<PAGE>
TCW/DW TERM TRUST 2000
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- - --------------------------------------------------------------------------------
After continued upward pressure on interest rates during the final three months
of 1994, the first quarter of 1995 saw an overall interest rate decline, causing
Term Trust 2000's net asset value (NAV) to increase from $7.48 per share on
September 30, 1994 to $7.82 per share on March 31, 1995. Based on this increase,
and including reinvestment of income dividends totaling $0.28 per share, the
Trust's total return for the six-month period under review was 8.66 percent. As
of March 31, 1995 the bond market rally seen in the first quarter was not
reflected in the value of the Trust's shares on the New York Stock Exchange
(NYSE). Based on a change in NYSE market price from $7.875 per share to $7.00
per share, and including reinvestment of income dividends, total return for the
six-month period was -7.62 percent.
THE MARKET
Once evidence of a slowdown in economic growth began to accumulate during the
first quarter of 1995, the market's inflation fears ebbed and interest rates
fell on average by 65 basis points (0.65 percentage points). The decline in the
issuance of new pass-through securities and collateralized mortgage obligations
(CMOs) helped the mortgage sector recover gradually from the difficulties
encountered last spring, when, with interest rates rising and mortgage
prepayment rates falling, investors rushed to sell off their mortgage-backed
holdings, exacerbating price declines. Mortgage prepayment rates have been
declining as a result of the seasonal slowdown in housing turnover and the lack
of attractive refinancing alternatives.
THE PORTFOLIO
Approximately 40 percent of the Trust remains invested in 15-year mortgage pass-
through securities issued by agencies of the U.S. government. Slightly over 25
percent of the Trust is invested in AAA-rated fixed-rate collateralized mortgage
obligations (CMOs) with durations, average lives or expected maturities that
correspond closely to the Trust's termination date. Another 22 percent is
invested in inverse floating rate CMOs (also known as inverse floaters) issued
by agencies of the U.S. government. The interest rate or coupon on an inverse
floater resets by a multiple in a direction opposite to that of a specified
index. In addition, the average lives, durations and expected maturities of
inverse floaters are more sensitive to changes in prepayment rates and interest
rates than some other types of CMOs. However, inverse floaters can provide a
portfolio with strong call protection and attractive projected yields and total
rates of return. As interest rates fell in the first quarter, the value of these
securities has increased. Approximately 13 percent of the Trust is invested in
AAA-rated zero coupon municipal bonds and short-term investments, which play a
role in striving to achieve the Trust's objective of returning the original
offering price of $10 to shareholders when the Trust terminates. Leverage has
declined to less than 30 percent of total gross assets. We will continue to use
mortgage prepayments that we receive to pay down leverage further.
LOOKING AHEAD
The Trust's investment adviser, TCW Funds Management, Inc. (TCW), is generally
positive regarding the mortgage-backed sector, but does not rule out the
possibility of additional rate hikes by the Federal Reserve Board later this
year. The U.S. dollar's weakness is also of concern, as it has some inflationary
implications. In the past, periods of strong bond market performance have been
correlated with high real rates of interest. With today's real interest rates
remaining high, even after the recent bond market rally, TCW anticipates
continued near-term bond market strength. The Trust's value per share, both NAV
and on the NYSE, will continue to fluctuate as the prices of the portfolio's
securities respond to changing market conditions and interest rates.
We would like to remind you that the Trustees have approved a procedure whereby
the Trust, when appropriate, may attempt to reduce or eliminate a market value
discount from net asset value by purchasing shares in the open market or in
privately negotiated transactions at a price not above market value or net asset
value, whichever is lower at the time of purchase. We appreciate your support of
TCW/DW Term Trust 2000 and look forward to continuing to serve your investment
needs and objectives.
Very truly yours,
/S/ Charles A. Fiumefreddo
Chairman of the Board
<PAGE>
<TABLE><CAPTION>
TCW/DW TERM TRUST 2000
PORTFOLIO OF INVESTMENTS March 31, 1995 (unaudited)
- - --------------------------------------------------------------------------------
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- - ---------- ------- ------- -------
<S> <C> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS (66.0%)
U.S. GOVERNMENT AGENCIES (41.1%)
$15,995 Federal Home Loan Mortgage Corp.
