediary cash or securities (initial margin") in an amount
equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments
(variation margin") are made or received by the Portfolio dependent upon the daily fluctuations in the value and
are recorded for financial reporting purposes as unrealized gains or losses by the Portfolio. Gains or losses are
realized when the contract expires or is closed. Since all futures contracts are exchange-traded, counterparty
risk is minimized as the exchange’s clearinghouse acts as the counterparty, and guarantees the futures against
default.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit
the Portfolio’s ability to close out a futures contract prior to the settlement date and that a change in the value of
a futures contract may not correlate exactly with the changes in the value of the underlying hedged security,
index or currency. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities.
A summary of the open futures contracts as of June 30, 2010 is included in a table following the Portfolio’s
Investment Portfolio. For the six months ended June 30, 2010, the Portfolio invested in futures contracts with a
total notional value generally indicative of a range from approximately $40,015,000 to $53,826,000.
Forward Foreign Currency Exchange Contracts. A forward foreign currency exchange contract (forward
currency contract) is a commitment to purchase or sell a foreign currency at the settlement date at a negotiated
rate. The Portfolio enters into forward currency contracts in order to hedge its exposure to changes in foreign
currency exchange rates on its foreign currency denominated portfolio holdings and to facilitate transactions in
foreign currency denominated securities. The Portfolio also enters into forward currency contracts as part of its
global tactical asset allocation strategy.
Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and
unrealized gain (loss) is recorded daily. Certain risks may arise upon entering into forward currency contracts
from the potential inability of counterparties to meet the terms of their contracts. The maximum counterparty
credit risk to the Portfolio is measured by the unrealized gain on appreciated contracts. Additionally, when
utilizing forward currency contracts to hedge, the Portfolio gives up the opportunity to profit from favorable
exchange rate movements during the term of the contract.
A summary of the open forward currency contracts as of June 30, 2010 is included in a table following the
Portfolio’s Investment Portfolio. For the six months ended June 30, 2010, the Portfolio invested in forward
currency contracts with a total contract value generally indicative of a range from approximately $18,392,000 to
$25,660,000.
The following tables summarize the value of the Portfolio’s derivative instruments held as of June 30, 2010 and
the related location on the accompanying Statement of Assets and Liabilities, presented by primary underlying
risk exposure:
Asset Derivatives
Purchased
Options
Forward
Contracts Swap Contracts
Futures
Contracts Total
Equity Contracts (a) $ $ $ $ (10,245) $ (10,245)
Credit Contracts (a) 3,292 3,292
Interest Rate Contracts (a) 4,898 23,139 21,396 49,433
Foreign Exchange Contracts (b) 38,206 38,206
$ 4,898 $ 38,206 $ 26,431 $ 11,151 $ 80,686
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts:
(a) Investments in securities, at value (includes purchased options) and unrealized appreciation on swap contracts and net unrealized
appreciation (depreciation) on futures. Asset of Receivable for daily variation margin on open futures contracts reflects unsettled variation
margin.
(b) Unrealized appreciation on forward foreign currency exchange contracts and net receivable on closed forward foreign currency exchange
contracts.
Liability Derivatives
Written
Options
Forward
Contracts Swap Contracts Total
Credit Contracts (a) $ $ $ (17,446) $ (17,446)
Interest Rate Contracts (a) (37,230) (267,676) (304,906)
Foreign Exchange Contracts (b) (163,837) (163,837)
$ (37,230) $ (163,837) $ (285,122) $ (486,189)
Each of the above derivatives is located in the following Statement of Assets and Liabilities accounts:
(a) Options written, at value and unrealized depreciation on open swap contracts
(b) Unrealized depreciation on open forward foreign currency exchange contracts
24 | DWS Variable Series II

