<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
The ability of the Latin American countries to weather the crisis of
confidence generated by the sudden devaluation of the Mexican peso last December
has begun to renew domestic and foreign investor interest in the region's equity
markets. Despite first quarter losses in all of the major Latin American equity
markets (the result of continuing uncertainties in Mexico and fears that similar
pressures could surface throughout the region), all of the markets posted second
quarter gains. These gains were stimulated by local events such as the
reelections of Presidents Menem (Argentina) and Fujimori (Peru), increasing
foreign direct investment, improved trade balances throughout much of the region
and renewed privatization efforts in Brazil, Mexico and Peru.
PERFORMANCE
For the six-month period ended July 31, 1995, TCW/DW Latin American Growth
Fund registered a disappointing -5.67 percent total return, versus a total
return of 3.51 percent for the International Finance Corporation's Latin America
Investable Total Return Index. Given the uncertainty surrounding the Latin
American markets in the early part of the fiscal year, a significant cash
position was established, which contributed to the Fund's underperformance once
the markets rebounded. Performance was also hampered by an underweighting in
certain "blue-chip" stocks, which led the Latin American equity market
resurgence. As of July 31, 1995 the Fund had net assets in excess of $276
million, with 98 percent invested in Latin American securities and the remainder
in cash.
THE MARKETS
MEXICO
In terms of equity market performances, the Mexican equity market rose
nearly 8 percent in U.S. dollar terms, between January 31, 1995 and July 31,
1995. Investor confidence has gradually increased as the country's economic
stabilization program -- which has included a gradual reduction in monthly
inflation and a sharp improvement in the trade balance. The trade surplus during
the first six months of 1995 was $3.1 billion, compared to an $8.8 billion
deficit during the first half of 1994. Stabilization has allowed Mexico to
return to the international capital markets through several successful
government bond placements. Overall, however, Mexico is still struggling with
declining industrial production and rising unemployment, which reached a record
of nearly 7 percent in May.
In response to these developments, the Fund's weighting in Mexico was
increased from approximately 24 percent of net assets on January 31, 1995 to
nearly 32 percent as of July 31, 1995. The Fund's primary focus in Mexico has
been on the exporters, such as Alfa, Tamsa and San Luis, which have been
beneficiaries of the peso devaluation. The Fund has also maintained significant
exposure in "blue-chip" companies, such as Grupo Carso and Kimberly Clark, which
have consistently demonstrated their ability to gain market share through
aggressive cost cutting and competitive pricing.
BRAZIL
The Brazilian equity market declined more than 10 percent in U.S. dollar
terms during the past six months. An upward revision of first quarter 1995 real
(adjusted for inflation) gross domestic product (GDP)
<PAGE>
growth to nearly 11 percent compared to the same period last year was Brazil's
strongest in 15 years, causing concern among monetary authorities that such
strong growth would lead to renewed inflation and a prolonged trade deficit.
Therefore, credit has been very tight in Brazil, resulting in declining
industrial production. On the positive side, tight credit has also led to strong
capital inflows and an increase in international reserves. In light of this
environment, the Fund's investment adviser, TCW Funds Management, Inc. (TCW),
does not expect economic activity to continue at its current pace for the entire
year and expects that GDP growth for the year is likely to be closer to 5.50
percent.
The Fund's Brazilian exposure was reduced from approximately 43 percent of
net assets on January 31, 1995 to approximately 36 percent on July 31, 1995.
Despite this decrease in exposure, Brazil remains the Fund's largest country
weighting because the investment adviser believes that state-owned companies are
undervalued and have significant opportunity for price increases assuming the
Brazilian government continues its program of political reforms. Real interest
rates in Brazil are very high (25 to 30 percent) and a loosening of monetary
policy is expected to occur once the economy is deindexed (that is, no longer
formally tied to movements in the rate of inflation). As of July 31, 1995,
state-owned companies, such as Telebras, Electrobras, Telesp, Petrobras and CVRD
accounted for approximately 50 percent of the Fund's Brazilian investments.
ARGENTINA
In Argentina, the equity market appreciated approximately 5 percent in U.S.
dollar terms, attributable primarily to inflows of capital which had left the
market after the Mexican financial crisis. Export growth remained very strong
during the first half of 1995, increasing 44 percent over the same period last
year. However, exports represent only about 5 percent of Argentina's GDP and,
thus, can not revitalize Argentina's economy alone. The reelection of President
Menem may create the political environment necessary to reform outdated labor
laws, which have contributed to an uncompetitive economy and record
unemployment. The sluggishness of the economy (which, at less than 3 percent for
the first quarter of 1995, grew below market expectations during the first half
of 1995) will make government tax collection and fiscal budget targets
difficult, if not impossible, to meet, creating additional pressures for labor
reform.