1604 JD ......................... 4.035+% 11/15/08 $ 11,656,002
18,967 Federal Home Loan Mortgage Corp.
1609 LG (PAC).................... 4.062+ 11/15/23 11,297,466
9,707 Federal Home Loan Mortgage Corp.
1625 SH (PAC) ................... 8.505+ 12/15/08 8,008,481
16,602 Federal Home Loan Mortgage Corp.
1629 MB (PAC) ................... 6.00 1/15/23 13,939,298
20,822 Federal Home Loan Mortgage Corp.
1635 IB (PAC) ................... 2.518+ 12/15/08 14,634,188
18,507 Federal Home Loan Mortgage Corp.
1635 P (TAC) .................... 5.259+ 12/15/08 12,810,327
9,122 Federal Home Loan Mortgage Corp.
1649 S .......................... 8.132+ 12/15/08 6,222,847
26,140 Federal Home Loan Mortgage Corp.
1650 LB (PAC) ................... 6.50 6/15/22 23,101,120
7,243 Federal Home Loan Mortgage Corp.
1661 SB ......................... 7.647+ 1/15/09 4,273,637
16,932 Federal Home Loan Mortgage Corp.
1661 SD ......................... 0.00+ 1/15/09 8,957,997
14,191 Federal Home Loan Mortgage Corp.
1671 MB (PAC).................... 7.263+ 2/25/24 9,427,822
18,135 Federal Home Loan Mortgage Corp.
1673 S .......................... 7.709+ 10/15/22 11,719,453
10,268 Federal Home Loan Mortgage Corp.
1680 EA (PAC) ................... 6.50 2/15/24 9,398,883
13,997 Federal National Mortgage Assoc.
1993-170 SE ................... 8.098+ 9/25/08 8,489,759
14,588 Federal National Mortgage Assoc.
1993-214 S (TAC)................ 6.261+ 12/25/08 8,785,010
8,993 Federal National Mortgage Assoc.
1993-225 SU (PAC) .............. 6.835+ 12/25/23 6,809,023
10,027 Federal National Mortgage Assoc.
1994-17 S ...................... 10.66+ 2/25/09 7,012,915
6,912 Federal National Mortgage Assoc.
G1993-35 SB (PAC) ............... 8.75+ 11/25/23 4,907,550
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $247,399,615) ........................... 181,451,778
-----------
PRIVATE ISSUES (24.9%)
17,028 CMC III Securities Corp
1994-A6 (PAC) ................... 6.75 2/25/24 16,144,673
17,450 CMC Securities Corp II 1993-E2
E2H-PAC) ....................... 7.00 10/25/23 15,977,656
14,400 CountryWide Funding Corp.
1993-10 A3 (PAC)................. 6.75 1/25/24 13,689,000
24,094 General Electric Capital Mortgage
Services, Inc
1994-1 A5 (TAC)++ ............... 6.50 1/25/24 22,498,285
23,645 General Electric Capital Mortgage
Services, Inc 1994-6 A9 ......... 6.50 9/25/22 18,993,727
25,000 Prudential Home Mortgage Securities
1993-47 A3 (PAC)++ ............. 6.75 12/25/23 22,804,800
------------
TOTAL PRIVATE ISSUES
(Identified Cost $120,647,834).......................... 110,108,141
------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Identified Cost
$368,047,449) .......................................... 291,559,919
------------
U.S. GOVERNMENT AGENCIES MORTGAGE
PASS-THROUGH SECURITIES (55.5%)
13,726 Federal Home Loan
Mortgage Corp++ ................. 6.00 2/01/09 12,743,498
257,828 Federal National Mortgage
Assoc.++ ....................... 5.50 12/01/08-2/01/09 232,851,019
------------
TOTAL U.S. GOVERNMENT AGENCIES
MORTGAGE PASS-THROUGH
SECURITIES (Identified Cost
$263,912,627) .......................................... 245,594,517
------------
MUNICIPAL BONDS (18.7%)
ELECTRIC REVENUE (7.4%)
15,000 Austin, Texas, Combined Utility