Additionally, the amount of unrealized and realized gains and losses on derivative instruments recognized in
Portfolio earnings during the six months ended June 30, 2010 and the related location in the accompanying
Statement of Operations is summarized in the following tables by primary underlying risk exposure:
Realized Gain (Loss)
Purchased
Options
Forward
Contracts Swap Contracts
Futures
Contracts Total
Equity Contracts (a) $ $ $ $ (416,343) $ (416,343)
Credit Contracts (a) (36,704) (36,704)
Interest Rate Contracts (a) 38,962 83,754 278,505 401,221
Foreign Exchange Contracts (b) 1,331,444 1,331,444
$ 38,962 $ 1,331,444 $ 47,050 $ (137,838) $ 1,279,618
Each of the above derivatives is located in the following Statement of Operations accounts:
(a) Net realized gain (loss) from investments (includes purchased options), swap contracts and futures, respectively
(b) Net realized gain (loss) from foreign currency (Statement of Operations includes both forward currency contracts and foreign currency
transactions)
Change in Net Unrealized
Appreciation (Depreciation)
Purchased
Options
Written
Options
Forward
Contracts Swap Contracts
Futures
Contracts Total
Equity Contracts (a) $ $ $ $ $ (22,372) $ (22,372)
Credit contracts (a) (12,919) (12,919)
Interest Rate Contracts (a) (49,562) (6,490) (300,900) 127,132 (229,820)
Foreign Exchange Contracts (b) (402,051) (402,051)
$ (49,562) $ (6,490) $ (402,051) $ (313,819) $ 104,760 $ (667,162)
Each of the above derivatives is located in the following Statement of Operations accounts:
(a) Change in net unrealized appreciation (depreciation) on investments (includes purchased options), written options, swap contracts and
futures, respectively
(b) Change in net unrealized appreciation (depreciation) on foreign currency (Statement of Operations includes both forward currency
contracts and foreign currency transactions)
Taxes. The Portfolio’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.
Additionally, based on the Portfolio’s understanding of the tax rules and rates related to income, gains and
transactions for the foreign jurisdictions in which it invests, the Portfolio will provide for foreign taxes, and where
appropriate, deferred foreign taxes.
At December 31, 2009, the Portfolio had an approximate net tax basis capital loss carryforward which may be
applied against any realized net taxable capital gains of each succeeding year until fully utilized or until the
following expiration dates, whichever occurs first:
Portfolio
Capital Loss
Carryforward ($)
Expiration
Date
DWS Strategic Income VIP 1,611,000 12/31/2016
1,390,000 12/31/2017
The Portfolio has reviewed the tax positions for the open tax years as of December 31, 2009 and has determined
that no provision for income tax is required in the Portfolio’s financial statements. The Portfolio’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 of net investment income of the Portfolio, if any, are made
annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would
be taxable to the Portfolio if not distributed and, therefore, will be distributed to shareholders at least annually.
The Portfolio may also make additional distributions for tax purposes if necessary.
The timing and characterization of certain income and capital gains 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 investments in foreign denominated investments,
investments in forward currency contracts, investments in futures contracts and 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 Portfolio may periodically
make reclassifications among certain of its capital accounts without impacting the net asset value of the Portfolio.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Expenses. Expenses arising in connection with a specific Portfolio are allocated to that Portfolio. Trust expenses
are allocated between the Portfolio in proportion to its relative net assets.
DWS Variable Series II | 25

Contingencies. In the normal course of business, the Portfolio may enter into contracts with service providers
that contain general indemnification clauses. The Portfolio’s maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Portfolio that have not yet been made.
However, based on experience, the Portfolio 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. Realized gains and losses from investment transactions are
recorded on an identified cost basis. All discounts and premiums are accreted/amortized for both tax and financial
reporting purposes for the Portfolio, with the exception of securities in default of principal.
B. Purchases and Sales of Securities
During the six months ended June 30, 2010, purchases and sales of investment transactions (excluding
short-term investments) were as follows:
Portfolio Purchases ($) Sales ($)
DWS Strategic Income VIP
excluding US Treasury Obligations 77,993,517 80,931,586
US Treasury Obligations 22,841,602 20,158,456
For the six months ended June 30, 2010, transactions for written options on interest rate swaps were as follows:
Contract
Amount Premiums
Outstanding, beginning of period $
Options written 29,000,000 30,740
Outstanding, end of period 29,000,000 $ 30,740
C. Related Parties
Management Agreement. Under the Investment Management Agreement with Deutsche Investment
Management Americas Inc. (DIMA" or the Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank
AG, the Advisor directs the investments of the Portfolio 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 Portfolio or delegates such responsibility to the Portfolio’s subadvisor.
Under the Investment Management Agreement with the Advisor, the fee is equivalent to the annual rates shown
below of the Portfolio’s average daily net assets, computed and accrued daily and payable monthly:
Annual
Management
Portfolio
Fee Rate
DWS Strategic Income VIP
$0–$250 million .550%
next $750 million .520%
next $1.5 billion .500%
next $2.5 billion .480%
next $2.5 billion .450%
next $2.5 billion .430%
next $2.5 billion .410%
over $12.5 billion .390%
Effective August 1, 2010, QS Investors, LLC (QS Investors") acts as investment sub-advisor to the Portfolio. On
August 1, 2010, members of the Advisor’s Quantitative Strategies Group (QS Group"), including members of the
portfolio management teams of the Portfolio, separated from the Advisor and formed QS Investors as a separate
investment advisory firm unaffiliated with the Advisor (the Separation"). In order for the Portfolio to continue to
access the investment expertise offered by members of the QS Group following the Separation, the Advisor
recommended that the Portfolio’s Board approve a sub-advisory agreement between the Advisor and QS
Investors (the Sub-Advisory Agreement"). On May 4, 2010, following a review of QS Investors’ capabilities and
the terms of the Separation and the Sub-Advisory Agreement, the Portfolio’s Board approved the Sub-Advisory
Agreement. This action was taken pursuant to an order the Portfolio and the Advisor requested and received from
the Securities and Exchange Commission that permits the Advisor, with the approval of the Portfolio’s Board, to
appoint sub-advisors that are not affiliated with the Advisor to manage all or a portion of a Portfolio’s assets
26 | DWS Variable Series II