At the end of July, the Fund had 11 percent of its net assets in Argentina,
up from nearly 8 percent at the end of January. This increase is attributable to
the investment adviser's expectation that capital inflows to Argentina will
continue to increase and stock valuations are low. The Fund's investments in
Argentina are focused on companies with strong growth potential, such as those
in the oil, gas and agriculture industries, as well as recently privatized
companies, which continue to make productivity gains. Representative companies
include Perez Companc, YPF, Telefonica Argentina, Telecomm Argentina and
Molinos.
CHILE
The Chilean equity market generated the region's second-greatest total
return, rising 16 percent, in U.S. dollar terms, during the past six months. The
market reacted favorably to central bank moves to liberalize the financial
sector, which included raising the limit on the equity exposure of Chilean
pension funds, cutting interest rates and reducing the further appreciation of
the Chilean peso by discouraging continued foreign capital inflows. The market
declined in July, however, as investors who had invested in Chile earlier in the
year reallocated assets to other countries. In spite of this, the fundamental
news in Chile is positive, led by strong economic growth, a continued downward
trend in inflation, continued growth in retail sales and indications by the
Deputy U.S. Trade Representative that formal negotiations regarding Chile's
entry into the North American Free Trade Agreement (NAFTA) would begin soon.
As of July 31, 1995, the Fund held 7 percent of its net assets in Chile, up
from approximately 4 percent on January 31, 1995. The Chilean bellweather
company CTC was one of the Fund's largest Chilean holdings. Investments in
electric utility companies, which are expanding throughout Latin America,
accounted for
<PAGE>
approximately 35 percent of the Fund's Chilean investments. Because of the
investment adviser's expectation of broad-based economic growth, the portfolio
also included consumer, industrial and bank stocks.
PERU
The Peruvian equity market increased nearly 38 percent, in U.S. dollar terms
during the first half of the Fund's current fiscal year. This impressive
performance is attributable primarily to President Fujimori's landslide
reelection victory in April and his party's strong showing in congressional
elections. This has led to increased investor confidence in Peru's political and
economic programs. According to the investment adviser, economic growth appears
strong, growing at a more sustainable pace of approximately 9 percent, compared
to 13 percent at the same time last year.
As of July 31, 1995, the Fund held 5 percent of its net assets in Peru, up
from approximately 2 percent on January 31, 1995. Earnings growth prospects
continue to remain strong for the Fund's largest holdings, which include
Telefonica del Peru, Banco de Credito and Backus & Johnston, a brewer.
COLOMBIA
During the last six months, the Colombian equity market declined nearly 20
percent, in U.S. dollar terms. The main reason for this market's tumble was
concern over a slowdown in economic growth brought on by high real interest
rates.
As of July 31, 1995, the Fund held nearly 7 percent of its net assets in
Colombia, up from approximately 4 percent on January 31, 1995. With the
exception of the exporters, which have been hurt by the strong Colombian peso,
the Fund maintains broad-based exposure to the market, including such blue-chip
names as Banco de Bogota, Suramericana and Cementos Argos.
LOOKING AHEAD
If the region's governments are able to continue building foreign and
domestic investor confidence through further economic liberalization and
improved fiscal responsibility, TCW is optimistic that positive stock market
performance will continue over the longer term. Further, because Latin American
exports represent only approximately 4 percent of the world's total exports, the
slowdown in the U.S. economy is not expected to substantially impact the growth
of Latin American exports. The Fund's investment adviser will continue to
monitor economic and political developments carefully.
We appreciate your support of TCW/DW Latin American Growth Fund and look
forward to continuing to serve your financial needs.
Very truly yours,
[SIGNATURE]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS (98.2%)
ARGENTINA (11.0%)
AUTOMOTIVE
122,800 Ciadea S.A...................... $ 460,546
-------------
BANKS
13,900 Banco de Galicia y Buenos Aires
S.A. (ADR).................... 248,463
44,700 Banco Frances del Rio de la
Plata S.A. (ADR).............. 938,700
-------------
1,187,163
-------------
BUILDING & CONSTRUCTION
98,100 Juan Minetti S.A................ 313,951
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
57,300 Buenos Aires Embotelladera S.A.
