<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
Two World Trade Center
New York, New York 10048
DEAR SHAREHOLDER:
- --------------------------------------------------------------------------------
The fiscal year ended January 31, 1996 concluded with strong performances by
most of the emerging markets during the month of January. Gains were driven by
renewed investor confidence and capital inflows associated with generally
improving economic fundamentals, an improving global interest rate environment,
and the redistribution and diversification of profits earned in the equity
markets of the United States and other industrialized countries during 1995.
Based on an increase in net asset value from $11.18 to $13.07 per share, the
Trust's total return for the fiscal year ended January 31, 1996 was 17.04
percent. Based on an increase in the Trust's market value on the New York Stock
Exchange from $9.875 to $12.25 per share, the Trust's total return was 24.28
percent. The International Finance Corporation's Investable (IFCI) Emerging
Market Total Return Index posted a total return of 14.72 percent for the
trailing 12 months ended January 31, 1996.
As of January 31, 1996, the Trust had net assets in excess of $273 million,
with approximately 97 percent invested in emerging market securities. Asian
assets comprised approximately $119 million (43 percent of net assets), while
approximately $104 million (38 percent) was invested in Latin American
securities. Other emerging-market assets totaled approximately $43 million (16
percent). The largest country allocations at the end of the fiscal year were
Malaysia (17 percent), Brazil (13 percent), Mexico (12 percent), South Africa
(ten percent) and Thailand (six percent). Given the investment adviser's (TCW
Funds Management, Inc.) positive outlook for emerging market equities, the Trust
ended the year with a cash position of less than three percent of net assets.
ASIAN EMERGING MARKETS
All of the major Asian emerging markets posted gains for the 12-month period
ended January 31, 1996. Malaysia, the Trust's largest allocation, rose nearly 20
percent in U.S. dollar terms, while Indonesia, Thailand and the Philippines
increased 29, 15 and 12 percent, respectively. The Trust also benefited from the
strong performance seen in Hong Kong (54 percent) and Singapore (21 percent).
The fiscal year began on a nervous note with the Mexican peso devaluation
prompting a rise in the risk premium across all emerging market assets. As a
result, interest rates were increased in an effort to attract the foreign
capital necessary to cover the savings-investment gap, a scenario that
discouraged foreign investors from entering the region's equity markets. Capital
inflows, one of the major drivers of 1993's stellar stock-market performance,
were largely absent during most of 1995.
The Asian economies, backed by fairly competent central banks and
macroeconomic policies, were able to withstand these pressures. As a result,
their currencies did not weaken substantially over the course of the year.
However, the dramatic strengthening of the yen during the first few months of
1995 exacerbated current account deficits of most Asian countries (whose
capital-goods imports come mainly from Japan). At the same time, the yen-based
debt burdens of countries like Indonesia and the Philippines rose. A benign
U.S.-interest-rate environment is positive for the region because most Asian
currencies are linked to the U.S. dollar, which suggests that these economies
usually follow U.S. monetary policy. Falling Japanese and German interest rates
are expected to usher in a period of high global liquidity, further benefiting
emerging market equities.
<PAGE>
The fundamental growth story of Asia remains intact since most of the
region's economic problems in 1995 are attributable to cyclical, rather than
structural, factors. Throughout 1995, the southeast Asian economies adopted a
counter-cyclical economic policy (i.e., strong growth in domestic demand driven
largely by investment and infrastructure spending). This created macroeconomic
imbalances, such as growing current account deficits (e.g., Malaysia), rising
inflation (e.g., Thailand and the Philippines) and weaker currency exchange
rates (e.g., India). Regional central banks are aware of these pressures and are
allowing domestic interest rates to rise, opting for more austere fiscal
spending programs. In some countries, the growth of certain infrastructure
projects are being curbed.
Moderating economic growth is a sign that the economic measures being
employed throughout the region are taking effect and it is reasonable to expect
that domestic Asian interest rates will gradually decline. Hong Kong and
Singapore, which are further along in the business cycle than their neighbors,
are currently in this phase. Hong Kong is benefiting from a recovering property
market, a bottoming of earnings, a healthier Chinese economy, infrastructure-led
growth and an improvement in Sino-British relations in the run-up to 1997, when
Hong Kong becomes free of British rule. Singapore's growth momentum has declined
following years of double-digit growth, although the robust demand for
electronics-related exports has continued to help buoy the economy.
LATIN AMERICAN EMERGING MARKETS
The Mexican stock market advanced 24 percent in U.S. dollar terms for the
fiscal year ended January 31, 1996. Losses posted earlier in the year -- which
are attributable in large part to the peso devaluation and the ensuing economic
and financial crises -- were reversed as the Mexican government demonstrated its
willingness to adhere to the International Monetary Fund's austerity program and
avoid the wage/price inflation spiral many observers expected. Mexico also
showed its ability to return to the international financial markets by raising
over $1.9 billion through the issuance of U.S. dollar-denominated Cete
(peso)-linked Eurobonds, and through the issuance of additional yen-denominated
sovereign bonds. This enabled the Mexican government to prepay $700 million of
its loan from the U.S. government. As a result of the peso devaluation and a
decline in domestic consumption, Mexican exports increased over 30 percent in
1995. Also, the 1994 trade deficit of $18.5 billion was reversed as Mexico ended
1995 with a $7.4 billion trade surplus.
The Brazilian equity market gained 3.9 percent in U.S. dollar terms for the
fiscal year. Following stellar performance in 1994, the Brazilian equity market
lagged the other major Latin equity markets as it too was hit hard by the
Mexican peso devaluation and posted substantial losses during the first quarter
of 1995. However, on the strength of robust gross domestic product growth, a
decline in real interest rates (35 to 20 percent), and a continued decline in
inflation to the lowest level in over 20 years, the Fund was able to regain many
of these losses over the course of the year. In addition, watershed political
events, including the break up of state owned monopolies and legislation to
permit foreigners to own majority shares in Brazilian companies, are expected to
provide further stimulus to the equity market.
