<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST Two World Trade Center,
New York, New York 10048
LETTER TO THE SHAREHOLDERS January 31, 1999
DEAR SHAREHOLDER:
During the 12-month period ended January 31, 1999, the world's emerging
equity markets fell sharply as the recessionary fallout of the Asian currency
crisis became more apparent. While the crisis initially appeared to be
confined to Southeast Asia, currency depreciation, stock market weakness and
asset price deflation also spread to the economies of emerging Europe and
Latin America. The sharp currency devaluations resulted in a collapse of
Asian import demand, which then triggered a sharp decline in global commodity
prices.
Weaker commodity prices were partly responsible for the downturn's spread to
other regions. Net commodity exporters such as Russia and certain Latin
American countries were hit particularly hard, given their governments' heavy
reliance on oil-related exports for fiscal revenues. As a result, investors
became increasingly concerned about higher fiscal and current-account
deficits in the emerging economies. Then the devaluation of the ruble on
August 17, 1998 sent another wave of contagion throughout the world's
currency markets and put further downward pressure on commodity prices. In
late summer, the default of Russian treasury bills (GKOs) also resulted in
higher risk premiums for emerging markets as an asset class.
Although most emerging equity markets staged a modest recovery during the
fourth quarter of 1998, investor confidence was shaken again this January
when the Brazilian central bank widened the trading band of the official
currency, the real, and ultimately allowed it to float freely in mid-January.
Individual market performance varied greatly from country to country. The
Greek equity market increased an astounding 131.9 percent in U.S. dollar
terms. That market benefited from the strong inflow of international funds
that has occurred since the Greek currency began participating in Europe's
exchange rate mechanism in March 1998. At the opposite end of the spectrum
for returns was Russia's equity market, which fell 83.4
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
LETTER TO THE SHAREHOLDERS January 31, 1999, continued
percent in U.S. dollar terms, following the devaluation of the ruble and the
default on short-term domestic debt. Performance, in U.S. dollar terms, for
each of the world's emerging equity markets is shown in the following table.
EMERGING EQUITY MARKET PERFORMANCE
(January 31, 1998 through January 31, 1999)
<TABLE>
<CAPTION>
TOTAL RETURN
(% IN U.S.
DOLLAR
COUNTRY TERMS)
- ------------------------- ----------------
<S> <C>
Argentina ................ -25.2
Brazil ................... -53.4
Chile .................... -17.0
Colombia ................. -49.9
Greater China (H shares) -33.2
Greece.................... 131.9
Hong Kong ................ 2.6
Hungary .................. -17.0
India .................... -7.0
Indonesia ................ 19.4
Israel ................... -3.8
Korea .................... 30.7
</TABLE>
<TABLE>
<CAPTION>
TOTAL RETURN
(% IN U.S.
DOLLAR
COUNTRY TERMS)
- --------------- ----------------
<S> <C>
Malaysia ....... 18.8
Mexico ......... -26.8
Peru ........... -31.7
Philippines ... 8.6
Poland ......... -3.4
Portugal ....... 22.0
Russia ......... -83.4
South Africa .. -28.0
Taiwan ......... -22.6
Thailand ....... 7.0
Turkey ......... -52.3
Venezuela ...... -46.6
</TABLE>
PERFORMANCE
TCW/DW Emerging Markets Opportunities Trust's Class A shares declined 27.05
percent for the 12-month period ended January 31, 1999. For the same period,
the Lipper Emerging Markets Funds Index (Lipper Index) and the International
Finance Corporation Investable Emerging Markets Total Return Index (IFC
Index) declined 22.99 percent and 18.56 percent, respectively. The Fund's
Class B, C and D shares each declined 27.59 percent, 27.60 percent and 26.88
percent, respectively, during the same period. The performance of the Fund's
four share classes varies because of differing expenses. The accompanying
chart compares the performance of the Fund's Class A shares with that of the
Lipper and IFC indexes.
The Fund's underperformance relative to its benchmark indexes during the
period under review was primarily attributable to its defensive strategy
during the emerging markets fourth quarter rally. The widespread contagion
effects of the ongoing turmoil in the global financial markets led the Fund
to maintain a relatively high cash position in order to minimize any negative
impact on its portfolio while providing a reserve for opportune purchases.
2
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
LETTER TO THE SHAREHOLDERS January 31, 1999, continued
PORTFOLIO STRATEGY
As a result of the decline in global interest rates resulting from the
surprise Federal Reserve Board rate cut on October 15, 1998, the Fund
increased its exposure to Asia, especially Hong Kong-related China
investments and South Korea. The Fund also focused on emerging Europe, with
emphasis on Greece, Poland and Hungary, which rallied during the fourth
quarter. Exposure to Latin America was reduced as a result of growing
concerns regarding Brazil. South African investments remained underweighted
in the portfolio.
As of January 31, 1999, the Fund's largest holdings were South Korea (12.98
percent), Mexico (10.94 percent), Greece (9.42 percent), Taiwan (6.95
percent), Brazil (6.91 percent), South Africa (6.41 percent), India (5.97
percent), Poland (5.70 percent), Hungary (4.16 percent) and Israel (3.77
percent). The Trust also held smaller positions in Turkey, Chile, the
Philippines, Thailand, Egypt, Hong Kong, Pakistan, Peru and Colombia. As of
January 31, 1999, the Trust held a cash position of 7.31 percent.
MARKET OUTLOOK
Despite their volatile monthly performances throughout most of 1998, investor
sentiment toward emerging markets ended the year with guarded optimism. The
overall perception of them began to change following interest-rate cuts in
the United States, which prevented a total financial meltdown. This led to
rate cuts in most emerging markets but without having a significant negative
impact on the currencies. Although these lower rates have yet to increase
bank lending or stimulate economic growth, they have restored some investor
confidence by reducing the levels of financial distress.
The rallies in emerging markets during the fourth quarter were primarily
liquidity driven as investors with relatively high cash positions recommitted
funds to the global markets, particularly in Asia. The perception that a
global financial catastrophe had been avoided prompted investors to reduce
their cash positions, despite weak fundamentals and a discouraging near-term
outlook for economic growth.
TRUSTEES RECOMMEND LIQUIDATION
Because of the Fund's continued inability to attract new assets, on February
25, 1999, the Trustees of TCW/DW Emerging Markets Opportunities Trust
recommended that the Fund be liquidated and its assets distributed to
shareholders. A letter notifying shareholders of the Trustees' recommendation
was mailed in late February. Liquidation of the Fund requires shareholder
approval. Accordingly, a proxy statement formally detailing the proposal and
the reasons for the Trustees' action was distributed to shareholders of the
Fund, who were shareholders on March 12, 1999.
3
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
LETTER TO THE SHAREHOLDERS January 31, 1999, continued
In light of the proposed liquidation, the Trustees have suspended all new
sales of the Fund's shares, including exchanges into the Fund. Pending the
shareholder vote on the proposed liquidation, the Fund will continue to
operate. In particular, your right to redeem any or all of your Fund shares
at any time has not been affected by this action. Also, the Fund will no
longer make payments to Morgan Stanley Dean Witter Distributors Inc., the
distributor, under the Fund's Plan of Distribution under Rule 12b-1.
Very truly yours,
/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
Chairman of the Board
4
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FUND PERFORMANCE January 31, 1999
[GRAPHIC OMITTED]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
B, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS A
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.
AVERAGE ANNUAL TOTAL RETURNS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A SHARES+
- -----------------------------------------------------
PERIOD ENDED 1/31/99
- -------------------------
<S> <C> <C>
1 Year -27.05%(1) -30.88%(2)
Since Inception (3/30/94) -7.64%(1) -8.67%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES++
- -----------------------------------------------------
PERIOD ENDED 1/31/99
- -------------------------
<S> <C> <C>
1 Year -27.60%(1) -28.32%(2)
Since Inception (1/26/98) -25.08%(1) -25.08%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES*
- -----------------------------------------------------
PERIOD ENDED 1/31/99
- -------------------------
<S> <C> <C>
1 Year -27.59%(1) -31.20%(2)
Since Inception (1/26/98) -25.08%(1) -28.03%(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS D SHARES+++
- -----------------------------------------------------
PERIOD ENDED 1/31/99
- -------------------------
<S> <C>
1 Year -26.88%(1)
Since Inception (1/26/98) -24.36%(1)
</TABLE>
- ------------
Prior to January 26, 1998, the Fund operated as a closed-end investment
company. Accordingly, the performance information above may not be indicative
of the Fund's performance as an open-end investment company. The historical
performance of the Class A shares of the Fund have been restated to reflect
the front-end sales charge of such Class A shares in effect as of January 31,
1998. Class A shares are also subject to a 0.25% 12b-1 fee which is not
reflected in the restated historical performance. Including the 12b-1 fee
would have the effect of lowering the Fund's performance.