(ADR)......................... 1,425,338
160,966 Molinos Rio de La Plata S.A.*... 1,159,071
77,410 Nobleza Piccardo S.A............ 340,638
-------------
2,925,047
-------------
METALS & MINING
385,800 Acindar Ind Argentina S.A....... 242,307
-------------
MULTI-INDUSTRY
1,391,976 Companhia Naviera Perez Compac
S.A.C.F.I.M.F.A............... 6,737,838
-------------
OIL & GAS
559,610 Astra Cia Argentina de Petro.... 996,205
122,300 Transportadora de Gas del Sur
S.A. (ADR).................... 1,375,875
-------------
2,372,080
-------------
OIL RELATED
378,240 Commercial Del Plata............ 1,006,219
383,500 Yacimientos Petroliferos
Fiscales S.A. (ADR)........... 6,663,313
-------------
7,669,532
-------------
PAPER & FOREST PRODUCTS
85,645 Fiplasto S.A.*.................. 205,569
-------------
REAL ESTATE
235,300 Inversiones y Representacion
S.A. (Class B)................ 560,070
-------------
TELECOMMUNICATIONS
298,903 Telecom Argentina S.A........... 1,479,718
30,400 Telecom Argentina S.A. (ADR).... 1,508,600
175,425 Telefonica de Argentina S.A.
(ADR)......................... 4,736,475
-------------
7,724,793
-------------
TOTAL ARGENTINA................. 30,398,896
-------------
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
BELIZE (0.2%)
BANKING
25,716 BHI Corporation................. $ 405,027
-------------
BRAZIL (35.6%)
AUTOMOTIVE
91,375 Capco Automotive Products
Corp.*........................ 696,734
6,495,300 Iochpe Maxion S.A. (Pref.)...... 2,084,053
-------------
2,780,787
-------------
BANKING
489,156,084 Banco Bradesco S.A. (Pref.)..... 4,342,241
9,399,400 Banco Itau S.A. (Pref.)......... 2,844,952
-------------
7,187,193
-------------
BREWERY
16,380,900 Companhia Cervejaria Brahma
(Pref.)....................... 5,501,179
301,064 Companhia Cervejaria Brahma (New
Shares) (Pref.)............... 90,161
-------------
5,591,340
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
2,998,700 Brasmotor S.A. (Pref.).......... 609,362
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
127,137,939 Refrigeracao Parana S.A......... 263,794
97,000 Souza Cruz S.A.................. 710,642
-------------
974,436
-------------
MACHINERY - DIVERSIFIED
3,190 Bardella Industrias Mecanicas
S.A. (Pref.).................. 460,588
-------------
METALS & MINING
29,130,000 Caemi Mineracao e Metalurgra
S.A. (Pref.).................. 2,430,096
103,195,000 Companhia Siderurgica Nacional.. 2,194,135
49,795,000 Companhia Vale do Rio Doce S.A.
(Pref.)....................... 7,908,618
3,146,200 Confab Industrial S.A.
(Pref.)....................... 1,783,407
-------------
14,316,256
-------------
MULTI-INDUSTRY
2,907,000 Itausa Investimentos Itau S.A.
(Pref.)....................... 1,856,158
-------------
OIL & GAS
58,274,000 Copel........................... 423,811
-------------
OIL REFINERIES
43,945,000 Petroleo Brasileiro S.A.
(Pref.)....................... 4,089,000
-------------
</TABLE>
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
OIL RELATED
273,939,800 Companhia Brasileira de
Petrobras Ipiranga (Pref.).... $ 3,017,733
1,293,900 Copene-Petroquimica do Nordeste
S.A. (Pref.).................. 860,755
-------------
3,878,488
-------------
PAPER & FOREST PRODUCTS
211,993 Aracruz Celulose S.A. (ADR)..... 2,596,914
72,133 Aracruz Celulose S.A. (Pref.)... 179,754
1,353,835 Industria Klabin de Papel e
Celulose (Pref.).............. 1,969,215
-------------
4,745,883
-------------
RETAIL - DEPARTMENT STORES
15,000,000 Lojas Americanas S.A. (Pref.)... 352,139
-------------
STEEL & IRON
1,926,225,000 Usinas Siderurgicas de Minas
Gerais (Pref.)................ 1,957,127
-------------
TELECOMMUNICATIONS
49,422,000 Telecomunicacoes Brasileiras
S.A........................... 1,531,289
358,443,140 Telecomunicacoes Brasileiras
S.A. (Pref.).................. 12,900,119
78,275,300 Telecomunicacoes de Sao Paulo
S.A. (Pref.) (ADR)............ 11,302,618
-------------
25,734,026
-------------
TEXTILES
8,675,600 Companhia de Tecidos Norte de
Minas......................... 2,737,221
662,300,000 Teka-Tecelagem Kuehnric S.A.