The Chilean market declined by 0.3 percent in U.S. dollar terms for the
fiscal year. Because of Chile's high savings rate (approximately 30 percent of
gross domestic product, the highest in the region) and its near balance in the
current account, Chile was insulated from most of the negative effects of the
Mexican crisis. Further positives included economic growth of approximately
eight percent and export growth of nearly 40 percent (with non-copper exports
growing by more than 30 percent). On the basis of this strong growth, the
Chilean central bank slowly raised interest rates over the course of 1995. TCW
believes that real interest rates (adjusted for inflation) have peaked at seven
percent as economic growth is forecast to moderate in 1996. Corporate earnings
growth is expected to approach 20 percent in 1996 and is likely to be driven by
the local economy and investments in neighboring countries.
<PAGE>
In Argentina, the stock market rose 33 percent in U.S. dollar terms for the
fiscal year. In the months following the devaluation in Mexico, as fears mounted
that a similar devaluation might occur in Argentina, Argentine banks saw
approximately 18 percent of deposits leave the system. Later in the year, money
returned to the banks because Argentina was able to maintain its currency policy
(with the help of multinational financial aid), reduce its fiscal deficit and
post a trade surplus because of strong export growth. The overwhelming
reelection of President Carlos Menem was a clear vote of confidence in his
economic and political policies. By the end of January 1996, Argentina had
recouped its lost foreign reserves and bank deposits, resulting in optimism with
regard to future economic growth.
OTHER EMERGING MARKETS
The South African market was one of the world's best-performing emerging
markets during the 12-month period ended January 31, 1996, gaining 32 percent in
U.S. dollar terms. South African equities were bolstered by strong foreign
capital inflows and economic growth of over three percent. Despite the cost of
the government's infrastructure and social development programs, authorities
have been able to reduce total spending and raise more revenue than had been
expected. Despite positive fundamental trends, TCW's short-term view of the
South African equity market is cautious. This opinion is based on indications
that the African National Congress-led government is committed to further
relaxation of foreign exchange controls. The government's new budget, which is
expected to be turned over to the South African Parliament in mid March, should
clarify the government's foreign exchange policy. While this is generally viewed
as positive, South Africa's low level of foreign exchange reserves -- U.S. $4.25
billion, the equivalent of just seven weeks of imports -- could prove to be
insufficient to prevent any speculative attacks on the South African currency
(the rand), particularly given the lack of liquidity in the market. Until the
effects of these changes are clear and the flow of capital into South Africa is
again positive, the adviser will maintain an underweighted position in that
market.
European emerging markets, which comprise approximately five percent of the
Trust's portfolio combined, also posted gains during the fiscal year, led by
Turkey (26 percent), Greece (23 percent) and Portugal (16 percent). Like the
other emerging markets, the European markets were bolstered by increased
liquidity, particularly from foreign investors.
LOOKING AHEAD
After two very difficult years, TCW now feels that investor sentiment and
market conditions have rebounded and that 1996 may see a return to profitability
for emerging markets investors. In particular, TCW expects liquidity to increase
as U.S. interest rates decline and profits from the soaring U.S. stock markets
are reinvested abroad. Moreover, TCW believes that emerging market valuations --
both Asian and Latin American -- are at a level that represents good long-term
value.
TCW believes that the recovery in Asian equity prices will run ahead of an
earnings recovery by about 12 to 18 months. Thus, the Trust will concentrate on
larger-capitalized stocks with strong earnings and cashflows. However, the path
will not necessarily be smooth, and economic data may continue to show
fluctuations that will affect investor sentiment. The Trust's Asia-Pacific
allocation will maintain a fully invested posture with a bias toward southeast
Asia.
TCW is encouraged that the resounding policy response across the region has
been to remain on the long, difficult path toward modernization and economic
liberalization, and to sustain efforts to restore investor confidence by moving
forward with additional free-market reforms and privatizations. Multinational
corporations, given their ability to borrow at lower rates of interest, are
continuing to invest in faster-growing Latin American companies. The result is a
strong growth projection for the region in 1996, with corporate earnings growth
rates expected in the high teens. Despite the adversity of the last 13 months,
TCW believes that the outlook for Latin American equities is positive.
<PAGE>
We would like to remind you that the Trustees have approved a procedure
whereby the Trust, when appropriate, may repurchase 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 Emerging Markets Opportunities Trust
and look forward to continuing to serve your investment needs and objectives.
Very truly yours,
[SIGNATURE]
Charles A. Fiumefreddo
CHAIRMAN OF THE BOARD
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS, BONDS, RIGHTS AND
WARRANTS (96.8%)
ARGENTINA (4.2%)
AUTOMOTIVE
39,800 Ciadea S.A.*...................... $ 208,971
-------------
BANKS
35,400 Banco de Galicia y Buenos Aires
S.A............................. 228,353
25,278 Banco de Galicia y Buenos Aires
S.A. (ADR)...................... 647,749
18,685 Banco Frances del Rio de la Plata
S.A. (ADR)...................... 546,536
-------------
1,422,638
-------------
BUILDING & CONSTRUCTION
65,544 Juan Minetti S.A.................. 280,556
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
14,050 Buenos Aires Embotelladera S.A.
(ADR)........................... 298,563
41,286 Molinos Rio de la Plata S.A.*..... 373,676
41,530 Nobleza Piccardo S.A.............. 165,306
-------------
837,545
-------------
MULTI-INDUSTRY
512,564 Compania Naviera Perez Compac
S.A.C.F.I.M.F.A................. 3,234,602
121,200 Sociedad Commercial del Plata
S.A............................. 424,242
-------------
3,658,844
-------------
OIL & GAS
194,190 Astra Compania Argentina de
Petroleo S.A.................... 374,824
46,290 Transportadora de Gas del Sur S.A.
(ADR)........................... 584,411
-------------
959,235
-------------
OIL RELATED
60,050 Yacimentos Petroliferos Fiscales
S.A. (ADR)...................... 1,358,631
-------------
REAL ESTATE
75,430 Inversiones y Representacion S.A.
(Class B)....................... 218,769
-------------
TELECOMMUNICATIONS
64,900 Telecom Argentina Stet - France
Telecom S.A..................... 344,653
12,560 Telecom Argentina Stet - France
Telecom S.A. (ADR).............. 670,390
43,000 Telefonica de Argentina S.A.
