<PAGE>
TCW/DW CORE EQUITY TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- ------------------------------------------------------------------------------
During the six-month period ended September 30, 1996, the economy settled
down into a slower pace relative to the faster growth experienced in the first
part of the year. Recent economic data have presented a confusing picture,
which is typical of a business expansion that is nearly six years old. Third
quarter GDP slowed to 2.2 percent from the 3.8 percent posted in the second
quarter, while inflationary pressures continue to mount as reflected in the
10-year high in new home sales, the minimum wage increase and rising raw
material prices. During the past six months, the market was influenced
significantly by the direction of interest rates, which led to increased
volatility.
PERFORMANCE AND PORTFOLIO STRUCTURE
Against this backdrop, TCW/DW Core Equity Trust posted a total return of
7.22 percent for the six-month period ended September 30, 1996. By comparison,
the Standard & Poor's 500 Composite Stock Price Index (S&P 500) registered a
total return of 7.71 percent.
A dominant theme in the Fund's portfolio was the secular growth of
technology worldwide. As of September 30, 1996, technology and
technology-related holdings represented 43.4 percent of the Fund's portfolio.
Purchases made within this broadly defined sector included Ascend
Communications, Inc. and Lucent Technologies, Inc. (formerly of AT&T). Both
investments seek to take advantage of the numerous technological innovations
taking place among communication equipment suppliers and are positioned to
benefit from the long-term secular growth attributed to the building of a
communication structure worldwide. The Fund continues to invest in companies
that lead their respective fields in the development of innovative technology,
which provides sustainable earnings growth. According to TCW, the Fund's
investment adviser, successful investment in technology hinges on taking a
long-term investment approach because, although market sentiment may shift,
overall demand for technology continues to grow.
Technology stocks and the overall market came under considerable pressure
in July when fears of an overheated economy, coupled with a deceleration in
mutual fund inflows, signaled to many the end of the bull market. However, this
correction reflected a shift in market sentiment rather than a fundamental
change in the market and much of what had been lost was recouped early in
August. Increased demand surfaced in semi-conductors and seemingly all
technology stocks seemed to once again be favored by investors.
Another theme prevalent in many of the Fund's holdings is outsourcing.
Outsourcing allows companies or government agencies to focus on their core
competencies and thereby lower costs and increase productivity. Among the
Fund's holdings in this sector are Corporate Express, Inc. and Lear
Corporation.
During the period under review, the Fund established positions in
Honeywell, Inc. (electrical equipment), Infinity Broadcasting Corp. (broadcast
media), Warner-Lambert Co. (healthcare), Mirage Resorts, Inc. (entertainment),
CUC International, Inc. (retail), Oxford Health Plans, Inc. (medical services),
Associates First Capital Corp. (finance) and Continental Airlines, Inc. (air
transport). Positions eliminated from the portfolio included Canadian Natural
Resources, Northrop Grumman, Applied Materials, Champion, Ivax, Tandy and Texas
Instruments.
LOOKING AHEAD
It is TCW's contention that the economy will continue to grow at a moderate
pace with inflation in check and that the market should resume at a pace in
line with corporate earnings growth. According to
<PAGE>
TCW, the threat of inflation is remote given massive global excess capacity,
fiscal downsizing and privatization, a rising dollar, restrained money supply
growth and top-heavy consumer balance sheets. They also believe that any
moderate tightening of monetary policy by the Federal Reserve Board to
forestall inflationary pressures is unlikely to precipitate a recession and, in
fact, may prolong expansion.