(Pref.)....................... 942,095
-------------
3,679,316
-------------
UTILITIES - ELECTRIC
19,372,338 Centrais Electricas Brasileiras
S.A........................... 5,221,208
1,500,000 Cia Paulista de Forca e Luz..... 80,214
164,556 Companhia Energetica de Minas
Gerais (ADR) - 144A**......... 3,455,676
77,290 Companhia Energetica de Sao
Paulo (ADR)................... 1,038,584
31,826,403 Electrobras Cent El (Pref.)..... 8,577,811
4,148,000 Light Servicos de Electricidade
S.A........................... 1,508,364
-------------
19,881,857
-------------
TOTAL BRAZIL.................... 98,517,767
-------------
CHILE (7.1%)
BUILDING & CONSTRUCTION
22,200 Madeco S.A. (ADR)............... 574,425
-------------
CHEMICALS
13,850 Quimica y Minera Chile S.A.
(ADR)......................... 623,250
-------------
FINANCIAL SERVICES
95,100 A.F.P. Provida S.A. (ADR)....... 2,639,025
-------------
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
24,975 Compania Cervecerias Unidas S.A.
(ADR)......................... $ 618,131
22,050 Embotelladora Andina S.A.
(ADR)......................... 749,700
11,100 Santa Isabel S.A. (ADR)......... 205,350
-------------
1,573,181
-------------
INVESTMENT COMPANIES
46,705 Genesis Chile Fund (ADR)........ 1,839,009
-------------
PAPER & FOREST PRODUCTS
129,206 Maderas Y Sinteticos Sociedad
Anonima Masisa (ADR).......... 2,196,502
-------------
TELECOMMUNICATIONS
40,675 Compania Telecomunicacion Chile
(ADR)......................... 3,182,819
-------------
UTILITIES - ELECTRIC
142,200 Chilgener S.A. (ADR)............ 4,034,925
111,104 Enersis S.A. (ADR).............. 2,847,040
-------------
6,881,965
-------------
TOTAL CHILE..................... 19,510,176
-------------
COLOMBIA (6.7%)
BANKING
61,000 Banco Industrial Colombiano
(ADR)......................... 861,625
-------------
BUILDING & CONSTRUCTION
649,327 Cementos Argos S.A.............. 5,483,206
123,400 Cementos Diamante S.A. (ADR) -
144A**........................ 2,637,675
40,900 Cementos Paz Del Rio (ADR) -
144A**........................ 608,388
-------------
8,729,269
-------------
FINANCIAL SERVICES
282,646 Banco de Bogota................. 1,695,878
139,480 Suramericana de Seguros S.A..... 3,053,062
-------------
4,748,940
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
171,052 Compania Nacional de
Chocolates.................... 1,687,713
-------------
RETAIL
428,100 Almacenes Exito................. 1,997,800
309,634 Gran Cadena de Almacenes
Colombianos S.A............... 567,662
-------------
2,565,462
-------------
TOTAL COLOMBIA.................. 18,593,009
-------------
MEXICO (31.7%)
AUTOMOTIVE
62,340 Grupo Corporacion Industrial San
Luis (Units)++................ 1,379,656
4,896,000 Industria Automotriz S.A. (B
Shares)*...................... 2,167,082
-------------
3,546,738
-------------
</TABLE>
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
PORTFOLIO OF INVESTMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
BANKING
1,143,100 Grupo Financiero Inbursa S.A. (C
Shares)....................... $ 3,654,172
-------------
BUILDING & CONSTRUCTION
2,183,200 Grupo Cementos de Chihuahua S.A.
