TCW DW INCOME & GROWTH FUND, N-30D, 1999-03-31

TCW DW INCOME & GROWTH FUND
N-30D, 1999-03-31

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<PAGE>

TCW/DW INCOME AND GROWTH FUND TWO WORLD TRADE CENTER,
LETTER TO THE SHAREHOLDERS JANUARY 31, 1999 NEW YORK, NEW YORK 10048

DEAR SHAREHOLDER:

The 12-month period ended January 31, 1999, was a volatile one for both
convertible securities and high-yield bonds. During the third quarter of 1998
both asset classes came under severe pressure as corporate credit spreads
widened and stock prices declined sharply. Although a significant recovery in
equity prices boosted convertibles' returns in the last quarter of 1998,
high-yield bond returns remained lackluster as spreads continued to be
relatively wide compared to their historical averages.

PERFORMANCE AND PORTFOLIO STRATEGY

For the 12-month period ended January 31, 1999, TCW/DW Income and Growth Fund's
Class C shares posted a total return of 8.81 percent compared to returns of 3.93
percent for the Lipper Flexible Income Funds Average, 8.72 percent for the
Lehman Brothers Government/ Corporate Bond Index and 32.49 percent for the
Standard & Poor's 500 Stock Index. For the same period, the Fund's Class A, B
and D shares had total returns of 9.45 percent, 8.85 percent and 9.64 percent,
respectively. The performance of the Fund's four share classes varies because of
differing expenses. The accompanying chart compares the performance of the
Fund's Class C shares with those of the Lipper, Lehman and S&P 500 indexes.

CONVERTIBLE SECURITIES

The performance of the Fund's convertible securities portfolio was well ahead of
the convertible benchmarks for the year. According to TCW Funds Management, Inc.
(TCW), the Fund's adviser, much of the incremental return was due to good sector
selection. The portfolio's low exposure to the basic industrial sector,
especially energy, was opportune. In the technology sector, the majority of the
Fund's holdings did well despite the poor performance of this sector during the
first half of the fiscal year.

<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1999, CONTINUED

In addition to good sector and stock selection, the Fund's focus on larger,
higher-quality companies also contributed positively to its overall performance.
In general, larger companies performed better during this period. Credit quality
was also an important factor, particularly when corporate credit spreads widened
significantly during the second half of the year. The Fund also benefited from
its holdings in media, retail, health care, and technology. A few securities in
these industries did particularly well, each appreciating more than 50 percent
during calendar year 1998.

The convertible new-issue market during 1998 was on a record pace until the
market's correction the third quarter. This turmoil led to a virtual shutdown in
new issuance from September through November. During the fourth quarter of 1998,
only 17 companies issued convertibles, which had a total net value of $4.9
billion. This brought the total new issuance for the year to 98 issues with a
net value of $23.8 billion. By comparison, in 1997, 140 companies issued
convertibles with a net value of $28 billion.

Perhaps more important than the lower quantity of new issuance was its lack of
quality. Of the $23.8 billion in convertible issuance, only $4.8 billion was
from investment-grade companies. In the current environment,
non-investment-grade companies continue to be the predominant issuers of
convertible securities. This is one of the primary reasons the Fund participated
in less than one-third of the new issues brought to market. The Fund also
focused more on the secondary market, where tremendous value was created during
last fall's market correction.

HIGH-YIELD BONDS

Increasing demand for safe-haven securities and a series of interest-rate cuts
by the Federal Reserve fueled a strong Treasury rally, which drove yields
downward. This surge in Treasury prices caused the spread between high-yield and
comparable-maturity Treasuries to widen significantly. This widening suggests
that not only were investors more cautious regarding the prospects for economic
growth early in 1999 than was the case at the start of 1998, but, equally
important, they remained apprehensive about the overall liquidity of the
high-yield market.

As was the case with most of the higher-risk asset classes, the high-yield
market was extremely volatile during the Fund's fiscal year. Not surprisingly,
the market's lower tiers were considerably more unsettled than its upper tier.
The sell-off in the financial markets and the lack of liquidity that accompanied
the market downturn were especially damaging to the prices of lower-rated
high-yield bonds. The lower tier of the market never fully recovered from the
sell-off, which was particularly damaging to the average high-yield mutual fund.

2
<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1999, CONTINUED

The dynamics of the new-issue market changed considerably following the
high-yield market's fall correction. After having absorbed $120.6 billion in new
issuance from 556 different companies through the end of July, the pace of new
issuance slowed markedly. For 1998, new issuance totaled a record $150.8
billion, but this figure was well short of the $200 billion level of issuance
that the market had been on track to exceed. Importantly, while the new-issuance
window did re-open during the final quarter of 1998, the size of those
transactions was generally larger than had been the case earlier in the year and
the quality of the deals was generally higher. We expect that over the next few
quarters and possibly longer, high-yield investors will continue to exhibit a
preference for seasoned, higher-quality more liquid issues.

The key to outperforming in 1998 was minimizing losses during the difficult
early August to late October period. During this span, the average high-yield
mutual fund declined more than 9 percent. After rebounding strongly in November,
riskier high-yield securities again came under pressure in December as
tremendous new-issue supply and year-end profit taking negatively influenced the
overall market. High-yield investors accordingly adopted a flight-to-quality
mentality that propelled BB-rated issues and defensive industry sectors to
outperform lower-tier and cyclical credits during the latter part of the fourth
quarter. The Fund's high-yield portfolio, which is invested primarily in
BB-rated and strong B-rated, cash-paying bonds, performed in line with most
high-yield indexes for the quarter and outperformed them for the full year.

The new year began with the high-yield market trading at its widest opening of
the year spread since 1991-1992. As a result, TCW believes that this asset class
will continue to attract new money both from institutional and individual
sources. Counterbalancing the favorable technical conditions and the generally
healthy credit fundamentals underlying many of the larger sectors comprising the
high-yield market is the risk that commodity prices will continue to weaken. Low
commodity prices have already negatively affected the performance of securities
in a number of high-yield industries, most notably the energy and steel sectors.
In 1998 the default rate, as measured by Moody's, increased to 3.31 percent, up
from 2.02 percent in 1997. TCW expects that default rates will trend modestly
higher in 1999, driven in large part by credits in commodity-based sectors that
are unable to withstand a protracted period of weak pricing.

As a direct result of its strict adherence to its bottom-up, research-driven
investment process, the Fund experienced no defaults in 1998 and continued to
capture more credit upgrades and avoid more downgrades than did the overall
market.

