<PAGE>
Registration File No.: 33-45450
TCW/DW CORE EQUITY TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- -----------------------------------------------------------------------------
During the past 12 months, the market's strength was characterized by
robust corporate earnings coupled with record levels of cash inflows into the
equity market. Investor sentiment shifted significantly throughout the year,
with the market being led by technology, financial services, health care and
energy stocks. Last summer, technology and financial services stocks
propelled the market until experiencing a sell-off in the fourth quarter as
the U.S. economy appeared to be sliding slowly into recession. This recession
scare caused the outlook for defensive sectors such as health care and
consumer growth to become more favorable. However, in early 1996, as it
became apparent that the economy was not in recession, technology and
cyclical stocks moved back into a leadership position. Also, energy stocks
performed well as crude oil prices rose dramatically in the face of
weather-induced short-term supply constraints.
PERFORMANCE AND PORTFOLIO STRUCTURE
For the fiscal year ended March 31, 1996, TCW/DW Core Equity Trust posted
a total return of 24.69 percent. By comparison, the Standard & Poor's 500
Composite Stocks Price Index (S&P 500) registered a total return of 32.09
percent. The accompanying chart illustrates the growth of a $10,000
investment in the Fund from inception (May 29, 1992) through the fiscal year
ended March 31, 1996, versus the performance of similar hypothetical
investment in the issues that comprise the unmanaged S&P 500.
TCW/DW CORE EQUITY TRUST
GROWTH OF $10,000
DATE TOTAL S&P
- -------------------------------------------------------------------------------
May 29, 1992 $10000 $10000
- -------------------------------------------------------------------------------
March 31, 1993 $11260 $11140
- -------------------------------------------------------------------------------
March 31, 1994 $12100 $11303
- -------------------------------------------------------------------------------
March 31, 1995 $12110 $13061
- -------------------------------------------------------------------------------
March 31, 1996 $14900(3) $17252
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR LIFE OF FUND
- -------------------------------------------------------------------------------
24.69(1) 11.33 (1)
- -------------------------------------------------------------------------------
19.69(2) 10.95 (2)
- -------------------------------------------------------------------------------
Fund S&P 500 (4)
----- -----
- -------------------------------------------------------------------------------
Past performance is not predictive of future returns.
- ----------------------------------------
(1) Figure shown does not reflect the deduction of any sales charges.
(2) Figure shown assumes the deduction of the maximum applicable contingent
deferred sales charge (CDSC) (1 year-5%, since inception 2%). See the
Fund's current prospectus for complete details on fees and sales
charges.
(3) Closing value after the deduction of a 2% CDSC, assuming a complete
redemption on March 31, 1996.
(4) The Standard & Poors 500 Composite Stock Price Index (S&P 500) is a
broad-based index, the performance of which is based on the average
performance of 500 widely held common stocks. The Index does not
include any expenses, fees or charges. The Index is unmanaged and
should not be considered an investment.
As of March 31, 1996, the capital goods sector represented 41 percent of
the portfolio, with technology remaining the largest investment theme at 24
percent of the portfolio. Despite technology stocks experiencing considerable
selling pressure in the fourth quarter of 1995 -- this is the primary reason
the Fund's performance lagged that of the S&P 500 -- the investment adviser,
TCW Funds Management, Inc. (TCW), held its ground and took advantage of
depressed share prices. In TCW's view, technology is still the fundamental
driving force behind increased worldwide productivity and will remain so for
the foreseeable future. As countries across the globe open their markets,
demand should grow for advanced technology despite the short-term vagaries of
"Wall Street." In addition to technology, defense and aerospace holdings,
such as Northrop Grumman and Thiokol Corp., were added to the portfolio to
capitalize on the consolidation taking place within those industries, as well
as the growing commercial applications of their products.
Consumer staples comprised 18 percent of the portfolio and consist of
solid long-term investments in industry-leading companies such as Home Depot,
Johnson & Johnson and Viacom. The basic industry weighting of 15 percent was
primarily invested in
<PAGE>
airline stocks. The airline industry's resounding comeback occurred because
rational competitive practices were adopted and maintained for the first
time, resulting in significant earnings growth.
Consumer cyclicals, such as automobiles and auto parts, represented 8
percent of the portfolio. TCW's longstanding opinion that operating
efficiency can be achieved by automobile manufacturers through outsourcing
appears to have been accepted by the investment community as Chrysler Corp.,
the largest outsourcer of the big three automobile manufacturers, reaches new
highs. In the credit sensitive sector, the Fund's underweighting in
utilities--especially telephone companies--enhanced returns in the first
quarter, as those stocks underperformed. In contrast, the Fund's near market
weighting in bank and financial services stocks clearly helped performance.