We appreciate your 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, 1996 (unaudited)
- ------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
- --------- --------------
COMMON STOCKS (99.6%)
AEROSPACE (4.8%)
267,400 Boeing Co. ............................ $25,269,300
233,100 Thiokol Corp. ......................... 10,926,562
--------------
36,195,862
--------------
AIR TRANSPORT (6.9%)
263,100 AMR Corp.* ............................ 20,949,337
261,100 Continental Airlines, Inc. (Class B)* 5,842,112
196,900 Delta Air Lines, Inc. ................. 14,176,800
247,200 UAL Corp.* ............................ 11,618,400
--------------
52,586,649
--------------
AIRCRAFT & AEROSPACE (3.4%)
214,300 United Technologies Corp. ............. 25,742,787
--------------
AUTO PARTS - ORIGINAL
EQUIPMENT (4.2%)
593,700 Lear Corp.* ........................... 19,592,100
264,900 Magna International, Inc. (Class A)
(Canada) .............................. 12,781,425
--------------
32,373,525
--------------
AUTOMOBILES (3.4%)
899,500 Chrysler Corp. ........................ 25,748,187
--------------
BANKS - MONEY CENTER (2.3%)
188,900 Citicorp .............................. 17,119,062
--------------
BROADCAST MEDIA (1.5%)
121,200 Infinity Broadcasting Corp. (Class A)* 3,817,800
215,147 Viacom, Inc. (Class B)* ............... 7,637,718
--------------
11,455,518
--------------
BROKERAGE (2.1%)
241,800 Merrill Lynch & Co., Inc. ............. 15,868,125
--------------
BUSINESS SERVICES (5.2%)
220,800 First Data Corp. ...................... 18,022,800
552,100 Green Tree Financial Corp. ............ 21,669,925
--------------
39,692,725
--------------
COMMERCIAL SERVICES (1.3%)
327,200 Corrections Corp. of America* ......... 10,225,000
--------------
COMMUNICATIONS -
EQUIPMENT & SOFTWARE (6.0%)
135,300 Cascade Communications Corp.* ......... 11,010,037
555,006 Cisco Systems, Inc.* .................. 34,410,372
--------------
45,420,409
--------------
COMMUNICATIONS -
EQUIPMENT/MANUFACTURERS (2.2%)
329,000 Motorola, Inc. ........................ 16,984,625
--------------
COMPUTER EQUIPMENT (1.0%)
203,500 Storage Technology Corp.* ............. 7,707,563
--------------
COMPUTER SERVICES (6.3%)
302,200 Computer Sciences Corp.* .............. $23,231,625
406,300 Electronic Data Systems Corp. ......... 24,936,662
--------------
48,168,287
--------------
COMPUTER SOFTWARE (4.6%)
192,600 Microsoft Corp.* ...................... 25,375,050
236,150 Oracle Corp.* ......................... 10,036,375
--------------
35,411,425
--------------
DRUGS (2.3%)
272,400 Amgen, Inc.* .......................... 17,195,250
--------------
ELECTRICAL EQUIPMENT (1.0%)
118,200 Honeywell, Inc. ....................... 7,461,375
--------------
ELECTRONICS -
SEMICONDUCTORS/COMPONENTS (4.9%)
391,800 Intel Corp. ........................... 37,367,925
--------------
ENTERTAINMENT (1.1%)
310,700 Mirage Resorts, Inc.* ................. 7,961,688
--------------
FINANCIAL SERVICES (1.8%)
334,600 Associates First Capital Corp. ....... 13,718,600
--------------
HEALTHCARE - DIVERSIFIED (2.6%)
234,300 Johnson & Johnson ..................... 12,007,875
119,200 Warner-Lambert Co. .................... 7,867,200
--------------
19,875,075
--------------
HOSPITAL MANAGEMENT (2.7%)
367,400 Columbia/HCA Healthcare Corp. ......... 20,895,875
--------------
HOUSEHOLD APPLIANCES (2.0%)
453,700 American Standard Companies, Inc.* ... 15,539,225
--------------
INSURANCE (1.2%)
93,800 Marsh & McLennan Companies, Inc. ..... 9,110,325
--------------
MACHINERY - CONSTRUCTION &
MATERIALS (2.1%)
214,100 Caterpillar, Inc. ..................... 16,137,788
MEDICAL SERVICES (0.7%)
103,300 Oxford Health Plans, Inc.* ............ 5,139,175
--------------
OFFICE EQUIPMENT & SUPPLIES (5.8%)
215,300 Corporate Express, Inc.* .............. 8,315,963
423,800 Hewlett-Packard Co. ................... 20,660,250
280,900 Xerox Corp. ........................... 15,063,263
--------------
44,039,476
--------------
PUBLISHING (1.2%)
428,700 News Corp. Ltd. (ADR) (Australia) .... 8,949,113
--------------
RAILROADS (3.0%)
270,597 Burlington Northern Sante Fe Corp. ... 22,831,622
--------------
<PAGE>
TCW/DW CORE EQUITY TRUST
PORTFOLIO OF INVESTMENTS September 30, 1996 (unaudited) (continued)
- ------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
- --------- --------------
RESTAURANTS (1.4%)
306,900 Boston Chicken, Inc.* ................. $ 10,818,225
--------------
RETAIL (1.3%)
251,600 CUC International, Inc.* .............. 10,032,550
--------------
RETAIL - SPECIALTY (2.4%)
321,200 Home Depot, Inc. ...................... 18,268,250
--------------
SOAP & HOUSEHOLD PRODUCTS (4.6%)
168,500 Kimberly-Clark Corp. .................. 14,849,063
209,700 Procter & Gamble Co. .................. 20,445,750
--------------
35,294,813
--------------
TELECOMMUNICATIONS (2.3%)
138,600 Ascend Communications, Inc.* ......... 9,147,600
186,100 Lucent Technologies, Inc. ............ 8,537,339
--------------
17,684,939
--------------
TOTAL COMMON STOCKS
(IDENTIFIED COST $487,621,316) ....... 759,021,038
--------------
PRINCIPAL
AMOUNT (IN
THOUSANDS) VALUE
- ---------- --------------
SHORT-TERM INVESTMENT (0.9%)
REPURCHASE AGREEMENT
$7,090 The Bank of New York 5.00%
due 10/01/96 (dated 09/30/96;
proceeds $7,091,478;
collateralized by $7,083,243
U.S. Treasury Note 5.625% due
10/31/97 valued at $7,232,303)
(Identified Cost $7,090,493) . $ 7,090,493
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST
$494,711,809) (A) ........................ 100.5% 766,111,531
LIABILITIES IN EXCESS OF
OTHER ASSETS ............................. (0.5) (4,091,743)
------- --------------
NET ASSETS ................................ 100.0% $762,019,788
======= ==============
- ------------
ADR American Depository Receipt.
