TCW/DW CORE EQUITY TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- -----------------------------------------------------------------------------
The first six months of TCW/DW Core Equity Trust's current fiscal year
were characterized by a marked deceleration in the growth rate of the U.S.
economy. The Fund's investment adviser, TCW Funds Management, Inc. (TCW),
believes this slowdown is the effect of the Federal Reserve Board's tight
monetary policy of 1994. While the economy was braking, the bond market
rallied, pushing interest rates lower. This development, combined with strong
corporate profits, triggered a surprisingly strong surge in equity prices.
With cyclical, financial and technology stocks leading the way, the Standard
& Poor's 500 Composite Stock Price Index (S&P 500) registered a total return
of 18.23 percent for the six months ended September 30, 1995. Heavy
weightings in automobiles, technology, capital goods and transportation
helped the Fund modestly outperform the S&P 500 with a total return of 18.91
percent.
OTHER FACTORS IN THE EQUITY MARKET'S STRENGTH
Many publicly owned companies have instituted stock repurchase programs to
help enhance shareholder value. Also, mergers and acquisitions are up 24
percent year-to-date, the highest level in years. Consolidation in the
banking, media and technology sectors -- all strong in recent months -- has
sparked investor interest in those areas. Another significant factor was the
U.S. dollar's emergence from its long slide. Long term, TCW believes that
this development should attract foreign investment to the United States while
providing a psychological boost in the short term. Finally, money flows into
equity mutual funds remained strong, providing the necessary liquidity.
CURRENT PORTFOLIO STRUCTURE
As stated in the past, TCW invests the Fund's assets on the basis of
identifying a variety of trends and themes. The major themes center around
the fact that the United States maintains world leadership in key technology
areas which, coupled with TCW's contention that we are the world's low-cost
producer of quality products, enhances our competitive stance in a global
economy. Throughout the world, countries are embracing the U.S. concept of
free markets, which will eventually lead to freer trade and a heightened
competitive arena in which streamlined, globally oriented companies have the
best chances to succeed. Thus, multinational companies such as Boeing Co.,
Procter & Gamble and Motorola, Inc. are well represented in the Fund's
portfolio.
As of September 30, 1995, the capital goods sector represented 44 percent
of the portfolio, with the majority in technology and aerospace holdings.
Technology stocks (38 percent of the portfolio) experienced a correction
during August and September on fears that earnings would prove disappointing.
TCW believes those fears were misplaced, as the majority of technology
companies released strong earnings reports. While the market is undeniably
sensitive to movements within the technology sector, TCW believes that in a
world increasingly driven by productivity, information technology and
communication, it is difficult to envision technology stocks staying out of
favor for more than brief periods.
Consumer staples (health care, retail, etc.) are underweighted in the
portfolio relative to the S&P 500, representing approximately 15 percent of
the portfolio versus 34 percent of the Index. This underweighting had a
negative impact on the portfolio when the market turned defensive during
August and September. The basic industries component is market weighted and
comprised approximately 17 percent of the portfolio as
<PAGE>
of September 30. Performance in this sector was driven by the Fund's
significant positions in airlines (Northwest Airlines Corp. and Delta Air
Lines, Inc.) and railroads (Burlington Northern, Inc.) At approximately 12
percent of net assets, the consumer cyclical sector is overweighted relative
to the S&P 500. Chrysler (3 percent of net assets), a long-time position in
the portfolio, is the largest holding in this area. A lower interest rate
environment helped credit-sensitive issues (11 percent of the Fund's net
assets) enjoy a productive six months. The portfolio is overweighted in this
sector relative to the S&P 500, with areas such as banks (Citicorp),
brokerage (Merrill Lynch & Co., Inc.) and household appliances (American
Standard, Inc.) well represented.
LOOKING AHEAD
Although the possibility for increased volatility is present, TCW remains
positive on the long-term outlook for the equity market. At this late stage
in the business cycle, earnings gains are likely to be somewhat less robust,
with the impact of declining interest rates negligible. Despite this effect,
TCW does feel that with inflation rates declining (inflation as measured by
the Consumer Price Index is now running at an annualized rate of 2.8 percent)
interest rates should continue to move lower and corporate profits should
remain relatively strong. It is also important to note that Federal Reserve
Board Chairman Alan Greenspan has expressed a desire to be reappointed when
his term expires early next year. Thus, TCW expects to see the central bank's
monetary policy turn from restrictive to accommodating, stimulating consumer
spending, especially for housing and automobiles. Finally, TCW believes that
over the next 12 months the U.S. dollar's recovery should entice foreign
investors back to the U.S. market, thereby providing the spark that could
potentially push the Dow Jones Industrial Average through the 5000 barrier.