(ADR)........................... 1,376,000
-------------
2,391,043
-------------
TOTAL ARGENTINA................... 11,336,232
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
BRAZIL (13.4%)
BANKING
217,851,400 Banco Bradesco S.A. (Pref.)....... $ 2,494,822
5,093,803 Banco Bradesco S.A. (Rights)*..... 22,396
2,637,000 Banco Itau S.A. (Pref.)........... 916,748
-------------
3,433,966
-------------
BREWERY
5,038,202 Companhia Cervejaria Brahma
(Pref.)*........................ 2,454,707
-------------
BUILDING MATERIALS
250,000 Companhia Cimento Portland Itau
(Pref.)......................... 70,297
12,075,000 Duratex S.A. (Pref.).............. 549,425
-------------
619,722
-------------
FINANCIAL SERVICES
1,655,000 Itausa Investimentos Itau S.A.
(Pref.)......................... 1,116,871
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
773,000 Brasmotor S.A. (Pref.)............ 214,195
35,300 Companhia Souza Cruz Industria e
Comercio S.A.................... 263,487
60,154,663 Refrigeracao Parana S.A........... 159,920
-------------
637,602
-------------
MACHINERY - DIVERSIFIED
2,130 Bardella S.A. Industrias Mecanicas
(Pref.)......................... 174,233
1,138,500 Confab Industrial S.A. (Pref.).... 454,003
-------------
628,236
-------------
METALS & MINING
13,594,000 Companhia Vale do Rio Doce S.A.
(Pref.)......................... 2,348,926
-------------
PAPER & FOREST PRODUCTS
455,375 Industria Klabin de Papel e
Celulose (Pref.)................ 484,243
-------------
RETAIL
16,566,000 Lojas Americanas S.A. (Pref.)..... 382,813
-------------
TELECOMMUNICATIONS
7,050,000 Telecomunicacoes Brasileiras
S.A............................. 306,365
54,100 Telecomunicacoes Brasileiras S.A.
(ADR)........................... 3,016,075
157,197,155 Telecomunicacoes Brasileiras S.A.
(Pref.)......................... 8,759,963
17,917,300 Telecomunicacoes de Sao Paulo S.A.
(Pref.)*........................ 3,295,831
-------------
15,378,234
-------------
</TABLE>
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
TEXTILES
1,410,100 Companhia de Tecidos Norte de
Minas........................... $ 612,774
-------------
UTILITIES - ELECTRIC
8,360,483 Centrais Electricas Brasileiras
S.A. (ADR)...................... 2,547,468
14,227,677 Centrais Electricas Brasileiras
S.A. (Pref.).................... 4,291,579
35,991 Companhia Energetica de Minas
Gerais S.A.* (Pref.) (ADR) -
144A**.......................... 895,276
2,660,000 Light Participacoes S.A........... 246,186
2,660,000 Light-Servicos de Electricidade
S.A............................. 856,748
-------------
8,837,257
-------------
TOTAL BRAZIL...................... 36,935,351
-------------
CHILE (4.3%)
BANKS
9,240 Banco O'Higgins (ADR)............. 226,380
-------------
BUILDING & CONSTRUCTION
21,900 Madeco S.A. (ADR)................. 591,300
44,000 Maderas y Sinteticos Sociedad
Anonima Masisa (ADR)............ 874,500
-------------
1,465,800
-------------
CHEMICALS
5,000 Sociedad Quimica y Minera de Chile
S.A. (ADR)...................... 248,125
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
30,000 Compania Cervecerias Unidas S.A.
(ADR)........................... 600,000
28,670 Embotelladora Andina S.A. (ADR)... 996,283
-------------
1,596,283
-------------
INVESTMENT COMPANIES
36,300 Genesis Chile Fund Ltd............ 1,542,750
520,800 The Five Arrows Chile Investment
Trust Ltd....................... 1,520,736
-------------
3,063,486
-------------
RETAIL - DEPARTMENT STORES
26,200 Santa Isabel S.A. (ADR)........... 599,325
-------------
TELECOMMUNICATIONS
11,500 Compania de Telecomunicaciones de
Chile S.A. (ADR)................ 921,438
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
UTILITIES - ELECTRIC
13,000 Chilectra S.A. (ADR).............. $ 693,069
31,200 Chilgener S.A. (ADR).............. 733,200
43,590 Empresa Nacional de Electricidad
Chile S.A. (ADS)................ 882,698
48,300 Enersis S.A. (ADR)................ 1,328,250
-------------
3,637,217
-------------
TOTAL CHILE....................... 11,758,054
-------------
CHINA (1.0%)
GLASS
1,480,600 Shanghai Yaohua Pilkington Glass
Co., Ltd. (B Shares)............ 1,480,600
-------------
UTILITIES - ELECTRIC
140,000 Shandong Huaneng Power Development
Co., Ltd. (ADR)................. 1,225,000
-------------
TOTAL CHINA....................... 2,705,600
-------------
COLOMBIA (1.8%)
BANKING
100,806 Banco de Bogota................... 468,659
41,085 Banco Industrial Colombiano S.A.
(ADR)........................... 734,394
-------------
1,203,053
-------------
BUILDING & CONSTRUCTION
35,500 Cementos Diamante S.A. (ADR) -
144A**.......................... 840,924
201,238 Compania de Cementos Argos S.A.... 1,170,946
-------------
2,011,870
-------------
FINANCIAL SERVICES
47,847 Compania Suramericana de Seguros
S.A............................. 858,075
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
86,586 Compania Nacional de Chocolates
S.A............................. 649,817
-------------
RETAIL
45,000 Almacenes Exito S.A............... 131,579
-------------
TOTAL COLOMBIA.................... 4,854,394
-------------
GREECE (1.0%)
BANKING
29,600 Ergo Bank S.A..................... 1,386,163
-------------
BUILDING & CONSTRUCTION
148,650 Aegek............................. 1,331,718
-------------
TOTAL GREECE...................... 2,717,881
-------------
</TABLE>
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
HONG KONG (4.5%)
CONGLOMERATES
570,000 Hutchison Whampoa, Ltd............ $ 3,704,554
-------------
INVESTMENT COMPANIES
240,309 The Taiwan Index Fund Ltd......... 2,194,021
-------------
REAL ESTATE
138,000 New World Development............. 696,095
356,000 Sun Hung Kai Properties Ltd....... 3,384,249
-------------
4,080,344
-------------
UTILITIES - ELECTRIC
1,210,400 Consolidated Electric Power
Asia Ltd........................ 2,246,497
-------------
TOTAL HONG KONG................... 12,225,416
-------------
INDIA (2.1%)
BUILDING & CONSTRUCTION
176,000 Larsen & Toubro Ltd. (GDR)........ 2,904,000
-------------
FINANCIAL SERVICES
61,900 Hindalco Industries Ltd. (GDR).... 1,934,375
-------------
INDUSTRIALS
$ 760K Reliance Industries, Ltd.