Ser A (MBIA Insured) ............. 0.00 11/15/01 10,512,750
22,000 Intermountain Power Agency, Utah,
Refg Ser B (AMBAC Insured) ....... 0.00 7/01/01 15,730,220
3,255 Intermountain Power Agency, Utah,
Refg Ser A (AMBAC Insured) ....... 0.00 7/01/01 2,327,357
5,825 Owensboro, Kentucky, Electric
Light & Power Refg Ser B
(AMBAC Insured) .................. 0.00 1/01/02 4,057,229
------------
32,627,556
------------
<PAGE>
</TABLE>
<TABLE>
TCW/DW Term Trust 2000
Portfolio of Investments March 31, 1995 (unaudited) (continued)
- - --------------------------------------------------------------------------------
<CAPTION>
Principal
Amount (in Coupon Maturity
thousands) Rate Date Value
- - ---------- ------- ------- -------
<S> <C> <C> <C>
OTHER REVENUE (5.8%)
$10,000 North Slope Boro, Alaska,
Ser B (MBIA Insured) ............ 0.00% 1/01/01 $ 7,283,000
5,000 Maricopa County Unified High
School District # 210,
Arizona, Phoenix Refg
(Secondary MBIA Insured) ......... 0.00 7/01/01 3,589,150
2,000 Maricopa County Unified High
School District # 040, Arizona,
Glendale Refg (AMBAC Insured)..... 0.00 7/01/01 1,435,660
13,650 Texas, Refg Ser A (AMBAC Insured) 0.00 10/01/01 9,629,802
4,250 Boston, Massachusetts, Refg
Ser A (AMBAC Insured)............ 4.30 7/01/01 3,970,180
-----------
25,907,792
-----------
RESOURCE RECOVERY REVENUE (1.2%)
5,620 Westchester County Industrial
Development Agency, New York,
Resco Co Ser A (AMBAC Insured)..... 4.95 7/01/01 5,571,949
-----------
TRANSPORTATION FACILITIES REVENUE (2.5%)
4,250 Harris County, Texas,
Toll Road Sr Lien
(AMBAC Insured)................... 4.45 8/15/01 4,038,818
10,000 Kentucky Turnpike Authority,
Economic Dev Road Revital-
ization Refg (FGIC Insured)........ 0.00 1/01/02 6,965,200
------------
11,004,018
------------
WATER & SEWER REVENUE (1.8%)
10,855 New Jersey Wastewater Treatment,
Ser A (FGIC Insured) ............ 0.00 9/01/01 7,798,775
------------
TOTAL MUNICIPAL BONDS
(Identified Cost $84,959,520) .......................... 82,910,090
------------
SHORT-TERM INVESTMENT (0.4%)
REPURCHASE AGREEMENT
1,646 The Bank of New York (dated
3/31/95; proceeds $1,646,588,
collateralized by $1,701,217
U.S. Treasury Bill 6.10% due
9/07/95 valued at $1,658,125)
(Identified Cost $1,645,782) .... 5.875 4/03/95 1,645,782
------------
TOTAL INVESTMENTS
(Identified Cost $718,565,378)(a) ............. 140.6% 621,710,308
LIABILITIES IN EXCESS OF
CASH AND OTHER ASSETS ......................... (40.6) (179,643,943)
------- ------------
NET ASSETS .................................... 100.0% $442,066,365
======= ============
</TABLE>
[FN]
- - ------
PAC Planned Amortization Class.
TAC Targeted Amortization Class
+ Inverse floater - rate moves inversely to a designated index, such as LIBOR
(London Inter-Bank Offered Rate) or COFI (Cost of Funds Index), typically
at a multiple of the changes of the relevant index rate.
++ Some or all of these securities are pledged in connection with the Reverse
Repurchase Agreements.
(a) The aggregate cost of investments for federal income tax purposes is
$718,565,378; the aggregate gross unrealized appreciation is $1,621,967 and
the aggregate gross unrealized depreciation is $98,477,037, resulting in
net unrealized depreciation of $96,855,070.