(1) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction
of the maximum applicable sales charge. See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Closing value including the deduction of a 5.25% front-end sales charge,
assuming a complete redemption on January 31, 1999.
(4) The International Finance Corporation Investable Emerging Markets Total
Returns Index (IFCI) is designed to measure more precisely the returns
foreign portfolio investors might receive from investing in baskets of
stocks that were legally and practically available to them in the
emerging markets of Latin America, East Asia, Europe, the Mideast and
Africa. The Index does not include any expenses, fees or charges. The
Index is unmanaged and should not be considered an investment.
(5) The Lipper Emerging Markets Funds Index is an equally-weighted
performance index of the largest qualifying funds (based on net assets)
in the Lipper Emerging Markets Funds objective. The Index, which is
adjusted for capital gains distributions and income dividends, is
unmanaged and should not be considered an investment. There are
currently 30 funds in this index.
+ The maximum front-end sales charge for Class A is 5.25%.
* The maximum CDSC for Class B is 5.0%. The CDSC declines to 0% after six
years.
++ The maximum CDSC for Class C shares is 1% for shares redeemed within one
year of purchase.
+++ Class D shares have no sales charge.
5
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON AND PREFERRED STOCKS, RIGHTS
AND WARRANTS (93.5%)
ARGENTINA (2.8%)
Energy
23,336 Yacimentos Petroliferos Fiscales S.A. (ADR) ..................... $ 743,835
-------------
Oil Refining/Marketing
33,900 Perez Companc S.A. (Class B) .................................... 138,196
-------------
Oil/Gas Transmission
4,750 Transportadora de Gas del Sur S.A. (ADR) ........................ 45,422
-------------
Telecommunications
16,901 Telecom Argentina Stet - France Telecom S.A. (ADR) .............. 401,399
10,388 Telefonica de Argentina S.A. (ADR) .............................. 256,454
-------------
657,853
-------------
TOTAL ARGENTINA ................................................. 1,585,306
-------------
BRAZIL (6.9%)
Alcoholic Beverages
151,629 Companhia Cervejaria Brahma (Pref.)* ............................ 51,642
-------------
Apparel
684,000 Companhia de Tecidos Norte de Minas ............................. 37,993
-------------
Banking
4,756 Uniao de Bancos Brasileiros S.A. (GDR) .......................... 48,749
-------------
Cellular Telephone
595 Tele Celular Sul Participacoes S.A. (ADR) ....................... 9,669
12,888,914 Tele Celular Sul Participacoes S.A. (Pref.)* .................... 19,800
44,850,243 Tele Centro Sul Participacoes S.A. (Pref.)* ..................... 299,002
14,576,914 Tele Leste Celular Participacoes S.A. (Pref.)* .................. 5,000
305 Tele Nordeste Celular Participacoes S.A. (ADR) .................. 3,812
9,230,914 Tele Nordeste Celular Participacoes S.A. (Pref.)* ............... 5,708
3,640,914 Tele Norte Celular Participacoes S.A. (Pref.)* .................. 1,196
4,845,264 Tele Sudeste Celular Participacoes S.A.* ........................ 7,701
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
107 Tele Sudeste Celular Participacoes S.A. (ADR) ................... $ 1,658
26,333,914 Tele Sudeste Celular Participacoes S.A. (Pref.)* ................ 76,330
360 Telemig Celular Participacoes S.A. (ADR)* ....................... 5,310
23,773,243 Telemig Celular Participacoes S.A. (Pref.)* ..................... 16,882
569,000 Telerj Celular S.A. (B Shares)(Pref.) ........................... 6,405
104 Telesp Celular Participacoes S.A. (ADR)* ........................ 1,826
7,754,914 Telesp Celular Participacoes S.A. (Pref.)* ...................... 52,449
3,415,000 Telesp Celular S.A. (B Shares)(Pref.)* .......................... 90,737
-------------
603,485
-------------
Electric Utilities
1,315,000 Centrais Electricas Brasileiras S.A. ............................ 15,882
1,350,000 Centrais Electricas Brasileiras S.A. (Pref.) .................... 17,609
3,415 Companhia Energetica de Minas Gerais S.A. (Pref.)(ADR) -144A** .. 42,687
5,547,030 Companhia Energetica de Minas Gerais S.A. (Pref.) ............... 68,333
16,812 Companhia Energetica de Minas Gerais S.A. (ADR) ................. 209,099
20,500,000 Companhia Paranaense de Energia -Copel (Pref.)* ................. 80,415
-------------
434,025
-------------
Energy
1,697,000 Petroleo Brasileiro S.A. (Pref.) ................................ 112,314
-------------
Food Chains
1,363 Companhia Brasileira de Distribuicao Grupo Pao de Acucar (ADR) .. 13,630
-------------
Integrated Oil Companies
700 Petroleo Brasileiro S.A. -Petrobras (ADR)* ...................... 4,637
-------------
Multi-Sector Companies
192,000 Itausa Investimentos Itau S.A. (Pref.) .......................... 64,928
-------------
Paper
5,000,000 Votorantim Celulose e Papel S.A. (Pref.) ........................ 55,556
-------------
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Steel/Iron Ore
130 Companhia Vale do Rio Doce S.A. (ADR) ........................... $ 1,869
128,340 Companhia Vale do Rio Doce S.A. (Debentures)* ................... --
23,046 Companhia Vale do Rio Doce S.A. (Pref.)* ........................ 345,245
1,730 Usinas Siderurgicas de Minas Gerais S.A. (ADR)(Pref.)* .......... 2,242
10,200 Usinas Siderurgicas de Minas Gerais S.A. (Pref.)* ............... 13,157
-------------
362,513
-------------
Telecommunications
1,265,821 CIA Riograndense de Telecomunicacoes S.A. (Pref.)* .............. 239,100
7,195,264 Embratel Participacoes S.A.* .................................... 45,153
2,116 Embratel Participacoes S.A. (ADR)* .............................. 24,202
19,319,243 Embratel Participacoes S.A. (Pref.)* ............................ 216,525
7,195,264 Tele Centro Sul Participacoes S.A.* ............................. 25,027
1,032 Tele Centro Sul Participacoes S.A. (ADR)* ....................... 37,216
3,701 Tele Norte Leste Particioacoes S.A. (ADR)* ...................... 36,779
6,195,264 Tele Norte Leste Participacoes S.A.* ............................ 33,520
21,780,914 Tele Norte Leste Participacoes S.A. (Pref.)* .................... 217,809
3,640,914 Telecomunicacoes Brasileiras S.A. - Telebras (Pref.)* ........... 528
8,408 Telecomunicacoes Brasileiras S.A. - Telebras (Pref.)(ADR)* ...... 529,178
4,047,500 Telecomunicacoes Brasileriras S.A. - Telebras (Pref.)* .......... 236,593
7,195,264 Telesp Participacoes S.A.* ...................................... 67,781
21,296,088 Telesp Participacoes S.A. (Pref.)* .............................. 370,367
-------------
2,079,778
-------------
TOTAL BRAZIL .................................................... 3,869,250
-------------
CHILE (2.0%)
Alcoholic Beverages
2,860 Compania Cervecerias Unidas S.A. (ADR) .......................... 51,301
8,710 Vina Concha Y Toro (ADR) ........................................ 212,306
-------------
263,607
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Beverages - Non-Alcoholic
8,220 Embotelladora Andina S.A. (Series A)(ADR) ....................... $ 115,080
-------------
Electric Utilities
5,279 Empresa Nacional de Electricidad S.A. (ADR) ..................... 61,368
6,655 Enersis S.A. (ADR) .............................................. 180,517
-------------
241,885
-------------
Food Chains
11,100 Distribucion Y Servicio D&S S.A. (ADR) .......................... 119,325
-------------
Generic Drugs
11,100 Laboratorio Chile (ADR) ......................................... 133,200
-------------
Telecommunications
12,111 Compania de Telecomunicaciones de Chile S.A. (ADR) .............. 246,762
-------------
TOTAL CHILE ..................................................... 1,119,859
-------------
CHINA (0.4%)
Electric Utilities
4,845 Huaneng Power International, Inc. (ADR)* ........................ 51,478
-------------
Energy
10,222 Yanzhou Coal Minging Co. (ADR) .................................. 75,387
458,000 Zhenhai Refining & Chemical Co. (Class H) ....................... 56,153
-------------
131,540
-------------