3
<PAGE>
TCW/DW INCOME AND GROWTH FUND
LETTER TO THE SHAREHOLDERS JANUARY 31, 1999, CONTINUED

LOOKING AHEAD

The U.S. economy continues to demonstrate surprising resilience to the economic
problems in emerging markets. Real GDP growth, driven by a robust housing market
and strong consumer spending, should exceed 4 percent in the fourth quarter of
1998. While growth should slow as 1999 progresses, a recession remains unlikely.
Weakness in the manufacturing sector continues to be offset by growth in other
areas of the economy. With incomes growing at a good pace and jobs plentiful,
consumer spending should continue to provide support for the economy unless
there is a shock to the system such as a sustained correction in the stock
market.

The three-month rally in stocks has pushed traditional measures of valuation
beyond historical norms. The market has had four straight years of 20
percent-plus returns, and its breadth is relatively narrow. In addition,
corporate earnings may decline in 1999, and interest rates may not decline
further unless the economy weakens significantly. Other possible impediments for
the market include continuing turmoil in the emerging markets. TCW believes that
the risks are again on the downside and that it may be difficult for the markets
to appreciate significantly from current levels.

We appreciate your support of TCW/DW Income and Growth Fund.

Very truly yours,

/s/ Charles A. Fiumefreddo

CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD

TRUSTEES RECOMMEND REORGANIZATION PLAN

On February 25, 1999, the Board of Trustees of TCW/DW Income and Growth Fund
voted to recommend to shareholders a reorganization plan whereby the Fund's
assets would be combined with those of Morgan Stanley Dean Witter Income Builder
Fund. This plan is subject to the consent of TCW/DW Income and Growth Fund's
shareholders at a special meeting scheduled for June 8, 1999. The Fund's
shareholders would become shareholders of Morgan Stanley Dean Witter Income
Builder Fund, receiving shares of that fund equal to the value of their holdings
in TCW/DW Income and Growth Fund. Each shareholder of TCW/DW Income and Growth
Fund will receive the class of shares of Morgan Stanley Dean Witter Income
Builder Fund currently held by that shareholder.

A proxy statement formally detailing this proposal, including reasons for the
Trustees' action and information concerning Morgan Stanley Dean Witter Income
Builder Fund has been distributed to shareholders of the Fund, who were
shareholders on March 12, 1999.

4
<PAGE>

TCW/DW INCOME AND GROWTH FUND
FUND PERFORMANCE JANUARY 31, 1999

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
Growth of $10,000 -- Class C
Shares
($ in Thousands)
Lehman
Fund S&P 500(4) Index(5) Lipper(6)
<S> <C> <C> <C> <C>
March 1993 $10,000 $10,000 $10,000 $10,000
January 1994 $11,506 $10,912 $10,769 $11,143
January 1995 $10,863 $10,969 $10,434 $10,638
January 1996 $13,092 $15,203 $12,283 $12,377
January 1997 $14,854 $19,207 $12,577 $13,062
January 1998 $16,938 $24,363 $13,982 $13,961
January 1999 $18,430(3) $32,277 $15,201 $14,510
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS B, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS C
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------------------------------------------------------------------------------
CLASS A SHARES+
-----------------------------------------------
CLASS C SHARES++
- -----------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 8.81%(1) 7.83%(2) 1 Year 9.45%(1) 4.80%(2)
5 Years 9.88(1) 9.88(2) Since Inception 10.35(1) 7.23(2)
Since Inception 11.04(1) 11.04(2)
</TABLE>

<TABLE>
<CAPTION>
CLASS B SHARES* CLASS D SHARES#
- ----------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 8.85%(1) 3.92%(2) 1 Year 9.64%(1)
Since Inception 9.79(1) 7.33(2) Since Inception 10.60(1)
</TABLE>

- ------------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charge.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges
(3) Closing value, assuming a complete redemption on January 31, 1999.
(4) The Standard and Poor's 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 performance of the Index
does not include any expenses, fees, or charges. The Index is unmanaged and
should not be considered an investment.
(5) The Lehman Brothers Government/Corporate Bond Index tracks the performance
of government and corporate obligations, including U.S. government agency
and U.S. treasury securities and corporate and yankee bonds, with
maturities of one to ten years. The performance of the Index does not
include any expenses, fees, or charges. The Index is unmanaged and should
not be considered an investment.
(6) The Lipper Flexible Income Funds Average tracks the performance of funds
that emphasize income generation by investing at least 85% of their assets
in debt issues and preferred and convertible securities, as reported by
Lipper Analytical Services, Inc.
++ The maximum CDSC for Class C shares is 1% for shares redeemed within one
year of purchase.
+ The maximum front-end sales charge for Class A shares is 4.25%.
* The maximum CDSC for Class B shares is 5.0%. The CDSC declines to 0% after
six years.
# Class D shares have no sales charge.