de C.V........................ 1,825,298
-------------
BUILDING MATERIALS
1,472,200 Cemex S.A. de C.V............... 6,057,741
-------------
CONGLOMERATES
1,393,099 Grupo Carso S.A. de C.V.*....... 8,792,510
796,241 Grupo Industria Alfa (A
Shares)....................... 10,664,408
-------------
19,456,918
-------------
FOOD PROCESSING
386,800 Grupo Industrial Bimbo S.A. de
C.V. (Series A)............... 1,724,748
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
778,400 Fomento Economico Mexicano S.A.
de C.V........................ 2,092,748
514,846 Gruma S.A. (B Shares)........... 1,559,730
3,634,140 Grupo Industrial Maseca S.A. de
C.V. (B2 Shares).............. 2,710,711
852,800 Jugos de Valle S.A. (B
Shares)....................... 1,957,246
191,770 Panamerican Beverages, Inc...... 5,872,956
-------------
14,193,391
-------------
MEDIA GROUP
153,500 Grupo Televisa S.A. (GDR)....... 3,492,125
-------------
MULTI-INDUSTRY
109,700 Desc S.A. (Series B)............ 422,615
-------------
PAPER & FOREST PRODUCTS
258,400 Kimberly-Clark de Mexico S.A. de
C.V. (A Shares)............... 3,367,672
-------------
RETAIL
4,254,618 Cifra S.A. de C.V. (C Shares)... 5,231,088
-------------
STEEL & IRON
67,000 Hylsamex S.A. de C.V. (ADR) -
144A**........................ 1,172,500
390,984 Tubos de Acero de Mexico S.A.
(ADR)......................... 2,516,960
-------------
3,689,460
-------------
<CAPTION>
SHARES VALUE
- --------------- -------------
<C> <S> <C>
TELECOMMUNICATIONS
600,273 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR).............. $ 19,809,009
-------------
TRANSPORTATION
176,500 Transportacion Maritima Mexicana
S.A. de C.V. (Series A)
(ADR)......................... 1,213,438
-------------
TOTAL MEXICO.................... 87,684,413
-------------
PANAMA (0.9%)
BANKING
62,400 Banco Latinoamericano de
Exportaciones S.A. (ADR)...... 2,503,800
-------------
PERU (5.0%)
BREWERY
1,211,217 Cerveceria Backus & Johnston.... 2,396,293
-------------
DISTRIBUTION
342,418 Enrique Ferreyros S.A........... 529,639
-------------
EXPLOSIVES
288,300 Explosivos S.A.................. 1,387,055
-------------
FINANCIAL SERVICES
1,630,159 Banco de Credito del Peru....... 3,115,187
-------------
METALS & MINING
96,005 Companhia de Minas Buenaventura
(C Shares).................... 561,612
-------------
TELECOMMUNICATIONS
3,151,993 CPT-Telefonica de Peru S.A. (B
Shares)....................... 5,881,642
-------------
TOTAL PERU...................... 13,871,428
-------------
VENEZUELA (0.0%)
UTILITIES - ELECTRIC
18,609 Electricidad de Caracas......... 19,973
-------------
TOTAL COMMON AND PREFERRED STOCKS
(IDENTIFIED COST
$300,371,136)(A)................. 98.2% 271,504,489
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES...................... 1.8 5,002,119
----- -----------
NET ASSETS......................... 100.0% $276,506,608
----- -----------
----- -----------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
GDR GLOBAL DEPOSITORY RECEIPT.