See Notes to Financial Statements
<PAGE>
<TABLE>
TCW/DW TERM TRUST 2000
FINANCIAL STATEMENTS
- - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
Investments in securities, at value
(identified cost $718,565,378) ......................... $ 621,710,308
Cash ..................................................... 167,243
Interest receivable ...................................... 3,215,266
Deferred organizational expenses ........................ 24,550
Prepaid expenses and other assets ........................ 155,898
------------
Total Assets .................................... 625,273,265
------------
LIABILITIES:
Reverse repurchase agreements ............................ 182,508,000
Payable for:
Interest .............................................. 342,185
Management fee ........................................ 152,040
Investment advisory fee ............................... 101,360
Accrued expenses and other payables ..................... 103,315
Contingencies (Note 10)
------------
Total Liabilities ............................... 183,206,900
------------
NET ASSETS:
Paid-in-capital ......................................... 536,061,921
Net unrealized depreciation .............................. (96,855,070
Accumulated undistributed net investment income........... 5,946,295
Accumulated net realized loss ............................ (3,086,781)
------------
Net Assets ...................................... $442,066,365
=============
Net Asset Value Per Share, 56,510,528
shares outstanding (unlimited shares
authorized of $.01 par value) ......................... $7.82
======
</TABLE>
<TABLE><CAPTION>
- - --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the six months
ended March 31, 1995 (unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME:
Interest Income .......................................... $24,125,679
-------------
Expenses
Management fee .......................................... 745,156
Investment advisory fee ................................. 496,771
Transfer agent fees and expenses ........................ 103,528
Professional fees ....................................... 44,328
Shareholder reports and notices ......................... 37,977
Registration fees ....................................... 27,230
Trustees' fees and expenses ............................. 23,909
Custodian fees .......................................... 4,528
Organizational expenses ................................. 3,338
Other ................................................... 8,395
-------------
Total Operating Expenses .......................... 1,495,160
Interest expense ....................................... 5,561,796
-------------
Total Expenses .................................... 7,056,956
-------------
Net Investment Income ............................ 17,068,723
--------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain ..................................... 55
Net change in unrealized depreciation ................. 18,522,980
--------------
Net Gain ........................................ 18,523,035
--------------
Net Increase ..................................... $35,591,758
==============
</TABLE>
<TABLE><CAPTION>
Statement of Changes in Net Assets
- - --------------------------------------------------------------------------------
For the For the period
six months ended November 30, 1993*
March 31, 1995 through
(unaudited) September 30, 1994
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ........... $ 17,068,723 $ 31,881,928
Net realized gain (loss) ........ 55 (3,086,836)
Net change in unrealized
depreciation .................... 18,522,980 (115,378,050)
------------ -------------
Net increase (decrease) ..... 35,591,758 (86,582,958)
------------ -------------
Dividends to shareholders from
net investment income ............ (16,003,277) (27,054,174)
Net increase from transactions in
shares of beneficial interest ... -- 536,015,000
------------ -------------
Total increase ............. 19,588,481 422,377,868
NET ASSETS:
Beginning of period ............... 422,477,884 100,016
------------ ------------
End of period (including undistributed
net investment income of $5,946,295
and $4,880,849, respectively) ...... $442,066,365 $422,477,884
============ ============
</TABLE>
[FN]
- - ----------
* Commencement of operations.