3.50% due 11/03/99 (Conv.)...... 769,500
-------------
TOTAL INDIA....................... 5,607,875
-------------
INDONESIA (3.6%)
BANKING
500,000 PT Bank Internasional Indonesia... 2,062,418
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
168,000 PT Gudang Garam................... 2,001,921
344,785 PT Indofood Sukses Makmur......... 1,805,945
440,000 PT Mayora Indah................... 350,502
-------------
4,158,368
-------------
TELECOMMUNICATIONS
115,200 PT Telekomunikasi Indonesia
(ADR)........................... 3,542,400
-------------
TOTAL INDONESIA................... 9,763,186
-------------
IRELAND (0.3%)
INVESTMENT COMPANIES
80,000 Central Asian Investment Company
Ltd............................. 880,000
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
MALAYSIA (16.8%)
COMMUNICATIONS
730,000 Technology Resources Industries
Berhad*......................... $ 2,238,477
-------------
CONGLOMERATES
344,000 Gadek Berhad...................... 2,418,750
962,000 Hicom Holdings Berhad............. 2,104,375
3,267,000 Renong Berhad..................... 5,028,117
-------------
9,551,242
-------------
ENTERTAINMENT/GAMING & LODGING
663,000 Genting Berhad.................... 6,008,438
-------------
FINANCIAL SERVICES
1,173,000 Commerce Asset Holdings Berhad.... 6,277,382
2,079,000 DCB Holdings Berhad............... 6,131,426
-------------
12,408,808
-------------
PUBLISHING
1,110,000 New Straits Times Press Berhad.... 4,899,610
-------------
RETAIL
476,000 Prime Utilities Berhad............ 3,811,719
476,000 Prime Utilities Berhad (Rights)*.. 316,094
-------------
4,127,813
-------------
STEEL
2,845,625 Lion Land Berhad.................. 2,890,088
-------------
TELECOMMUNICATIONS
490,000 Telekom Malaysia Berhad........... 4,076,953
-------------
TOTAL MALAYSIA.................... 46,201,429
-------------
MEXICO (12.0%)
AUTOMOTIVE
22,994 Corporacion Industrial San Luis
S.A. de C.V. (Units)++.......... 127,467
2,393,600 Industria Automotriz S.A.
(B Shares)*..................... 357,739
-------------
485,206
-------------
BANKING
378,900 Grupo Financiero Inbursa S.A. de
C.V. (B Shares)*................ 1,284,450
-------------
BUILDING & CONSTRUCTION
59,800 Empresas ICA Sociedad Controladora
S.A. de C.V. (ADR).............. 807,300
-------------
BUILDING MATERIALS
824,500 Cemex S.A. de C.V. (B Shares)..... 3,371,936
127,900 Grupo Cementos de Chihuahua S.A.
de C.V.......................... 107,047
-------------
3,478,983
-------------
</TABLE>
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
CONGLOMERATES
554,800 Grupo Carso S.A. de C.V.
(Series A1)*.................... $ 3,851,940
294,400 Grupo Industria Alfa S.A. de C.V.
(A Shares)...................... 3,980,000
-------------
7,831,940
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
5,200 Coca Cola FEMSA S.A. de C.V.
(ADR)........................... 130,650
31,000 Empresas la Moderna S.A. de C.V.
(ADR)........................... 558,000
378,800 Fomento Economico Mexicano S.A. de
C.V. (B Shares)................. 1,065,375
79,560 Gruma S.A. de C.V. (B Shares)..... 258,895
176,100 Grupo Industrial Bimbo S.A. de
C.V. (Series A)................. 717,799
229,500 Grupo Industrial Maseca S.A. de
C.V. (B2 Shares)................ 165,889
273,300 Jugos de Valle S.A. de C.V.
(B Shares)...................... 389,898
26,300 Panamerican Beverages, Inc........ 1,038,850
-------------
4,325,356
-------------
MEDIA GROUP
62,080 Grupo Televisa S.A. (GDR)......... 1,746,000
-------------
METALS & MINING
95,400 Tubos de Acero de Mexico S.A. de
C.V. (ADR)*..................... 775,125
-------------
MULTI-INDUSTRY
98,000 DESC S.A. de C.V. (Series B)...... 396,793
-------------
PAPER & FOREST PRODUCTS
109,750 Kimberly-Clark de Mexico S.A. de
C.V. (A Shares)................. 1,841,593
-------------
RETAIL
1,881,300 Cifra S.A. de C.V. (C Shares)*.... 2,387,411
-------------
TELECOMMUNICATIONS
198,985 Telefonos de Mexico S.A. de C.V.
(Series L) (ADR)................ 6,740,616
-------------
TRANSPORTATION
74,000 Transportacion Maritima Mexicana
S.A. de C.V. (Series A) (ADR)... 610,500
-------------
TOTAL MEXICO...................... 32,711,273
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
PAKISTAN (0.7%)
BANKING
74,698 Muslim Commercial Bank............ $ 79,826
-------------
TELECOMMUNICATIONS
20,680 Pakistan Telecommunications Corp.