Transportation
446,500 Zhejiang Expressway Co. Ltd. .................................... 65,692
-------------
TOTAL CHINA ..................................................... 248,710
-------------
COLOMBIA (0.2%)
Beverages
32,301 Bavaria S.A. .................................................... 118,573
-------------
CROATIA (0.1%)
Miscellaneous
2,875 Pliva D.D. (GDR) - 144A** ....................................... 53,978
-------------
CZECH REPUBLIC (0.3%)
Telecommunications
11,000 SPT Telecom A.S.* ............................................... 158,350
-------------
EGYPT (1.0%)
Alcoholic Beverages
2,000 Al-Ahram Beverages Co. S.A.E. (GDR) ............................. 64,800
-------------
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Building Materials
6,820 Industrial & Engineering Enterprises Co. ........................ $ 107,110
12,100 Suez Cement Co. (GDR) - 144A** .................................. 234,135
-------------
341,245
-------------
Electric Utilities
500 Egypt Gas Co. ................................................... 35,961
-------------
Major Chemicals
3,250 Paints & Chemical Industries Co. S.A.E. (GDR) ................... 23,887
-------------
Tobacco
3,800 Eastern Tobacco ................................................. 113,850
-------------
TOTAL EGYPT ..................................................... 579,743
-------------
GREECE (9.4%)
Banking
13,940 Alpha Credit Bank ............................................... 1,630,625
1,130 Ionian Bank S.A.* ............................................... 64,097
2,739 National Bank of Greece S.A. .................................... 757,408
-------------
2,452,130
-------------
Beverages -Non-Alcoholic
2,750 Hellenic Bottling Co. S.A.* ..................................... 100,906
-------------
Building Materials/DIY Chains
4,740 Titan Cement Co. S.A. ........................................... 393,053
-------------
Cellular Telephone
4,000 Panafon Hellenic Telecom S.A.* .................................. 137,072
-------------
Telecommunications
31,659 Hellenic Telecommunication Organization S.A. .................... 954,585
81,095 Hellenic Telecommunication Organization S.A. (ADR)* ............. 1,236,699
-------------
2,191,284
-------------
TOTAL GREECE .................................................... 5,274,445
-------------
HONG KONG (0.7%)
Computer/Video Chains
588,000 Legend Holdings Ltd. ............................................ 231,451
-------------
Telecommunications
81,200 China Telecom Ltd. .............................................. 144,617
-------------
TOTAL HONG KONG ................................................. 376,068
-------------
HUNGARY (4.2%)
Banking
13,000 OTP Bank Rt.* ................................................... 699,649
3,025 OTP Bank Rt. (GDR) .............................................. 164,484
-------------
864,133
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Energy
27,085 MOL Magyar Olaj-es Gazipari RT (GDR) -144A** .................... $ 751,947
-------------
Specialty Chemicals
9,500 Pannonplast RT .................................................. 231,258
-------------
Telecommunications
14,500 Magyar Tavkozlesi Rt * .......................................... 89,980
12,680 Magyar Tavkozlesi Rt (ADR) ...................................... 393,873
-------------
483,853
-------------
TOTAL HUNGARY ................................................... 2,331,191
-------------
INDIA (6.0%)
Aluminum
32,475 Hindalco Industries Ltd. (GDR) - 144A** ......................... 389,700
-------------
Construction/Agricultural Equipment/Trucks
103,000 Mahindra & Mahindra Ltd. (GDR) .................................. 437,750
-------------
Other Pharmaceuticals
64,000 Ranbaxy Laboratories Ltd. (GDR) ................................. 643,840
-------------
Telecommunications
5,000 Mahanagar Telephone Nigam Ltd. (GDR) ............................ 55,375
14,100 Mahanagar Telephone Nigam Ltd. (GDR) * .......................... 157,568
21,750 Videsh Sanchar Nigam Ltd. (GDR)* ................................ 230,550
-------------
443,493
-------------
Textiles
77,500 Reliance Industries Ltd. (GDR) .................................. 494,450
95,000 Reliance Industries Ltd. (GDR) .................................. 605,625
-------------
1,100,075
-------------
Tobacco
14,500 ITC Ltd. (GDR)* ................................................. 329,237
-------------
TOTAL INDIA ..................................................... 3,344,095
-------------
INDONESIA (0.8%)
Paper
389,000 PT Indah Kiat Pulp & Paper Corp. Tbk ............................ 89,514
Telecommunications
23,600 PT Telekomunikasi Indonesia (ADR) ............................... 177,000
-------------
Tobacco
150,000 Pt Gudang Garam Tbk ............................................. 184,091
-------------
TOTAL INDONESIA ................................................. 450,605
-------------
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
ISRAEL (3.8%)
Banking
170,750 Bank Hapoalim Ltd. .............................................. $ 296,385
-------------
Diversified Electronic Products
2,030 Elron Electronic Industries Ltd. ................................ 30,386
17,755 NICE-Systems Ltd. (ADR)* ........................................ 393,939
-------------
424,325
-------------
Diversified Manufacturing
18,200 Koor Industries Ltd. (ADR) ...................................... 313,950
-------------
Electronic Production Equipment
4,090 Orbotech, Ltd.* ................................................. 169,735
-------------
Food Chains
19,190 Blue Square Chain Investments & Properties Ltd.* ................ 248,419
4,200 Supersol Ltd. (ADR) ............................................. 49,350
-------------
297,769
-------------
Other Pharmaceuticals
1,892 Teva Phamaceutical Industries Ltd. (ADR) ........................ 82,184
-------------
Other Telecommunications
37,800 Bezeq Israeli Telecommunication Corporation Ltd.* ............... 120,812
-------------
Telecommunications
6,561 ECI Telecom Ltd. ................................................ 284,583
1,200 Orckit Communications Ltd. ...................................... 23,100
-------------
307,683
-------------
Telecommunications Equipment
650 Gilat Satellite Networks Ltd.* .................................. 40,828
2,500 Tadiran Telecommunications Ltd. ................................. 58,437
-------------
99,265
-------------
TOTAL ISRAEL .................................................... 2,112,108
-------------
LUXEMBOURG (0.2%)
Alcoholic Beverages
16,175 Quilmes Industrial S.A. (Quinsa)(ADR) ........................... 129,400
-------------
MALAYSIA+(1.3%)
Casino/Gambling
58,000 Genting Berhad .................................................. 107,882
-------------
Electric Utilities
87,000 Tenaga Nasional Berhad .......................................... 111,354
-------------
Oil/Gas Transmission
45,000 Petronas Gas Berhad ............................................. 72,514
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Specialty Foods/Candy
45,000 Kuala Lumpur Kepong Berhad ...................................... $ 53,867
18,000 Nestle (Malaysia) Berhad ........................................ 49,724
-------------
103,591
-------------
Telecommunications
60,000 Technology Resources Industries Berhad .......................... 22,210
108,000 Telekom Malaysia Berhad ......................................... 179,005
-------------
201,215
-------------
Tobacco
16,000 Rothmans of Pall Mall (Malaysia) Berhad ......................... 68,361
-------------
Transportation
53,000 Malaysian International Shipping Berhad ......................... 53,195
-------------
TOTAL MALAYSIA .................................................. 718,112
-------------
MEXICO (10.9%)
Alcoholic Beverages
25,743 Fomento Economico Mexicano, S.A. de C.V. (ADR) .................. 569,564
125,084 Fomento Economico Mexicano, S.A. de C.V. (UBD) .................. 279,007
148,400 Grupo Modelo S.A. de C.V. (Series C) ............................ 330,282
-------------
1,178,853
-------------
Auto Parts: O.E.M.