5
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONVERTIBLE BONDS (40.7%)
AEROSPACE (0.5%)
$ 345 Hexcel Corp................................................. 7.00% 08/01/03 $ 310,500
-----------
ASSISTED LIVING SERVICES (2.8%)
580 Alternative Living Services, Inc............................ 5.25 12/15/02 635,465
350 Assisted Living Concepts, Inc............................... 6.00 11/01/02 282,625
360 Assisted Living Concepts, Inc. - 144A*...................... 5.625 05/01/03 288,000
145 Sunrise Assisted Living, Inc................................ 5.50 06/15/02 182,616
145 Sunrise Assisted Living, Inc. - 144A*....................... 5.50 06/15/02 182,616
-----------
1,571,322
-----------
AUTO PARTS: O.E.M. (1.1%)
300 Magna International, Inc. - 144A* (Canada).................. 4.875 02/15/05 305,439
300 Tower Automotive, Inc. - 144A*.............................. 5.00 08/01/04 339,000
-----------
644,439
-----------
BIOTECHNOLOGY (2.3%)
810 Athena Neurosciences, Inc. - 144A*.......................... 4.75 11/15/04 935,671
165 Centocor, Inc............................................... 4.75 02/15/05 173,611
180 Centocor, Inc. - 144A*...................................... 4.75 02/15/05 189,394
-----------
1,298,676
-----------
BOOKS/MAGAZINES (1.0%)
895 News America Holdings, Inc.................................. 0.00 03/11/13 566,848
-----------
BROADCASTING (2.9%)
1,400 Clear Channel Communications, Inc........................... 2.625 04/01/03 1,632,064
-----------
COMPUTER COMMUNICATIONS (1.5%)
115 Adaptec, Inc................................................ 4.75 02/01/04 95,572
265 Adaptec, Inc. - 144A*....................................... 4.75 02/01/04 220,231
380 Comverse Technology, Inc. - 144A*........................... 4.50 07/01/05 549,043
-----------
864,846
-----------
COMPUTER SOFTWARE (1.4%)
350 Hyperion Solutions Corp..................................... 4.50 03/15/05 261,149
260 Network Associates, Inc..................................... 0.00 02/13/18 133,429
745 Network Associates, Inc. - 144A*............................ 0.00 02/13/18 382,327
-----------
776,905
-----------
CONTRACT DRILLING (0.7%)
440 Diamond Offshore Drilling, Inc.............................. 3.75 02/15/07 409,820
-----------
DISCOUNT CHAINS (1.8%)
1,045 Costco Companies, Inc. - 144A*.............................. 0.00 08/19/17 1,006,042
-----------
DIVERSIFIED COMMERCIAL SERVICES (0.5%)
370 Metamor Worldwide, Inc...................................... 2.94 08/15/04 315,654
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
E.D.P. PERIPHERALS (0.7%)
$ 1,280 Western Digital Corp........................................ 0.00% 02/18/18 $ 392,000
-----------
ELECTRONIC COMPONENTS (1.6%)
1,925 Solectron Corp. - 144A*..................................... 0.00 01/27/19 909,389
-----------
ELECTRONIC DISTRIBUTORS (1.2%)
525 Safeguard Scientifics, Inc. - 144A*......................... 6.00 02/01/06 696,609
-----------
ENTERTAINMENT & LEISURE (0.9%)
180 Action Performance Companies - 144A*........................ 4.75 04/01/05 208,541
255 Speedway Motorsports, Inc................................... 5.75 09/30/03 279,743
-----------
488,284
-----------
FINANCE COMPANIES (1.6%)
890 Elan Finance Corp. - 144A*.................................. 0.00 12/14/18 500,376
295 Xerox Credit Corp........................................... 2.875 07/01/02 388,781
-----------
889,157
-----------
INSURANCE (3.2%)
285 American International Group, Inc........................... 2.25 07/30/04 374,687
845 Berkshire Hathaway, Inc. (exchangeable into Citigroup, Inc.
common stock)............................................. 1.00 12/02/01 1,449,378
-----------
1,824,065
-----------
INTERNATIONAL BANKS (0.7%)
430 UBS AG Stamford............................................. 0.00 12/11/03 409,575
-----------
INVESTMENT BANKERS/BROKERS/SERVICES (1.5%)
360 Merrill Lynch & Co., Inc.................................... 0.00 02/02/05 576,900
285 Morgan Stanley Group, Inc.+ (exchangeable into Boeing Co.
common stock)............................................. 0.00 09/30/00 270,573
-----------
847,473
-----------
MOTOR VEHICLES (0.5%)
250 Blue Bird Body Co. (Series B)............................... 10.75 11/15/06 261,250
-----------
OTHER CONSUMER SERVICES (0.5%)
345 Interim Services Inc........................................ 4.50 06/01/05 301,951
-----------
OTHER PHARMACEUTICALS (1.9%)
955 Sepracor, Inc. - 144A*...................................... 7.00 12/15/05 1,104,601
-----------
POLLUTION CONTROL EQUIPMENT (1.0%)
600 U.S. Filter Corp............................................ 4.50 12/15/01 573,588
-----------
SEMICONDUCTORS (1.9%)
480 Level One Communications, Inc............................... 4.00 09/01/04 762,710
310 ST Microelectronics N.V..................................... 0.00 06/10/08 315,620
-----------
1,078,330
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

TOTAL CONVERTIBLE BONDS
(IDENTIFIED COST $20,639,328).................................................. 23,183,960
-----------