without the need for a shareholder meeting or vote. As an investment sub-advisor to the Portfolio, QS Investors
manages the assets attributable only to the Portfolio’s iGAP strategy. QS Investors is paid by the Advisor, not the
Portfolio, for the services QS Investors provides to the Portfolio.
For the period from January 1, 2010 through September 30, 2010, the Advisor has contractually agreed to waive
its fee and/or reimburse certain operating expenses to the extent necessary to maintain the operating expenses
(excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest expense) of the class
as follows:
Portfolio
Annual Rate
DWS Strategic Income VIP
Class A .87%
Accordingly, for the six months ended June 30, 2010, the total management fee, management fee waived and
effective management fee rate were as follows:
Total
Annualized
Portfolio
Aggregated ($) Waived ($) Effective Rate
DWS Strategic Income VIP 203,237 30,635 .47%
Administration Fee. Pursuant to an Administrative Services Agreement, DIMA provides most administrative
services to the Portfolio. For all services provided under the Administrative Services Agreement, the Portfolio
pays DIMA an annual fee (Administration Fee") of 0.10% of the Portfolio’s average daily net assets, computed
and accrued daily and payable monthly. For the six months ended June 30, 2010, the Administration Fee was as
follows:
Total Unpaid at
Portfolio
Aggregated ($) June 30, 2010 ($)
DWS Strategic Income VIP 36,952 6,054
Service Provider Fees. DWS Investments Service Company (DISC"), an affiliate of the Advisor, is the transfer
agent, dividend-paying agent and shareholder service agent for the Portfolio. Pursuant to a sub-transfer agency
agreement between DISC and DST Systems, Inc. (DST"), DISC has delegated certain transfer agent,
dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the
shareholder servicing fee it receives from the Portfolio. For the six months ended June 30, 2010, the amounts
charged to the Portfolio by DISC were as follows:
Total
Portfolio
Aggregated ($) Waived ($)
DWS Strategic Income VIP Class A 61 61
Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing
typesetting and certain regulatory filing services to the Portfolio. For the six months ended June 30, 2010, the
amount charged to the Portfolio by DIMA included in the Statement of Operations under reports to
shareholders" was as follows:
Unpaid at
Portfolio Amount ($) June 30, 2010 ($)
DWS Strategic Income VIP 4,697 511
Trustees’ Fees and Expenses. The Portfolio paid each Trustee not affiliated with the Advisor retainer fees plus
specified amounts for various committee services and for the Board Chairperson.
Affiliated Cash Management Vehicles. The Portfolio may invest uninvested cash balances in Central Cash
Management Fund and other affiliated money market funds managed by the Advisor. The Portfolio indirectly bears
its proportionate share of the expenses of the underlying money market funds. Central Cash Management Fund
does not pay the Advisor an investment management fee. Central Cash Management Fund seeks a high level of
current income consistent with liquidity and the preservation of capital.
D. Investing in High Yield Securities
The Portfolio’s performance could be hurt if a security declines in credit quality or goes into default, or if an issuer
does not make timely payments of interest or principal. Because the issuers of high-yield debt securities or junk
bonds (debt securities rated below the fourth-highest category) may be in uncertain financial health, the prices of
their debt securities can be more vulnerable to bad economic news, or even the expectation of bad news, than
investment-grade debt securities. Because the Portfolio may invest in securities not paying current interest or in
securities already in default, these risks may be more pronounced.
DWS Variable Series II | 27