1,533 Desc S.A. de C.V. (ADR) ......................................... 31,331
-------------
Banking
70,190 Grupo Financiero Banamex Accival, S.A. de C.V. (B Shares)* ...... 77,450
7,755 Grupo Financiero Bancomer, S.A. de C.V. (ADR) - 144A** .......... 31,990
45,364 Grupo Financiero Bancomer, S.A. de C.V. (B Shares) .............. 9,268
-------------
118,708
-------------
Beverages - Non-Alcoholic
5,600 Coca-Cola Femsa S.A. (ADR) ...................................... 70,350
-------------
Broadcasting
45,602 Grupo Televisa S.A. (GDR) ....................................... 1,168,551
4,882 TV Azteca S.A. de C.V (ADR)* .................................... 29,597
-------------
1,198,148
-------------
Building Materials
49,950 Apasco S.A. de C.V. ............................................. 180,435
3,770 Cemex S.A. de C.V. (ADR) ........................................ 18,850
70,200 Cemex S.A. de C.V. (B Shares) ................................... 185,685
-------------
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
5,955 Cemex S.A. de C.V. (Class B)(ADR) ............................... $ 26,053
4,293 Cemex S.A. de C.V. - (CPO) ...................................... 10,423
-------------
421,446
-------------
Diversified Manufacturing
20,156 ALFA, S.A. de C.V. (Class A) .................................... 46,551
-------------
Foods & Beverages
141,600 Grupo Industrial Bimbo S.A. de C.V. (Series A) .................. 275,318
-------------
Multi-Sector Companies
22,076 Grupo Carso S.A. de C.V. (Series A1) ............................ 63,186
-------------
Other Specialty Stores
4,110 Cifra S.A. de C.V. (ADR) ........................................ 45,307
393,149 Cifra S.A. de C.V. (Series C) ................................... 436,919
23,975 Cifra S.A. de C.V. (Series V) ................................... 26,502
47,900 Organizacion Soriana S.A. de C.V. (Series B) .................... 141,355
-------------
650,083
-------------
Paper
195,917 Kimberly-Clark de Mexico S.A. de C.V. (A Shares) ................ 566,558
-------------
Steel/Iron Ore
2,783 Tubos de Acero de Mexico S.A. de C.V. (ADR)* .................... 19,133
-------------
Telecommunications
29,114 Telefonos de Mexico S.A. de C.V. (Series L)(ADR) ................ 1,488,453
-------------
TOTAL MEXICO .................................................... 6,128,118
-------------
PAKISTAN (0.6%)
Banking
64 Muslim Commercial Bank Ltd. ..................................... 20
-------------
Electric Utilities
350,000 Hub Power Co.* .................................................. 80,950
7,000 Sui Northern Gas Pipelines* ..................................... 1,196
-------------
82,146
-------------
Major Chemicals
8,500 Fauji Fertilizer Co., Ltd.* ..................................... 6,705
-------------
Telecommunications
7,210 Pakistan Telecomm (GDR) -144A** ................................. 250,482
-------------
TOTAL PAKISTAN .................................................. 339,353
-------------
PERU (0.4%)
Building Materials
200,180 Cementos Lima, S.A. ............................................. 207,594
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
PHILIPPINES (1.9%)
Alcoholic Beverages
100,000 San Miguel Corp. (Class B) ...................................... $ 143,416
-------------
Electric Utilities
100,069 Manila Electric Co. (B Shares) .................................. 302,686
-------------
Real Estate
480,000 SM Prime Holdings ............................................... 91,369
-------------
Restaurants
490,000 Jollibee Foods Co. (Warrants due 03/25/03)* ..................... 255,541
-------------
Telecommunications
8,610 Philippine Long Distance Telephone Co. .......................... 202,060
3,960 Philippine Long Distance Telephone Co. (ADR) .................... 91,080
-------------
293,140
-------------
TOTAL PHILIPPINES ............................................... 1,086,152
-------------
POLAND (5.7%)
Banking
3,100 Bank Handlowy W. Warszawie ...................................... 36,657
3,000 Bank Przemyslowo-Handlowy S.A. 204,229
1,560 Bank Rozwoju Eksportu S.A. ...................................... 35,542
5,750 Bank Slaski S.A. ................................................ 283,970
3,730 BIG Bank Gdanski S.A. (GDR) ..................................... 53,153
1,260 Powszechny Bank Kredytowy ....................................... 26,816
3,870 Wielkopolski Bank Kredytowy S.A. 24,920
-------------
665,287
-------------
Computers Software
7,700 Prokom Software (GDR) ........................................... 139,370
-------------
Engineering & Construction
4,825 Exbud S.A. (GDR)* ............................................... 48,009
-------------
Movies/Entertainment
5,192 International Trading & Investment Co. .......................... 1,168,200
-------------
Telecommunications
43,910 Telekomunikacja Polska S.A. (ADR)* .............................. 329,325
66,400 Telekomunikacja Polska S.A. (GDR)* .............................. 499,660
-------------
828,985
-------------
Wholesale Distributor
27,100 Elektrim Spolka Akcyjna S.A. .................................... 340,136
-------------
TOTAL POLAND .................................................... 3,189,987
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
PORTUGAL (2.5%)
Banking
12,200 Banco Comercial Portugues S.A. .................................. $ 383,034
7,817 Banco Espirito Santo e Comercial de Lisboa, S.A. ................ 233,438
12,100 Banco Pinto & Sotto Mayor, S.A. ................................. 264,579
-------------
881,051
-------------
Electric Utilities
11,400 EDP-Electricidade de Portugal, S.A. ............................. 278,409
-------------
Telecommunications
4,300 Portugal Telecom S.A. ........................................... 216,378
-------------
TOTAL PORTUGAL .................................................. 1,375,838
-------------
RUSSIA (0.5%)
Energy
7,066 LUKoil Holding Co. (ADR) ........................................ 104,223
29,050 Surgutneftegaz (ADR) ............................................ 98,044
-------------
202,267
-------------
Telecommunications
12,500 Rostelecom (ADR) ................................................ 53,125
-------------
TOTAL RUSSIA .................................................... 255,392
-------------
SOUTH AFRICA (6.4%)
Alcoholic Beverages
27,806 South African Breweries Ltd. ................................... 449,075
-------------
Banking
29,583 Nedcor Ltd. ..................................................... 596,730
-------------
Broadcasting
6,930 Primedia Ltd. (N Shares) ........................................ 15,761
-------------
Consumer/Business Services
42,100 Education Investment Corp. Ltd. ................................ 53,076
8,900 Persetel Q Data Holding Ltd. .................................... 77,442
-------------
130,518
-------------
Diversified Commercial Services
27,545 Bidvest Group Ltd. .............................................. 214,259
-------------
Diversified Financial Services
28,900 ABSA Group Ltd. ................................................. 141,690
231,188 B.O.E. Corporation (N Shares) ................................... 151,636
102,078 BOE Ltd. ........................................................ 78,056
97,400 FirstRand Ltd. .................................................. 116,854
18,930 Rembrandt Group Ltd. ............................................ 140,696
-------------
628,932
-------------
Integrated Oil Companies
18,737 Sasol Ltd.* ..................................................... 66,080
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Multi-Sector Companies
8,095 Anglo American Corporation of South Africa Ltd. ................. $ 229,456
177,300 New Africa Investments Ltd. (N Shares)* ......................... 114,538
-------------
343,994
-------------
Precious Metals
17,870 Anglo American Platinum Corporation Ltd. ........................ 263,574
7,366 Anglogold Ltd. .................................................. 296,922
-------------
560,496
-------------
Property - Casualty Insurers
28,470 Liberty Life Association of Africa Ltd. ........................ 383,792
-------------
Retail
22,820 Ellerine Holdings Ltd. .......................................... 54,718
47,460 Woolworths Holdings Ltd. ........................................ 26,045
-------------
80,763
-------------
Telecommunications Equipment
62,700 Allied Technologies Ltd. ........................................ 118,828
-------------
TOTAL SOUTH AFRICA .............................................. 3,589,228
-------------
SOUTH KOREA (13.0%)
Diversified Electronic Products
5,950 Samsung Electro-Mechanics Co.* .................................. 135,319
2,016 Samsung Electronics (GDR)(Rights)* .............................. --
26,122 Samsung Electronics (GDR) -144A** ............................... 1,082,757
122 Samsung Electronics (Rights)* ................................... 4,011
6,042 Samsung Electronics Co. -144A** ................................. 462,671
-------------
1,684,758
-------------
Electronic Components
46,000 Mirae Co.* ...................................................... 150,068