CORPORATE BONDS (40.3%)
ADVERTISING (1.5%)
100 Ackerley Group, Inc. - 144A*................................ 9.00 01/15/09 104,000
500 Adams Outdoor Advertising, L.P.............................. 10.75 03/15/06 543,750
145 Outdoor Communications, Inc................................. 9.25 08/15/07 157,687
25 Outdoor Systems, Inc........................................ 8.875 06/15/07 26,812
-----------
832,249
-----------
AEROSPACE (0.5%)
140 BE Aerospace, Inc. (Series B)............................... 8.00 03/01/08 137,900
125 Wyman-Gordon Co............................................. 8.00 12/15/07 124,687
-----------
262,587
-----------
AIR FREIGHT/DELIVERY SERVICES (0.1%)
75 Atlas Air, Inc.............................................. 10.75 08/01/05 79,500
-----------
AUTO PARTS: O.E.M. (0.7%)
250 Hayes Lemmerz International, Inc. - 144A*................... 8.25 12/15/08 253,125
25 Hayes Wheels International, Inc. (Series B)................. 9.125 07/15/07 26,375
100 Hayes Wheels International, Inc. (Series B*)................ 9.125 07/15/07 105,750
-----------
385,250
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
BEVERAGES - NON-ALCOHOLIC (0.3%)
$ 165 Cott Corp. (Canada)......................................... 9.375% 07/01/05 $ 150,150
-----------
BOOKS/MAGAZINES (1.4%)
75 American Media Operations, Inc.............................. 11.625 11/15/04 78,750
425 Garden State Newspapers (Series B).......................... 8.75 10/01/09 435,625
50 Primedia, Inc............................................... 7.625 04/01/08 50,000
250 Von Hoffman Press, Inc. - 144A*............................. 10.375 05/15/07 257,187
-----------
821,562
-----------
BROADCASTING (0.8%)
50 Chancellor Media Corp....................................... 9.375 10/01/04 53,000
100 Chancellor Media Corp....................................... 9.00 10/01/08 110,250
275 STC Broadcasting, Inc....................................... 11.00 03/15/07 290,125
-----------
453,375
-----------
BUILDING MATERIALS (1.0%)
225 American Standard Co........................................ 7.375 02/01/08 226,125
250 Atrium Companies, Inc....................................... 10.50 11/15/06 253,125
50 MDC Holdings, Inc........................................... 8.375 02/01/08 49,687
50 Standard Pacific Corp. (Series A)........................... 8.00 02/15/08 48,750
-----------
577,687
-----------
CABLE TELEVISION (2.6%)
150 Adelphia Communications Corp. (Series B).................... 9.25 10/01/02 159,000
100 Adelphia Communications Corp. (Series B).................... 8.375 02/01/08 105,125
75 Century Communications...................................... 9.50 03/01/05 84,187
75 Century Communications...................................... 8.75 10/01/07 82,687
150 Classic Cable Inc. - 144A*.................................. 9.875 08/01/08 157,500
25 CSC Holdings, Inc........................................... 9.875 05/15/06 27,437
400 CSC Holdings, Inc........................................... 7.25 07/15/08 415,516
125 CSC Holdings, Inc........................................... 7.625 07/15/18 129,051
50 CSC Holdings, Inc. (Series B)............................... 8.125 08/15/09 55,160
250 Echostar DBS Corp. - 144A*.................................. 9.375 02/01/09 256,875
-----------
1,472,538
-----------
CANADIAN OIL & GAS (0.1%)
50 Gulf Canada Resources Ltd................................... 9.25 01/15/04 49,982
-----------
CASINO/GAMBLING (1.9%)
200 Boyd Gaming Corp............................................ 9.25 10/01/03 209,000
325 Hard Rock Hotel, Inc........................................ 9.25 04/01/05 324,188
275 Park Place Entertainment - 144A*............................ 7.875 12/15/05 275,000
75 Station Casinos, Inc........................................ 10.125 03/15/06 79,688
175 Station Casinos, Inc........................................ 9.75 04/15/07 184,188
-----------
1,072,064
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CONSUMER SPECIALTIES (0.2%)
$ 125 Scotts Co. - 144A*.......................................... 8.625% 01/15/09 $ 129,375
-----------
CONSUMER SUNDRIES (0.8%)
350 Packaged Ice, Inc. (Series B)............................... 9.75 02/01/05 362,250
100 Protection One, Inc......................................... 7.375 08/15/05 101,346
-----------
463,596
-----------
CONSUMER/BUSINESS SERVICES (1.6%)
75 American Business Information, Inc. - 144A*................. 9.50 06/15/08 63,750
75 Coinmach Corp. (Series D)................................... 11.75 11/15/05 82,875
75 Pierce Leahy Command Co..................................... 8.125 05/15/08 75,000
325 Rental Service Corp......................................... 9.00 05/15/08 325,000
350 Safety-Kleen Services....................................... 9.25 06/01/08 364,000
-----------
910,625
-----------
CONTAINERS/PACKAGING (2.7%)
250 Ball Corp. - 144A*.......................................... 7.75 08/01/06 262,500
125 Ball Corp. - 144A*.......................................... 8.25 08/01/08 131,563
100 Consumers Packaging, Inc. - 144A*........................... 9.75 02/01/07 102,000
275 Huntsman Packaging Corp..................................... 9.125 10/01/07 275,000
275 Plastic Containers, Inc. (Series B)......................... 10.00 12/15/06 287,031
225 Riverwood International Corp................................ 10.625 08/01/07 228,375
225 U.S. Can Corp............................................... 10.125 10/15/06 237,375
-----------
1,523,844
-----------
DIVERSIFIED COMMERCIAL SERVICES (0.6%)
250 Iron Mountain, Inc.......................................... 10.125 10/01/06 272,500
75 Iron Mountain, Inc.......................................... 8.75 09/30/09 78,000
-----------
350,500
-----------
DIVERSIFIED MANUFACTURING (1.3%)
200 Ametek Inc.................................................. 7.20 07/15/08 200,548
60 GSI Group Inc............................................... 10.25 11/01/07 42,000
200 Insilco Corp. (Units) - 144A*++............................. 12.00 08/15/07 196,000
200 International Wire Group (Series B)......................... 11.75 06/01/05 213,000
100 Mark IV Industries, Inc..................................... 7.75 04/01/06 97,740
-----------
749,288
-----------
ELECTRONIC COMPONENTS (0.9%)
335 Communications & Power Industries, Inc. (Series B).......... 12.00 08/01/05 355,938
175 Viasystems, Inc............................................. 9.75 06/01/07 164,500
-----------
520,438
-----------
ENTERTAINMENT & LEISURE (0.1%)
75 Carmike Cinemas, Inc. - 144A*............................... 9.375 02/01/09 76,125
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
FINANCE COMPANIES (0.1%)
$ 65 Nationwide Credit, Inc...................................... 10.25% 01/15/08 $ 50,050
-----------
FINANCIAL SERVICES (0.1%)
75 Golden State Holdings....................................... 7.125 08/01/05 74,090
-----------
FOOD CHAINS (0.2%)
125 Jitney-Jungle Stores of America, Inc........................ 10.375 09/15/07 134,375
-----------
FOOD DISTRIBUTORS (0.1%)
75 Di Giorgio Corp............................................. 10.00 06/15/07 70,125
-----------
FOREST PRODUCTS (0.9%)
460 Tembec Finance Corp......................................... 9.875 09/30/05 483,000
-----------
HOME FURNISHINGS (0.9%)
300 Home Interiors & Gifts...................................... 10.125 06/01/08 300,000
200 Westpoint Stevens, Inc...................................... 7.875 06/15/08 206,500
-----------
506,500
-----------
HOSPITAL/NURSING MANAGEMENT (0.2%)
100 Tenet Healthcare Corp. - 144A*.............................. 8.125 12/01/08 102,750
-----------
HOTELS/RESORTS (0.8%)
75 HMH Properties, Inc. (Series B)............................. 7.875 08/01/08 72,750
50 Signature Resorts, Inc...................................... 9.25 05/15/06 46,500
400 Starwood Hotels & Resorts................................... 7.375 11/15/15 334,256
-----------
453,506
-----------
INDUSTRIAL SPECIALTIES (0.1%)
50 Foamex L.P.................................................. 9.875 06/15/07 52,000
-----------
INTERNET SERVICES (1.9%)
825 Verio Inc................................................... 10.375 04/01/05 849,750
200 Verio Inc. - 144A*.......................................... 11.25 12/01/08 212,000
-----------
1,061,750
-----------
MAJOR CHEMICALS (1.0%)
85 Geo Specialty Chemicals - 144A*............................. 10.125 08/01/08 83,725
100 Polymer Group Inc. (Series B)............................... 8.75 03/01/08 99,000
375 Texas Petrochemicals Corp................................... 11.125 07/01/06 367,500
-----------
550,225
-----------
MEDICAL SPECIALTIES (0.5%)
260 Dade International, Inc. (Series B)......................... 11.125 05/01/06 288,600
-----------
METALS FABRICATIONS (0.2%)
100 Neenah Corp. - 144A*........................................ 11.125 05/01/07 104,000
-----------
OIL & GAS PRODUCTION (0.4%)
275 Magnum Hunter Resources, Inc................................ 10.00 06/01/07 233,750
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OTHER METALS/MINERALS (0.6%)
$ 100 Golden Northwest Aluminum - 144A*........................... 12.00% 12/15/06 $ 101,000
125 Metal Management, Inc....................................... 10.00 05/15/08 73,750
175 P&L Coal Holdings Corp. (Series B).......................... 8.875 05/15/08 180,906
-----------
355,656
-----------
OTHER TELECOMMUNICATIONS (1.9%)
150 Intermedia Communications, Inc. (Series B).................. 8.875 11/01/07 145,500
225 Intermedia Communications, Inc. (Series B).................. 8.50 01/15/08 214,875
225 MasTec, Inc. (Series B)..................................... 7.75 02/01/08 220,500
340 NEXTLINK Communications, Inc................................ 9.625 10/01/07 333,200
150 NEXTLINK Communications, Inc. - 144A*....................... 10.75 11/15/08 156,000
-----------
1,070,075
-----------
PACKAGED GOODS/COSMETICS (0.3%)
150 Revlon Consumer Products, Inc............................... 8.125 02/01/06 142,500
-----------
PACKAGED FOODS (0.9%)
475 International Home Foods, Inc............................... 10.375 11/01/06 516,563
-----------
PAPER (0.8%)
125 Paperboard Industrial International, Inc.................... 8.375 09/15/07 123,125
300 Stone Container Corp........................................ 10.75 10/01/02 312,375
-----------
435,500
-----------
PRINTING/FORMS (0.1%)
75 Big Flower Press Holdings - 144A*........................... 8.625 12/01/08 76,875
-----------
REAL ESTATE (0.5%)
300 Forest City Enterprises, Inc................................ 8.50 03/15/08 301,500
-----------
RENTAL/LEASING COMPANIES (0.7%)
100 Anthony Crane Rentals - 144A*............................... 10.375 08/01/08 95,000
290 Williams Scotsman, Inc...................................... 9.875 06/01/07 301,600
-----------
396,600
-----------
RESTAURANTS (0.4%)
105 American Restaurant Group, Inc. - 144A*..................... 11.50 02/15/03 94,500
150 Perkins Family Restaurants, L.P. (Series B)................. 10.125 12/15/07 160,500
-----------
255,000
-----------
RETAIL - SPECIALTY (2.6%)
225 Boyds Collection Ltd. - 144A*............................... 9.00 05/15/08 239,625
246 Guitar Center Management.................................... 11.00 07/01/06 260,453
575 Michaels Stores, Inc........................................ 10.875 06/15/06 609,500
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 100 Mrs. Fields Original Cookies - 144A*........................ 10.125% 12/01/04 $ 96,000
110 Purina Mills, Inc........................................... 9.00 03/15/10 106,700
175 Zale Corp. (Series B)....................................... 8.50 10/01/07 175,000
-----------
1,487,278
-----------
SERVICES TO THE HEALTH INDUSTRY (0.8%)
255 Integrated Health Services (Series A)....................... 9.50 09/15/07 244,800
225 Prime Medical Services Inc.................................. 8.75 04/01/08 218,250
-----------
463,050
-----------
SMALLER BANKS (0.3%)
50 Chevy Chase Savings Bank.................................... 9.25 12/01/05 50,500
100 Chevy Chase Savings Bank, F.S.B............................. 9.25 12/01/08 100,500
-----------
151,000
-----------
TELECOMMUNICATIONS (2.6%)
405 Jordan Telecom Products (Series B).......................... 9.875 08/01/07 400,950
75 Jordan Telecom Products (Series B).......................... 0.00 08/01/07 57,750
425 Level 3 Communications, Inc................................. 9.125 05/01/08 422,875
75 Metronet Communications..................................... 12.00 08/15/07 84,563
75 Metronet Communications - 144A*............................. 10.625 11/01/08 81,750
50 Qwest Communications International, Inc. - 144A*............ 7.50 11/01/08 52,750
200 Qwest Communications International, Inc. - 144A*............ 7.25 11/01/08 208,000
55 RCN Corp.................................................... 10.00 10/15/07 51,838
125 RCN Corp.................................................... 0.00 10/15/07 71,875
50 Worldwide Fiber, Inc. - 144A*............................... 12.50 12/15/05 51,375
-----------
1,483,726
-----------
TELECOMMUNICATIONS EQUIPMENT (0.1%)
125 SBA Communications Corp..................................... 0.00 03/01/08 75,313
-----------
UTILITIES (1.1%)
50 Cal Energy Co., Inc......................................... 7.63 10/15/07 54,469
100 CMS Energy Corp............................................. 7.50 01/15/09 102,757
150 Niagara Mohawk Power (Series F)............................. 7.625 10/01/05 158,499
175 Niagara Mohawk Power (Series G)............................. 7.75 10/01/08 195,164
125 Niagara Mohawk Power (Series H)............................. 0.00 07/01/10 100,716
-----------
611,605
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