(GDR)*.......................... 1,840,520
-------------
TOTAL PAKISTAN.................... 1,920,346
-------------
PANAMA (0.3%)
BANKING
17,215 Banco Latinoamericano de
Exportaciones S.A. (ADR)........ 794,042
-------------
PERU (2.1%)
BREWERY
401,396 Cerveceria Backus & Johnston
S.A............................. 622,121
-------------
CHEMICALS
177,223 Explosivos S.A.................... 285,965
-------------
DISTRIBUTION
93,373 Enrique Ferreyros S.A............. 116,568
-------------
FINANCIAL SERVICES
76,666 Credicorp Ltd. (ADR).............. 1,418,321
-------------
METALS & MINING
73,987 Companhia de Minas Buenaventura
S.A. (C Shares)................. 582,471
-------------
TELECOMMUNICATIONS
1,206,824 CPT-Telefonica de Peru S.A. (B
Shares)......................... 2,685,247
-------------
TOTAL PERU........................ 5,710,693
-------------
PHILIPPINES (2.8%)
BUILDING & CONSTRUCTION
$ 3,300K Bacnotan Consolidated Industries
5.50% due 06/21/04 (Conv.)...... 3,102,000
-------------
UTILITIES - ELECTRIC
467,600 Manila Electric Co. (B Shares).... 4,510,410
-------------
TOTAL PHILIPPINES................. 7,612,410
-------------
PORTUGAL (2.8%)
BUILDING & CONSTRUCTION
92,000 Sociedade de Construcoes Soares de
Costa S.A....................... 899,333
-------------
BUILDING MATERIALS
33,200 Cimentos de Portugal S.A.......... 638,338
-------------
FINANCIAL SERVICES
129,740 Espirito Santo Financial Holdings
S.A. (ADR)...................... 1,492,010
-------------
</TABLE>
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
107,300 Corticeira Amorim S.A............. $ 1,455,257
-------------
TELECOMMUNICATIONS
76,350 Portugal Telecom S.A.............. 1,594,023
-------------
TEXTILES
66,390 Sonae Investimentos Sociedade
Gestora de Participacoes Sociais
S.A............................. 1,577,337
-------------
TOTAL PORTUGAL.................... 7,656,298
-------------
SINGAPORE (1.9%)
BUILDING & CONSTRUCTION
398,000 Van Der Horst Ltd................. 1,864,530
-------------
ENGINEERING & CONSTRUCTION
400,000 L & M Group Investments Ltd....... 901,726
-------------
FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS
180,000 Fraser & Neave Ltd................ 2,510,743
-------------
TOTAL SINGAPORE................... 5,276,999
-------------
SOUTH AFRICA (10.4%)
BANKING
47,375 Nedcor Ltd. (Units)++ - 144A**.... 3,671,563
-------------
BREWERY
85,540 South African Breweries Ltd....... 3,188,117
103,780 South African Breweries Ltd.
(ADR)........................... 3,872,343
-------------
7,060,460
-------------
BUILDING & CONSTRUCTION
506,286 Murray & Roberts Holdings Ltd..... 3,815,529
60,874 Pretoria Portland Cement Co.,
Ltd............................. 1,751,650
-------------
5,567,179
-------------
BUILDING MATERIALS
42,200 Anglo Alpha Ltd. (ADR)............ 1,769,416
-------------
CONGLOMERATES
21,000 Anglovaal, Ltd. (ADR) - 144A**.... 931,875
-------------
ENGINEERING & CONSTRUCTION
72,400 Barlow Ltd........................ 1,140,861
-------------
METALS & MINING
108,600 De Beers Consolidated Mines Ltd.
(ADR)........................... 3,692,400
-------------
MULTI-INDUSTRY
145,591 Malbak Ltd........................ 1,007,446
-------------
OIL REFINERIES
266,774 Sasol Ltd......................... 2,394,313
-------------
RETAIL
309,700 Pick'n Pay Stores Ltd............. 1,209,434
-------------
TOTAL SOUTH AFRICA................ 28,444,947
-------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ------------- -------------
<C> <S> <C>
SOUTH KOREA (3.3%)
CHEMICALS
56,200 L.G. Chemical Ltd. (GDR).......... $ 1,081,850
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT
50 Daewoo Corp.
(Warrants due 11/08/96)*........ 5,000
38,110 Samsung Electronics
(GDS) - 144A**.................. 2,143,688
-------------
2,148,688
-------------
INDUSTRIALS
$ 1,100K Goldstar Co., Ltd.
3.25% due 12/31/06 (Conv.)...... 1,364,000
-------------
METALS & MINING
51,980 Pohang Iron & Steel Co., Ltd.
(ADR)........................... 1,176,048
-------------
UTILITIES - ELECTRIC
120,000 Korea Electric Power Corp.
(ADR)........................... 3,120,000
-------------
TOTAL SOUTH KOREA................. 8,890,586
-------------
THAILAND (6.4%)
BANKING
$ 3,240K Siam Commercial Bank Co. 3.25% due
01/24/04 (Conv.)................ 4,212,000
456,800 Thai Farmers Bank, Ltd............ 5,374,118
-------------
9,586,118
-------------
BUILDING & CONSTRUCTION
63,000 Siam Cement Co., Ltd.............. 3,442,242
-------------
OIL RELATED
252,000 PTT Exploration & Production
Public Co., Ltd................. 2,905,014
-------------
REAL ESTATE
82,001 Land & House Public Co. Ltd....... 1,521,535
-------------
TOTAL THAILAND.................... 17,454,909
-------------
TURKEY (1.1%)
BANKING
12,000,000 Turkiye Garanti Bankasi AS........ 1,069,553
-------------
BUILDING MATERIALS
1,466,000 Cimentas AS....................... 886,647
6,607,000 Eczacibasi Yapi Gerecleri Sanayi
ve Ticaret AS................... 673,003
-------------
1,559,650
-------------
TELECOMMUNICATIONS
943,000 Netas Telekomunik................. 345,201
-------------
TOTAL TURKEY...................... 2,974,404
-------------
</TABLE>
<PAGE>
TCW/DW Emerging Markets Opportunities Trust
PORTFOLIO OF INVESTMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
-------------
TOTAL COMMON 96.8 % $ 264,432,325
AND
PREFERRED
STOCKS,
BONDS,
RIGHTS AND
WARRANTS
(IDENTIFIED
COST
$244,435,955)
(A).........