See Notes to Financial Statements
<PAGE>
<TABLE>
TCW/DW TERM TRUST 2000
FINANCIAL STATEMENTS (continued)
- - --------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF CASH FLOWS
For the six months ended March 31, 1995 (unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN CASH:
Cash Flows from Operating Activities:
Net investment income ................................... $ 17,068,723
Adjustments to reconcile net investment
income to net cash from operating activities:
Decrease in receivables and other
assets related to operations ............................ 313,731
Increase in payables related to operations .............. (31,710)
Net amortization of discount/premium .................... (3,016,903)
-------------
Net cash from operating activities .............. 14,333,841
-------------
Cash Flows from Investing Activities:
Purchases of investments .................................. (753,217)
Principal prepayments/sales of investments ................ 16,658,107
Net sales of short-term investments ....................... 4,789
-------------
Net cash from investing activities .............. 15,909,679
-------------
Cash Flows used for Financing Activities:
Net payment from maturities of
reverse repurchase agreements ............................ (14,073,000)
Dividends from net investment income ..................... (16,003,277)
-------------
Net cash used for financing activities ........ (30,076,277)
-------------
Net increase in cash .................................... 167,243
Cash at beginning of period ............................. -
-------------
Cash at end of period ................................... $ 167,243
=============
Cash paid during the period for interest ................... $ 5,551,061
=============
</TABLE>
See Notes to Financial Statements
<PAGE>
TCW/DW TERM TRUST 2000
NOTES TO FINANCIAL STATEMENTS (unaudited)
- - --------------------------------------------------------------------------------
1. Organization and Accounting Policies-TCW/DW Term Trust 2000 (the "Trust") is
registered under the Investment Company Act of 1940, as amended, as a
diversified, closed-end management investment company. The Trust was organized
as a Massachusetts business trust June 16, 1993 and on November 17, 1993 issued
10,528 shares of beneficial interest for $100,016 to Dean Witter InterCapital
Inc. ("InterCapital), an affiliate of Dean Witter Services Company Inc. (the
"Manager"), and commenced operations on November 30, 1993. The Trust will
distribute substantially all of its net assets on or about December 31, 2000 and
will then terminate.
The following is a summary of significant accounting policies:
A. Valuation of Investments-(1) an equity security listed or traded on the
New York or American 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 a security is traded on more than one exchange, the security is
valued on the exchange designated as the primary market 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
the Adviser that sale and 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; (4) certain of the Trust's portfolio
securities may be valued by an outside pricing service approved by the
Trustees. The pricing service utilizes 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 portfolio securities valued by such
pricing service; 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. The Trust amortizes premiums and accrues discounts on fixed income
securities. Interest income is accrued daily.
C. Federal Income Tax Status-It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
shareholders. Accordingly, no federal income tax provision is required.
D. Dividends and Distributions to Shareholders-The Trust records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
E. Organizational Expenses and Offering Costs-InterCapital paid the
organizational expenses and offering costs of the Trust in the amounts of
approximately $33,500 and $735,000, respectively. The Trust has reimbursed
InterCapital for the organizational expenses which have been deferred and
are being amortized by the Trust on the straight-line method over a period
not to exceed five years from the commencement of operations. Offering
costs were charged to capital at the time of issuance of the Trust's
shares.
2. Management Agreement-Pursuant to a Management Agreement, the Trust pays its
Manager a management fee, accrued weekly and payable monthly, by applying the
annual rate of 0.36% to the Trust's average weekly net assets.
Under the terms of the Management Agreement, the Manager maintains certain of
the Trust'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 Trust who are employees
of the Manager. The Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Trust.
3. Investment Advisory Agreement-Pursuant to an Investment Advisory Agreement
with TCW Funds Management, Inc. (the "Adviser"), the Trust pays the Adviser an
advisory fee, accrued weekly and payable monthly, by applying the annual rate of
0.24% to the Trust's average weekly net assets.
Under the terms of the Investment Advisory Agreement, the Trust has retained the
Adviser to invest the Trust'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 Trust in a manner consistent with its investment objective. In addition,
the Adviser pays the salaries of all personnel, including officers of the Trust,
who are employees of the Adviser.
4. Security Transactions and Transactions with Affiliates-The cost of purchases
and proceeds from sales/prepayments of portfolio securities, excluding short-
term investments, for the six months ended
March 31, 1995 were as follows:
<TABLE><CAPTION>
Sales/
Purchases Prepayments
------------- -------------
<S> <C> <C>
U.S. Government Agencies .................... $ - $7,336,502
Private Issue Collateralized
Mortgage Obligations ..................... $753,217 $9,321,605
</TABLE>
Dean Witter Trust Company, an affiliate of the Manager, is the Trust's transfer
agent. At March 31, 1995, the Trust had transfer agent fees and expenses
payable of approximately $46,000.