TOTAL CORPORATE BONDS
(IDENTIFIED COST $22,808,284).................................................. 22,943,997
-----------
</TABLE>

<TABLE>
<CAPTION>
NUMBER OF
SHARES
- ---------
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS (16.7%)
BOOKS/MAGAZINES (0.7%)
15,200 Reader's Digest Association, Inc $1.93......................................... 426,550
-----------
CABLE TELEVISION (1.8%)
5,900 MediaOne Group, Inc. $2.25..................................................... 654,900
4,600 MediaOne Group, Inc. $3.63 (exchangeable into AirTouch Communications, Inc.
common stock)................................................................ 378,350
-----------
1,033,250
-----------
CONSUMER/BUSINESS SERVICES (0.3%)
6,000 Vanstar Financing Trust $3.375 - 144A*......................................... 153,618
-----------
CONTAINERS/PACKAGING (0.7%)
7,200 Sealed Air Corp. (Series A) $2.00.............................................. 382,500
-----------
DISCOUNT CHAINS (1.8%)
13,000 Dollar General $3.35 (STRYPES)................................................. 494,000
8,300 Kmart Financing I $3.875....................................................... 520,825
-----------
1,014,825
-----------
ELECTRIC UTILITIES (2.7%)
14,200 Houston Industries, Inc. $3.29 (exchangeable into Time Warner common stock).... 1,510,525
-----------
INSURANCE (0.2%)
9,500 Philadelphia Consolidated Holding Co. $0.70.................................... 95,000
-----------
INVESTMENT BANKERS/BROKERS/SERVICES (0.4%)
23,000 Merrill Lynch & Co., Inc. $5.75 (STRIDES) (exchangeable into Lucent
Technologies, Inc. common stock)............................................. 250,125
-----------
MEDICAL/NURSING SERVICES (0.5%)
6,600 Laboratory Corp. of America (Series A) $4.25................................... 300,300
-----------
MILITARY/GOV'T/TECHNICAL (0.8%)
7,600 Loral Space & Communications Ltd. (Series C) $3.00 (Bermuda)................... 461,578
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C>
OTHER CONSUMER SERVICES (1.7%)
3,700 Cendant Corp. $0.65............................................................ $ 114,236
22,300 Cendant Corp. $3.75............................................................ 848,794
-----------
963,030
-----------
RAILROADS (1.0%)
12,000 Union Pacific Capital Trust $3.125 - 144A*..................................... 595,872
-----------
REAL ESTATE INVESTMENT TRUST (0.7%)
5,500 Host Marriott Financial Trust $3.375........................................... 215,936
4,900 Host Marriott Financial Trust $3.375 - 144A*................................... 192,379
-----------
408,315
-----------
RENTAL/LEASING COMPANIES (1.0%)
10,900 United Rentals Trust $3.25 - 144A*............................................. 547,725
-----------
SMALLER BANKS (1.8%)
11,500 CNB Capital Trust $1.50........................................................ 305,469
11,600 National Australia Bank, Ltd. $1.97 (Australia) (Units)++...................... 352,350
11,700 WBK Trust $3.135 (STRYPES)..................................................... 380,250
-----------
1,038,069
-----------
TRANSPORTATION (0.6%)
10,800 Laidlaw One, Inc. $1.22 (Canada) (exchangeable into United States Filter common
stock)....................................................................... 322,650
-----------