E. Investing in Emerging Markets
Investing in emerging markets may involve special risks and considerations not typically associated with investing
in developed markets. These risks include revaluation of currencies, high rates of inflation or deflation, repatriation
restrictions on income and capital, and future adverse political, social and economic developments. Moreover,
securities issued in these markets may be less liquid, subject to government ownership controls or delayed
settlements, and may have prices that are more volatile or less easily assessed than those of comparable
securities of issuers in developed markets.
F. Ownership of the Portfolio
At June 30, 2010, the beneficial ownership in the Portfolio was as follows:
DWS Strategic Income VIP: Two Participating Insurance Companies were owners of record of 10% or more of
the total outstanding Class A shares of the Portfolio, each owning 61% and 37%.
G. Line of Credit
The Trust and other affiliated funds (the Participants") share in a $450 million revolving credit facility provided by
a syndication of banks. The Portfolio 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
LIBOR exceeds the Federal Funds Rate the amount of such excess. The Portfolio may borrow up to a maximum
of 33 percent of its net assets under this agreement.
H. Review for Subsequent Events
Management has evaluated the events and transactions subsequent to period end through the date the financial
statements were available to be issued, and has determined that there were no material events that would
require disclosure in the Portfolio’s financial statements.
28 | DWS Variable Series II

Proxy Voting
The Trust’s policies and procedures for voting proxies for portfolio securities and information about how the
Trust voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on
our Web site www.dws-investments.com (click on proxy voting" at the bottom of the page) or on the
SEC’s Web site www.sec.gov. To obtain a written copy of the Trust’s policies and procedures without charge,
upon request, call us toll free at (800) 621-1048.
Portfolio Management Team Update
The current portfolio management team is as follows:
Deutsche Investment Management Americas Inc., Advisor to the Portfolio
Gary Russell, CFA*
William Chepolis, CFA
John D. Ryan
Portfolio Managers
QS Investors, LLC, Subadvisor to the Portfolio (effective August 1, 2010)
Robert Wang
Head of Portfolio Management and Trading
Thomas Picciochi
Head of GTAA Management and Implementation
* Gary Sullivan, CFA, has changed his name to Gary Russell.
DWS Variable Series II | 29

New Sub-Advisory Agreement Approval
The Board of Trustees, including the Independent Trustees, unanimously approved the New Sub-Advisory
Agreement (the New Agreement") between Deutsche Investment Management Americas Inc. (DWS") and
QS Investors, LLC (QS Investors") in May 2010.
In terms of the process that the Board followed prior to approving the New Agreement, shareholders should
know that:
In May 2010, all but one of the Fund’s Trustees were independent of DWS and its affiliates.
The Board engaged in a comprehensive review of the operational, financial and investment capabilities of
QS Investors and the terms of the proposed Separation. As part of this review, the Board also reviewed and
considered the terms of the New Agreement.
To facilitate its review, the Board created several ad hoc subcommittees, each focused on different aspects of
the Board’s consideration of the Separation, and each comprised solely of Independent Trustees.
The Board and its subcommittees conducted numerous meetings between January 2010 and May 2010 to
review and discuss the Separation, including the New Agreement, and were assisted in this review by their
independent legal counsel and fund counsel.
In the course of its review, the Board requested and received substantial additional information.
As part of its review process, the Board and its subcommittees met with various representatives of DWS and
QS Investors, including key investment personnel and other members of senior management.
The Board requested and evaluated all information that it deemed reasonably necessary to evaluate the New
Agreement.
In connection with the approval of the New Agreement, the Board considered the factors described below,
among others.
Continuity of Investment Management Services. In reviewing the New Agreement, the Board considered that it
had renewed the investment management agreement between DWS and the Fund as part of the annual contract
renewal process (the Annual Review") in September 2009, at which time it had determined that such renewal
was in the best interests of the Fund, given the nature, quality and extent of services provided by DWS (among
other considerations). In considering the New Agreement, the Board noted that in light of the transition of the
group within DWS responsible for day-to-day portfolio management of the Fund to a separate, unaffiliated firm
(i.e., QS Investors), it was necessary to approve a sub-advisory agreement between DWS and QS Investors to
secure continued access to these same personnel and services. The Board also considered that, despite the
change in corporate identity of the portfolio management services provider and the fact that it would no longer be
affiliated with DWS, the nature, quality and extent of services provided to the Fund are not expected to change
under the New Agreement.
Fees and Expenses. The Board noted that it had concluded during the Annual Review that the overall investment
management fees paid by the Fund are reasonable and appropriate in light of the nature, quality and extent of
services provided. The Board considered that, under the New Agreement, QS Investors’ sub-advisory fee would
be paid by DWS out of its management fee and not directly by the Fund, and therefore there would be no change
in the Fund’s overall investment management fees under the New Agreement.
Profitability. The Board noted that it had considered the profitability of DWS during the Annual Review. The Board
did not consider the profitability of QS Investors to be a material factor. In particular, the Board noted that
QS Investors has not yet commenced operations, and that any projections of profitability are likely to be of limited
value. The Board also noted that DWS would pay QS Investors’ sub-advisory fee out of its management fee, and
further noted that the sub-advisory fee arrangement with respect to the Fund was the product of an arm’s length
negotiation.
Other Benefits to QS Investors. The Board noted that it had considered fallout benefits to DWS during the Annual
Review in its determination that management fees paid were reasonable. The Board also considered the
character and amount of incidental benefits expected to be realized by QS Investors in light of the New
30 | DWS Variable Series II