We appreciate your ongoing support of TCW/DW Core Equity Trust and look
forward to continuing to serve your investment needs and objectives.
Very truly yours,
/s/ Charles A. Fiumefreddo
Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
TCW/DW CORE EQUITY TRUST
Portfolio of Investments September 30, 1995 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------ --------------
<S> <C> <C>
COMMON STOCKS (97.1%)
AEROSPACE (3.6%)
406,600 Boeing Co. .......................................................................... $ 27,750,450
--------------
AIR TRANSPORT (8.8%)
210,600 AMR Corp.* .......................................................................... 15,189,525
250,500 Delta Air Lines, Inc. ............................................................... 17,347,125
582,200 Northwest Airlines Corp. (Class A)* ................................................. 24,743,500
65,500 UAL Corp.* .......................................................................... 11,192,312
--------------
68,472,462
--------------
AIRCRAFT & AEROSPACE (2.4%)
214,300 United Technologies Corp. ........................................................... 18,938,762
--------------
AUTO PARTS - ORIGINAL EQUIPMENT (4.1%)
645,500 Lear Seating Corp.* ................................................................. 18,961,563
286,800 Magna International, Inc. (Canada) (Class A) ........................................ 12,941,850
--------------
31,903,413
--------------
AUTOMOBILES (4.2%)
447,800 Chrysler Corp. ...................................................................... 23,733,400
283,000 Ford Motor Co. ...................................................................... 8,808,375
--------------
32,541,775
--------------
BANKS - MONEY CENTER (3.0%)
333,700 Citicorp ............................................................................ 23,609,275
--------------
BROADCAST MEDIA (3.5%)
64,360 Viacom, Inc. (Class A)* ............................................................. 3,201,910
487,647 Viacom, Inc. (Class B)* ............................................................. 24,260,438
--------------
27,462,348
--------------
BROKERAGE (3.8%)
264,796 Bear Stearns Companies, Inc. ........................................................ 5,693,114
384,400 Merrill Lynch & Co., Inc. ........................................................... 24,025,000
--------------
29,718,114
--------------
BUILDING MATERIALS (1.9%)
271,400 Champion International Corp. ........................................................ 14,621,675
--------------
BUSINESS SERVICES (2.6%)
327,400 Green Tree Financial Corp. .......................................................... 19,971,400
--------------
BUSINESS SYSTEMS (2.2%)
383,300 General Motors Corp. (Class E) ...................................................... 17,440,150
--------------
COMMUNICATIONS - EQUIPMENT/MANUFACTURERS (5.7%)
388,000 Motorola, Inc. ...................................................................... 29,633,500
427,900 Northern Telecom Ltd. (Canada) ...................................................... 15,243,937
--------------
44,877,437
--------------
COMPUTER EQUIPMENT (1.2%)
389,400 Storage Technology Corp.* ........................................................... 9,540,300
--------------
COMPUTER SERVICES (6.0%)
451,800 Computer Sciences Corp.* ............................................................ 29,084,625
288,100 First Data Corp. .................................................................... 17,862,200
--------------
46,946,825
--------------
<PAGE>
TCW/DW CORE EQUITY TRUST
Portfolio of Investments September 30, 1995 (unaudited) (continued)
NUMBER OF
SHARES VALUE
- ------------ --------------
COMPUTER SOFTWARE (4.7%)
241,500 Microsoft Corp.* .................................................................... $ 21,855,750
379,800 Oracle Systems Corp.* ............................................................... 14,527,350
--------------
36,383,100
--------------
DRUGS (1.9%)
297,400 Amgen Inc.* ......................................................................... 14,832,825
--------------
ELECTRONICS - DEFENSE (0.2%)
40,100 General Motors Corp. (Class H) ...................................................... 1,644,100
--------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS (9.8%)