* NON-INCOME PRODUCING SECURITY.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY STOCKS WITH ATTACHED WARRANTS.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $303,983,059; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $18,808,664 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $51,287,234, RESULTING IN NET UNREALIZED
DEPRECIATION OF $32,478,570.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
SUMMARY OF INVESTMENTS JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------ ----------- -------------
<S> <C> <C>
Automotive.................... $ 6,788,071 2.5%
Banking....................... 14,611,817 5.3
Banks......................... 1,187,163 0.4
Brewery....................... 7,987,633 2.9
Building & Construction....... 11,442,943 4.1
Building Materials............ 6,057,741 2.2
Chemicals..................... 623,250 0.2
Conglomerates................. 19,456,918 7.1
Distribution.................. 529,639 0.2
Electronic & Electrical
Equipment................... 609,362 0.2
Explosives.................... 1,387,055 0.5
Financial Services............ 10,503,152 3.8
Food Processing............... 1,724,748 0.6
Food, Beverage, Tobacco &
Household Products.......... 21,353,768 7.7
Investment Companies.......... 1,839,009 0.7
Machinery - Diversified....... 460,588 0.2
Media Group................... 3,492,125 1.3
Metals & Mining............... 15,120,175 5.5
Multi-Industry................ 9,016,611 3.3
Oil & Gas..................... 2,795,891 1.0
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------ ----------- -------------
<S> <C> <C>
Oil Refineries................ $ 4,089,000 1.5%
Oil Related................... 11,548,020 4.2
Paper & Forest Products....... 10,515,626 3.8
Real Estate................... 560,070 0.2
Retail........................ 7,796,550 2.8
Retail - Department Stores.... 352,139 0.1
Steel & Iron.................. 5,646,587 2.0
Telecommunications............ 62,332,289 22.5
Textiles...................... 3,679,316 1.3
Transportation................ 1,213,438 0.4
Utilities - Electric.......... 26,783,795 9.7
----------- ---
$271,504,489 98.2%
----------- ---
----------- ---
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------ ----------- -------------
<S> <C> <C>
Common Stocks................. $190,180,751 68.8%
Preferred Stocks.............. 79,944,082 28.9
Units......................... 1,379,656 0.5
----------- ---
$271,504,489 98.2%
----------- ---
----------- ---
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $300,371,136)........... $271,504,489
Cash....................................... 5,224,661
Receivable for:
Investments sold......................... 3,220,066
Dividends................................ 426,096
Shares of beneficial interest sold....... 340,663
Interest................................. 21,292
Deferred organizational expenses........... 94,791
Prepaid expenses........................... 50,016
-----------
TOTAL ASSETS....................... 280,882,074
-----------
LIABILITIES:
Payable for:
Investments purchased.................... 2,932,671
Shares of beneficial interest
repurchased............................ 405,814
Management fee........................... 343,413
Plan of distribution fee................. 239,143
Investment advisory fee.................. 228,942
Accrued expenses........................... 225,483
-----------
TOTAL LIABILITIES.................. 4,375,466
-----------
NET ASSETS:
Paid-in-capital............................ 402,137,673
Net unrealized depreciation................ (28,869,845)
Accumulated undistributed net investment
income................................... 151,245
Accumulated net realized loss.............. (96,912,465)
-----------
NET ASSETS......................... $276,506,608
-----------
-----------
NET ASSET VALUE PER SHARE, 31,337,778
shares outstanding (unlimited shares
authorized of $.01 par value)............
$8.82
-----------
-----------
</TABLE>
Statement of Operations
FOR THE SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $469,414 foreign
withholding tax)..................... $ 3,458,144
Interest............................... 522,617
-----------
TOTAL INCOME....................... 3,980,761
-----------
EXPENSES
Plan of distribution fee............... 1,297,494
Management fee......................... 973,121
Investment advisory fee................ 648,747
Transfer agent fees and expenses....... 393,937
Custodian fees......................... 352,434
Shareholder reports and notices........ 44,875
Professional fees...................... 39,169
Trustees' fees and expenses............ 28,733
Registration fees...................... 24,485
Organizational expenses................ 19,412
Other.................................. 15,114
-----------
TOTAL EXPENSES BEFORE
REIMBURSEMENT.................... 3,837,521
Less: Expenses Reimbursed (Note
2)................................. (8,005)
-----------
TOTAL EXPENSES AFTER
REIMBURSEMENT.................... 3,829,516
-----------
NET INVESTMENT INCOME.............. 151,245
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
NET REALIZED LOSS ON:
Investments.......................... (47,801,809)
Foreign exchange transactions........ (484,586)
-----------
TOTAL LOSS......................... (48,286,395)
-----------
NET CHANGE IN UNREALIZED DEPRECIATION
ON:
Investments.......................... 30,589,145
Net translation of other assets and
liabilities denominated in foreign
currencies......................... 45,541
-----------
TOTAL APPRECIATION................. 30,634,686
-----------
NET LOSS........................... (17,651,709)
-----------
NET DECREASE....................... $(17,500,464)
-----------
-----------
</TABLE>
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
------------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income................................................... $ 151,245 $ (5,488,643)
Net realized loss....................................................... (48,286,395) (50,838,277)
Net change in unrealized appreciation/depreciation...................... 30,634,686 (131,066,806)
------------------- ---------------
Net decrease........................................................ (17,500,464) (187,393,726)
------------------- ---------------
Distributions to shareholders from net realized gain...................... -- (8,954,749)
Net increase (decrease) from transactions in shares of beneficial
interest.................................................................. (766,982) 165,166,940
------------------- ---------------
Total decrease...................................................... (18,267,446) (31,181,535)
NET ASSETS:
Beginning of period....................................................... 294,774,054 325,955,589
------------------- ---------------
END OF PERIOD (including undistributed net investment income of $151,245
and $0, respectively).................................................... $ 276,506,608 $ 294,774,054
------------------- ---------------
------------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--TCW/DW Latin American Growth Fund (the
"Fund") is registered under the Investment Company Act of 1940, as amended (the
"Act"), as a non-diversified, open-end management investment company. The Fund
was organized as a Massachusetts business trust on February 25, 1992 and
commenced operations on December 30, 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 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 (in cases where securities are traded on
more than one exchange; the securities are valued on the exchange designated
as the primary market by the Adviser); (2) listed options are valued at the
latest sale price on the exchange on which they are listed unless no sales
of such options have taken place that day, in which case they will be valued
at the mean between their latest bid and asked price; (3) 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; (4) 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 (5) 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 except with
respect for certain dividends on foreign securities which are recorded as
soon as the Fund is informed after the ex-dividend date. Interest income is
accrued daily and includes accretion of discounts of certain short-term
securities.