Agreement, including the incidental public relations benefits to QS Investors related to DWS US mutual funds
advertising and cross-selling opportunities among DWS products and services. The Board noted that QS Investors
did not propose to implement a soft dollar" program. The Board reaffirmed its determination from the Annual
Review process that management fees paid were reasonable in light of fallout benefits to its investment advisory
service providers.
Compliance. The Board considered QS Investors’ proposed compliance program and resources. The Board also
considered that DWS would oversee QS Investors’ compliance program and its compliance with applicable Fund
policies and procedures, and considered the attention and resources DWS would dedicate to that oversight. The
Board also noted that it had considered DWS’s compliance monitoring capabilities in connection with the Annual
Review, at which time it had noted (i) the experience and seniority of both DWS’s chief compliance officer and the
Fund’s chief compliance officer; (ii) the large number of DWS compliance personnel; and (iii) the substantial
commitment of resources by DWS and its affiliates to compliance matters.
Based on all of the information considered and the conclusions reached, the Board unanimously (including the
Independent Trustees) determined that the terms of the New Agreement are fair and reasonable and that the
approval of the New Agreement is in the best interests of the Fund. In reaching this conclusion, the Board did not
give particular weight to any single factor identified above. It is possible that individual Trustees may have
weighed these factors differently in reaching their individual decisions to approve the New Agreement.
DWS Variable Series II | 31

Summary of Management Fee Evaluation by Independent
Fee Consultant
October 9, 2009, As Revised November 20, 2009
Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively,
DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee
Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written
evaluation of the management fees DeAM charges the Funds, considering among other factors the management
fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for
like services, DeAM’s costs of supplying services under the management agreements and related profit margins,
possible economies of scale if a Fund grows larger, and the nature and quality of DeAM’s services, including fund
performance. This report summarizes my evaluation for 2009, including my qualifications, the evaluation process
for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in
substantially the same capacity in 2007 and 2008.
Qualifications
For more than 35 years I have served in various professional capacities within the investment management
business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist
and director of investment policy with a large investment firm. I have also performed business management
functions, including business development, financial management and marketing research and analysis.
Since 1991, I have been an independent consultant within the asset management industry. I have provided
services to over 125 client organizations, including investment managers, mutual fund boards, product
distributors and related organizations. Over the past ten years I have completed a number of assignments for
mutual fund boards, specifically including assisting boards with management contract renewal.
I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of
Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an
independent director and audit committee financial expert for two closed-end mutual funds and serve in various
leadership and financial oversight capacities with non-profit organizations.
Evaluation of Fees for each DWS Fund
My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 124 publicly offered Fund
portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well
as any other relevant information. In doing so I worked closely with the Funds’ Independent Directors in their
annual contract renewal process, as well as in their approval of contracts for several new funds (documented
separately).
In evaluating each Fund’s fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including
expense information prepared by Lipper Analytical, comparative performance information, profitability data,
manager histories, and other materials. I also accessed certain additional information from the Lipper, Strategic
Insight, and Morningstar databases and drew on my industry knowledge and experience.
To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing
the key data elements in each area as well as additional analytics discussed below. This made it possible to
consider each key data element in the context of the others.
In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments
requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation
includes the effects of these changes.
Fees and Expenses Compared with Other Funds
The competitive fee and expense evaluation for each fund focused on two primary comparisons:
32 | DWS Variable Series II