TOTAL CONVERTIBLE PREFERRED STOCKS
(IDENTIFIED COST $8,030,024)................................................... 9,503,932
-----------

COMMON STOCK (0.0%)
CASINO/GAMBLING
4,685 Fitzgerald Gaming Corp. - 144A* (a)
(IDENTIFIED COST $21,129).................................................... 2,343
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
TCW/DW INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS JANUARY 31, 1999, CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
- -----------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENT (0.5%)
REPURCHASE AGREEMENT
$ 257 The Bank of New York (dated 01/29/99; proceeds $257,274) (b)
(IDENTIFIED COST $257,174)........................................ 4.688% 02/01/99 $ 257,174
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $51,755,939) (C).......................................................... 98.2 % 55,891,406

OTHER ASSETS IN EXCESS OF LIABILITIES...................................................... 1.8 1,037,584
------ ------------

NET ASSETS................................................................................. 100.0 % $ 56,928,990
------ ------------
------ ------------
</TABLE>

- ---------------------

STRIDES Stock return income debt securities.
STRYPES Structured yield product exchangeable for stock.
* Resale is restricted to qualified institutional investors.
+ Issuer is an affiliate of the Fund's manager, Morgan Stanley Dean
Witter Services Company Inc.
++ Consists of one or more classes of securities traded together as a
unit; bonds with attached warrants.
(a) Non-income producing security.
(b) Collateralized by $244,235 U.S. Treasury Note 6.25% due 01/31/02 valued
at $262,317.
(c) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$5,588,230 and the aggregate gross unrealized depreciation is
$1,452,763, resulting in net unrealized appreciation of $4,135,467.

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1999

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $51,755,939)................................................................ $55,891,406
Receivable for:
Interest................................................................................... 792,883
Investments sold........................................................................... 504,015
Shares of beneficial interest sold......................................................... 134,609
Dividends.................................................................................. 55,888
Prepaid expenses and other assets.............................................................. 38,775
-----------
TOTAL ASSETS.............................................................................. 57,417,576
-----------
LIABILITIES:
Payable for:
Investments purchased...................................................................... 198,257
Shares of beneficial interest repurchased.................................................. 168,929
Plan of distribution fee................................................................... 35,930
Management fee............................................................................. 21,586
Investment advisory fee.................................................................... 14,391
Accrued expenses and other payables............................................................ 49,493
-----------
TOTAL LIABILITIES......................................................................... 488,586
-----------
NET ASSETS................................................................................ $56,928,990
-----------
-----------
COMPOSITION OF NET ASSETS:
Paid-in-capital................................................................................ $52,001,682
Net unrealized appreciation.................................................................... 4,135,467
Accumulated undistributed net investment income................................................ 345,102
Accumulated undistributed net realized gain.................................................... 446,739
-----------
NET ASSETS................................................................................ $56,928,990
-----------
-----------
CLASS A SHARES:
Net Assets..................................................................................... $88,622
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 7,746
NET ASSET VALUE PER SHARE................................................................. $11.44
-----------
-----------
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 4.44% OF NET
ASSET VALUE)............................................................................ $11.95
-----------
-----------
CLASS B SHARES:
Net Assets..................................................................................... $8,924,013
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 780,209
NET ASSET VALUE PER SHARE................................................................. $11.44
-----------
-----------
CLASS C SHARES:
Net Assets..................................................................................... $47,904,684
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 4,184,223
NET ASSET VALUE PER SHARE................................................................. $11.45
-----------
-----------
CLASS D SHARES:
Net Assets..................................................................................... $11,671
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR VALUE)...................................... 1,019
NET ASSET VALUE PER SHARE................................................................. $11.45
-----------
-----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1999

<TABLE>
<S> <C>
NET INVESTMENT INCOME

INCOME
Interest........................................................................................ $3,377,654
Dividends....................................................................................... 579,076
----------

TOTAL INCOME............................................................................... 3,956,730
----------

EXPENSES
Plan of distribution fee (Class A shares)....................................................... 139
Plan of distribution fee (Class B shares)....................................................... 57,262
Plan of distribution fee (Class C shares)....................................................... 379,492
Management fee.................................................................................. 265,123
Investment advisory fee......................................................................... 176,749
Registration fees............................................................................... 103,293
Transfer agent fees and expenses................................................................ 57,991
Shareholder reports and notices................................................................. 55,268
Professional fees............................................................................... 39,846
Trustees' fees and expenses..................................................................... 32,239
Custodian fees.................................................................................. 23,676
Organizational expenses......................................................................... 6,434
Other........................................................................................... 20,551
----------

TOTAL EXPENSES............................................................................. 1,218,063
----------

NET INVESTMENT INCOME...................................................................... 2,738,667
----------

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain............................................................................... 2,359,043
Net change in unrealized appreciation........................................................... (342,596)
----------

NET GAIN................................................................................... 2,016,447
----------

NET INCREASE.................................................................................... $4,755,114
----------
----------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, 1999 JANUARY 31, 1998*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income..................................................................... $ 2,738,667 $ 2,953,221
Net realized gain......................................................................... 2,359,043 4,031,439
Net change in unrealized appreciation..................................................... (342,596) 950,969
---------------- ------------

NET INCREASE......................................................................... 4,755,114 7,935,629
---------------- ------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares........................................................................ (3,154) (582)
Class B shares........................................................................ (352,662) (144,769)
Class C shares........................................................................ (2,309,542) (2,979,361)
Class D shares........................................................................ (572) (290)
Net realized gain
Class A shares........................................................................ (4,241) (1,133)
Class B shares........................................................................ (427,964) (298,812)
Class C shares........................................................................ (2,570,969) (3,495,390)
Class D shares........................................................................ (573) (491)
---------------- ------------

TOTAL DIVIDENDS AND DISTRIBUTIONS.................................................... (5,669,677) (6,920,828)
---------------- ------------
Net decrease from transactions in shares of beneficial interest........................... (3,654,766) (457,056)
---------------- ------------

NET INCREASE (DECREASE).............................................................. (4,569,329) 557,745

NET ASSETS:
Beginning of period....................................................................... 61,498,319 60,940,574
---------------- ------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $345,102 AND $272,740,
RESPECTIVELY)......................................................................... $ 56,928,990 $ 61,498,319
---------------- ------------
---------------- ------------
</TABLE>

- ---------------------

* Class A, Class B and Class D shares were issued July 28, 1997.

SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999

1. ORGANIZATIONAL AND ACCOUNTING POLICIES

TCW/DW Income and 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's investment objective is to generate
high total return by providing a high level of current income and the potential
for capital appreciation. The Fund seeks to achieve its objective by investing
in bonds or preferred stock convertible into common stock, other fixed income
securities, common stocks and U.S. Government securities. The Fund was organized
as a Massachusetts business trust on November 23, 1992 and commenced operations
on March 31, 1993. On July 28, 1997, the Fund converted to multiple class share
structure.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

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 (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Trustees); (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 TCW Funds Management, Inc. (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

20
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999, CONTINUED

securities which are comparable in coupon, rating and maturity or an appropriate
matrix utilizing similar factors); (4) certain portfolio securities may be
valued by an outside pricing service approved by the Trustees. The pricing
service may utilize a matrix system incorporating security quality, maturity and
coupon as the evaluation model parameters, and/or research and evaluations by
its staff, including review of broker-dealer market price quotations, if
available, in determining what it believes is the fair valuation of the
securities valued by such pricing service; (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.
Discounts are accreted over the life of the respective securities. Dividend
income and other distributions are recorded on the ex-dividend date. Interest
income is accrued daily.

C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. 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.

E. 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

21
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999, CONTINUED

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.

F. ORGANIZATIONAL EXPENSES -- Morgan Stanley Dean Witter Advisors Inc.,
formerly Dean Witter InterCapital Inc., an affiliate of Morgan Stanley Dean
Witter Services Company Inc. (the "Manager"), paid the organizational expenses
of the Fund in the amount of approximately $206,000 of which $200,000 have been
reimbursed. Such expenses were fully amortized as of March 30, 1998.

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
net assets of the Fund determined as of the close of each business day: 0.45% to
the portion of daily net assets not exceeding $500 million and 0.42% 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.

3. INVESTMENT ADVISORY AGREEMENT

Pursuant to an Investment Advisory Agreement, 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: 0.30% to the portion of daily net assets not exceeding $500
million and 0.28% 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.

22
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999, CONTINUED

4. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Morgan Stanley 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. The Plan
provides that the Fund will pay the Distributor a fee which is accrued daily and
paid monthly at the following annual rates: (i) Class A -- up to 0.25% of the
average daily net assets of Class A; (ii) Class B -- 0.75% of the average daily
net assets of Class B, and (iii) Class C -- up to 0.75% of the average daily net
assets of Class C. In the case of Class A shares, amounts paid under the Plan
are paid to the Distributor for services provided. In the case of Class B and
Class C shares, amounts paid under the Plan are paid to the Distributor for (1)
services provided and the expenses borne by it and others in the distribution of
the shares of these Classes, including the payment of commissions for sales of
these Classes and incentive compensation to, and expenses of, Morgan Stanley
Dean Witter Financial Advisors and others who engage in or support distribution
of the shares or who service shareholder accounts, including overhead and
telephone expenses; (2) printing and distribution of prospectuses and reports
used in connection with the offering of these shares to other than current
shareholders; and (3) preparation, printing and distribution of sales literature
and advertising materials. In addition, the Distributor may utilize fees paid
pursuant to the Plan, in the case of Class B shares, to compensate Dean Witter
Reynolds Inc. ("DWR"), an affiliate of the Manager and Distributor, and other
selected broker-dealers for their opportunity costs in advancing such amounts,
which compensation would be in the form of a carrying charge on any unreimbursed
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. 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, including
carrying charges, totaled $221,765 at January 31, 1999.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 0.75% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except

23
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999, CONTINUED

that expenses representing a gross sales credit to Morgan Stanley Dean Witter
Financial Advisors or other selected broker-dealer representatives may be
reimbursed in the subsequent calendar year. For the year ended January 31, 1999,
the distribution fee was accrued for Class A shares and Class C shares at the
annual rate of 0.23% and 0.74%, respectively.

The Distributor has informed the Fund that for the year ended January 31, 1999,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class B shares and Class C shares of $38,754 and $4,717, respectively and
received $637 in front-end sales charges from sales of the Fund's Class A
shares. The respective 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 year ended January 31, 1999 aggregated
$57,838,967 and $57,973,496, respectively.

Included in the aforementioned sales of portfolio securities are sales of
securities issued by Morgan Stanley Group Inc., an affiliate of the Manager and
Distributor of $730,509, as well as realized gain of $2,625. The Fund's interest
and dividend income included $3,736 and $19,751, respectively, for income from
Morgan Stanley Group, Inc. securities.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Manager and
Distributor, is the Fund's transfer agent.

6. SUBSEQUENT EVENT

On February 25, 1999, the Board of Trustees of the Fund and of Morgan Stanley
Dean Witter Income Builder Fund ("Income Builder") approved a reorganization
plan (the "Plan") whereby the Fund would be merged into Income Builder. The Plan
is subject to the consent of the Fund's shareholders. Under the terms of the
Plan, the assets of the Fund would be combined with the assets of Income Builder
and shareholders of the Fund would become shareholders of Income Builder,
receiving shares of the corresponding class of Income Builder equal to the value
of their holdings in the Fund.

24
<PAGE>
TCW/DW INCOME AND GROWTH FUND
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1999, CONTINUED

7. SHARES OF BENEFICIAL INTEREST

Transactions in shares of beneficial interest were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, 1999 JANUARY 31, 1998*
----------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
------------ -------------- ------------ ------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 7,559 $ 87,012 2,751 $ 33,065
Reinvestment of dividends and distributions...................... 668 7,314 142 1,614
Redeemed......................................................... (2,882) (33,757) (492) (5,989)
------------ -------------- ------------ ------------
Net increase - Class A........................................... 5,345 60,569 2,401 28,690
------------ -------------- ------------ ------------
CLASS B SHARES
Sold............................................................. 487,673 5,560,583 209,588 2,492,309
Reinvestment of dividends and distributions...................... 58,170 642,767 32,187 368,173
Redeemed......................................................... (334,323) (3,763,607) (89,344) (1,054,299)
------------ -------------- ------------ ------------
Net increase - Class B........................................... 211,520 2,439,743 152,431 1,806,183
------------ -------------- ------------ ------------
CLASS C SHARES
Sold............................................................. 286,331 3,334,552 912,536 10,493,055
Reinvestment of dividends and distributions...................... 375,181 4,169,254 485,664 5,548,520
Redeemed......................................................... (1,204,168) (13,660,029) (1,590,764) (18,344,299)
------------ -------------- ------------ ------------
Net decrease - Class C........................................... (542,656) (6,156,223) (192,564) (2,302,724)
------------ -------------- ------------ ------------
CLASS D SHARES
Sold............................................................. -- -- 848 10,014
Reinvestment of dividends and distributions...................... 103 1,145 68 781
------------ -------------- ------------ ------------
Net increase - Class D........................................... 103 1,145 916 10,795
------------ -------------- ------------ ------------
Net decrease in Fund............................................. (325,688) $ (3,654,766) (36,816) $ (457,056)
------------ -------------- ------------ ------------
------------ -------------- ------------ ------------
</TABLE>

- ---------------------

* For Class A, B and D shares, for the period July 28, 1997 (issue date)
through January 31, 1998.