C. FOREIGN CURRENCY TRANSLATION--The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward contracts
are translated at the exchange rates prevailing at the end of the period;
and (2) purchases, sales, income and expenses are translated at the exchange
rates prevailing on the respective dates of such transactions. The resultant
exchange gains and losses are included in the Statement of Operations as
realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange
gains/losses included in realized and unrealized gain/loss are included in
or are a reduction of ordinary income for federal income tax purposes. The
Fund does not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the changes in the
market prices of the securities.
D. FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may enter into forward
foreign currency contracts which are valued daily at the appropriate
exchange rates. The resultant unrealized exchange gains and losses are
included in the Statement of Operations as unrealized foreign currencies
gain or loss. The Fund records realized gains or losses on delivery of the
currency or at the time the forward contract is extinguished (compensated)
by entering into a closing transaction prior to delivery.
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
E. OPTION ACCOUNTING PRINCIPLES--When the Fund writes a call option, an
amount equal to the premium received is included in the Fund's Statement of
Assets and Liabilities as a liability which is subsequently marked-to-market
to reflect the current market value of the option written. If a written
option either expires or the Fund enters into a closing purchase
transaction, the Fund realizes a gain or loss without regard to any
unrealized gain or loss on the underlying security or currency and the
liability related to such option is extinguished. If a written call option
is exercised, the Fund realizes a gain or loss from the sale of the
underlying security or currency and the proceeds from such sale are
increased by the premium originally received.
When the Fund purchases a call or put option, the premium paid is
recorded as an investment and is subsequently marked-to-market to reflect
the current market value. If a purchased option expires, the Fund will
realize a loss to the extent of the premium paid. If the Fund enters into a
closing sale transaction, a gain or loss is realized for the difference
between the proceeds from the sale and the cost of the option. If a put
option is exercised, the cost of the security or currency sold upon exercise
will be increased by the premium originally paid. If a call option is
exercised, the cost of the security purchased upon exercise will be
increased by the premium originally paid.
F. 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.
G. 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.
H. ORGANIZATIONAL EXPENSES--Dean Witter InterCapital Inc. ("InterCapital"),
an affiliate of Dean Witter Services Company Inc. (the "Manager"), paid the
organizational expenses of the Fund in the amount of approximately $244,000
of which the Fund reimbursed InterCapital 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.
2. MANAGEMENT AGREEMENT--Pursuant to a Management Agreement, the Fund pays its
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 0.75% to the portion of daily net assets not exceeding
$500 million and 0.72% to the portion of the daily net assets exceeding $500
million.
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.
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
If, in any fiscal year, the Fund's total operating expenses, exclusive of
tax, interest, brokerage fees, distribution fees and extraordinary expenses,
exceed 2 1/2% of the first $30,000,000 of average daily net assets, 2% of the
next $70,000,000 and 1 1/2% of any excess over $100,000,000, the Manager and the
Adviser will reimburse the Fund, on a pro-rata basis, for the amount of such
excess. Such amount, if any, will be calculated daily and credited on a monthly
basis. For the six months ended July 31, 1995, such reimbursements amounted to
$8,005.
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 net assets of the Fund determined as of the close of each
business day: 0.50% to the portion of daily net assets not exceeding $500
million and 0.48% to the portion of the daily net assets exceeding $500 million.