LOOKING AHEAD
Although recent economic data are mixed, it appears that the Federal
Reserve Board has averted a recession and in so doing has successfully
orchestrated a "soft landing." In TCW's view, the U.S. economy is poised for
moderate growth with nominal inflation, which particularly benefits the
Fund's cyclically oriented portfolio. Over the balance of 1996, within the
context of a moderately growing economy, TCW believes the market will be
driven by interest rates, corporate profits (which should remain positive)
and liquidity. The Fund will remain focused, as always, on the long-term
factors driving the financial markets, rather than on short-term trends or
fads.
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 March 31, 1996
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- ------------------------------------ --------------
<S> <C> <C>
COMMON STOCKS (98.5%)
AEROSPACE (5.7%)
267,400 Boeing Co. .......................... $23,163,525
179,000 Northrop Grumman Corp. .............. 11,388,875
199,900 Thiokol Corp. ....................... 8,770,612
--------------
43,323,012
--------------
AIR TRANSPORT (8.3%)
181,300 AMR Corp.* .......................... 16,226,350
240,200 Delta Air Lines, Inc. ............... 18,465,375
316,500 Northwest Airlines Corp. (Class A)* 16,220,625
61,800 UAL Corp.* .......................... 12,885,300
--------------
63,797,650
--------------
AIRCRAFT & AEROSPACE (3.1%)
214,300 United Technologies Corp. ........... 24,055,175
--------------
AUTO PARTS - ORIGINAL EQUIPMENT
(4.3%)
634,100 Lear Seating Corp.* ................. 20,687,512
264,900 Magna International, Inc. (Class A)
(Canada) ............................ 12,218,512
--------------
32,906,024
--------------
AUTOMOBILES (4.2%)
521,400 Chrysler Corp. ...................... 32,457,150
--------------
BANKS - MONEY CENTER (3.2%)
303,800 Citicorp ............................ 24,304,000
--------------
BROADCAST MEDIA (3.1%)
561,047 Viacom, Inc. (Class B)* ............. 23,634,105
--------------
BROKERAGE (2.6%)
328,900 Merrill Lynch & Co., Inc. ........... 19,980,675
--------------
BUSINESS SERVICES (3.1%)
694,600 Green Tree Financial Corp. .......... 23,876,875
--------------
BUSINESS SYSTEMS (2.7%)
369,500 General Motors Corp. (Class E) ..... 21,061,500
--------------
COMMUNICATIONS -
EQUIPMENT & SOFTWARE (4.5%)
179,000 America Online, Inc.* ............... 10,046,375
520,706 Cisco Systems, Inc.* ................ 24,147,741
--------------
34,194,116
--------------
COMMUNICATIONS -
EQUIPMENT/MANUFACTURERS (2.9%)
420,200 Motorola, Inc. ...................... 22,270,600
--------------
COMPUTER EQUIPMENT (1.2%)
360,400 Storage Technology Corp.* ........... 9,415,450
--------------
COMPUTER SERVICES (5.8%)
302,200 Computer Sciences Corp.* ............ 21,267,325
324,900 First Data Corp. .................... 22,905,450
--------------
44,172,775
--------------
COMPUTER SOFTWARE (4.8%)
181,400 Microsoft Corp.* .................... 18,684,200
379,800 Oracle Corp.* ....................... 17,803,125
--------------
36,487,325
--------------
NUMBER OF
SHARES VALUE
- ----------- ------------------------------------ --------------
<S> <C> <C>
DRUGS (5.2%)
284,600 Amgen Inc.* ......................... $16,506,800
900,100 Ivax Corp. .......................... 23,290,088
--------------
39,796,888
--------------
ELECTRONICS -
SEMICONDUCTORS/COMPONENTS (4.7%)
157,100 Applied Materials, Inc.* ............ 5,459,225
391,800 Intel Corp. ......................... 22,234,650
157,400 Texas Instruments Inc. .............. 8,007,725
--------------
35,701,600
--------------
HEALTHCARE - DIVERSIFIED (0.9%)
78,300 Johnson & Johnson ................... 7,223,175
--------------
HOSPITAL MANAGEMENT (2.8%)
367,400 Columbia/HCA Healthcare Corp. ...... 21,217,350
--------------
HOUSEHOLD APPLIANCES (1.9%)
508,900 American Standard Companies, Inc.* . 14,885,325
--------------
INSURANCE (1.4%)
117,000 Marsh & McLennan Companies, Inc. 10,866,375
--------------
MACHINERY - CONSTRUCTION &
MATERIALS (1.7%)
197,000 Caterpillar, Inc. ................... 13,396,000
--------------
OFFICE EQUIPMENT & SUPPLIES (4.1%)
211,900 Hewlett-Packard Co. ................. 19,918,600
89,000 Xerox Corp. ......................... 11,169,500
--------------
31,088,100
--------------
OIL - EXPLORATION & PRODUCTION
(2.2%)
986,500 Canadian Natural Resources Ltd.