455,200 Intel Corp. ......................................................................... 27,368,900
1,169,400 National Semiconductor Corp.* ....................................................... 32,304,675
211,600 Texas Instruments Inc. .............................................................. 16,901,550
--------------
76,575,125
--------------
ENTERTAINMENT (0.9%)
246,300 Circus Circus Enterprises, Inc.* .................................................... 6,896,400
--------------
HOSPITAL MANAGEMENT (2.3%)
367,400 Columbia/HCA Healthcare Corp. ....................................................... 17,864,825
--------------
HOUSEHOLD APPLIANCES (1.9%)
508,900 American Standard, Inc.* ............................................................ 15,012,550
--------------
MACHINERY - CONSTRUCTION & MATERIALS (1.7%)
236,700 Caterpillar, Inc. ................................................................... 13,462,313
--------------
OFFICE EQUIPMENT & SUPPLIES (8.2%)
328,100 Hewlett-Packard Co. ................................................................. 27,355,338
1,624,300 Unisys Corp.* ....................................................................... 12,791,362
178,700 Xerox Corp. ......................................................................... 24,012,813
--------------
64,159,513
--------------
OIL & GAS PRODUCTS (1.5%)
766,400 Alberta Energy Company Ltd. (Canada) ................................................ 11,635,916
--------------
OIL - EXPLORATION & PRODUCTION (1.5%)
986,500 Canadian Natural Resources Ltd. (Canada)* ........................................... 12,037,211
--------------
PUBLISHING (1.2%)
428,700 News Corp. Ltd. (ADR) (Australia) ................................................... 9,431,400
--------------
RAILROADS (3.5%)
374,698 Burlington Northern, Inc. ........................................................... 27,165,575
--------------
RETAIL - SPECIALTY (2.6%)
283,300 Home Depot, Inc. .................................................................... 11,296,588
151,200 Tandy Corp. ......................................................................... 9,185,400
--------------
20,481,988
--------------
SOAP & HOUSEHOLD PRODUCTS (2.2%)
218,600 Procter & Gamble Co. ................................................................ 16,832,200
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $510,564,419) ...................................................... 758,209,427
--------------
<PAGE>
TCW/DW CORE EQUITY TRUST
Portfolio of Investments September 30, 1995 (unaudited) (continued)
NUMBER OF
SHARES VALUE
- ------------ --------------
CONVERTIBLE PREFERRED STOCK (1.9%)
AUTOMOBILES
144,700 Ford Motor Co. $4.20 (Identified Cost $11,467,539) .................................. $14,813,663
--------------
PREFERRED STOCK (0.6%)
PUBLISHING
259,300 News Corp. Ltd. (ADR) (Australia) (Identified Cost $4,346,087) ...................... 5,153,587
--------------
Principal
Amount (in
thousands)
- ------------
SHORT-TERM INVESTMENTS (2.4%)
U.S. GOVERNMENT AGENCY (a) (2.3%)
$ 18,000 Federal Home Loan Banks 6.30% due 10/02/95 (Amortized Cost $17,996,850) ............ 17,996,850
--------------
REPURCHASE AGREEMENT (0.1%)
771 The Bank of New York 5.375% due 10/02/95 (dated 09/29/95; proceeds $771,371;
collateralized by $811,989 U.S. Treasury Note 7.25% due 05/15/04 valued at
$886,526) (Identified Cost $771,026) ............................................... 771,026
--------------
TOTAL SHORT-TERM INVESTMENTS (IDENTIFIED COST $18,767,876) .......................... 18,767,876
--------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TOTAL INVESTMENTS (IDENTIFIED COST $545,145,921) (B) ................... 102.0% 796,944,553
LIABILITIES IN EXCESS OF OTHER ASSETS .................................. (2.0) (15,854,947)
-------- --------------
NET ASSETS ............................................................. 100.0% $781,089,606
======== ==============
</TABLE>
- ------------
ADR American Depository Receipt.
* Non-income producing security.
(a) Security was purchased on a discount basis. The interest rate shown
has been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes is $545,145,921;
the aggregate gross unrealized appreciation is $268,953,909 and the
aggregate gross unrealized depreciation is $17,155,277, resulting in
net unrealized appreciation of $251,798,632.