1,261 S1 Corporation .................................................. 231,418
-------------
381,486
-------------
Energy
55,500 Korea Electric Power Corp. ...................................... 1,529,323
-------------
Industrial Specialties
3,200 Hankuk Glass Industry Co., Ltd. ................................. 65,690
13,524 Samsung Display Devices Co.* .................................... 622,058
-------------
687,748
-------------
Major Chemicals
37,500 L.G. Chemical Ltd.* ............................................. 440,801
-------------
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Steel/Iron Ore
25,310 Pohang Iron & Steel Co., Ltd. (ADR) ............................. $1,578,830
-------------
Telecommunications
21,600 Korea Telecom Corp.* ............................................ 714,787
24,900 Sk Telecom Co., Ltd. (ADR) ...................................... 253,669
-------------
968,456
-------------
TOTAL SOUTH KOREA ............................................... 7,271,402
-------------
TAIWAN (7.0%)
Computer Hardware
134,468 Asustek Computer Inc. (GDR)* .................................... 1,116,084
178 Asustek Computer Inc. (GDR) -144A** ............................. 1,477
-------------
1,117,561
-------------
Computer/Video Chains
8,253 Synnex Technology International Corp. (GDR)* .................... 124,827
-------------
Electronic Components
32,938 Winbond Electronics Corp.* ...................................... 391,633
-------------
Mutual Funds
120,100 ROC Taiwan Fund ................................................. 675,563
-------------
Semiconductors
100,055 Siliconware Precision Industries Co. (GDR) ...................... 1,239,431
14,880 Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) .............. 297,600
-------------
1,537,031
-------------
Specialty Foods/Candy
43,000 Want Want Holdings Ltd. ......................................... 47,730
-------------
TOTAL TAIWAN .................................................... 3,894,345
-------------
THAILAND (1.8%)
Banking
77,550 Bangkok Bank PCL ................................................ 144,352
-------------
Broadcasting
26,500 BEC World PCL ................................................... 139,701
-------------
Building Materials
35,900 Siam City Cement PCL* ........................................... 126,821
-------------
Electronic Components
18,400 Delta Electronics, Inc. ......................................... 91,500
12,200 Shinawatra Computer PCL* ........................................ 59,674
-------------
151,174
-------------
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
Energy
14,350 PTT Exploration & Production PCL ................................ $ 108,405
-------------
Telecommunications
45,700 Advanced Info Service PCL ....................................... 342,750
-------------
TOTAL THAILAND .................................................. 1,013,203
-------------
TURKEY (2.0%)
Alcoholic Beverages
990,000 Ege Biracilik Ve Malt Sanayii A.S. .............................. 69,781
760,000 Erciyas Biracilik ve Malt Sanayii A.S. .......................... 61,548
-------------
131,329
-------------
Banking
11,462,500 Akbank T.A.S. ................................................... 213,160
15,733,600 Yapi Ve Kredi Bankasi A.S. ...................................... 184,046
-------------
397,206
-------------
Electronics
1,600,000 Vestel Elektronik Sanayi ve Ticaret A.S.* ....................... 117,576
-------------
Energy
340,000 Petrol Ofisi A.S. ............................................... 52,010
-------------
Food Chains
209,400 Migros Turk T.A.S. .............................................. 207,265
-------------
Mutual Funds
26,800,000 Dogan Yayin Holdings ............................................ 108,518
-------------
Property - Casualty Insurers
4,145,000 Aksigorta A.S. .................................................. 121,839
-------------
TOTAL TURKEY .................................................... 1,135,743
-------------
UNITED STATES (0.5%)
Telecommunications Equipment
3,500 Comverse Technology, Inc.* ...................................... 293,563
-------------
UZBEKISTAN (0.0%)
Financial Services
80,000 Central Asian Investment Company Ltd. ........................... --
-------------
VENEZUELA (0.1%)
Telecommunications
3,419 Compania Anonima Nacional Telefonos de Venezuela (CANTV)(ADR) ... 57,696
-------------
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
PORTFOLIO OF INVESTMENTS January 31, 1999, continued
NUMBER OF
SHARES VALUE
- --------------------------------------------------------------------------------------------
ZIMBABWE (0.1%)
Multi-Sector Companies
225,000 Delta Corporation Ltd. .......................................... $ 47,414
-------------
TOTAL COMMON AND PREFERRED
STOCKS, RIGHTS AND WARRANTS
(Identified Cost $59,934,607)(a) . 93.5% 52,354,821
CASH AND OTHER ASSETS IN EXCESS
OF LIABILITIES.................... 6.5 3,653,802
-------- -------------
NET ASSETS........................ 100.0% $ 56,008,623
======== =============
</TABLE>
- ------------
ADR American Depository Receipt.
GDR Global Depository Receipt.
UBD Represents 1 B Share, 2 D-B Shares and 2 D-L Shares.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
+ Securities deemed illiquid. As of January 31, 1999, the Malaysian
Government prohibited the repatriation of proceeds on sales of
securities denominated in Malaysian ringgits for a one year period
from the date of sale. Effective February 15, 1999, the Malaysian
Government replaced the holding period with a graduated exit tax.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$6,006,355 and the aggregate gross unrealized depreciation is
$13,586,141, resulting in net unrealized depreciation of $7,579,786.
FORWARD FOREIGN CURRENCY CONTRACT OPEN AT JANUARY 31, 1999:
<TABLE>
<CAPTION>
CONTRACT TO IN DELIVERY UNREALIZED
RECEIVE EXCHANGE FOR DATE APPRECIATION
- --------------- -------------- ---------- --------------
<S> <C> <C> <C>
ZAR 1,744,135 $288,979 02/02/99 $1,548
==============
</TABLE>
Currency Abbreviation:
- ---------------------
ZAR South African Rand.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
SUMMARY OF INVESTMENTS January 31, 1999
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------
<S> <C> <C>
Alcoholic Beverages ........... $ 2,412,122 4.3%
Aluminum ...................... 389,700 0.7
Apparel ....................... 37,993 0.1
Auto Parts: O.E.M. ............ 31,331 0.1
Banking........................ 6,464,751 11.5
Beverages...................... 118,573 0.2
Beverages -- Non-Alcoholic .... 286,336 0.5
Broadcasting................... 1,353,610 2.4
Building Materials ............ 1,097,106 2.0
Building Materials/DIY Chains.. 393,053 0.7
Casino/Gambling ............... 107,882 0.2
Cellular Telephone ............ 740,557 1.3
Computer Hardware ............. 1,117,561 2.0
Computer/Video Chains ......... 356,278 0.6
Computers Software ............ 139,370 0.3
Construction/Agricultural
Equipment/Trucks ............. 437,750 0.8
Consumer/Business Services .... 130,518 0.2
Diversified Commercial
Services ..................... 214,259 0.4
Diversified Electronic
Products...................... 2,109,083 3.8
Diversified Financial
Services...................... 628,932 1.1
Diversified Manufacturing ..... 360,501 0.6
Electric Utilities............. 1,537,944 2.8
Electronic Components ......... 924,293 1.7
Electronic Production
Equipment .................... 169,735 0.3
Electronics ................... 117,576 0.2
Energy......................... 3,631,641 6.5
Engineering & Construction ... 48,009 0.1
Food Chains ................... 637,989 1.1
Foods & Beverages ............. 275,318 0.5
Generic Drugs.................. 133,200 0.2
Industrial Specialties......... 687,748 1.2
Integrated Oil Companies ..... 70,717 0.1
Major Chemicals ............... 471,393 0.8
Miscellaneous ................. 53,978 0.1
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------
Movies/Entertainment........... $ 1,168,200 2.1%
Multi-Sector Companies ........ 519,522 0.9
Mutual Funds................... 784,081 1.4
Oil Refining/Marketing ........ 138,196 0.3
Oil/Gas Transmission .......... 117,936 0.2
Other Pharmaceuticals ......... 726,024 1.3
Other Specialty Stores ........ 650,083 1.2
Other Telecommunications ..... 120,812 0.2
Paper ......................... 711,628 1.3
Precious Metals ............... 560,496 1.0
Property - Casualty Insurers .. 505,631 0.9
Real Estate.................... 91,369 0.2
Restaurants ................... 255,541 0.5
Retail ........................ 80,763 0.1
Semiconductors ................ 1,537,031 2.7
Specialty Chemicals ........... 231,258 0.4
Specialty Foods/Candy ......... 151,321 0.3
Steel/Iron Ore ................ 1,960,476 3.5
Telecommunications............. 11,591,353 20.7
Telecommunications Equipment . 511,656 0.9
Textiles ...................... 1,100,075 2.0
Tobacco ....................... 695,539 1.2
Transportation ................ 118,887 0.2
Wholesale Distributor.......... 340,136 0.6
------------- ------
$52,354,821 93.5%
============= ======
</TABLE>