5. Shares of Beneficial Interest-Transactions in shares of beneficial interest
were as follows:
<TABLE><CAPTION>
Capital
Par Value Paid in
of Excess of
Shares Shares Par Value
-------- -------- ----------
<S> <C> <C> <C>
Balance, November 30, 1993 (Note 1) ....... 10,528 $ 105 $ 99,911
Shares issued at close of public
offering on November 30, 1993* ........... 50,000,000 500,000 473,765,000
Shares issued pursuant to an over-allotment
on the public offering on December 13, 1993.. 5,500,000 55,000 52,195,000
Shares issued pursuant to an over-allotment
on the public offering on January 10, 1994... 1,000,000 10,000 9,490,000
Reclassification due to permanent
book/tax differences .................... -- -- (53,095)
------------ -------- ----------
Balance, September 30, 1994 and
March 31, 1995 ......................... 56,510,528 $565,105 $535,496,816
=========== ======== ===========
</TABLE>
[FN]
- - --------
* Net of offering costs of approximately $735,000.
6. Federal Income Tax Status-Any net capital losses incurred after October 31
("post-October losses") within the taxable year are deemed to arise on the first
business day of the Trust's next taxable year. The Trust incurred and will
elect to defer such net capital losses of approximately $3,087,000 during fiscal
1994.
As of September 30, 1994, the Trust had temporary book/tax differences primarily
attributable to post-October loss deferrals.
7. Reverse Repurchase and Dollar Roll Agreements-Reverse repurchase agreements
and dollar rolls involve the risk that the market value of the securities the
Trust is obligated to repurchase under the agreement may decline below the
repurchase price. In the event the buyer of securities under a reverse
repurchase agreement or dollar roll files for bankruptcy or becomes insolvent,
the Trust's use of proceeds of the agreement may be restricted pending a
determination by the other party, or its trustee or receiver, whether to enforce
the Trust's obligation to repurchase the securities and the Trust's use of the
proceeds of the reverse repurchase agreement may also effectively be restricted
pending such decision.
Reverse repurchase agreements are collateralized by Trust securities with a
market value in excess of the Trust's obligation under the contract. Securities
valued at $191,625,568 were pledged as collateral.
At March 31, 1995, the reverse repurchase agreements outstanding were
$182,508,000 with a weighted interest rate of 6.16% maturing within 45 days.
The maximum and average daily amounts outstanding during the period were
$196,575,000 and $183,358,752, respectively. The weighted average interest rate
during the period was 3.03%.
8. Selected Quarterly Financial Data-
<TABLE><CAPTION>
Quarters Ended
-------------------------------------
3/31/95 12/31/94
------------------ ------------------
Per Per
Total* Share Total* Share
------- ------- ------- -------
<S> <C> <C> <C> <C>
Total investment income ................. $11,965 $0.21 $ 12,161 $ 0.22
Net investment income ................... 8,284 0.15 8,785 0.15
Net realized and
unrealized gain (loss) ................. 37,402 0.65 (18,879) (0.33)
Quarters Ended
---------------------------------------------------------
9/30/94 6/30/94 3/31/94 12/31/93+
---------- ---------- ---------- ----------
Per Per Per Per
Total* Share Total* Share Total* Share Total* Share
------ ------ ----- ----- ----- ------ ----- -----
- - -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment
income ........ $13,948 $0.25 $14,045 $0.25 $10,675 $0.19 $1,684 $0.03
Net investment
income ......... $10,716 0.19 10,897 0.19 8,887 0.16 1,382 0.02
Net realized and
unrealized loss ... (778) (0.01) (80,325) (1.42) (36,790) (0.65) (572) (0.01)
</TABLE>
[FN]
- - ---------
* Totals expressed in thousands.
+ For the period November 30, 1993 (commencement of operations) through
December 31, 1993.