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 of the Plan 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
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 six months ended July 31,
1995, it received approximately $658,000 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 July 31, 1995 aggregated $114,715,402 and
$87,292,641, respectively.
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JULY 31, 1995 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Dean Witter Trust Company, an affiliate of the Manager and Distributor, is
the Fund's transfer agent. At July 31, 1995, the Fund had transfer agent fees
and expenses payable of approximately $72,000.
6. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS FOR THE YEAR ENDED
ENDED JULY 31, 1995 JANUARY 31, 1995
--------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Sold.............................................. 5,086,139 $ 42,585,077 18,877,547 $ 258,325,274
Reinvestment of distributions..................... -- -- 739,138 8,455,745
----------- -------------- ------------ ---------------
5,086,139 42,585,077 19,616,685 266,781,019
Repurchased....................................... (5,279,849) (43,352,059) (8,388,944) (101,614,079)
----------- -------------- ------------ ---------------
Net increase (decrease)........................... (193,710) $ (766,982) 11,227,741 $ 165,166,940
----------- -------------- ------------ ---------------
----------- -------------- ------------ ---------------
</TABLE>
7. FEDERAL INCOME TAX STATUS--At January 31, 1995, the Fund had a net capital
loss carryover of approximately $4,864,000 which will be available through
January 31, 2003 to offset future capital gains to the extent provided by
regulations. Capital or foreign currency losses incurred after October 31 within
the taxable year ("post-October losses") 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 and foreign currency losses of approximately $39,339,000
and $811,000, respectively, during fiscal 1995.
At January 31, 1995, the Fund had temporary book/tax differences primarily
attributable to post-October losses and capital loss deferrals on wash sales and
permanent book/tax differences primarily attributable to foreign currency losses
and a net operating loss.
8. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS--The Fund
may enter into forward currency contracts ("forward contracts") to facilitate
settlement of foreign currency denominated portfolio transactions or to manage
foreign currency exposure associated with foreign currency denominated
securities.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
The Fund is also permitted to write covered call options on portfolio
securities and certain foreign currencies to hedge against a decline in the
value of a security or the underlying currency of such security.
At July 31, 1995, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan N.A., the Fund's custodian.
<PAGE>
TCW/DW LATIN AMERICAN GROWTH FUND
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 JANUARY 31, DECEMBER 30, 1992*
JULY 31, 1995 ------------------ THROUGH
(UNAUDITED) 1995 1994 JANUARY 31, 1993
------------------ -------- -------- ------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.............. $ 9.35 $ 16.05 $ 9.56 $ 10.00
-------- -------- -------- -------
Net investment loss............................... -- (0.17) (0.04) (0.01)
Net realized and unrealized gain (loss)........... (0.53) (6.21) 6.68 (0.43)
-------- -------- -------- -------
Total from investment operations.................. (0.53) (6.38) 6.64 (0.44)
Less distributions from net realized gain......... -- (0.32) (0.15) --
-------- -------- -------- -------
Net asset value, end of period.................... $ 8.82 $ 9.35 $ 16.05 $ 9.56
-------- -------- -------- -------
-------- -------- -------- -------
TOTAL INVESTMENT RETURN+.......................... (5.67)%(1) (40.12)% 69.49% (4.30)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 2.95%(2) 2.87% 2.89% 3.08%(2)
Net investment income (loss)...................... 0.12%(2) (1.46)% (0.90)% (1.08)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period (in thousands).......... $276,507 $294,774 $325,956 $69,611
Portfolio turnover rate........................... 36%(1) 145% 111% 1%(1)
<FN>
- --------------
* COMMENCEMENT OF OPERATIONS.
+ DOES NOT REFLECT THE DEDUCTION OF SALES CHARGE.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
</TABLE>
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
TRUSTEES TCW/DW
John C. Argue
Richard M. DeMartini
Charles A. Fiumefreddo LATIN AMERICAN
John R. Haire GROWTH FUND
Dr. Manuel H. Johnson
Paul Kolton
Thomas E. Larkin, Jr.
Michael E. Nugent [GRAPHIC]
John L. Schroeder
Marc I. Stern
SEMIANNUAL REPORT
OFFICERS JULY 31, 1995
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Sheldon Curtis
Vice President, Secretary and
General Counsel
Michael P. Reilly
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 preceeded or accompanied by an effective prospectus.