<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- -----------------------------------------------------
<S> <C> <C>
Common Stocks................. $48,691,120 86.9%
Preferred Stocks ............. 3,404,149 6.1
Rights........................ 4,011 0.0
Warrants...................... 255,541 0.5
------------- -------
$52,354,821 93.5%
============= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $59,934,607)............ $ 52,354,821
Cash...................................... 4,093,784
Receivable for:
Investments sold........................ 922,698
Dividends............................... 47,409
Deferred organizational expenses.......... 1,379
Prepaid expenses and other assets ........ 87,037
-------------
TOTAL ASSETS ........................... 57,507,128
-------------
LIABILITIES:
Payable for:
Investments purchased................... 1,210,535
Shares of beneficial interest
repurchased............................ 80,248
Management fee ......................... 36,268
Investment advisory fee ................ 24,179
Plan of distribution fee................ 12,547
Accrued expenses and other payables ...... 134,728
-------------
TOTAL LIABILITIES ...................... 1,498,505
------------
NET ASSETS ............................. $ 56,008,623
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital........................... $118,302,901
Net unrealized depreciation .............. (7,595,370)
Accumulated net investment loss........... (8,740)
Accumulated net realized loss............. (54,690,168)
-------------
NET ASSETS ............................. $ 56,008,623
=============
CLASS A SHARES:
Net Assets................................ $ 55,261,855
Shares Outstanding (unlimited authorized,
$.01 par value).......................... 5,982,514
NET ASSET VALUE PER SHARE .............. $9.24
=====
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of net
asset value)........................... $9.75
=====
CLASS B SHARES:
Net Assets................................ $689,269
Shares Outstanding (unlimited authorized,
$.01 par value).......................... 75,169
NET ASSET VALUE PER SHARE .............. $9.17
=====
CLASS C SHARES:
Net Assets................................ $49,951
Shares Outstanding (unlimited authorized,
$.01 par value).......................... 5,449
NET ASSET VALUE PER SHARE .............. $9.17
=====
CLASS D SHARES:
Net Assets................................ $7,548
Shares Outstanding (unlimited authorized,
$.01 par value).......................... 815
NET ASSET VALUE PER SHARE .............. $9.26
=====
</TABLE>
STATEMENT OF OPERATIONS
For the year ended January 31, 1999
<TABLE>
<CAPTION>
<S> <C>
NET INVESTMENT LOSS:
INCOME
Dividends (net of $124,317 foreign
withholding tax)......................... $ 1,717,108
Interest ................................. 298,154
-------------
TOTAL INCOME ........................... 2,015,262
-------------
EXPENSES
Investment management fee................. 632,986
Investment advisory fee................... 421,991
Transfer agent fees and expenses.......... 280,648
Professional fees ........................ 214,575
Plan of distribution fee (Class A
shares).................................. 210,142
Plan of distribution fee (Class B
shares).................................. 3,024
Plan of distribution fee (Class C
shares).................................. 301
Custodian fees............................ 168,374
Shareholder reports and notices .......... 145,569
Registration fees ........................ 109,332
Foreign exchange provisional tax.......... 56,691
Trustees' fees and expenses............... 32,269
Organizational expenses .................. 10,037
Other..................................... 37,637
-------------
TOTAL EXPENSES ......................... 2,323,576
-------------
NET INVESTMENT LOSS .................... (308,314)
-------------
NET REALIZED AND UNREALIZED LOSS
Net realized loss on:
Investments ............................ (17,097,799)
Foreign exchange transactions........... (415,459)
-------------
NET LOSS ............................... (17,513,258)
-------------
Net change in unrealized depreciation on:
Investments ............................ (6,914,128)
Translation of forward foreign currency
contracts, other assets and
liabilities denominated in foreign
currencies............................. 350,848
-------------
NET DEPRECIATION ....................... (6,563,280)
-------------
NET LOSS ............................... (24,076,538)
-------------
NET DECREASE ............................. $(24,384,852)
=============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, 1999 JANUARY 31, 1998*
- ------------------------------------------------------ ---------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) .......................... $ (308,314) $ 2,016,172
Net realized gain (loss)............................... (17,513,258) 14,419,055
Net change in unrealized depreciation ................. (6,563,280) (56,929,504)
---------------- -----------------
NET DECREASE ........................................ (24,384,852) (40,494,277)
---------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Class A shares......................................... (347,672) (3,126,315)
Class B shares......................................... (795) --
Class C shares......................................... (87) --
Class D shares......................................... (38) --
---------------- -----------------
TOTAL DIVIDENDS ..................................... (348,592) (3,126,315)
---------------- -----------------
Net decrease from transactions in shares of beneficial
interest.............................................. (88,566,354) (92,378,521)
---------------- -----------------
NET DECREASE ........................................ (113,299,798) (135,999,113)
NET ASSETS:
Beginning of period.................................... 169,308,421 305,307,534
---------------- -----------------
END OF PERIOD
(Including a net investment loss of $8,740 and
undistributed net investment income of $477,392,
respectively)........................................ $ 56,008,623 $ 169,308,421
================ =================
</TABLE>
- ------------
* Class B, Class C and Class D shares were issued January 26, 1998.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999
1. ORGANIZATION AND ACCOUNTING POLICIES
TCW/DW Emerging Markets Opportunities Trust (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a non-diversified,
open-end management investment company. The Fund's investment objective is to
seek capital appreciation through investment in equity securities of emerging
market countries. The Fund was organized as a Massachusetts business trust on
December 22, 1993 and commenced operations as a closed-end management
investment company on March 30, 1994. On July 22, 1997, the shareholders of
the Fund voted to convert the Fund to an open-end management investment
company. The conversion took effect on January 26, 1998 and the Fund
commenced offering four classes of shares with the then current shares
designated as Class A shares.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year,
six years and one year, respectively. Class D shares are not subject to a
sales charge. Additionally, Class A shares, Class B shares and Class C shares
incur distribution expenses.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS - (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at
its latest sale price on that exchange prior to the time when assets are
valued; if there were no sales that day, the security is valued at the latest
bid price (in cases where securities are traded on more than one exchange,
the securities are valued on the exchange designated as the primary market
pursuant to procedures adopted by the Trustees); (2) all other portfolio
securities for which over-the-counter market quotations are readily available
are valued at the latest available bid price prior to the time of valuation;
(3) when market quotations are not readily available, including circumstances
under which it is determined by TCW Funds Management, Inc. ("TCW") or Morgan
Stanley Dean Witter Investment Management Inc. ("MSDWIM"), an affiliate of
Morgan Stanley Dean Witter Services Company Inc. (the "Manager"),
(collectively, the "Co-Advisers"), 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
17
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
upon current market prices of securities which are comparable in coupon,
rating and maturity or an appropriate matrix utilizing similar factors); (4)
certain of the Fund's portfolio securities may be valued by an outside
pricing service approved by the Trustees. The pricing service may utilize a
matrix system incorporating security quality, maturity and coupon as the
evaluation model parameters, and/or research and 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 Fund is informed after the ex-dividend date. Interest income is
accrued daily.
C. MULTIPLE CLASS ALLOCATIONS - Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are
allocated to each class of shares based upon the relative net asset value on
the date such items are recognized. Distribution fees are charged directly to
the respective class.