(Canada)* ........................... 17,059,938
--------------
PAPER & FOREST PRODUCTS (1.4%)
235,400 Champion International Corp. ....... 10,651,850
--------------
PUBLISHING (1.3%)
428,700 News Corp. Ltd. (ADR) (Australia) .. 9,860,100
--------------
RAILROADS (2.9%)
270,597 Burlington Northern Santa Fe Corp. . 22,222,779
--------------
RESTAURANTS (0.8%)
191,300 Boston Chicken, Inc.* ............... 6,504,200
--------------
RETAIL - SPECIALTY (2.7%)
283,300 Home Depot, Inc. .................... 13,562,988
151,200 Tandy Corp. ......................... 6,993,000
--------------
20,555,988
--------------
SOAP & HOUSEHOLD PRODUCTS (5.0%)
269,400 Kimberly-Clark Corp. ................ 20,070,300
218,600 Procter & Gamble Co. ................ 18,526,350
--------------
38,596,650
--------------
TOTAL COMMON STOCKS (IDENTIFIED COST
$520,605,477) ....................... 755,562,750
--------------
</TABLE>
<PAGE>
TCW/DW CORE EQUITY TRUST
Portfolio of Investments March 31, 1996 (continued)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------- --------------------------------- -------------
<S> <C> <C>
PREFERRED STOCK (0.7%)
PUBLISHING
259,300 News Corp. Ltd. (ADR) (Australia)
(Identified Cost $4,346,086) .... $5,250,825
-------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (IN
THOUSANDS)
- -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS (1.4%)
U.S. GOVERNMENT AGENCY (a) (1.3%)
$10,000 Federal Home Loan Banks
5.28% due 04/01/96
(Amortized Cost $9,999,022) .. 9,999,022
--------------
REPURCHASE AGREEMENT (0.1%)
1,103 The Bank of New York 4.50% due
04/01/96 (dated 03/29/96;
proceeds $1,103,006;
collateralized by $1,052,122
U.S. Treasury Bond
7.25% due 05/15/16 valued at
$1,124,645)
(Identified Cost $1,102,593) . 1,102,593
--------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $11,101,615) ............. $ 11,101,615
--------------
TOTAL INVESTMENTS
(IDENTIFIED COST $536,053,178) (B).......... 100.6% 771,915,190
LIABILITIES IN EXCESS OF
OTHER ASSETS ............................... (0.6) (4,745,500)
-------- --------------
NET ASSETS ................................. 100.0% $767,169,690
======== ==============
</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 $536,053,178,
the aggregate gross unrealized appreciation is $250,283,883 and the
aggregate gross unrealized depreciation is $14,421,871, resulting in
net unrealized appreciation of $235,862,012.
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Financial Statements
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $536,053,178) ............ $771,915,190
Receivable for:
Investments sold .......................... 1,573,638
Dividends ................................. 870,916
Shares of beneficial interest sold ....... 521,843
Deferred organizational expenses ........... 46,660
Prepaid expenses and other assets .......... 53,889
--------------
TOTAL ASSETS ............................. 774,982,136
--------------
LIABILITIES:
Payable for:
Investments purchased ..................... 6,250,222
Plan of distribution fee .................. 507,925
Shares of beneficial interest repurchased 369,910
Management fee ............................ 331,645
Investment advisory fee ................... 221,096
Accrued expenses ........................... 131,648
--------------
TOTAL LIABILITIES ........................ 7,812,446
--------------
NET ASSETS:
Paid-in-capital ............................ 501,729,343
Net unrealized appreciation ................ 235,862,012
Accumulated undistributed net realized gain 29,578,335
--------------
NET ASSETS ............................... $767,169,690
==============
NET ASSET VALUE PER SHARE, 50,826,342
shares outstanding (unlimited shares
authorized of $.01 par value) ............. $ 15.09
==============
</TABLE>
STATEMENT OF OPERATIONS
For the year ended March 31, 1996
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $106,416 foreign
withholding tax) ..................... $ 7,854,434
Interest .............................. 496,938
-------------
TOTAL INCOME ......................... 8,351,372
-------------
EXPENSES
Plan of distribution fee .............. 6,213,533
Management fee ........................ 3,854,301
Investment advisory fee ............... 2,569,533
Transfer agent fees and expenses ..... 734,762
Professional fees ..................... 99,775
Shareholder reports and notices ...... 60,880
Custodian fees ........................ 60,516
Trustees' fees and expenses ........... 43,798
Registration fees ..................... 42,397
Organizational expenses ............... 40,088
Other ................................. 61,548
-------------
TOTAL EXPENSES ....................... 13,781,131
-------------
NET INVESTMENT LOSS .................. (5,429,759)
-------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain ..................... 68,877,185
Net change in unrealized appreciation 100,384,305
-------------
NET GAIN ............................. 169,261,490
-------------
NET INCREASE ......................... $163,831,731
=============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
MARCH 31, 1996 MARCH 31, 1995
------------------ ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment loss .......................................... $ (5,429,759) $ (3,363,904)
Net realized gain (loss) ..................................... 68,877,185 (27,767,424)
Net change in unrealized appreciation ........................ 100,384,305 30,515,148
------------------ ------------------
Net increase (decrease) ..................................... 163,831,731 (616,180)
Net decrease from transactions in shares of beneficial
interest ...................................................... (94,012,499) (9,102,092)
------------------ ------------------
Total increase (decrease) ................................... 69,819,232 (9,718,272)
NET ASSETS:
Beginning of period ........................................... 697,350,458 707,068,730
------------------ ------------------
END OF PERIOD ................................................. $767,169,690 $697,350,458
================== ==================
</TABLE>
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements March 31, 1996
- -----------------------------------------------------------------------------
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
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements March 31, 1996 (continued)
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.