9. Dividends-Subsequent to March 31, 1995, the Trust has declared the following
dividends from net investment income payable to shareholders of record:
<TABLE><CAPTION>
Declaration Amount per Record Payable
Date Share Date Date
--------- --------- --------- ---------
<S> <C> <C> <C>
3/28/95 $.035 4/07/95 4/21/95
4/25/95 $.035 5/05/95 5/19/95
</TABLE>
10. Litigation-Two purported class action lawsuits, which have been
consolidated for pretrial purposes, were instituted during 1994 in the United
States District Court, Southern District of New York, against the Trust, some of
its Trustees and officers, one of its underwriters, the lead representative of
its underwriters, the Adviser, the Manager, and other defendants, by certain
shareholders of the Trust. The plaintiffs in these actions generally allege that
the defendants made inadequate and misleading disclosures in the prospectus for
the Trust, in particular, as such disclosure relates to the nature and risks of
"inverse floaters," the Trust's investments in those securities, and the
weighted average maturity of the Trust's portfolio. Damages, including punitive
damages, are sought in an unspecified amount. The defendants have moved to
dismiss both complaints for failure to state a cause of action.
In addition, four purported class actions have been filed in the Superior Court
for the State of California, County of Orange, against some of the Trust's
Trustees and officers, one of its underwriters, the lead representative of its
underwriters, the Adviser, the Manager and other defendants-but not against the
Trust-by certain shareholders of the Trust and other trusts for which the
defendants act in similar capacities. These plaintiffs generally allege
violations of state statutory and common law in connection with the marketing of
the Trust to customers of one of the underwriters. Damages, including punitive
damages, are sought in an unspecified amount. No defendant has yet responded to
any of these state court complaints pending an anticipated consolidation and
submission by the plaintiffs of an amended, consolidated complaint. Certain of
the defendants in these suits have asserted their right to indemnification from
the Trust. The ultimate outcome of these matters is not presently determinable,
and no provision has been made in the Trust's financial statements for the
effect, if any, of such matters.
<PAGE>
<TABLE>
TCW/DW Term Trust 2000
Financial Highlights
- - --------------------------------------------------------------------------------
<CAPTION>
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
- - --------------------------------------------------------------------------------
For the six For the period
months ended November 30, 1993*
March 31, 1995 through
(unaudited) September 30, 1994
--------------- ---------------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period ....... $ 7.48 $ 9.50
--------- ---------
Net investment income ...................... 0.30 0.56
Net realized and unrealized gain (loss) .... 0.32 (2.09)
--------- ---------
Total from investment operations ........... 0.62 (1.53)
--------- ---------
Less dividends from net
investment income ....................... (0.28) (0.48)
Less offering costs charged
against capital......................... -- (0.01)
--------- ---------
Net asset value, end of period............. $ 7.82 $ 7.48
========= =========
Market value, end of period .............. $ 7.00 $ 7.875
========= =========
Total Investment Return+ .................. (7.62)%(1) (16.87)%(1)
Ratios/Supplemental Data:
Net assets, end of period (in thousands).... $442,066 $422,478
Ratios to average net assets:
Operating expenses ....................... 0.72%(2) 0.74%(2)
Interest expense ......................... 2.69%(2) 1.41%(2)
Total expenses ........................ 3.41%(2) 2.15%(2)
Net investment income .................... 8.25%(2) 8.08%(2)
Portfolio turnover rate .................... 0%(1)++ 48%(1)
</TABLE>
[FN]
- - ---------
* Commencement of operations.
+ Total investment return is based upon the current market value on the first
day of each period reported. Dividends and distributions are assumed to be
reinvested at the prices obtained under the Trust's reinvestment plan. Total
investment return does not reflect brokerage commissions.
++ Less than 0.50%
(1) Not annualized.
(2) Annualized.
See Notes to Financial Statements
- - --------------------------------------------------------------------------------
The financial statements included herein have been taken from the records of the
Trust without examination by the independent accountants and accordingly, they
do not express an opinion thereon.
<PAGE>
TRUSTEES
- - -------------------------------------
John C. Argue
Richard M. DeMartini
Charles A. Fiumefreddo
John R. Haire
Dr. Manuel H. Johnson
Paul Kolton
Thomas E. Larkin, Jr.
Michael E. Nugent
John L. Schroeder
Marc I. Stern
OFFICERS
- - -------------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Thomas E. Larkin, Jr.
President
Sheldon Curtis
Vice President, Secretary and
General Counsel
Philip A. Barach
Vice President
Jeffrey E. Gundlach
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.
<PAGE>
TCW/DW
TERM TRUST
2000
Semiannual Report
March 31, 1995