25
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:

<TABLE>
<CAPTION>
FOR THE YEAR ENDED JANUARY 31,
--------------------------------------------------------------------------
1999++ 1998*++ 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C>
CLASS C SHARES

SELECTED PER SHARE DATA:

Net asset value, beginning of period.... $ 11.61 $ 11.42 $ 11.13 $ 9.77 $ 10.98
---------- ---------- ---------- ---------- ------

Income (loss) from investment
operations:
Net investment income................ 0.53 0.57 0.60 0.59 0.59
Net realized and unrealized gain
(loss)............................... 0.43 0.96 0.84 1.37 (1.20)
---------- ---------- ---------- ---------- ------

Total income (loss) from investment
operations............................. 0.96 1.53 1.44 1.96 (0.61)
---------- ---------- ---------- ---------- ------

Less dividends and distributions from:
Net investment income................ (0.52) (0.60) (0.60) (0.60) (0.55)
Net realized gain.................... (0.60) (0.74) (0.55) -- (0.05)
---------- ---------- ---------- ---------- ------

Total dividends and distributions....... (1.12) (1.34) (1.15) (0.60) (0.60)
---------- ---------- ---------- ---------- ------

Net asset value, end of period.......... $ 11.45 $ 11.61 $ 11.42 $ 11.13 $ 9.77
---------- ---------- ---------- ---------- ------
---------- ---------- ---------- ---------- ------

TOTAL RETURN+........................... 8.81% 14.03% 13.46% 20.52% (5.59)%

RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 2.07%(1) 2.01% 2.02% 2.21% 2.04%

Net investment income................... 4.65%(1) 4.84% 5.19% 5.41% 5.83%

SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $47,905 $54,863 $60,941 $57,631 $55,335

Portfolio turnover rate................. 103% 96% 102% 79% 88%
</TABLE>

- ---------------------

* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were acquired in
exchange for shares of Funds for which Morgan Stanley Dean Witter Services
Company Inc. serves as Manager and TCW Funds Management, Inc. serves as
Adviser ("TCW/DW Funds") offered with a contingent deferred sales charge
("CDSC") and shares acquired through reinvestment of dividends and
distributions thereon, have been designated Class C shares. Shares held
prior to July 28, 1997 which were acquired in exchange for shares of a
TCW/DW Fund sold with a CDSC, including shares acquired through
reinvestment of dividends and distributions thereon, have been designated
Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
JANUARY 31, JANUARY 31,
1999 1998
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 11.60 $ 11.81
------ ------
Income from investment operations:
Net investment income.................................... 0.59 0.30
Net realized and unrealized gain......................... 0.44 0.39
------ ------
Total income from investment operations..................... 1.03 0.69
------ ------
Less dividends and distributions from:
Net investment income.................................... (0.59) (0.33)
Net realized gain........................................ (0.60) (0.57)
------ ------
Total dividends and distributions........................... (1.19) (0.90)
------ ------
Net asset value, end of period.............................. $ 11.44 $ 11.60
------ ------
------ ------
TOTAL RETURN+............................................... 9.45% 6.03%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.56%(3) 1.54%(2)
Net investment income....................................... 5.16%(3) 5.04%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $89 $28
Portfolio turnover rate..................................... 103% 96%
CLASS B SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........................ $ 11.60 $ 11.81
------ ------
Income from investment operations:
Net investment income.................................... 0.53 0.28
Net realized and unrealized gain......................... 0.43 0.38
------ ------
Total income from investment operations..................... 0.96 0.66
------ ------
Less dividends and distributions from:
Net investment income.................................... (0.52) (0.30)
Net realized gain........................................ (0.60) (0.57)
------ ------
Total dividends and distributions........................... (1.12) (0.87)
------ ------
Net asset value, end of period.............................. $ 11.44 $ 11.60
------ ------
------ ------
TOTAL RETURN+............................................... 8.85% 5.80%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 2.08%(3) 2.02%(2)
Net investment income....................................... 4.64%(3) 4.58%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $8,924 $6,597
Portfolio turnover rate..................................... 103% 96%
</TABLE>

- ---------------------

* The date the shares were first issued. Class B participants who held shares
prior to July 28, 1997 should refer to the Financial Highlights of Class C
to obtain the historical per share data and ratio information of their
shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
TCW/DW INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS, CONTINUED

<S> <C> <C>
CLASS D SHARES++

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $ 11.61 $ 11.81
------ ------

Income from investment operations:
Net investment income.................................... 0.62 0.32
Net realized and unrealized gain......................... 0.43 0.39
------ ------

Total income from investment operations..................... 1.05 0.71
------ ------

Less dividends and distributions from:
Net investment income.................................... (0.61) (0.34)
Net realized gain........................................ (0.60) (0.57)
------ ------

Total dividends and distributions........................... (1.21) (0.91)
------ ------

Net asset value, end of period.............................. $ 11.45 $ 11.61
------ ------
------ ------

TOTAL RETURN+............................................... 9.64% 6.21%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.33%(3) 1.27%(2)

Net investment income....................................... 5.39%(3) 5.33%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $12 $11

Portfolio turnover rate..................................... 103% 96%
</TABLE>

- ---------------------

* The date the shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>

TCW/DW INCOME AND GROWTH FUND
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND TRUSTEES
OF TCW/DW INCOME AND GROWTH FUND

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 Income and Growth Fund (the
"Fund") at January 31, 1999, 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 periods indicated, 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 January 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

As described in Note 6 to the financial statements, the Board of Trustees of the
Fund approved a reorganization plan, subject to shareholder approval, whereby
the Fund will be merged into Morgan Stanley Dean Witter Income Builder Fund.

PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
MARCH 12, 1999

29
<PAGE>

TCW/DW INCOME AND GROWTH FUND
FEDERAL TAX NOTICE (UNAUDITED)

During the year ended January 31, 1999, the Fund paid to its shareholders $0.54
per share from long-term capital gains. For such period, 18.91% of the income
paid qualified for the dividends received deduction available to corporations.

30
<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

Barry Fink
Vice President, Secretary and General Counsel

Robert M. Hanisee
Vice President

Kevin A. Hunter
Vice President

Mark L. Attanasio
Vice President

Melissa V. Weiler
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036

MANAGER
Morgan Stanley Dean Witter Services Company Inc.

ADVISER
TCW Funds 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.

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ANNUAL REPORT
JANUARY 31, 1999