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
September 30, 1995 (unaudited)
For the six months ended September 30, 1995 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $545,145,921) ... $796,944,553
Receivable for:
Investments sold .................. 2,669,632
Dividends ......................... 689,084
Shares of beneficial interest sold 542,608
Deferred organizational expenses .. 66,704
Prepaid expenses and other assets . 115,184
--------------
TOTAL ASSETS ..................... 801,027,765
--------------
LIABILITIES:
Payable for:
Investments purchased ............. 18,305,918
Plan of distribution fee .......... 510,141
Shares of beneficial interest
repurchased ...................... 448,946
Management fee .................... 328,938
Investment advisory fee ........... 219,292
Accrued expenses ................... 124,924
--------------
TOTAL LIABILITIES ................ 19,938,159
--------------
NET ASSETS:
Paid-in-capital .................... 556,819,290
Net unrealized appreciation ....... 251,798,632
Net investment loss ................ (2,283,750)
Accumulated net realized loss ..... (25,244,566)
--------------
NET ASSETS ....................... $781,089,606
==============
NET ASSET VALUE PER SHARE,
54,254,937 shares outstanding
(unlimited shares authorized of
$.01 par value) ................... $ 14.40
==============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $75,129 foreign
withholding tax) ................ $ 4,274,763
Interest ......................... 346,744
--------------
TOTAL INCOME .................... 4,621,507
--------------
EXPENSES
Plan of distribution fee ......... 3,146,892
Management fee ................... 1,911,236
Investment advisory fee .......... 1,274,157
Transfer agent fees and expenses 389,242
Professional fees ................ 48,806
Shareholder reports and notices . 29,167
Trustees' fees and expenses ..... 28,219
Custodian fees ................... 28,120
Organizational expenses .......... 20,044
Registration fees ................ 16,429
Other ............................ 12,945
--------------
TOTAL EXPENSES .................. 6,905,257
--------------
NET INVESTMENT LOSS ............. (2,283,750)
--------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain ................ 14,054,284
Net change in unrealized
appreciation ..................... 116,320,925
--------------
NET GAIN ........................ 130,375,209
--------------
NET INCREASE .................... $128,091,459
==============
</TABLE>
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Financial Statements (continued)
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED SEPTEMBER FOR THE YEAR
30, 1995 ENDED MARCH
(UNAUDITED) 31, 1995
------------------ --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss ........................................... $ (2,283,750) $ (3,363,904)
Net realized gain (loss) ...................................... 14,054,284 (27,767,424)
Net change in unrealized appreciation ......................... 116,320,925 30,515,148
------------------ --------------
Net increase (decrease) ...................................... 128,091,459 (616,180)
Net decrease from transactions in shares of beneficial interest (44,352,311) (9,102,092)
------------------ --------------
Total increase (decrease) .................................... 83,739,148 (9,718,272)
NET ASSETS:
Beginning of period ............................................ 697,350,458 707,068,730
------------------ --------------
END OF PERIOD (including a net investment loss of $2,283,750
and $0, respectively) ......................................... $781,089,606 $697,350,458
================== ==============
</TABLE>
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements September 30, 1995 (unaudited)
- -----------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES -- TCW/DW Core Equity Trust (the
"Fund") is registered under the Investment Company Act of 1940, as amended,
as a non-diversified, open-end management investment company. The Fund was
organized as a Massachusetts business trust on January 31, 1992 and commenced
operations on March 29, 1992.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- (1) an equity security listed or traded
on the New York, American Stock Exchange, other domestic or foreign
stock exchange is valued at its latest sale price on that exchange prior
to the time when assets are valued; if there were no sales that day, the
security is valued at the latest bid price; (2) all other portfolio
securities for which over-the-counter market quotations are readily
available are valued at the latest available bid price prior to the time
of valuation; (3) when market quotations are not readily available,
including circumstances under which it is determined by the Adviser that
sale or bid prices are not reflective of a security's market value,
portfolio securities are valued at their fair value as determined in
good faith under procedures established by and under the general
supervision of the Trustees (valuation of debt securities for which
market quotations are not readily available may be based upon current
market prices of securities which are comparable in coupon, rating and
maturity or an appropriate matrix utilizing similar factors); and (4)
short-term debt securities having a maturity date of more than sixty
days at time of purchase are valued on a mark-to-market basis until
sixty days prior to maturity and thereafter at amortized cost based on
their value on the 61st day. Short-term debt securities having a
maturity date of sixty days or less at the time of purchase are valued
at amortized cost.
B. Accounting for Investments -- Security transactions are accounted for
on the trade date (date the order to buy or sell is executed). Realized
gains and losses on security transactions are determined by the
identified cost method. Dividend income is recorded on the ex-dividend
date. Interest income is accrued daily and includes accretion of
discounts on certain short-term securities.