* Non-income producing security.
(a) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation was $276,145,978 and the
aggregate gross unrealized depreciation was $4,746,256, resulting in net
unrealized appreciation of $271,399,722.
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1996 (unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in securities, at value
(identified cost $494,711,809) ............ $766,111,531
Receivable for:
Dividends ................................. 749,738
Shares of beneficial interest sold ....... 106,333
Deferred organizational expenses ........... 26,616
Prepaid expenses and other assets .......... 112,694
-------------
TOTAL ASSETS ............................. 767,106,912
-------------
LIABILITIES:
Payable for:
Investments purchased ..................... 3,418,365
Shares of beneficial interest repurchased 515,250
Plan of distribution fee .................. 483,547
Management fee ............................ 321,157
Investment advisory fee ................... 214,104
Accrued expenses ........................... 134,701
-------------
TOTAL LIABILITIES ........................ 5,087,124
-------------
NET ASSETS:
Paid-in-capital ............................ 472,909,882
Net unrealized appreciation ................ 271,399,722
Net investment loss ........................ (3,111,124)
Accumulated undistributed net realized gain 20,821,308
-------------
NET ASSETS ............................... $762,019,788
=============
NET ASSET VALUE PER SHARE, 48,935,183
shares outstanding (unlimited shares
authorized of $.01 par value) ............. $15.57
======
- ------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended September 30, 1996 (unaudited)
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME:
INCOME
Dividends (net of $31,213 foreign
withholding tax) ........................ $ 3,510,806
Interest ................................. 63,575
-------------
TOTAL INCOME ............................ 3,574,381
-------------
EXPENSES
Plan of distribution fee ................. 2,912,620
Management fee ........................... 1,929,415
Investment advisory fee .................. 1,286,276
Transfer agent fees and expenses ........ 354,029
Professional fees ........................ 63,128
Shareholder reports and notices .......... 31,302
Custodian fees ........................... 31,076
Organizational expenses .................. 20,044
Trustees' fees and expenses .............. 19,732
Registration fees ........................ 19,559
Other .................................... 18,324
-------------
TOTAL EXPENSES .......................... 6,685,505
-------------
NET INVESTMENT LOSS ..................... (3,111,124)
-------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain ........................ 20,821,299
Net change in unrealized appreciation ... 35,537,710
-------------
NET GAIN ................................ 56,359,009
-------------
NET INCREASE ............................ $ 53,247,885
=============
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
SEPTEMBER 30, 1996 MARCH 31, 1996
------------------------ ------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss ............................................................... $ (3,111,124) $ (5,429,759)
Net realized gain ................................................................. 20,821,299 68,877,185
Net change in unrealized appreciation ............................................. 35,537,710 100,384,305
------------ ------------
Net increase ..................................................................... 53,247,885 163,831,731
Distributions from net realized gain ............................................... (29,578,326) --
Net decrease from transactions in shares of beneficial interest .................... (28,819,461) (94,012,499)
------------ ------------
Total increase (decrease) ........................................................ (5,149,902) 69,819,232
NET ASSETS:
Beginning of period ................................................................ 767,169,690 697,350,458
------------ ------------
END OF PERIOD (Including a net investment loss of $3,111,124 and $0, respectively) . $762,019,788 $767,169,690
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1996 (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's
investment objective is long-term growth of capital. The Fund seeks to achieve
its objective by investing primarily in common stocks and securities
convertible into common stocks issued by domestic and foreign companies. The
Fund was organized as a Massachusetts business trust on January 31, 1992 and
commenced operations on May 29, 1992.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual results
could differ from those estimates. 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 or 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 and other distributions are recorded on the
ex-dividend date. Discounts are accreted over the life of the respective
securities. Interest income is accrued daily.