D. FOREIGN CURRENCY TRANSLATION - The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities, other assets and liabilities and forward foreign
currency contracts are translated at the exchange rates prevailing at the end
of the period; and (2) purchases, sales, income and expenses are translated
at the exchange rates prevailing on the respective dates of such
transactions. The resultant exchange gains and losses are included in the
Statement of Operations as realized and unrealized gain/loss on foreign
exchange transactions. Pursuant to U.S. Federal income tax regulations,
certain foreign exchange gains/losses included in realized and unrealized
gain/loss are included in or are a reduction of ordinary income for federal
income tax purposes. The Fund does not isolate that portion of the results of
operations arising as a result of changes in the foreign exchange rates from
the changes in the market prices of the securities.
E. FORWARD FOREIGN CURRENCY CONTRACTS - The Fund may enter into forward
foreign currency contracts as a hedge against fluctuations in foreign
exchange rates. Forward contracts are valued daily at the
18
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
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 Fund records realized gains or losses on delivery
of the currency or at the time the forward contract is extinguished
(compensated) by entering into a closing transaction prior to delivery.
F. FEDERAL INCOME TAX STATUS - It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - The Fund records dividends
and distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassification. Dividends
and distributions which exceed net investment income and net realized capital
gains for financial reporting purposes but not for tax purposes are reported
as dividends in excess of net investment income or distributions in excess of
net realized capital gains. To the extent they exceed net investment income
and net realized capital gains for tax purposes, they are reported as
distributions of paid-in-capital.
H. ORGANIZATIONAL EXPENSES - Morgan Stanley Dean Witter Advisors Inc.,
formerly Dean Witter InterCapital Inc., an affiliate of the Manager, paid the
organizational expenses of the Fund 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 Fund pays the Manager a management
fee, calculated daily and payable monthly, by applying the annual rate of
0.75% to the Fund's daily net assets.
Under the terms of the Management Agreement, the Manager maintains certain of
the Fund's books and records and furnishes, at its own expense, office space,
facilities, equipment, clerical, bookkeeping and certain legal services and
pays the salaries of all personnel, including officers of the Fund who are
employees of the Manager. The Manager also bears the cost of telephone
services, heat, light, power and other utilities provided to the Fund.
19
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
3. INVESTMENT ADVISORY AGREEMENT
Pursuant to a Co-Investment Advisory Agreement with the Co-Advisers, the Fund
pays the Co-Advisers collectively an advisory fee, calculated daily and
payable monthly, by applying the annual rate of 0.50% to the Fund's daily net
assets.
TCW has in turn entered into further sub-advisory agreements with two of its
affiliates, TCW Asia Limited, a Hong-Kong corporation, and TCW London
International, Limited, a California corporation (the "Sub-Advisers"),
pursuant to which the Sub-Advisers assist TCW in providing services under its
Co-Advisory Agreement.
Under the terms of the Co-Investment Advisory Agreement, the Fund has
retained the Co-Advisers to invest the Fund's assets, including placing
orders for the purchase and sale of portfolio securities. The Co-Advisers
obtain and evaluate such information and advice relating to the economy,
securities markets, and specific securities as it considers necessary or
useful to continuously manage the assets of the Fund in a manner consistent
with its investment objective. In addition, the Co-Advisers pay the salaries
of all personnel, including officers of the Fund, who are employees of the
Co-Advisers.
For the year ended January 31, 1999, TCW and MSDWIM received $217,262 and
$204,729, respectively, in advisory fees.
4. PLAN OF DISTRIBUTION
Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Manager. The Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. The
Plan provides that the Fund will pay the Distributor a fee which is accrued
daily and paid monthly at the following annual rates: (i) Class A -up to
0.25% of the average daily net assets of Class A; (ii) Class B -1.0% of the
average daily net assets of Class B; and (iii) Class C -up to 1.0% of the
average daily net assets of Class C. In the case of Class A shares, amounts
paid under the Plan are paid to the Distributor for services provided. In the
case of Class B and Class C shares, amounts paid under the Plan are paid to
the Distributor for (1) services provided and the expenses borne by it and
others in the distribution of the shares of these Classes, including the
payment of commissions for sales of these Classes and incentive compensation
to, and expenses of, Morgan Stanley Dean Witter Financial Advisors, and
others who engage in or support distribution of the shares or who service
shareholder accounts, including overhead and telephone expenses; (2) printing
and distribution of prospectuses and reports used in connection with the
offering of these shares to other than current shareholders; and (3)
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may utilize fees paid pursuant to the
Plan, in the case of Class B shares, to compensate Dean
20
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
Witter Reynolds Inc. ("DWR"), an affiliate of the Manager and Distributor,
and other selected broker-dealers for their opportunity costs in advancing
such amounts, which compensation would be in the form of a carrying charge on
any unreimbursed expenses.
In the case of Class B shares, provided that the Plan continues in effect,
any cumulative expenses incurred by the Distributor but not yet recovered may
be recovered through the payment of future distribution fees from the Fund
pursuant to the Plan and contingent deferred sales charges paid by investors
upon redemption of Class B shares. Although there is no legal obligation for
the Fund to pay expenses incurred in excess of payments made to the
Distributor under the Plan and the proceeds of contingent deferred sales
charges paid by investors upon redemption of shares, if for any reason the
Plan is terminated, the Trustees will consider at that time the manner in
which to treat such expenses. The Distributor has advised the Fund that such
excess amounts, including carrying charges, totaled $276,712 at January 31,
1999.
In the case of Class A shares and Class C shares, expenses incurred pursuant
to the Plan in any calendar year in excess of 0.25% or 1.0% of the average
daily net assets of Class A or Class C, respectively, will not be reimbursed
by the Fund through payments in any subsequent year, except that expenses
representing a gross sales credit to Morgan Stanley Dean Witter Financial
Advisors or other selected broker-dealer representatives may be reimbursed in
the subsequent calendar year. For the year ended January 31, 1999, the
distribution fee was accrued for Class A shares and Class C shares at the
annual rate of 0.25% and 1.0%, respectively.
The Distributor has informed the Fund that for the year ended January 31,
1999, it received contingent deferred sales charges from certain redemptions
of the Fund's Class B shares of $250, respectively and received $10,158 in
front-end sales charges from sales of the Fund's Class A shares. The
respective shareholders pay such charges which are not an expense of the
Fund.
5. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from sales of portfolio securities,
excluding short-term investments, for the year ended January 31, 1999
aggregated $91,120,443 and $155,836,801, respectively.
For the year ended January 31, 1999, the Fund incurred brokerage commissions
with Morgan Stanley & Co., Inc., an affiliate of the Manager and Distributor,
in the amount of $15,661.
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At January 31, 1999, the Fund
had transfer agent fees and expenses payable of approximately $6,200.
21
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
6. SHARES OF BENEFICIAL INTEREST
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
JANUARY 31, 1999 JANUARY 31, 1998*
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold...................... 63,684 $ 675,662 -- --
Reinvestment of dividends. 19,069 203,087 -- --
Redeemed.................. (7,412,769) (90,208,049) (7,451,203) $(92,433,846)
------------- --------------- ------------- ---------------
Net decrease - Class A.... (7,330,016) (89,329,300) (7,451,203) (92,433,846)
------------- --------------- ------------- ---------------
CLASS B SHARES
Sold...................... 83,154 832,618 2,766 34,325
Reinvestment of dividends. 73 775 -- --
Redeemed.................. (10,824) (116,908) -- --
------------- --------------- ------------- ---------------
Net increase - Class B.... 72,403 716,485 2,766 34,325
------------- --------------- ------------- ---------------
CLASS C SHARES
Sold...................... 4,550 46,323 891 11,000
Reinvestment of dividends. 8 87 -- --
------------- --------------- ------------- ---------------
Net increase - Class C.... 4,558 46,410 891 11,000
------------- --------------- ------------- ---------------
CLASS D SHARES
Sold...................... 1 13 810 10,000
Reinvestment of dividends. 4 38 -- --
------------- --------------- ------------- ---------------
Net increase - Class D.... 5 51 810 10,000
------------- --------------- ------------- ---------------
Net decrease in Fund...... (7,253,050) $(88,566,354) (7,446,736) $(92,378,521)
============= =============== ============= ===============
</TABLE>
- ------------
* For Class B, C, and D, for the period January 26, 1998 (issue date)
through January 31, 1998.