<C> <S> <C>
CASH AND OTHER ASSETS IN EXCESS OF
LIABILITIES....................... 3.2 8,740,064
----- -----------
NET ASSETS......................... 100.0% $273,172,389
----- -----------
----- -----------
<FN>
- ------------------
ADR AMERICAN DEPOSITORY RECEIPT.
ADS AMERICAN DEPOSITORY SHARES.
GDR GLOBAL DEPOSITORY RECEIPT.
GDS GLOBAL DEPOSITORY SHARES.
K IN THOUSANDS.
* NON-INCOME PRODUCING SECURITY.
** RESALE IS RESTRICTED TO QUALIFIED INSTITUTIONAL INVESTORS.
++ CONSISTS OF MORE THAN ONE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
GENERALLY STOCKS WITH ATTACHED WARRANTS.
(A) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES IS $244,435,955; THE
AGGREGATE GROSS UNREALIZED APPRECIATION IS $39,635,577 AND THE AGGREGATE
GROSS UNREALIZED DEPRECIATION IS $19,639,207, RESULTING IN NET UNREALIZED
APPRECIATION OF $19,996,370.
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT JANUARY 31, 1996:
<TABLE>
<CAPTION>
CONTRACTS IN EXCHANGE DELIVERY UNREALIZED
TO RECEIVE FOR DATE DEPRECIATION
- ------------------- ------------------- --------- -----------
<S> <C> <C> <C>
$ 426,188 IDR 977,675,050 02/05/96 $ (558)
MYR 2,516,678 $ 985,071 02/09/96 (1994)
MYR 2,848,312 $ 1,112,752 02/12/96 (131)
-----------
Total unrealized
depreciation.................. $ (2,683)
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
SUMMARY OF INVESTMENTS JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ---------------------------- ----------- -------------
<S> <C> <C>
Automotive.................. $ 694,177 0.3%
Banking..................... 24,571,152 9.0
Banks....................... 1,649,018 0.6
Brewery..................... 10,137,288 3.7
Building & Construction..... 23,676,528 8.7
Building Materials.......... 8,066,109 2.9
Chemicals................... 1,615,940 0.6
Communications.............. 2,238,477 0.8
Conglomerates............... 22,019,611 8.1
Distribution................ 116,568 0.0
Electronic & Electrical
Equipment................. 2,148,688 0.8
Engineering &
Construction.............. 2,042,587 0.8
Entertainment/Gaming &
Lodging................... 6,008,438 2.2
Financial Services.......... 19,228,460 7.0
Food, Beverage, Tobacco &
Household Products........ 16,170,971 5.9
Glass....................... 1,480,600 0.6
Industrials................. 2,133,500 0.8
Investment Companies........ 6,137,507 2.2
Machinery - Diversified..... 628,236 0.2
Media Group................. 1,746,000 0.7
Metals & Mining............. 8,574,970 3.1
Multi-Industry.............. 5,063,083 1.8
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ---------------------------- ----------- -------------
<S> <C> <C>
Oil & Gas................... $ 959,235 0.4%
Oil Refineries.............. 2,394,313 0.9
Oil Related................. 4,263,645 1.5
Paper & Forest Products..... 2,325,836 0.9
Publishing.................. 4,899,610 1.8
Real Estate................. 5,820,648 2.1
Retail...................... 8,239,050 3.0
Retail - Department
Stores.................... 599,325 0.2
Steel....................... 2,890,088 1.1
Telecommunications.......... 39,515,675 14.5
Textiles.................... 2,190,111 0.8
Transportation.............. 610,500 0.2
Utilities - Electric........ 23,576,381 8.6
----------- -----
$264,432,325 96.8%
----------- -----
----------- -----
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ---------------------------- ----------- -------------
<S> <C> <C>
Common Stocks............... $225,737,403 82.6%
Convertible Bonds........... 9,447,500 3.5
Preferred Stocks............ 28,903,932 10.6
Rights...................... 338,490 0.1
Warrants.................... 5,000 0.0
----------- -----
$264,432,325 96.8%
----------- -----
----------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $244,435,955)........... $264,432,325
Cash....................................... 6,381,370
Receivable for:
Investments sold......................... 5,063,940
Interest................................. 146,832
Dividends................................ 137,026
Deferred organizational expenses........... 31,519
Prepaid expenses and other assets.......... 12,285
-----------
TOTAL ASSETS....................... 276,205,297
-----------
LIABILITIES:
Unrealized depreciation on forward foreign
currency contracts....................... 2,683
Payable for:
Investments purchased.................... 2,540,377
Management fee........................... 179,272
Investment advisory fee.................. 119,515
Accrued expenses and other payables........ 191,061
-----------
TOTAL LIABILITIES.................. 3,032,908
-----------
NET ASSETS:
Paid-in-capital............................ 301,594,265
Net unrealized appreciation................ 19,995,574
Accumulated undistributed net investment
income................................... 544,780
Accumulated net realized loss.............. (48,962,230)
-----------
NET ASSETS......................... $273,172,389
-----------
-----------
NET ASSET VALUE PER SHARE, 20,900,233
shares outstanding (unlimited shares
authorized of $.01 par value)............