The Fund’s contractual management fee (the advisory fee plus the administration fee where applicable)
compared with those of a group of typically 12–15 funds in the same Lipper investment category (e.g. Large
Capitalization Growth) having similar distribution arrangements and being of similar size.
The Fund’s total expenses compared with a broader universe of funds from the same Lipper investment
category and having similar distribution arrangements.
These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but
also the total expense the Fund bears for all the services it receives, in comparison with the investment choices
available in the Fund’s investment category and distribution channel. The principal figure-of-merit used in these
comparisons was the subject Fund’s percentile ranking against peers.
DeAM’s Fees for Similar Services to Others
DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment
management accounts in any of the investment categories where there is a DWS Fund. These similar products
included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts.
Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the
subject Fund’s asset level.
Evaluating information regarding non-fund products is difficult because there are varying levels of services
required for different types of accounts, with mutual funds generally requiring considerably more regulatory and
administrative types of service as well as having more frequent cash flows than other types of accounts. Also,
while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due
to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable
insurance products), differences in underlying investment processes and other factors.
Costs and Profit Margins
DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the
presentation would be more comparable to the available industry figures, I reviewed profit margins from
investment management alone, from investment management plus other fund services (excluding distribution)
provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including
distribution. A later section comments on overall profitability.
Economies of Scale
Economies of scale an expected decline in management cost per dollar of fund assets as fund assets grow
are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant
data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and
lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I
reviewed:
The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if
the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have
declined as a percent of assets.
Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into
the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the
Fund’s break-points compare with those of the sub-advisory fee schedule.
How the Fund’s contractual fee schedule compares with trends in the industry data. To accomplish this, I
constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar
funds relate to average fund assets, with the subject Fund’s contractual fee schedule superimposed.
Quality of Service Performance
The quality-of-service evaluation focused on investment performance, which is the principal result of the
investment management service. Each Fund’s performance was reviewed over the past 1, 3, 5 and 10 years, as
applicable, and compared with that of other funds in the same investment category and with a suitable market
index.
DWS Variable Series II | 33

In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds’ returns and
a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the
Fund’s return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively
taking considerably more or less risk than is typical in its investment category.
I also received and considered the history of portfolio manager changes for each Fund, as this provided an
important context for evaluating the performance results.
Complex-Level Considerations
While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the
reasonableness of fees that can alternatively be considered across the whole fund complex:
I reviewed DeAM’s profitability analysis for all DWS Funds, with a view toward determining if the allocation
procedures used were reasonable and how profit levels compared with public data for other investment
managers.
I considered whether DeAM and affiliates receive any significant ancillary or fall-out" benefits that should be
considered in interpreting the direct profitability results. These would be situations where serving as the
investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.
I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context
of trends in asset levels.
I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation
of investment management and other professionals compared with industry data.
Findings
Based on the process and analysis discussed above, which included reviewing a wide range of information from
management and external data sources and considering among other factors the fees DeAM charges other
clients, the fees charged by other fund managers, DeAM’s costs and profits associated with managing the Funds,
economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the
management fees charged the DWS Funds are reasonable.
Thomas H. Mack
34 | DWS Variable Series II

Notes
DWS Variable Series II | 35

DWS Investments is part of Deutsche Bank’s Asset Management division and, within the US, represents the
retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche
Investment Management Americas Inc. and DWS Trust Company.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of
the report as stated on the cover. The managers’ views are subject to change at any time based on market and
other conditions and should not be construed as a recommendation.
This information must be preceded or accompanied by a current prospectus.
Portfolio changes should not be considered recommendations for action by individual investors.
DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, ILМ60606
(800) 778-1482
VS2SI-3Н(8/10)
36 | DWS Variable Series II