("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
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 an
advisory fee, accrued daily and payable monthly, by applying the following
annual rates to the Fund's 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"),
<PAGE>
TCW/DW CORE EQUITY TRUST
Notes to Financial Statements March 31, 1996 (continued)
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.
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 year ended March 31,
1996, it received approximately $2,306,000 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 year ended March 31, 1996 aggregated
$358,371,500 and $450,818,474, respectively.
For the year ended March 31, 1996, the Fund incurred $63,490 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 March 31, 1996, the Fund had transfer agent
fees and expenses payable of approximately $67,000.
6. SHARES OF BENEFICIAL INTEREST -- Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MARCH 31, FOR THE YEAR ENDED MARCH 31,
1996 1995
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Sold ........... 4,293,001 $ 60,014,162 9,459,986 $ 112,171,128
Repurchased ... (11,052,750) (154,026,661) (10,328,173) (121,273,220)
-------------- --------------- -------------- ---------------
Net decrease .. (6,759,749) $ (94,012,499) (868,187) $ (9,102,092)
============== =============== ============== ===============
</TABLE>
7. FEDERAL INCOME TAX STATUS -- During the year ended March 31, 1996, the
Fund utilized its net capital loss carryover of approximately $30,083,000. As
of March 31, 1996, the Fund had permanent book/tax differences attributable
to a net operating loss. To reflect reclassifications arising from permanent
book/tax differences for the year ended March 31, 1996, paid-in-capital was
charged and net investment loss was credited $5,429,759.
<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 YEAR ENDED MARCH 31, MAY 29, 1992*
---------------------------------- THROUGH
1996 1995 1994 MARCH 31, 1993
---------- ---------- ---------- --------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .. $ 12.11 $ 12.10 $ 11.26 $ 10.00
---------- ---------- ---------- --------------
Net investment loss .................... (0.11) (0.06) (0.06) (0.01)
Net realized and unrealized gain ...... 3.09 0.07 0.90 1.27
---------- ---------- ---------- --------------
Total from investment operations ...... 2.98 0.01 0.84 1.26
---------- ---------- ---------- --------------
Net asset value, end of period ......... $ 15.09 $ 12.11 $ 12.10 $ 11.26
========== ========== ========== ==============
TOTAL INVESTMENT RETURN+ ............... 24.69 % 0.08 % 7.46 % 12.60 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses ............................... 1.82 % 1.96 % 1.93 % 2.07 %(2)
Net investment loss .................... (0.72)% (0.48)% (0.59)% (0.14)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands $767,170 $697,350 $707,069 $486,829
Portfolio turnover rate ................ 48 % 38 % 35 % 26 %(1)
Average commission rate paid ........... $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 year.
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
<PAGE>
TCW/DW CORE EQUITY TRUST
Report of Independent Accountants
- -----------------------------------------------------------------------------
To the Shareholders and Trustees of TCW/DW Core Equity Trust
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of TCW/DW Core
Equity Trust (the "Fund") at March 31, 1996, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended and the financial highlights for each of the
three years in the period then ended and for the period May 29, 1992
(commencement of operations) through March 31, 1993, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at March
31, 1996 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
May 10, 1996
<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
1177 Avenue of the Americas
New York, New York 10036
MANAGER
Dean Witter Services Company Inc.
ADVISER
TCW Fund Management, Inc.
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
ANNUAL REPORT
MARCH 31, 1996