$13.07
-----------
-----------
</TABLE>
Statement of Operations
FOR THE YEAR ENDED JANUARY 31, 1996
<TABLE>
<S> <C>
NET INVESTMENT INCOME:
INCOME
Dividends (net of $543,742 foreign
withholding tax)...................... $4,128,806
Interest................................ 977,065
----------
TOTAL INCOME........................ 5,105,871
----------
EXPENSES
Management fee.......................... 1,950,537
Investment advisory fee................. 1,300,358
Custodian fees.......................... 407,286
Transfer agent fees and expenses........ 374,706
Professional fees....................... 135,827
Shareholder reports and notices......... 77,619
Trustees' fees and expenses............. 48,351
Registration fees....................... 39,377
Organizational expenses................. 10,037
Other................................... 30,531
----------
TOTAL EXPENSES...................... 4,374,629
----------
NET INVESTMENT INCOME............... 731,242
----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
NET REALIZED LOSS ON:
Investments........................... (30,425,091)
Foreign exchange transactions......... (285,066)
----------
TOTAL LOSS.......................... (30,710,157)
----------
NET CHANGE IN UNREALIZED APPRECIATION/
DEPRECIATION ON:
Investments........................... 67,516,847
Translation of forward foreign
currency contracts, other assets and
liabilities denominated in foreign
currencies.......................... (12,479)
----------
TOTAL APPRECIATION.................. 67,504,368
----------
NET GAIN............................ 36,794,211
----------
NET INCREASE........................ $37,525,453
----------
----------
</TABLE>
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR MARCH 30, 1994*
ENDED THROUGH
JANUARY 31, JANUARY 31,
1996 1995
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income....................................................... $ 731,242 $ 2,589,151
Net realized loss........................................................... (30,710,157) (18,286,504)
Net change in unrealized appreciation/depreciation.......................... 67,504,368 (47,508,794)
--------------- ---------------
Net increase (decrease)....................................................... 37,525,453 (63,206,147)
--------------- ---------------
Dividends and distributions from:
Net investment income....................................................... (483,373) (1,976,199)
Net realized gain........................................................... -- (314,919)
--------------- ---------------
Total................................................................... (483,373) (2,291,118)
--------------- ---------------
--------------- ---------------
Net increase (decrease) from transactions in shares of beneficial interest.... (18,227,939) 319,755,508
--------------- ---------------
Total increase.......................................................... 18,814,141 254,258,243
--------------- ---------------
--------------- ---------------
NET ASSETS:
Beginning of period........................................................... 254,358,248 100,005
--------------- ---------------
END OF PERIOD (including undistributed net investment income of $544,780 and
$0, respectively)............................................................ $ 273,172,389 $ 254,358,248
--------------- ---------------
--------------- ---------------
</TABLE>
- ---------------
* Commencement of operations.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION AND ACCOUNTING POLICIES--TCW/DW Emerging Markets Opportunities
Trust (the "Trust") is registered under the Investment Company Act of 1940, as
amended, as a non-diversified, closed-end management investment company. The
Trust's investment objective is to seek capital appreciation through investment
in equity securities of emerging market countries. The Trust was organized as a
Massachusetts business trust on December 22, 1993 and commenced operations on
March 30, 1994.
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 by the Adviser); (2) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (3) when market
quotations are not readily available, including circumstances under which it
is determined by the Adviser that sale or bid prices are not reflective of a
security's market value, portfolio securities are valued at their fair value
as determined in good faith under procedures established by and under the
general supervision of the Trustees (valuation of debt securities for which
market quotations are not readily available may be based upon current market
prices of securities which are comparable in coupon, rating and maturity or
an appropriate matrix utilizing similar factors); (4) 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
evaluation 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. Discounts are accreted over the life of the respective securities.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends on foreign securities which are recorded as
soon as the Trust is informed after the ex-dividend date. Interest income is
accrued daily.
C. FOREIGN CURRENCY TRANSLATION--The books and records of the Trust are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward contracts
are translated at the exchange rates prevailing at the end of the period;
and (2) purchases, sales, income and expenses are translated at the exchange
rates prevailing on the respective dates of such transactions. The resultant
exchange gains and losses are included in the Statement of Operations as
realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange
gains/losses included in realized and unrealized gain/loss are included in
or are a reduction of ordinary income for federal income tax purposes. The
Trust does not isolate that portion of the results of operations arising as
a result of changes in the foreign exchange rates from the changes in the
market prices of the securities.
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
D. FORWARD FOREIGN CURRENCY CONTRACTS--The Trust may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign
exchange rates. Forward contracts are valued daily at the appropriate
exchange rates. The resultant exchange gains and losses are included in the
Statement of Operations as unrealized gain/loss on foreign exchange
transactions. The Trust records realized gains or losses on delivery of the
currency or at the time the forward contract is extinguished (compensated)
by entering into a closing transaction prior to delivery.
E. 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.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Trust records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the capital accounts based on their federal
tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed net investment income and net
realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
G. ORGANIZATIONAL EXPENSES--Dean Witter InterCapital Inc., an affiliate of
Dean Witter Services Company Inc. (the "Manager"), paid the organizational
expenses of the Trust in the amount of approximately $50,000 which have been
reimbursed for the full amount thereof. Such expenses have been deferred and
are being amortized on the straight-line method over a period not to exceed
five years from the commencement of operations.
2. MANAGEMENT AGREEMENT--Pursuant to a Management Agreement, the Trust pays a
management fee, calculated weekly and payable monthly, by applying the annual
rate of 0.75% 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 an advisory fee,
calculated weekly and payable monthly, by applying the annual rate of 0.50% 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.
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
4. 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, 1996 aggregated $164,332,948 and
$163,720,182, respectively.
Dean Witter Trust Company, an affiliate of the Manager, is the Trust's
transfer agent. At January 31, 1996, the Trust had transfer agent fees and
expenses payable of approximately $47,000.
5. SHARES OF BENEFICIAL INTEREST--Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
CAPITAL PAID
PAR VALUE IN EXCESS OF
SHARES OF SHARES PAR VALUE
------------ ---------- --------------
<S> <C> <C> <C>
Balance, March 30, 1994 (Note 1)........................................ 7,133 $ 71 $ 99,934
Shares issued at close of public offering*.............................. 22,000,000 220,000 307,660,000
Shares issued on May 1, 1994 to cover an over-allotment on the public
offering............................................................... 1,500,000 15,000 21,015,000
Treasury shares purchased and retired (weighted average discount
14.01%)**.............................................................. (749,600) (7,496) (9,247,001)
------------ ---------- --------------
Balance, January 31, 1995............................................... 22,757,533 227,575 319,527,933
Treasury shares purchased and retired (weighted average discount
15.96%)**.............................................................. (1,857,300) (18,573) (18,209,366)
------------ ---------- --------------
Balance, January 31, 1996............................................... 20,900,233 $ 209,002 $ 301,318,567
------------ ---------- --------------
------------ ---------- --------------
<FN>
- --------------
* NET OF ESTIMATED OFFERING COSTS OF $560,000.