C. Federal Income Tax Status -- It is the Fund's policy to comply with
the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. Dividends and Distributions to Shareholders -- The Fund records
dividends and distributions to its shareholders on the ex-dividend date.
The amount of dividends and distributions from net investment income and
net realized capital gains are determined in accordance with federal
income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized
capital gains for financial reporting purposes but not for tax purposes
are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent
they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
E. Organizational Expenses -- Dean Witter InterCapital Inc., an
affiliate of Dean Witter Services Company Inc. (the "Manager"), paid the
organizational expenses of approximately $202,000 which have been
reimbursed for the maximum amount of $200,000. Such expenses have been
deferred and are being amortized by the Fund on the straight-line method
over a period not to exceed five years from the commencement of
operations.
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements September 30, 1995 (unaudited) (continued)
2. MANAGEMENT AGREEMENT -- Pursuant to a Management Agreement, the Fund pays
a management fee, accrued daily and payable monthly, by applying the
following annual rates to the Fund's average daily net assets determined at
the close of each business day: 0.51% to the portion of daily net assets not
exceeding $750 million; 0.48% to the portion of daily net assets exceeding
$750 million but not exceeding $1.5 billion; and 0.45% to the portion of
daily net assets exceeding $1.5 billion.
Under the terms of the Management Agreement, the Manager maintains certain
of the Fund's books and records and furnishes, at its own expense, office
space, facilities, equipment, clerical, bookkeeping and certain legal
services and pays the salaries of all personnel, including officers of the
Fund who are employees of the Manager. The Manager also bears the cost of
telephone services, heat, light, power and other utilities provided to the
Fund.
3. INVESTMENT ADVISORY AGREEMENT -- Pursuant to an Investment Advisory
Agreement with TCW Funds Management, Inc. (the "Adviser"), the Fund pays an
advisory fee, accrued daily and payable monthly, by applying the following
annual rates to the Fund's average daily net assets determined at the close
of each business day: 0.34% to the portion of daily net assets not exceeding
$750 million; 0.32% to the portion of daily net assets exceeding $750 million
but not exceeding $1.5 billion; and 0.30% to the portion of daily net assets
exceeding $1.5 billion.
Under the terms of the Investment Advisory Agreement, the Fund has
retained the Adviser to invest the Fund's assets, including placing orders
for the purchase and sale of portfolio securities. The Adviser obtains and
evaluates such information and advice relating to the economy, securities
markets, and specific securities as it considers necessary or useful to
continuously manage the assets of the Fund in a manner consistent with its
investment objective. In addition, the Adviser pays the salaries of all
personnel, including officers of the Fund, who are employees of the Adviser.
4. PLAN OF DISTRIBUTION -- Shares of the Fund are distributed by Dean Witter
Distributors Inc. (the "Distributor"), an affiliate of the Manager. The Fund
has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under
the Act pursuant to which the Fund pays the Distributor compensation, accrued
daily and payable monthly, at an annual rate of 1.0% of the lesser of: (a)
the average daily aggregate gross sales of the Fund's shares since the Fund's
inception (not including reinvestment of dividend or capital gain
distributions) less the average daily aggregate net asset value of the Fund's
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been imposed or upon which such charge has been waived; or
(b) the Fund's average daily net assets. Amounts paid under the Plan are paid
to the Distributor to compensate it for the services provided and the
expenses borne by it and others in the distribution of the Fund's shares,
including the payment of commissions for sales of the Fund's shares and
incentive compensation to, and expenses of, the account executives of Dean
Witter Reynolds Inc. ("DWR"), an affiliate of the Manager and Distributor,
and other employees or selected broker-dealers who engage in or support
distribution of the Fund's shares or who service shareholder accounts,
including overhead and telephone expenses, printing and distribution of
prospectuses and reports used in connection with the offering of the Fund's
shares to other than current shareholders and preparation, printing and
distribution of sales literature and advertising materials. In addition, the
Distributor may be compensated under the Plan for its opportunity costs in
advancing such amounts, which compensation would be in the form of a carrying
charge on any unreimbursed expenses incurred by the Distributor.