7. FEDERAL INCOME TAX STATUS
At January 31, 1999, the Fund had a net capital loss carryover of
approximately $48,497,000 which may be used to offset future capital gains to
the extent provided by regulations, which is available through January 31 of
the following years:
<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
- -----------------------------
2004 2005 2007
- --------- -------- --------
<S> <C> <C>
$21,279 $8,100 $19,118
========= ======== ========
</TABLE>
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 Fund's next taxable year. The Fund incurred and will elect to
defer net capital and foreign currency losses of approximately $3,978,000 and
$7,000, respectively, during fiscal 1999.
22
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
NOTES TO FINANCIAL STATEMENTS January 31, 1999, continued
As of January 31, 1999, the Fund had temporary book/tax differences primarily
attributable to post-October losses and capital loss deferrals on wash sales
and permanent book/tax differences primarily attributable to a net operating
loss, foreign currency losses and a redesignation of a distribution received
by the Fund. To reflect reclassifications arising from the permanent
differences, paid-in-capital was charged $854,379, accumulated net realized
loss was credited $683,605 and accumulated net investment loss was credited
$170,774.
8. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS
The Fund may enter into forward foreign currency contracts ("forward
contracts") to facilitate settlement of foreign currency denominated
portfolio transactions or to manage foreign currency exposure associated with
foreign currency denominated securities.
Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk
of an unfavorable change in foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their
contracts.
At January 31, 1999, the Fund had an outstanding forward contract to
facilitate settlement of foreign currency denominated portfolio transactions.
At January 31, 1999, the Fund's cash balance consisted principally of
interest bearing deposits with Chase Manhattan Bank N.A., the Fund's
custodian.
9. SUBSEQUENT EVENT
On February 25, 1999, the Trustees approved a Plan of Liquidation and
Dissolution to liquidate the Fund subject to shareholder approval at a
special meeting of shareholders scheduled to be held on June 8, 1999.
Effective February 26, 1999, in anticipation of shareholder approval, the
Trustees suspended the sale of Fund shares, including shares to existing
shareholders (but still permitted the reinvestment of dividends by
shareholders who had elected that option). As a result of this suspension,
the Trustees also determined that the distribution fees, accrued daily and
payable monthly, to the Distributor, pursuant to the Plan of Distribution,
would be terminated.
23
<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
FOR THE YEAR ENDED JANUARY 31, MARCH 30, 1994*
------------------------------------------------------- THROUGH
1999++ 1998**++ 1997 1996 JANUARY 31, 1995
------------ ------------- ------------ ------------- ----------------
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $ 12.71 $ 14.70 $13.07 $11.18 $ 14.02
------------ ------------- ------------ ------------- ----------------
Income (loss) from investment operations:
Net investment income (loss)..................... (0.04) 0.10 0.02 0.04 0.11
Net realized and unrealized gain (loss) ......... (3.38) (1.94) 1.65 1.73 (2.89)
------------ ------------- ------------ ------------- ----------------
Total income (loss) from investment operations .. (3.42) (1.84) 1.67 1.77 (2.78)
------------ ------------- ------------ ------------- ----------------
Offering costs charged against capital ........... -- -- -- -- (0.02)
------------ ------------- ------------ ------------- ----------------
Less dividends and distributions from:
Net investment income............................ (0.05) (0.15) (0.05) (0.02) (0.09)
Net realized gain ............................... -- -- -- -- (0.01)
------------ ------------- ------------ ------------- ----------------
Total dividends and distributions ................ (0.05) (0.15) (0.05) (0.02) (0.10)
------------ ------------- ------------ ------------- ----------------
Anti-dilutive effect of acquiring treasury
shares........................................... -- -- 0.01 0.14 0.06
------------ ------------- ------------ ------------- ----------------
Net asset value, end of period ................... $ 9.24 $ 12.71 $14.70 $13.07 $ 11.18
============ ============= ============ ============= ================
TOTAL RETURN+..................................... (27.05)% (12.43)% 13.03% 17.04% (19.47)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 2.75 %(3) 1.67 % 1.72% 1.69% 1.73 %(2)
Net investment income (loss) ..................... (0.36)%(3) 0.64 % 0.12% 0.28% 0.94 %(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ......... $55,262 $169,252 $305,308 $273,172 $254,358
Portfolio turnover rate .......................... 114 % 85 % 66% 66% 61 %(1)
</TABLE>
- ------------
* Commencement of operations.
** Prior to January 26, 1998, the Fund operated as a closed-end management
investment company and was solely advised by TCW Funds Management, Inc.
Shares of the Fund existing at the time of its conversion to an
open-end management investment company have been designated as Class A
shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class
specific expenses.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JANUARY 26, 1998*
ENDED THROUGH
JANUARY 31, 1999 JANUARY 31, 1998
---------------- -----------------
<S> <C> <C>
CLASS B SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period ......... $12.71 $12.34
---------------- -----------------
Income (loss) from investment operations:
Net investment loss........................... (0.14) --
Net realized and unrealized gain (loss) ..... (3.35) 0.37
---------------- -----------------
Total income (loss) from investment operations (3.49) 0.37
---------------- -----------------
Less dividends from net investment income: ... (0.05) --
---------------- -----------------
Net asset value, end of period ................ $9.17 $12.71
================ =================
TOTAL RETURN+.................................. (27.59)% 3.08 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses....................................... 3.50 %(3) 3.18 %(2)
Net investment loss ........................... (1.11)%(3) (2.77)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ...... $689 $35
Portfolio turnover rate ....................... 114 % 85 %
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period........... 12.71 $12.34
---------------- -----------------
Income (loss) from investment operations:
Net investment loss........................... (0.14) --
Net realized and unrealized gain (loss) ..... (3.35) 0.37
---------------- -----------------
Total income (loss) from investment operations (3.49) 0.37
---------------- -----------------
Less dividends from net investment income: ... (0.05) --
---------------- -----------------
Net asset value, end of period ................ $9.17 $12.71
================ =================
TOTAL RETURN+.................................. (27.60)% 3.08 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses....................................... 3.50 %(3) 3.07 %(2)
Net investment loss ........................... (1.11)%(3) (2.85)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ...... $50 $11
Portfolio turnover rate ....................... 114 % 85 %
</TABLE>
- ------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class
specific expenses.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JANUARY 26, 1998*
ENDED THROUGH
JANUARY 31, 1999 JANUARY 31, 1998
---------------- -----------------
<S> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period............ $12.72 $12.34
---------------- -----------------
Income (loss) from investment operations:
Net investment loss............................ (0.01) --
Net realized and unrealized gain (loss) ...... (3.40) 0.38
---------------- -----------------
Total income (loss) from investment operations (3.41) 0.38
---------------- -----------------
Less dividends from net investment income: .... (0.05) --
---------------- -----------------
Net asset value, end of period ................. $9.26 $12.72
================ =================
TOTAL RETURN+................................... (26.88)% 3.08 %(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses........................................ 2.50 %(3) 2.07 %(2)
Net investment loss ............................ (0.11)%(3) (1.60)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands ....... $8 $10
Portfolio turnover rate ........................ 114 % 85 %
</TABLE>
- ------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of
the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class
specific expenses.
SEE NOTES TO FINANCIAL STATEMENTS
26
<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 "Fund") at January 31, 1999, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended and the financial highlights
for each of the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at January 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
As described in Note 9 to the financial statements, the Board of Trustees of
TCW/DW Emerging Markets Opportunities Trust approved a plan of liquidation
and dissolution, subject to shareholder approval, whereby the Fund will be
liquidated.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
March 18, 1999
27
<PAGE>
TRUSTEES
John C. Argue
Richard M. DeMartini
Charles A. Fiumefreddo
John R. Haire
Dr. Manuel H. Johnson
Thomas E. Larkin, Jr.
Michael E. Nugent
John L. Schroeder
Marc I. Stern
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Thomas E. Larkin, Jr.
President
Barry Fink
Vice President, Secretary and
General Counsel
Andy Skov
Vice President
Robert L. Meyer
Vice President
Michael P. Reilly
Vice President
Terence F. Mahoney
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
MANAGER
Morgan Stanley Dean Witter Services Company Inc.
CO-ADVISERS
TCW Funds Management Inc.
Morgan Stanley Investment Management Inc.
This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.
This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.
T C W / D W
EMERGING
MARKETS
OPPORTUNITIES
TRUST
[GRAPHIC OMITTED]
ANNUAL REPORT
JANUARY 31, 1999