** THE TRUSTEES HAVE VOTED TO RETIRE THE SHARES PURCHASED.
</TABLE>
6. SELECTED QUARTERLY FINANCIAL DATA--(unaudited)
<TABLE>
<CAPTION>
QUARTERS ENDED QUARTERS ENDED
---------------------------------------------- ----------------------------------------------
1/31/96 10/31/95 7/31/95 4/30/95
---------------------- ---------------------- ---------------------- ----------------------
TOTAL* PER SHARE TOTAL* PER SHARE TOTAL* PER SHARE TOTAL* PER SHARE
--------- ----------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income.......... $ 904 $ 0.05 $ 729 $ 0.04 $ 1,257 $ 0.05 $ 2,216 $ 0.10
Net investment income (loss)..... (15) -- (301) (0.01) (2) -- 1,049 0.05
Net realized and unrealized gain
(loss).......................... 81,118 3.81 (71,866) (3.33) 71,682 3.23 (44,140) (1.98)
<CAPTION>
QUARTERS ENDED QUARTER ENDED
---------------------------------------------- ---------------------- FOR THE PERIOD
MARCH 30, 1994**
1/31/95 10/31/94 7/31/94 THROUGH 4/30/94
---------------------- ---------------------- ---------------------- ----------------------
TOTAL* PER SHARE TOTAL* PER SHARE TOTAL* PER SHARE TOTAL* PER SHARE
--------- ----------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total investment income.......... $ 942 $ 0.04 $ 1,847 $ 0.08 $ 3,535 $ 0.15 $ 1,082 $ 0.05
Net investment income (loss)..... (459) (0.02) 286 0.01 2,098 0.09 664 0.03
Net realized and unrealized gain
(loss).......................... (95,869) (4.13)++ 26,244 1.08++ 4,078 0.17 (248) (0.01)
<FN>
- ------------------
* AMOUNTS IN THOUSANDS.
** COMMENCEMENT OF OPERATIONS.
++ RESTATED FOR COMPARATIVE PURPOSES.
</TABLE>
7. FEDERAL INCOME TAX STATUS--At January 31, 1996, the Trust had a net capital
loss carryover of approximately $40,262,000 which will be available through
January 31, 2004 to offset future capital gains to the extent provided by
regulations.
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS JANUARY 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
Capital and foreign currency 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 net
capital and foreign currency losses of approximately $6,707,000 and $55,000,
respectively, during fiscal 1996.
As of January 31, 1996, the Trust had temporary book/tax differences
primarily attributable to post-October losses, capital loss deferrals on wash
sales and income from the mark-to-market of passive foreign investment companies
("PFICs"). The Trust had permanent book/tax differences primarily attributable
to foreign currency losses and tax adjustments of PFICs sold by the Trust. To
reflect reclassifications arising from permanent book/tax differences for the
year ended January 31, 1996, accumulated undistributed net investment income was
credited $296,911, paid-in-capital was charged $349 and accumulated net realized
loss was charged $296,562.
8. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS--The Trust
may enter into forward currency contracts ("forward contracts") to facilitate
settlement of foreign currency denominated portfolio transactions or to manage
foreign currency exposure associated with foreign currency denominated
securities.
At January 31, 1996, the Trust had outstanding forward contracts to
facilitate settlement of foreign currency denominated portfolio transactions.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Trust bears the risk
of an unfavorable change in foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
At January 31, 1996, the Trust's cash balance consisted principally of
interest bearing deposits with Chase Manhattan N.A., the Trust's custodian.
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
FOR THE PERIOD
MARCH 30, 1994*
FOR THE YEAR THROUGH
ENDED JANUARY 31,
JANUARY 31, 1996 1995++
------------------ ---------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period........................................ $ 11.18 $ 14.02
-------- ---------------
Net investment income....................................................... 0.04 0.11
Net realized and unrealized gain (loss)..................................... 1.73 (2.89)
-------- ---------------
Total from investment operations............................................ 1.77 (2.78)
-------- ---------------
Offering costs charged against capital...................................... -- (0.02)
-------- ---------------
Less dividends and distributions from:
Net investment income..................................................... (0.02) (0.09)
Net realized gain......................................................... -- (0.01)
-------- ---------------
Total dividends and distributions........................................... (0.02) (0.10)
-------- ---------------
Anti-dilutive effect of acquiring treasury shares........................... 0.14 0.06
-------- ---------------
Net asset value, end of period.............................................. $ 13.07 $ 11.18
-------- ---------------
-------- ---------------
Market value, end of period................................................. $ 12.25 $ 9.875
-------- ---------------
-------- ---------------
TOTAL INVESTMENT RETURN+.................................................... 24.28% (33.52)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................................... 1.69 % 1.73%(2)
Net investment income....................................................... 0.28 % 0.94%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................................... $ 273,172 $ 254,358
Portfolio turnover rate..................................................... 66 % 61%(1)
</TABLE>
- ------------
* COMMENCEMENT OF OPERATIONS.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
++ RESTATED FOR COMPARATIVE PURPOSES.
+ TOTAL INVESTMENT RETURN IS BASED UPON THE CURRENT MARKET VALUE ON THE LAST
DAY OF EACH PERIOD REPORTED. DIVIDENDS AND DISTRIBUTIONS ARE ASSUMED TO BE
REINVESTED AT THE PRICES OBTAINED UNDER THE TRUST'S DIVIDEND REINVESTMENT
PLAN. TOTAL INVESTMENT RETURN DOES NOT REFLECT BROKERAGE COMMISSIONS.
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of TCW/DW Emerging Markets Opportunities Trust
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of TCW/DW Emerging Markets
Opportunities Trust (the "Trust") at January 31, 1996, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for the year then ended and for the period March 30, 1994
(commencement of operations) through January 31, 1995, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust'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, 1996 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
March 13, 1996
<PAGE>
(This page has been left blank intentionally.)
<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
Shaun C.K. Chan
Vice President
Michael P. Reilly
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Dean Witter Trust Company
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
MANAGER
Dean Witter Services Company Inc.
ADVISER
TCW Funds Management, Inc.
T C W D W
EMERGING MARKETS OPPORTUNITIES TRUST
[GRAPHIC]
ANNUAL REPORT
JANUARY 31, 1996