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements September 30, 1995 (unaudited) (continued)
Provided that the Plan continues in effect, any cumulative expenses
incurred but not yet recovered, may be recovered through future distribution
fees from the Fund and contingent deferred sales charges from the Fund's
shareholders.
The Distributor has informed the Fund that for the six months ended
September 30, 1995, it received approximately $1,245,000 in contingent
deferred sales charges from certain redemptions of the Fund's shares. The
Fund's shareholders pay such charges which are not an expense of the Fund.
5. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES -- The cost of
purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended September 30, 1995
aggregated $195,029,369 and $231,226,960, respectively.
For the six months ended September 30, 1995, the Fund incurred $1,500 in
brokerage commissions with DWR for portfolio transactions executed on behalf
of the Fund.
Dean Witter Trust Company, an affiliate of the Manager and Distributor, is
the Fund's transfer agent. At September 30, 1995, the Fund had transfer agent
fees and expenses payable of approximately $93,000.
6. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED
SEPTEMBER 30, 1995 MARCH 31, 1995
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ........... 2,365,050 $ 32,292,750 9,459,986 $ 112,171,128
Repurchased ... (5,696,204) (76,645,061) (10,328,173) (121,273,220)
------------- --------------- -------------- ---------------
Net decrease .. (3,331,154) $(44,352,311) (868,187) $ (9,102,092)
============= =============== ============== ===============
</TABLE>
7. FEDERAL INCOME TAX STATUS -- At March 31, 1995, the Fund had a net capital
loss carryover of approximately $30,083,000 of which $3,681,000 will be
available through March 31, 2001 and $7,850,000 will be available through
March 31, 2002 and $18,552,000 which will be available through March 31, 2003
to offset future capital gains to the extent provided by regulations. Capital
losses incurred after October 31 ("post-October losses") within the taxable
year are deemed to arise on the first business day of the Fund's next taxable
year. The Fund incurred and will elect to defer net capital losses of
approximately $9,215,000 during fiscal 1995. As of March 31, 1995, the Fund
had temporary book/tax differences attributable to post-October losses and
permanent book/tax differences attributable to a net operating loss.
<PAGE>
TCW/DW CORE EQUITY TRUST
Financial Highlights
- -----------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED FOR THE PERIOD
MONTHS ENDED MARCH 31, MAY 29, 1992*
SEPTEMBER 30, 1995 -------------------------- THROUGH
(UNAUDITED) 1995 1994 MARCH 31, 1993
------------------ ------------ ------------ --------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C>
Net asset value, beginning of period .... $12.11 $12.10 $11.26 $10.00
------------------ ------------ ------------ --------------
Net investment loss ...................... (0.04) (0.06) (0.06) (0.01)
Net realized and unrealized gain ........ 2.33 0.07 0.90 1.27
------------------ ------------ ------------ --------------
Total from investment operations ........ 2.29 0.01 0.84 1.26
------------------ ------------ ------------ --------------
Net asset value, end of period ........... $14.40 $12.11 $12.10 $11.26
================== ============ ============ ==============
TOTAL INVESTMENT RETURN+ ................. 18.91 %(1) 0.08 % 7.46 % 12.60 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ................................. 1.84 %(2) 1.96 % 1.93 % 2.07 %(2)
Net investment loss ...................... (0.61)%(2) (0.48)% (0.59)% (0.14)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $781,090 $697,350 $707,069 $486,829
Portfolio turnover rate .................. 27 %(1) 38 % 35 % 26 %(1)
</TABLE>
- ------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE>
TRUSTEES
John C. Argue
Richard M. DeMartini
Charles A. Fiumefreddo
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Thomas E. Larkin, Jr.
Michael E. Nugent
John L. Schroeder
Marc I. Stern
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Thomas E. Larkin, Jr.
President
Sheldon Curtis
Vice President, Secretary and
General Counsel
Robert M. Hanisee
Vice President
James A. Tilton
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center--Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
MANAGER
Dean Witter Services Company Inc.
ADVISER
TCW Funds Management, Inc.
The financial statements included herein have been taken from the records
of the Fund without examination by the independent accountants and
accordingly they do not express an opinion thereon.
This report is submitted for the general information of shareholders
of the Fund. For more detailed information about the Fund, its officers and
trustees, fees, expenses and other pertinent information, please see the
prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
T C W / D W
CORE EQUITY
TRUST
SEMIANNUAL REPORT
SEPTEMBER 30, 1995