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.
<PAGE>
TCW/DW CORE EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1996 (unaudited) (continued)
- ------------------------------------------------------------------------------
E. Organizational Expenses -- Dean Witter InterCapital Inc.
("InterCapital"), an affiliate of Dean Witter Services Company Inc. (the
"Manager"), paid the organizational expenses of approximately $202,000
which have been reimbursed, exclusive of $2,000 which has been absorbed by
InterCapital. Such expenses have been deferred and are being amortized on
the straight-line method over a period not to exceed five years from the
commencement of operations.
2. MANAGEMENT AGREEMENT -- Pursuant to a Management Agreement, the Fund pays
the Manager a management fee, accrued daily and payable monthly, by applying
the following annual rates to the Fund's 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 the
Adviser an advisory fee, accrued daily and payable monthly, by applying the
following annual rates to the Fund's 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
<PAGE>
TCW/DW CORE EQUITY TRUST
NOTES TO FINANCIAL STATEMENTS September 30, 1996 (unaudited) (continued)
- ------------------------------------------------------------------------------
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.
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.
Although there is no legal obligation for the Fund to pay expenses
incurred in excess of payments made to the Distributor under the Plan and the
proceeds of contingent deferred sales charges paid by investors upon redemption
of shares, if for any reason the Plan is terminated, the Trustees will consider
at that time the manner in which to treat such expenses. The Distributor has
advised the Fund that such excess amounts, included carrying charges, totaled
$22,739,312 at September 30, 1996.
The Distributor has informed the Fund that for the six months ended
September 30, 1996, it received approximately $835,000 in contingent deferred
sales charges from certain redemptions of the Fund's shares.
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, 1996 aggregated
$149,841,038 and $207,992,584, respectively.
For the six months ended September 30, 1996, the Fund incurred $18,125 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, 1996, the Fund had transfer agent
fees and expenses payable of approximately $66,000.
6. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
For the six For the year
months ended ended
September 30, 1996 March 31, 1996
------------------------------ -------------------------------
(unaudited)
Shares Amount Shares Amount
------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ............................ 1,280,191 $ 19,420,093 4,293,001 $ 60,014,162
Reinvestment of distributions ... 1,815,126 27,644,376 -- --
------------- --------------- -------------- ---------------
3,095,317 47,064,469 4,293,001 60,014,162
Repurchased ..................... (4,986,476) (75,883,930) (11,052,750) (154,026,661)
------------- --------------- -------------- ---------------
Net decrease .................... (1,891,159) $(28,819,461) (6,759,749) $ (94,012,499)
============= =============== ============== ===============
</TABLE>
7. FEDERAL INCOME TAX STATUS -- As of March 31, 1996, the Fund had 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 period
For the six months For the year ended March 31, May 29, 1992*
ended ---------------------------------- through
September 30, 1996 1996 1995 1994 March 31, 1993
------------------ ---------- ---------- ---------- --------------
(unaudited)
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .... $15.09 $12.11 $12.10 $11.26 $10.00
-------- -------- -------- -------- --------
Net investment loss ...................... (0.06) (0.11) (0.06) (0.06) (0.01)
Net realized and unrealized gain ........ 1.15 3.09 0.07 0.90 1.27
-------- -------- -------- -------- --------
Total from investment operations ........ 1.09 2.98 0.01 0.84 1.26
-------- -------- -------- -------- --------
Less distributions from net realized gain (0.61) -- -- -- --
-------- -------- -------- -------- --------
Net asset value, end of period ........... $15.57 $15.09 $12.11 $12.10 $11.26
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+ ................. 7.22 %(1) 24.69 % 0.08 % 7.46 % 12.60 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ................................. 1.77 %(2) 1.82 % 1.96 % 1.93 % 2.07 %(2)
Net investment loss ...................... (0.82)%(2) (0.72)% (0.48)% (0.59)% (0.14)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands . $762,020 $767,170 $697,350 $707,069 $486,829
Portfolio turnover rate .................. 20 %(1) 48 % 38 % 35 % 26 %(1)
Average commission rate paid ............. $0.0592 $0.0595 -- -- --
</TABLE>
- ------------
* Commencement of operations.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(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
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.
TCW/DW
CORE EQUITY
TRUST
SEMIANNUAL REPORT
SEPTEMBER 30, 1996
